REGISTERED NUMBER: 08038788 (England and Wales) |
Right Car Holdings (UK) Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st May 2024 |
REGISTERED NUMBER: 08038788 (England and Wales) |
Right Car Holdings (UK) Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st May 2024 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Contents of the Consolidated Financial Statements |
for the year ended 31st May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
Right Car Holdings (UK) Limited |
Company Information |
for the year ended 31st May 2024 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
HU2 8BA |
BANKERS: | National Westminster Bank Plc |
60 Market Place |
Beverley |
East Yorkshire |
HU17 8AH |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Group Strategic Report |
for the year ended 31st May 2024 |
The directors present their strategic report of the company and of the group for the year ended 31st May 2024. |
BUSINESS REVIEW |
The group's main business activities are conducted through The Right Car (UK) Limited. This company traded throughout the year retailing motor vehicles from five separate locations. The Right Car (UK) Limited traded as a Renault dealer at the Hull, Grimsby and Louth sites and as a Ford dealer from the Beverley site. Two mobility retail operations, and a motorcycle retail operation traded throughout the year. The performance of the after-sales department continued to improve through greater efficiency and improved marketing of the customer database. The after-sales department continues to undertake warranty work and pre-delivery preparation at market rates. |
KEY PERFORMANCE INDICATORS |
2024 | 2023 | 2022 | 2021 | 2020 |
£ | £ | £ | £ | £ |
Turnover | 72,818,173 | 63,783,404 | 61,550,569 | 51,392,070 | 39,302,218 |
Gross profit | 6,369,983 | 5,399,745 | 5,786,586 | 5,033,991 | 3,836,777 |
FUTURE OUTLOOK AND STRATEGY |
The group's financial strength and low cost base mean that it is in a strong strategic position to grow market share, both naturally and through acquisition. The director believes that opportunities to acquire additional sites will arise, given the current market conditions. The group has plans to open a new customer call centre in the near future. |
The profitability of the business in the short to medium term may be influenced by outside factors, both political and economic. Consumer confidence, interest rates, fuel costs and environmental factors will affect the market in the coming year. The availability of finance and underwriting criteria will also affect future performance as well as the changes currently taking place within the Financial Conduct Authority. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group relies on the availability of used cars fitting the desired stock profile. Any shortages in supply would impact on the group's financial performance. Such a shortage may be caused by a downturn in the economy leading to fewer new cars being registered. This risk is, however mitigated through the new franchise agreements. |
FINANCIAL INSTRUMENTS |
Creditor liquidity risk is managed by ensuring sufficient funds are available to meet payments as they fall due. |
CHARITABLE DONATIONS |
During the year the group made charitable donations totalling £500 (2023 £nil). |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Group Strategic Report |
for the year ended 31st May 2024 |
SECTION 172(1) STATEMENT |
The directors have considered the matters set out in section 172 (1) (a) to (f) when performing their duty to promote the success of the group. The directors continues to ensure that any business decisions consider the long-term impact on all key stakeholders. This includes when evaluating acquisition and growth opportunities. Environmental issues continue to be a major focus of the business and are a key consideration in its strategy. In addition, the directors consider the group's employees, suppliers and customers to be integral to its continued success. The directors have reported on engagement with employees, suppliers, customers and others within the Report of the Directors. Environmental issues continue to be a major focus of the group and a key consideration as it compiles its strategy. |
ON BEHALF OF THE BOARD: |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Report of the Director |
for the year ended 31st May 2024 |
The directors present their report with the consolidated financial statements for the year ended 31st May 2024. |
DIVIDENDS |
Interim dividends of £75,000 were paid during the year (2023 £650,000). The directors recommend that no final dividend be paid. |
DIRECTORS |
S A Kamis held office during from 1st June 2023 until after 31st May 2024 but prior to the date of this report. |
E. M. Kamis held office during the whole of the period from 1st June 2024 to the date of this report. |
EMPLOYEE INVOLVEMENT |
The directors believe that all employees should be kept informed about the development and performance of the business. This has been achieved through internal media methods and regular meetings which are held between local management and employees to allow a free flow of information and ideas. |
