IRIS Accounts Production v24.3.2.46 04408958 Board of Directors Board of Directors 1.6.23 31.5.24 31.5.24 services to the motor industry. true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh044089582023-05-31044089582024-05-31044089582023-06-012024-05-31044089582022-05-31044089582022-06-012023-05-31044089582023-05-3104408958ns15:EnglandWales2023-06-012024-05-3104408958ns14:PoundSterling2023-06-012024-05-3104408958ns10:Director12023-06-012024-05-3104408958ns10:Director22023-06-012024-05-3104408958ns10:PrivateLimitedCompanyLtd2023-06-012024-05-3104408958ns10:FRS1022023-06-012024-05-3104408958ns10:Audited2023-06-012024-05-3104408958ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-06-012024-05-3104408958ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-06-012024-05-3104408958ns10:FullAccounts2023-06-012024-05-3104408958ns10:OrdinaryShareClass12023-06-012024-05-3104408958ns10:Director32023-06-012024-05-3104408958ns10:Director42023-06-012024-05-3104408958ns10:CompanySecretary12023-06-012024-05-3104408958ns10:RegisteredOffice2023-06-012024-05-3104408958ns5:CurrentFinancialInstruments2024-05-3104408958ns5:CurrentFinancialInstruments2023-05-3104408958ns5:ShareCapital2024-05-3104408958ns5:ShareCapital2023-05-3104408958ns5:CapitalRedemptionReserve2024-05-3104408958ns5:CapitalRedemptionReserve2023-05-3104408958ns5:RetainedEarningsAccumulatedLosses2024-05-3104408958ns5:RetainedEarningsAccumulatedLosses2023-05-3104408958ns5:ShareCapital2022-05-3104408958ns5:RetainedEarningsAccumulatedLosses2022-05-3104408958ns5:CapitalRedemptionReserve2022-05-3104408958ns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-3104408958ns5:CapitalRedemptionReserve2022-06-012023-05-3104408958ns5:RetainedEarningsAccumulatedLosses2023-06-012024-05-3104408958ns5:CapitalRedemptionReserve2023-06-012024-05-3104408958ns5:LongLeaseholdAssetsns5:LandBuildings2023-06-012024-05-3104408958ns5:PlantMachinery2023-06-012024-05-3104408958ns5:MotorVehicles2023-06-012024-05-3104408958ns5:ComputerEquipment2023-06-012024-05-3104408958ns5:ReportableOperatingSegment12023-06-012024-05-3104408958ns5:ReportableOperatingSegment12022-06-012023-05-3104408958ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2023-06-012024-05-3104408958ns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-06-012023-05-3104408958ns10:HighestPaidDirector2023-06-012024-05-3104408958ns10:HighestPaidDirector2022-06-012023-05-3104408958ns5:OwnedAssets2023-06-012024-05-3104408958ns5:OwnedAssets2022-06-012023-05-3104408958112023-06-012024-05-3104408958112022-06-012023-05-3104408958122023-06-012024-05-3104408958122022-06-012023-05-3104408958ns5:LongLeaseholdAssetsns5:LandBuildings2023-05-3104408958ns5:PlantMachinery2023-05-3104408958ns5:MotorVehicles2023-05-3104408958ns5:ComputerEquipment2023-05-3104408958ns5:LongLeaseholdAssetsns5:LandBuildings2024-05-3104408958ns5:PlantMachinery2024-05-3104408958ns5:MotorVehicles2024-05-3104408958ns5:ComputerEquipment2024-05-3104408958ns5:LongLeaseholdAssetsns5:LandBuildings2023-05-3104408958ns5:PlantMachinery2023-05-3104408958ns5:MotorVehicles2023-05-3104408958ns5:ComputerEquipment2023-05-3104408958ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3104408958ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3104408958ns5:WithinOneYear2024-05-3104408958ns5:WithinOneYear2023-05-3104408958ns5:BetweenOneFiveYears2024-05-3104408958ns5:BetweenOneFiveYears2023-05-3104408958ns5:AllPeriods2024-05-3104408958ns5:AllPeriods2023-05-3104408958ns5:DeferredTaxation2023-05-3104408958ns5:DeferredTaxation2024-05-3104408958ns10:OrdinaryShareClass12024-05-3104408958ns5:RetainedEarningsAccumulatedLosses2023-05-3104408958ns5:CapitalRedemptionReserve2023-05-3104408958ns5:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl2023-06-012024-05-3104408958ns5:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl2022-06-012023-05-3104408958ns5:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl2024-05-3104408958ns5:KeyManagementPersonnelCloseFamilyMembersEntitiesUnderKeyManagementPersonnelsControl2023-05-31
REGISTERED NUMBER: 04408958 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2024

