Company Registration No. 03092837 (England and Wales)
MOTORPLUS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
MOTORPLUS LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 12
MOTORPLUS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
145,809
86,694
Current assets
Debtors
6
3,058,353
1,058,162
Cash at bank and in hand
660,431
95,450
3,718,784
1,153,612
Creditors: amounts falling due within one year
7
(3,616,433)
(3,778,621)
Net current assets/(liabilities)
102,351
(2,625,009)
Total assets less current liabilities
248,160
(2,538,315)
Provisions for liabilities
8
(1,042,111)
(1,275,720)
Net liabilities
(793,951)
(3,814,035)
Capital and reserves
Called up share capital
10
25,000
25,000
Profit and loss reserves
(818,951)
(3,839,035)
Total equity
(793,951)
(3,814,035)
MOTORPLUS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2024
31 May 2024
- 2 -
The notes on pages 3 to 12 form part of these financial statements.
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 February 2025 and are signed on its behalf by:
G Pulford
Director
Company registration number 03092837 (England and Wales)
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
Motorplus Limited is a private company limited by shares incorporated in England and Wales. The registered office is Speed Medical House, 16 Eaton Avenue, Matrix Park, Chorley, Lancashire, PR7 7NA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The Directors have considered the Company’s forecasts and projections, taking into account reasonable possible changes in trading performance and cash collection profile together with other means of managing cash outflows. This shows that the company has sufficient resources and facilities to meet its liabilities as they fall due and the financial statements have been accordingly prepared on a going concern basis.true
As part of the assessment, the forecasts and projections reviewed by the Directors have been stress tested for reasonable worst case downside scenarios. On the basis of the flexed budgets it is anticipated that financial support from the Company’s parent Company will be required and the Directors have received assurances that funding will be made available. As part of the going concern assessment, the associated Group has issued a letter of support for a period of 12 months from the date of approval of these financial statements to the Group which includes both making funds available if required and not to seek repayment of amounts due at the Statement of Financial Position date, if this would be detrimental to the Company. The Company currently does not have any bank borrowing or such facilities.
Whilst noting the contingent asset (see note11) the Directors have not factored this matter into their assessment.
After making enquiries the Directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the annual report and financial statements.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
The Company currently does not have any bank borrowing or such facilities. Whilst noting the contingent asset (see note 10) the Directors have not factored this matter into their assessment. After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for premium commissions earned on the sale of insurance policies and claims handling fees provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of insurance policies and claims services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Premium income
Premiums are recognised as turnover when owed by the customer.
Contact Centre Services Income
Contact centre services income is recognised when the performance obligation is complete and the revenue can be reliably measured.
Interest Income
Interest income is recognised in the Statement of Comprehensive Income account using the effective interest method.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Claims provision valuation
Judgement is required on the adequacy of claims provisioning on risk products held. The Company makes provisions for liabilities using best estimate techniques in particular based on experience of claims and reliable measurement information. The provision has decreased in the year as higher claims have been experienced which the Directors attribute to the business activity being in run off.
Insurance policy cancellation rates
Judgement is required on the adequacy of the insurance policy cancellation provision. The Company makes provisions for cancelled policies using reliable past source data and communicating closely with policy underwriters for quantification of open policies at the Statement of Financial Position date.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
91
85
4
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2023 and 31 May 2024
1,250,000
Amortisation and impairment
At 1 June 2023 and 31 May 2024
1,250,000
Carrying amount
At 31 May 2024
At 31 May 2023
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
5
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 June 2023
1,697,549
Additions
98,460
Disposals
(756,713)
At 31 May 2024
1,039,296
Depreciation and impairment
At 1 June 2023
1,610,855
Depreciation charged in the year
39,345
Eliminated in respect of disposals
(756,713)
At 31 May 2024
893,487
Carrying amount
At 31 May 2024
145,809
At 31 May 2023
86,694
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,404,064
928,454
Other debtors
96,529
129,708
2,500,593
1,058,162
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
557,760
Total debtors
3,058,353
1,058,162
Amounts owed by group undertakings are repayable on demand and interest free.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
346,049
255,458
Amounts owed to group undertakings
1,933,930
2,272,062
Amounts owed to related parties
967,736
967,736
Taxation and social security
176,029
229,118
Other creditors
9,260
246
Accruals and deferred income
183,429
54,001
3,616,433
3,778,621
Amounts owed to related parties are repayable on demand and interest free.