ENGAGEMENT WITH EMPLOYEES |
The directors make use of senior management throughout the group to ensure that all employees are kept up to date with key and relevant information. Each group location consults its employees as necessary when making material decisions which may affect them. Employees are encouraged to have an interest in the performance of the company and a general awareness of the group's performance. |
DISABLED EMPLOYEES |
The group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors continuously consider key stakeholder relationships and develops them through ongoing support from all employees. The group considers relationships with customers and suppliers on a group-wide and local level and maintains strong relationships with all parties. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company consumes less than 40,000 kWh of energy each year, therefore energy efficiency disclosures under the Streamlined Energy and Carbon Reporting regulations ("SECR") are not included. On a consolidated basis there is no additional disclosure on the basis that all subsidiary companies are not required to report under the SECR in their own right due to either being non- large companies or consuming less than 40,000 kWh of energy annually. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Report of the Director |
for the year ended 31st May 2024 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES - continued |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Right Car Holdings (UK) Limited |
Opinion |
We have audited the financial statements of Right Car Holdings (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 group's and of the parent company affairs as at 31st May 2024 and of the group's profit 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 group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Right Car Holdings (UK) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on pages four and five, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
Report of the Independent Auditors to the Members of |
Right Car Holdings (UK) Limited |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with relevant regulators and legal advisors. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances 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. |
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation. |
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. |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
HU2 8BA |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Consolidated Income Statement |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 72,818,173 | 63,783,404 |
Cost of sales | 66,448,190 | 58,383,659 |
GROSS PROFIT | 6,369,983 | 5,399,745 |
Administrative expenses | 3,257,059 | 3,342,142 |
3,112,924 | 2,057,603 |
Other operating income | 1,526,368 | 1,472,808 |
OPERATING PROFIT | 4 | 4,639,292 | 3,530,411 |
Property revaluations | 5 | 2,497,946 | - |
7,137,238 | 3,530,411 |
Income from shares in group undertakings |
- |
17,250 |
Interest receivable and similar income | 96,782 | 13,883 |
96,782 | 31,133 |
7,234,020 | 3,561,544 |
Interest payable and similar expenses | 6 | 372,151 | 189,801 |
PROFIT BEFORE TAXATION | 6,861,869 | 3,371,743 |
Tax on profit | 7 | 1,572,401 | 666,439 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 5,307,788 | 2,650,184 |
Non-controlling interests | (18,320 | ) | 55,120 |
5,289,468 | 2,705,304 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Consolidated Other Comprehensive Income |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 5,289,468 | 2,705,304 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
5,289,468 |
2,705,304 |
Total comprehensive income attributable to: |
Owners of the parent | 5,307,788 | 2,650,184 |
Non-controlling interests | (18,320 | ) | 55,120 |
5,289,468 | 2,705,304 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Consolidated Balance Sheet |
31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 1,280,576 | 2,457,570 |
Investments | 12 | - | - |
Investment property | 13 | 23,985,814 | 18,983,691 |
25,266,390 | 21,441,261 |
CURRENT ASSETS |
Stocks | 14 | 8,264,345 | 9,117,241 |
Debtors | 15 | 2,104,697 | 1,200,748 |
Cash at bank | 4,489,969 | 2,697,783 |
14,859,011 | 13,015,772 |
CREDITORS |
Amounts falling due within one year | 16 | 12,892,707 | 11,287,152 |
NET CURRENT ASSETS | 1,966,304 | 1,728,620 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
27,232,694 |
23,169,881 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(580,573 |
) |
(2,158,818 |
) |
PROVISIONS FOR LIABILITIES | 21 | (1,287,967 | ) | (861,377 | ) |
NET ASSETS | 25,364,154 | 20,149,686 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 70,000 | 70,000 |
Capital redemption reserve | 23 | 30,000 | 30,000 |
Non distributable reserves | 23 | 3,788,896 | 2,533,718 |
Retained earnings | 23 | 21,201,942 | 17,224,332 |