FOR

NATIONWIDE VEHICLE CONTRACTS LIMITED

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 May 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 8

Report of the Independent Auditors 11

Statement of Comprehensive Income 15

Balance Sheet 16

Statement of Changes in Equity 17

Cash Flow Statement 18

Notes to the Cash Flow Statement 19

Notes to the Financial Statements 20


NATIONWIDE VEHICLE CONTRACTS LIMITED

COMPANY INFORMATION
for the Year Ended 31 May 2024







DIRECTORS: Mr M E Smith
Mr D L Johnson
Mrs S C Goodwin
Mr K M Hawes



SECRETARY: Mr D L Johnson



REGISTERED OFFICE: Unit 9
Christie Way
Christie Fields
Manchester
M21 7QY



REGISTERED NUMBER: 04408958 (England and Wales)



SENIOR STATUTORY AUDITOR: Andrew Booth FCA



AUDITORS: Moss & Williamson Limited
Chartered Accountants
Statutory Auditors
3 Mellor Road
Cheadle Hulme
Cheadle
Cheshire
SK8 5AT

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

Nationwide Vehicle Contracts Ltd completed twenty-two years of trading during the period under review. The company's primary activity is as a vehicle leasing introducer arranging credit hire agreements, sourced via a panel of recognised funders, on behalf of UK customers. Nationwide markets all its offers exclusively through a dedicated website, sourcing and supplying all vehicles linked to each agreement via UK franchised suppliers for the majority of vehicle brands.

The products we offer are restricted to Personal Contract Hire agreements, which are regulated and Business Contract Hire products - being mainly unregulated.

In order to arrange Regulated lease agreements, the business is authorised and regulated by the Financial Conduct Authority - NVC's Firm Number is 668741. The scope of permissions under the Financial Services and Markets Act 2000 are:

==> Credit Broking
==> Debt Counselling
==> Debt Adjusting

Nationwide Vehicle Contracts also advises and arranges Asset Protection insurance on behalf of its customers. These products include GAP Insurance, SMART Cosmetic repair, and Tyre & Alloy Insurance. As GAP Insurance is a regulated product Nationwide also complies with regulations relating to specific additional permissions from the FCA for:

==> Advising on and arranging non-investment insurance products.


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

REVIEW OF BUSINESS
During the year the directors' continued focus has been to increase revenues and profitability through its core business channels, (arranging leases on behalf of private customers and SMEs) augmented by growing sales of insurance products and developing additional revenues through linked products such as extended warranties and service contracts. During the period we engaged with several of our funders in marketing used lease vehicles. These products complimented our new vehicle offerings providing substantial additional sales to customers looking for value for money rentals versus similar new vehicles with significantly higher rentals.

During the period the supply challenges encountered during the previous year eased. Many of our traditional OEM suppliers were therefore able to offer us volumes of competitively priced models which meant that we were able to take advantage in marketing lower rentals to our customers. Some prestige brands did however continue with their implementation of "Agency" models - this has effectively restricted supply to the leasing broker market and has increased acquisition costs and hence rentals for these brands. This action has altered the mix of our supplies where customers have mostly switched into other more affordable brands including new entrants, mainly Chinese OEMs who began to ramp-up their offerings and supply especially within the pure electric and PHEV channel. Furthermore, our full implementation of our Used lease offers has more than offset any impact on volume because of these strategies. The Nationwide board has also adapted and developed specific measures to protect business revenues. This has been achieved through the creation of new opportunities together with maintaining rigid cost/overhead controls without compromising development and investment key to protecting the business and generating sales.

Government policy with respect to the ZEV Mandate has also had an impact on the availability of ICE vehicle supply. Whilst some company employees have been able to enjoy the tax incentives linked to driving EVs through schemes such as Salary Sacrifice electric vehicle up-take in the private market has been very slow due to costs of EVs, poor used values, cost of installation of home chargers plus a poor network of charging points at acceptable pricing. Over the coming years (before 2030) the Government must act to incentivise private buyers to move to EVs and/or change the rules for OEMs with respect to the ZEV rules if the automotive market is to maintain its upward trajectory.

During the year there is no doubt that continued high interest rates and price pressures has impacted on consumer confidence and individual budgets. However, vehicle usage remains one of the key priorities for many people and leasing is one of the most cost-effective means for businesses and private individuals to acquire essential mobility. As a result of Nationwide's ability to secure the most competitive vehicle lease rentals in the market the business has been able to attract more customers during the year with a wide range of products and prices to suit individual needs and budgets.