8
Provisions for liabilities
2024
2023
£
£
Claims provision
1,042,111
1,275,720
Movements on provisions:
Claims provision
£
At 1 June 2023
1,275,720
Reversal of provision
(233,609)
At 31 May 2024
1,042,111
The claims provision is an estimation of the costs arising from claims outstanding at the year end in respect of which the Company has the intention to settle. The ultimate liability is dependent on the level of claims currently notified and claims that are yet to be notified.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(25,847)
-
Tax losses
582,378
-
Short term timing differences
1,229
-
557,760
-
2024
Movements in the year:
£
Liability at 1 June 2023
-
Credit to profit or loss
(557,760)
Asset at 31 May 2024
(557,760)
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
25,000
25,000
25,000
25,000
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
11
Contingent asset
The Company ceased its trading relationship with its 2 largest First Notification of Loss customers in February and March 2022. Following a review of the contract in respect of one of these customers it was noted that the supplier had not charged VAT on their sales invoices, having since contract inception believed that the services were exempt supplies under Item 4, Group 2, Schedule 9 VAT Act 1994.
Having taken legal advice from leading VAT Counsel, it is the Directors considered opinion that these services were in fact purchases that should have had VAT applied by the supplier. Furthermore, the contractual position is considered to be one whereby the monies paid by Motorplus to the supplier were inclusive of VAT. As such, because the Company has not been supplied with a VAT invoice it has not been able to recover the input VAT on those purchases.
The Directors have undertaken a review of the past historical position and have ascertained that, should input VAT be able to be reclaimed, then there would be an amount of up to c.£5.4million owed by HMRC.
The Company submitted the matter for review by HMRC. HMRC have concluded that no VAT is recoverable because they believe that both Motorplus Limited and the supplier believed that the supplies were exempt at the time the services were provided. The company does not agree with that opinion and therefore the conclusion of HMRC. Furthermore, upon advice of Mr Brown, the company believes that even if that were the case, the supplies should still have been subject to VAT and VAT invoices provided by the supplier. As such the company has lodged an application for the matter to be heard by a VAT Tribunal.
This contingent asset has not been recognised within the trading results for the year ended 31 May 2024 or any prior periods.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
155,337
210,163
13
Parent company and controlling party
The immediate parent company and ultimate controlling parent, throughout the year was 116 Cardamon Limited, a company incorporated in England and Wales. The registered office of 116 Cardamon Limited is Speed Medical House,16 Eaton Avenue, Matrix Park, Chorley Lancashire, PR7 7NA.
The ultimate controlling party was Dr Rajnish Luthra by virtue of his shareholding in 116 Cardamon Limited.
MOTORPLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
14
Related party transactions
The Company has taken advantage of the exemption conferred by section 33.1A of FRS 102 and has not disclosed transactions with 116 Cardamon Limited and its subsidiaries.
Dr Rajnish Luthra
Dr Rajnish Luthra is the ultimate controlling party by virtue of his majority shareholding in the Company's ultimate parent company, 116 Cardamon Limited. During the period, Dr Rajnish Luthra received a salary of £7,000 (2023 - £6,533).
Speed Medical Examination Services Limited
Speed Medical Examination Services Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there is an amount owed to Speed Medical Examination Services Limited of £24,726 (2023 - £23,315), and an amount owed from Speed Medical Examination Services Limited of £21,535 (2023 - £5,319). Sales in the year to Speed Medical Examination Services Limited were £12,280 (2023 - £56,755) and purchases in the year from Speed Medical Examination Services Limited were £17,689 (2023 - £11,806).
Medical Legal Appointments Limited
Medical Legal Appointments Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there is an amount owed by Medical Legal Appointments Limited of £NIL (2022 - £NIL) and an amount owed to Medical Legal Appointments Limited of £NIL (2022 - £108). Sales in the year to Medical Legal Appointments Limited were £135 (2023 - £855).
FL 360 Limited
FL 360 Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there was an amount owed to FL 360 Limited of £1,039,550 (2023 – £969,170), and an amount owed from FL 360 Limited of £NIL (2023 - £1,801). Purchases in the year from FL 360 Limited were £26,866 (2023 – £NIL).
Handl Communication Limited
Handl Communication Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there was an amount owed to Handl Communication Limited of £NIL (2023 – £43,613).
Corpore Limited
Corpore Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there was an amount owed to Corpore Limited of £17,450 (2023 - £29,635). Purchases in the year from Corpore Limited were £81,381 (2023 - £148,424).
Cogent Hire Limited
Cogent Hire Limited is a related party by virtue of common directorship and ultimate controlling ownership. At the year end there was an amount owed by Cogent Hire Limited of £325 (2023 - £510), and an amount owed to Cogent Hire Limited of £NIL (2023 - £NIL) Sales in the year to Cogent Hire Limited were £3,600 (2023 - £105,500). Purchases in the year from Cogent Hire Limited were £NIL (2023 - £NIL)
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