SHAREHOLDERS' FUNDS | 25,090,838 | 19,858,050 |
NON-CONTROLLING INTERESTS | 24 | 273,316 | 291,636 |
TOTAL EQUITY | 25,364,154 | 20,149,686 |
The financial statements were approved by the director and authorised for issue on 25th February 2025 and were signed by: |
Mrs E M Kamis - Director |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Company Balance Sheet |
31st May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Non distributable reserves | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 4,287,195 | 2,655,713 |
The financial statements were approved by the director and authorised for issue on |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Consolidated Statement of Changes in Equity |
for the year ended 31st May 2024 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1st June 2022 | 70,000 | 15,165,730 | 30,000 |
Changes in equity |
Profit for the year | - | 2,650,184 | - |
Other comprehensive income | - | 58,418 | - |
Total comprehensive income | - | 2,708,602 | - |
Dividends | - | (650,000 | ) | - |
Balance at 31st May 2023 | 70,000 | 17,224,332 | 30,000 |
Changes in equity |
Profit for the year | - | 5,307,788 | - |
Other comprehensive income | - | (1,255,178 | ) | - |
Total comprehensive income | - | 4,052,610 | - |
Dividends | - | (75,000 | ) | - |
Balance at 31st May 2024 | 70,000 | 21,201,942 | 30,000 |
Non |
distributable | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1st June 2022 | 2,592,136 | 17,857,866 | 236,516 | 18,094,382 |
Changes in equity |
Profit for the year | - | 2,650,184 | 55,120 | 2,705,304 |
Other comprehensive income | (58,418 | ) | - | - | - |
Total comprehensive income | (58,418 | ) | 2,650,184 | 55,120 | 2,705,304 |
Dividends | - | (650,000 | ) | - | (650,000 | ) |
Balance at 31st May 2023 | 2,533,718 | 19,858,050 | 291,636 | 20,149,686 |
Changes in equity |
Profit for the year | - | 5,307,788 | (18,320 | ) | 5,289,468 |
Other comprehensive income | 1,255,178 | - | - | - |
Total comprehensive income | 1,255,178 | 5,307,788 | (18,320 | ) | 5,289,468 |
Dividends | - | (75,000 | ) | - | (75,000 | ) |
Balance at 31st May 2024 | 3,788,896 | 25,090,838 | 273,316 | 25,364,154 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Company Statement of Changes in Equity |
for the year ended 31st May 2024 |
Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1st June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31st May 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31st May 2024 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Consolidated Cash Flow Statement |
for the year ended 31st May 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 3,971,582 | 3,554,440 |
Interest paid | (372,151 | ) | (189,801 | ) |
Tax paid | (1,010,030 | ) | (561,157 | ) |
Net cash from operating activities | 2,589,401 | 2,803,482 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (244,038 | ) | (480,032 | ) |
Purchase of investment property | (2,504,177 | ) | (781,932 | ) |
Sale of tangible fixed assets | 1,050,363 | 90,979 |
Sale of investment property | - | 471,913 |
Interest received | 96,782 | 13,883 |
Dividends received | - | 17,250 |
Net cash from investing activities | (1,601,070 | ) | (667,939 | ) |
Cash flows from financing activities |
New loans in year | 878,855 | 2,926,340 |
Loan repayments in year | - | (3,018,307 | ) |
Equity dividends paid | (75,000 | ) | (650,000 | ) |
Net cash from financing activities | 803,855 | (741,967 | ) |
Increase in cash and cash equivalents | 1,792,186 | 1,393,576 |
Cash and cash equivalents at beginning of year |
28 |
2,697,783 |
1,304,207 |
Cash and cash equivalents at end of year |
28 |
4,489,969 |
2,697,783 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements |
for the year ended 31st May 2024 |
1. | STATUTORY INFORMATION |
Right Car Holdings (UK) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Basis of consolidation |
The consolidated accounts include the accounts of the company and its subsidiary undertakings made up to 31st May 2024. Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Turnover from the sale of vehicles and other services is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
In the case of vehicle sales, turnover is recognised when the vehicle is delivered to the customer, not when the legal contract is signed. |
Goodwill on consolidation |
Purchased goodwill arising on consolidation, representing the excess of the purchase price over the fair value of the net assets acquired, is capitalised in the year in which it arises and is amortised on a straight line basis over its estimated useful economic life. The estimated useful economic life is assessed having due regard to the period over which the group expects to derive economic benefit from the assets. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - 0% |
Leasehold improvements | - over the lease term |
Plant and machinery | - over 3 to 10 years |
No depreciation has been charged on freehold property as the ongoing programme of maintenance is such that any depreciation charge would be immaterial. |