Nationwide Vehicle Contracts' directors continued to work closely with funder partners to support customers, whose contracts were nearing termination, to implement contract "Extension Programmes". This action has proved extremely popular to lessees in providing security of mobility at little or no additional cost and countering the long lead times waiting for a new replacement vehicle. Formal Extension Programmes have also generated significant revenue for the business during the year. Due to Nationwide's large live customer base and end of contract volumes the business took full advantage in marketing these opportunities. Furthermore, the ability to introduce Extension products has helped to maintain our live customer base and renewal opportunities once the extension period ends and supply improves.

Overall deliveries for new/used vehicles were up by 15% compared with the previous year. On top of this contract extensions were also higher. The trend towards personal car leasing as the preferred method of acquiring a new vehicle continues to be positive. The largest proportion of Nationwide's business represents personal contract hire (PCH) products. During 2023/24 our "Business" mix increased alongside the market trend to 24%. Combined, Personal Contract Hire and Business Contract Hire makes up the lion's share of the leasing broker market with Nationwide achieving over 17.7% share of all new business in these channels during the period and circa 17.8% of the industry PCH/BCH total live fleet as measured by the BVRLA (British Vehicle Rental & Leasing Association)

The significant world macroeconomic and geopolitical events that impacted supply and costs during the previous financial year are now largely in retreat as far as the automotive sector is concerned. However, new challenges have emerged plus consumer confidence has not yet fully returned. Nationwide is nimble, experienced, and geared to adapt, introduce efficiencies, and develop new products. This has led to the business delivering another strong commercial and financial performance in 2023/24.


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

We predict a challenging but a promising future for the leasing broker sector within the UK automotive market. As we head towards 2025, we face an evolving list of issues, namely Commission disclosure outcomes, Consumer Duty implementation, EV integration, sourcing ICE vehicles, potential regulatory changes and of course consumer affordability and sentiment. Over the 22 years Nationwide has been in business the sector has always presented challenges but also opportunities and we go into the next financial year confident that the business can prosper and rise to all the challenges.

The appetite for both Personal and Business Contract Hire as an acquisition channel for new vehicles continues to prevail indicating a positive trend and outlook for our industry. Furthermore, Nationwide has expertise and financial strength to take advantage any opportunity - The growing used lease market for example.

Key to business success and continuity is Nationwide's access to a varied, well-resourced, and stable funder panel that provide PCH and Business Contract Hire products. During the period the company continued to maintain positive relationships with all existing major funders and continued to develop volumes with new entrants. Critical to maintaining these partnerships is the funders experience and recognition of sales performance, compliance, acceptance rates and strict adherence to their strict administrative processes. The business met all the required standards set by each funder and continues to perform at the highest levels across all these benchmarks.


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The anticipated uncertainties highlighted during the previous financial year surrounding BREXIT and its influence on the UK new vehicle market has not manifested into significant impacts on the leasing sector during the period. Of more consequence has been restrictions on supply of some prestige brands and later during the year a shortage of Internal combustion engine (ICE) vehicles. As previously highlighted, some OEMs continue to maintain their "Agency" retailing strategies that has led to discount reductions coupled to price increases and a focus in channelling supply exclusively via their own franchisees to the exclusion of the broker channel. However, the biggest issue has been the impact of the government's ZEV mandate causing OEMs to slow down their supply mix of ICE versions to achieve EV sales targets in line with the mandate. Suffice to say the industry has struggled to persuade the retail market especially to adopt electric vehicles due to cost, charging network, range anxiety and falling residual values - hence funders are exerting caution leading to uncompetitive rentals. However, given the pressure to move Electric Vehicle stocks exacerbated by new entrants from China we have seen the start of higher discounting and packaged stock offers that link a mix of EVs to the ICE supply.

Despite the challenges, Indicators still point to the fact that leasing continues to experience strong popularity as a simple and affordable way of acquiring a new vehicle. Despite the gloomy economic news and higher interest rates, the leasing market has remained resilient and has seen an upturn in demand during the period, undoubtedly bolstered by the need to renew ageing vehicles. Furthermore, the industry is forecasting growth through 2024/25. We are also seeing the roots of a move back towards company supplied vehicles through Salary sacrifice products. It is forecast that this level of growth will continue in the corporate channel as the date for the elimination of new ICE vehicles in 2030 looms large coupled to pressure on manufacturers to meet ZEV Mandate requirements. Furthermore, the Government has confirmed low, BIK (benefit in kind) tax rates for zero emission vehicles through to April 2028, which will add to the attraction for these products by company car drivers. However, the same is not true for the retail channel. Our industry body, the BVRLA is lobbying Government to do more to stimulate demand for BEVs especially for private lessees.

Nationwide Vehicle Contracts has a relatively low mix of business customers circa 24% versus 76% Personal leasing. Whilst our own surveys tell us that few of our existing customers are contemplating moving to a salary sacrifice arrangement, we continue to watch the market and are poised to complete the necessary development to launch this to customers depending upon demand and viability.

Meanwhile the more immediate challenges surround the cost-of-living impacts on customer confidence, funder's lending policies and cost of money.

It is evident that funders are placing more focus in monitoring and addressing their responsible lending strategies. This has led to a measurable reduction in acceptance rates across all finance lenders. Nationwide enjoys a continued high acceptance rate performance therefore the impact of these adjustments has been minimal. However, no one has remained immune to rising interest rates and their impact on rentals.

Throughout the financial year vehicle availability lead times and delivery logistics have remained challenging. Generally, customers have now accepted higher rentals and are prepared to wait for supply to adjust, extending existing contracts in the interim - as already commented we can report that vehicle supply has started to ease and return to normal enabling us to offer customers who need to replace their vehicles competitive offers to meet their budgets, albeit on alternative models/brands.

We have also used our strong supplier relationships and capital strength to gain access to vehicle stock where and when available. We have also launched a brand-new concept of used vehicle leasing in partnership with several of our largest funders to provide wider choice and lower prices for immediately available vehicles. Through this channel we anticipate increasing sales by up to 20% over the coming year.

Nationwide's existing funders have voiced their desire to increase and/or maintain their volume positions through 2024/25 and have committed their support to achieve this.
However, despite their size and muscle within the market they are reliant on the OEMs for supply and advantageous terms - during the period of short supply we have seen moves by several OEMs to wrestle control of the leasing market by channelling supply and offers directly via their in-house finance companies and franchisees. A spin off to this is that many more OEMs are developing their own multi brand leasing operations and Nationwide through its strong position in the market has access to the majority of these and hence a wider range of vehicles and offers.


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

Several venture capital backed aggregators and automotive plc groups have tried to gain a foothold within the market, with little success. Furthermore, some of our larger competitors have been bought out or have merged with other brokers, funders and automotive players. We predict this will prove a distraction and with our sharp focus remaining on core activities we believe that this will benefit our business. Nonetheless this activity tangibly reflects the desirability to access this market and indicates that the traditional automotive model is under scrutiny. During this financial year Nationwide continued to develop organic brand strategies to maintain search engine positioning. This together with a strong brand presence built over the previous 22 years has maintained our strong enquiry levels and site visits.

Our continued prudent financial strategy prior to and in dealing with these market challenges has ensured that the company is in a very strong position to rebound from any potential crises. The directors are therefore confident that the business is in a very strong commercial and financial position to implement the required strategy to take advantage of the market opportunities and exploit the sizable live customer base to generate further growth and revenues over the coming financial year.

STRATEGY
Nationwide continues to implement the following core strategy:

==> Adopt a "volume" approach and increase contract volumes through market leading value for money offers and investing more support in reducing headline rentals where profitable.
==> Provide resource to adequately support business activity and implement coaching/training to develop the efficiency & quality of sales and customer service resource.
==> Allocate necessary investment in digital marketing/AI/SEO/PPC and core technology upgrades.
==> Develop website tools to enhance the consumer journey and experience.
==> Develop organic growth in generating website traffic and enquiries through PR and brand awareness.
==> Focus on increasing retention/renewal rates.
==> Add revenue through new and linked product sales.
==> Develop our Used Lease proposition to 10% of the overall contract mix.
==> Raise Customer Satisfaction & Net Promoter score consistently.

Nationwide will continue to focus on its core business and drive a larger share of the available market. Although the UK Car/Van market will take time to return to pre-pandemic levels current indicators are positive plus the Personal/Business Contract Hire market continues to be popular as a means of acquiring a new vehicle. However, there are evident changes to the profile of products demanded by customers. Fully electric vehicle uptake will inevitably increase particularly because of the UK Government's target to eliminate ICE sales, now, by 2030. Nationwide has developed specific offers and a web presence for Ultra Low Emission and Zero emission vehicles and new partnerships have been built with infrastructure providers to offer a "one stop shop" for committed EV customers. The provision of Used EV leases also offers a prime opportunity for consumers to acquire an EV at a lower rental and without the residual value risk or that they are "stuck" with outdated technology.

Nationwide's sizable customer base provides the opportunity to continue to generate sales and revenues from linked products. The volume of insurance products has continued to rise and there is further headroom to grow this area of the business. Newer products such as SMART/Cosmetic Repair and Tyre & Alloy insurance are already gaining traction and overall mix of sales. These will add further growth in the coming year. Other "in life" products have now been developed to support customers and generate additional revenues going forward.

Nationwide Vehicle Contracts is ahead of its peers in introducing the concept of used vehicle leasing which will not only offer better affordability but also immediate availability across a range of vehicles, including full electric versions to personal lessees.

Nationwide's website, Intranet and CRM continuously undergoes development - this investment will feature uppermost to ensure that the performance, efficiency, and security of these vital platforms is market leading.


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STRATEGIC REPORT
for the Year Ended 31 May 2024

COMPLIANCE
Compliance is a key component of Nationwide's responsibility in ensuring that customers interests are at the forefront of activities. In this respect the business has diligently managed and continuously develops/improves robust monitoring processes. We will continue to invest in this area to ensure customers are correctly informed and treated fairly.

The FCA continue to review the industry - for example we have seen a tightening of regulation surrounding the use of Approved Introducers. Nationwide has no appointed AIs and they do not feature in our strategy. The business has built a well-resourced stand-alone Compliance Team with outsourced expertise to support our processes. During the period the business has continued to invest in additional Customer Services resource and employs a bespoke fully automated Complaints System and "real time" customer feedback platform to measure satisfaction/compliance and which measures NPS - In partnership with the BVRLA (British Vehicle Rental & Leasing Association) we continue to offer a full suite of e-learning modules to all staff and continue to use automated compliance recordings as part of the sales process to ensure that customers are made aware of all key information prior to placing their order.

In July 2022 the FCA set out the final rules and guidance for the new Consumer Duty requirements strengthening and replacing the previous TCF (Treating Customers Fairly) regulations with implementation from July 2023. This has absorbed a large amount of time and resources to ensure the business is ready and compliant to meet the demands of Consumer Duty. The new rules have led to root and branch reviews of all business processes and communication with private customers and have been fully embraced by Nationwide's teams. "Consumer Duty" is a positive process as it aims to provide fair outcomes to customers, which is exactly what we want to do to secure repeat business. These new rules will lead to improvements to our business and raise standards within the industry generally.

Nationwide's Compliance team employs a "3 lines of defence" monitoring process and Compliance Monitoring Plan that provides an "early warning system" as to any operational defects. This then translates into specific action such as process amendment and/or staff training and coaching. All specific policies are also reviewed over given timelines and amended where necessary. The business regularly measures complaints, resolution outcomes, data breaches, conducts "real time" customer surveys to ensure key compliance requirements are consistently implemented and tests processes to ensure guidelines are being respected. Results are communicated to board members regularly.

As a mark of customer sentiment Feefo recently extended to Nationwide their coveted Platinum Trusted Service Award for the third year running - a positive indicator as to product and service satisfaction as perceived by actual customers.

Nationwide is a "broker" member of the British Vehicle and Leasing Association (BVRLA) The BVRLA conduct annual compliance audits on behalf of the major funders to ensure their broker partners are meeting FCA compliance guidance. Nationwide has continuously maintained high scores and in the year in question achieved a clean bill of health.

PERFORMANCE AND MEASUREMENT
Nationwide Vehicle Contracts employs a range of targets and measurements to assess performance across both commercial and quality criterion.

Financial performance is tracked via monthly management accounts, that monitor actual performance versus budgets. These are circulated to all board members.

Whilst Nationwide's internal system provides comprehensive reporting on a "real time" basis a comprehensive Board Report is issued. This provides detailed measurements and analysis of all key KPIs and risks across the business.

ON BEHALF OF THE BOARD:





Mr M E Smith - Director


27 February 2025

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

REPORT OF THE DIRECTORS
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company for the year ended 31 May 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2024.

FUTURE DEVELOPMENTS
In the next financial year, the Company plans to grow the concept of used vehicle leasing which offers better affordability and immediate availability across a range of vehicles, including full electric versions, to personal lessees.

The company also plans to continue to invest in the development of its website, Intranet and CRM to ensure that the performance, efficiency, and security of these vital platforms is market leading and supports the Company's long term growth plans.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report.

Mr M E Smith
Mr D L Johnson
Mrs S C Goodwin
Mr K M Hawes

FINANCIAL INSTRUMENTS
The company's financial instruments comprise cash, trade debtors and creditors, certain other debtors and accruals, all of which arise from its normal operations.

The main risks associated with these financial assets and liabilities are credit risk and liquidity and cash flow risk. The directors review and agree policies for managing each of these risks and they are outlined below.

The company does not use derivative financial instruments.

Credit risk

The Company's credit risk is primarily associated with its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts where applicable. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The directors monitor credit risk but consider that the company has minimal exposure.

Liquidity and cash flow risk

Liquidity and cash flow risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The directors aim to mitigate liquidity risk and cash flow risk by managing working capital and, as a result,they continue to closely monitor the Company's working capital requirements. Should the directors feel that the company required additional working capital, the directors would first look to adjust the level of directors' remuneration being taken. Beyond that, the directors would then look to secure and utilise short or long-term finance facilities to try to ensure the certainty of cash flows.

REVIEW OF BUSINESS
A review of the business and its principal risks and uncertainties is set out in the Strategic Report of these financial statements.

The loss for the year, after taxation, amounted to £249,036 (2023 loss: £174,291).


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

REPORT OF THE DIRECTORS
for the Year Ended 31 May 2024

GOING CONCERN
The directors believe that the Company has adequate resources to continue operating for the foreseeable future and thus they have continued to adopt the going concern basis of accounting in preparing the Company's financial statements.

The directors continue to monitor the impact of Brexit, the geo-political situation in Ukraine and the impact of rising inflation and interest rates affecting the global and UK economy. The impact of Brexit is considered to be minimal as the Company's customers are all based in the UK. The impact of the situation in Ukraine has impacted global supply chains for vehicle manufacturers and rising inflation and interest rates have put pressure on consumer budgets leading to reduced acceptance rates from lenders. The Company has managed this by utilising its supplier relationships to gain access to vehicle stock and by ensuring that its application process remains robust so that it maintains high acceptance rates. The directors prepare detailed management information and meet regularly to monitor and discuss the Company's performance. The current trading results for 2025 continue to show strong profitability and cash balances and the directors therefore believe that the company is well placed to mitigate any risks that may present themselves.

The directors have assessed the appropriateness of the going concern concept in relation to these financial statements and consider that the accounts should be prepared on a going concern basis. This conclusion has been reached based upon the Company having access to sufficient funds to be able to meet its liabilities and obligations as they fall due tor at least twelve months from approving these financial statements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

REPORT OF THE DIRECTORS
for the Year Ended 31 May 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr M E Smith - Director


27 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NATIONWIDE VEHICLE CONTRACTS LIMITED

Opinion
We have audited the financial statements of Nationwide Vehicle Contracts Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NATIONWIDE VEHICLE CONTRACTS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NATIONWIDE VEHICLE CONTRACTS LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As a part of our audit in accordance with United Kingdom Generally Accepted Accounting Practice; and requirements of the Companies Act 2006 we exercise professional judgement and maintain professional scepticism throughout the audit. Based on our understanding and accumulated knowledge of the Company and the sector in which it operates we considered the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud and whether such actions or non-compliance might have a material impact on the financial statements. These included but were not limited to those that relate to the form and content of the financial statements, such as the accounting policies, United Kingdom Generally Accepted Accounting Practice, the UK Companies Act 2006, compliance with FCA regulations and those that relate to the payment of employees. All team members were briefed to ensure they were aware of any relevant regulations in relation to their work.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, management bias in accounting estimates and improper revenue recognition. Our audit procedures included, but were not limited to:

- Agreement of the financial statement disclosures to underlying supporting documentation;
- Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to revenue recognition, useful life of fixed assets, and completeness of accruals and provisions;
- Revenue year end cut-off procedures;
- Identifying and testing journal entries, in particular any journal entries posted with specific unusual narrative, manual journals to revenue and cash, and review of journals posted to least used accounts;
- Discussions with management; including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Obtaining an understanding of how the Company is complying with its legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of legal correspondence received and expenses incurred, interactions with regulators such as the Financial Conduct Authority and HM Revenue and Customs and the results of audits undertaken by the British Vehicle Rental and Leasing Association and funders.
- Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
- Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
NATIONWIDE VEHICLE CONTRACTS LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Andrew Booth FCA (Senior Statutory Auditor)
for and on behalf of Moss & Williamson Limited
Chartered Accountants
Statutory Auditors
3 Mellor Road
Cheadle Hulme
Cheadle
Cheshire
SK8 5AT

27 February 2025

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STATEMENT OF COMPREHENSIVE
INCOME
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £    £    £   

TURNOVER 3 12,256,629 11,243,542

Cost of sales 2,800,214 1,478,660
GROSS PROFIT 9,456,415 9,764,882

Distribution costs 132,518 98,855
Administrative expenses 9,577,343 9,846,635
9,709,861 9,945,490
OPERATING LOSS and
LOSS BEFORE TAXATION (253,446 ) (180,608 )

Tax on loss 6 (4,410 ) (6,317 )
LOSS FOR THE FINANCIAL YEAR (249,036 ) (174,291 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(249,036

)

(174,291

)

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

BALANCE SHEET
31 May 2024

31.5.24 31.5.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 615,134 632,772

CURRENT ASSETS
Stocks 8 29,526 46,704
Debtors 9 2,231,735 1,226,067
Cash at bank and in hand 1,344,836 1,971,994
3,606,097 3,244,765
CREDITORS
Amounts falling due within one year 10 2,239,321 1,642,181
NET CURRENT ASSETS 1,366,776 1,602,584
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,981,910

2,235,356

PROVISIONS FOR LIABILITIES 12 14,461 18,871
NET ASSETS 1,967,449 2,216,485

CAPITAL AND RESERVES
Called up share capital 13 160 160
Capital redemption reserve 14 40 40
Retained earnings 14 1,967,249 2,216,285
SHAREHOLDERS' FUNDS 1,967,449 2,216,485

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2025 and were signed on its behalf by:




Mr M E Smith - Director



Mr D L Johnson - Director


NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 May 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 June 2022 160 2,390,576 40 2,390,776

Changes in equity
Total comprehensive income - (174,291 ) - (174,291 )
Balance at 31 May 2023 160 2,216,285 40 2,216,485

Changes in equity
Total comprehensive income - (249,036 ) - (249,036 )
Balance at 31 May 2024 160 1,967,249 40 1,967,449

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

CASH FLOW STATEMENT
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (625,134 ) 13,721
Tax paid (2,024 ) (147,682 )
Net cash from operating activities (627,158 ) (133,961 )

Cash flows from investing activities
Purchase of tangible fixed assets - (5,904 )
Sale of tangible fixed assets - 20,417
Net cash from investing activities - 14,513

Decrease in cash and cash equivalents (627,158 ) (119,448 )
Cash and cash equivalents at beginning of
year

2

1,971,994

2,091,442

Cash and cash equivalents at end of year 2 1,344,836 1,971,994

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE CASH FLOW STATEMENT
for the Year Ended 31 May 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.5.24 31.5.23
£    £   
Loss before taxation (253,446 ) (180,608 )
Depreciation charges 17,638 23,226
Profit on disposal of fixed assets - (12,469 )
(235,808 ) (169,851 )
Decrease/(increase) in stocks 17,178 (17,178 )
(Increase)/decrease in trade and other debtors (1,005,668 ) 668,190
Increase/(decrease) in trade and other creditors 599,164 (467,440 )
Cash generated from operations (625,134 ) 13,721

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 1,344,836 1,971,994
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 1,971,994 2,091,442


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank and in hand 1,971,994 (627,158 ) 1,344,836
1,971,994 (627,158 ) 1,344,836
Total 1,971,994 (627,158 ) 1,344,836

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Nationwide Vehicle Contracts Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£).

Significant judgements and estimates
The Company's directors make estimates and assumptions about the future. These estimates and assumptions impact recognised assets and liabilities, as well as revenue and expenses and other disclosures. These estimates are based on historical experience and on various assumptions considered reasonable under the prevailing conditions. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. The estimates and assumptions that may have a significant effect on the carrying amounts of assets and liabilities within the financial year include:

Tangible assets and intangible assets are recognised at cost, less accumulated depreciation, amortisation and any impairments. Amortisation and depreciation take place over the estimated useful life of each asset, until the assessed residual value of the asset is reached.

The directors make an estimate of the recoverable value of trade and other debtors. When assessing for impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience.

There are no key assumptions concerning the future or other sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets or liabilities within the next financial year.

Turnover and revenue recognition
Turnover, which represents amounts derived from ordinary activities, is measured at invoice price, excluding discounts and value added tax. This principally comprises of customer processing fees, commissions from funders and sales support payments from manufacturers. Processing fees are recognised in turnover as they are received, commissions from funders are recognised at the date the vehicle is delivered to the customer. Support payments from manufacturers are recognised at the point at which Nationwide Vehicle Contracts Limited becomes entitled to receive such payments under the terms of its contract with the individual manufacturer. Amounts earned but not received are included in turnover and accrued income.

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - not provided
Office furniture and equipment - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in profit and loss.

A review for Indicators of impairment Is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it Is not possible to estimate the recoverable amount of an Individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters Into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash Rows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that Is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt Instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortized cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable Interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Debtors
Short-term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.5.24 31.5.23
£    £   
Services and commission 12,256,629 11,243,542
12,256,629 11,243,542

All turnover was to customers based in the UK.

4. EMPLOYEES AND DIRECTORS
31.5.24 31.5.23
£    £   
Wages and salaries 6,682,424 6,966,009
Social security costs 857,603 918,552
Other pension costs 164,836 156,855
7,704,863 8,041,416

The average number of employees during the year was as follows:
31.5.24 31.5.23

Sales 26 29
Marketing 14 13
Customer Service 6 5
Administration and compliance 7 7
Other 3 3
56 57

The directors of the company are also the key management and therefore the disclosure below meets the requirement to disclose the remuneration of key management.

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

4. EMPLOYEES AND DIRECTORS - continued

31.5.24 31.5.23
£    £   
Directors' remuneration 4,594,867 4,898,757
Directors' pension contributions to money purchase schemes 40,268 40,268

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
31.5.24 31.5.23
£    £   
Emoluments etc 1,655,188 1,764,926
Pension contributions to money purchase schemes 13,422 13,422

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

31.5.24 31.5.23
£    £   
Depreciation - owned assets 17,638 23,226
Profit on disposal of fixed assets - (12,469 )
Auditors' remuneration 14,500 15,500
Amount paid to auditors for non-audit services 8,850 10,020
Operating lease payments 73,066 18,795

6. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.5.24 31.5.23
£    £   
Deferred tax (4,410 ) (6,317 )
Tax on loss (4,410 ) (6,317 )

UK corporation tax has been charged at 25% .

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

6. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.5.24 31.5.23
£    £   
Loss before tax (253,446 ) (180,608 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

(63,362

)

(45,152

)

Effects of:
Utilisation of tax losses 63,362 45,152
Movement in deferred taxation (4,410 ) (6,317 )
Total tax credit (4,410 ) (6,317 )

7. TANGIBLE FIXED ASSETS
Office
furniture
Long and Motor Computer
leasehold equipment vehicles equipment Totals
£    £    £    £    £   
COST
At 1 June 2023
and 31 May 2024 557,290 59,185 65,589 102,732 784,796
DEPRECIATION
At 1 June 2023 - 46,857 19,817 85,350 152,024
Charge for year - 1,849 11,443 4,346 17,638
At 31 May 2024 - 48,706 31,260 89,696 169,662
NET BOOK VALUE
At 31 May 2024 557,290 10,479 34,329 13,036 615,134
At 31 May 2023 557,290 12,328 45,772 17,382 632,772

8. STOCKS
31.5.24 31.5.23
£    £   
Stocks 29,526 46,704

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.24 31.5.23
£    £   
Trade debtors 1,322,993 694,827
Prepayments and accrued income 908,742 531,240
2,231,735 1,226,067

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.24 31.5.23
£    £   
Trade creditors 624,200 569,305
Corporation tax - 2,024
Social security and other taxes 1,056,661 804,895
Accruals and deferred income 558,460 265,957
2,239,321 1,642,181

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.5.24 31.5.23
£    £   
Within one year 60,700 18,795
Between one and five years 49,817 8,255
110,517 27,050

12. PROVISIONS FOR LIABILITIES
31.5.24 31.5.23
£    £   
Deferred tax
Accelerated capital allowance 14,461 18,871

Deferred
tax
£   
Balance at 1 June 2023 18,871
Credit to statement of income (4,410 )
and retained earnings during
the year
Balance at 31 May 2024 14,461

The whole of the deferred tax liability arises from timing differences relating to the accounting and tax treatment of fixed assets.

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.24 31.5.23
value: £    £   
160 Ordinary £1 160 160

NATIONWIDE VEHICLE CONTRACTS LIMITED (REGISTERED NUMBER: 04408958)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 May 2024

14. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 June 2023 2,216,285 40 2,216,325
Deficit for the year (249,036 ) (249,036 )
At 31 May 2024 1,967,249 40 1,967,289

Retained earnings

Includes all current and prior period retained profits and losses.

Capital redemption reserve

Represents the value of share capital cancelled following its buyback by the company in prior periods.

15. PENSION COMMITMENTS

At the year end the company had outstanding pension contributions due of £11,663 (2023: £10,313).

16. RELATED PARTY DISCLOSURES

In the previous financial year the company sold a motor vehicle to one of the directors at a value of £20,417. The transaction was undertaken on a normal commercial basis. No such transactions occurred during the current financial year.

Transactions with NVC Retail Limited, a company with common shareholders and directors
31.5.24 31.5.23
£    £   
Sales - Management charges received 94,385 139,730
Purchases - recharges of wages and salaries - 70,094
Amount due from NVC Retail Limited 113,262 -