Investment property |
Investment properties for which fair value can be measured reliably are measured at fair value at each reporting date with changes in fair value recognised in the statement of comprehensive income. |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, and other costs incurred in bringing stock to its present location and condition. Parts and accessories stock is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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 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. Current or deferred taxation assets and liabilities are not discounted. |
Foreign currencies |
Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate. |
Leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives or the lease term, whichever is the shorter. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges are included as creditors. |
Rentals payable and receivable under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease. |
Pensions |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Investments |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment. |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
2. | ACCOUNTING POLICIES - continued |
Debtors and creditors due within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,417,581 | 3,997,987 |
Social security costs | 413,777 | 388,599 |
Other pension costs | 81,478 | 482,789 |
4,912,836 | 4,869,375 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales | 54 | 45 |
Service and valeting | 76 | 70 |
Administration | 18 | 19 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 240,959 | 242,623 |
Directors' pension contributions to money purchase schemes | - | 10,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 205,959 | 207,623 |
Pension contributions to money purchase schemes | - | 10,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Operating leases | 302,457 | 305,194 |
Depreciation - owned assets | 175,388 | 134,505 |
Loss/(profit) on disposal of fixed assets | 195,283 | (137,367 | ) |
Auditors' remuneration | 36,525 | 30,955 |
Auditors' remuneration for non audit work | - | 2,750 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
5. | PROPERTY REVALUTIONS |
2024 | 2023 |
£ | £ |
Property revaluations | 2,497,946 | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | - | 3 |
Bank loan interest | 244,987 | 158,962 |
Stocking loan interest | 127,164 | 30,836 |
372,151 | 189,801 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,150,977 | 681,604 |
Prior year underprovision | (5,166 | ) | - |
Total current tax | 1,145,811 | 681,604 |
Deferred tax | 426,590 | (15,165 | ) |
Tax on profit | 1,572,401 | 666,439 |
UK corporation tax has been charged at 25 % (2023 - 25 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 6,861,869 | 3,371,743 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
1,715,467 |
842,936 |
Effects of: |
Income not taxable for tax purposes | (624,487 | ) | (29,964 | ) |
Adjustments to tax charge in respect of previous periods | (5,166 | ) | - |
Disallowable expenses and non-taxable income | 56,788 | 4,427 |
Short term timing differences | 416,994 | (16,568 | ) |
Chargeable gains | - | 36,026 |
Change in rate of corporation tax | 12,805 | (170,418 | ) |
Total tax charge | 1,572,401 | 666,439 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
7. | TAXATION - continued |
The expected net reversal of deferred tax liabilities in the next financial year is £21,226. This is due to reversal of accelerated capital allowances. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim - paid | 75,000 | 650,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 | 421,089 |
AMORTISATION |
At 1st June 2023 |
and 31st May 2024 | 421,089 |
NET BOOK VALUE |
At 31st May 2024 | - |
At 31st May 2023 | - |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Leasehold | Plant and |
property | improvements | machinery | Totals |
£ | £ | £ | £ |
COST |
At 1st June 2023 | 1,633,869 | 626,271 | 1,165,536 | 3,425,676 |
Additions | - | 3,070 | 240,968 | 244,038 |
Disposals | (1,114,461 | ) | - | (287,732 | ) | (1,402,193 | ) |
At 31st May 2024 | 519,408 | 629,341 | 1,118,772 | 2,267,521 |
DEPRECIATION |
At 1st June 2023 | - | 342,077 | 626,029 | 968,106 |
Charge for year | - | 29,539 | 145,849 | 175,388 |
Eliminated on disposal | - | - | (156,549 | ) | (156,549 | ) |
At 31st May 2024 | - | 371,616 | 615,329 | 986,945 |
NET BOOK VALUE |
At 31st May 2024 | 519,408 | 257,725 | 503,443 | 1,280,576 |
At 31st May 2023 | 1,633,869 | 284,194 | 539,507 | 2,457,570 |
Company |
Freehold |
property |
£ |
COST |
At 1st June 2023 |
Disposals | ( |
) |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Beck View Road, Beverley, East Yorkshire, HU17 0JT |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 368-378 Cleethorpe Road, Grimsby, North East Lincolnshire, DN31 3DH |
Nature of business: |
% |
Class of shares: | holding |
Registered office: First Car Chapman Street, Cleveland Street, Hull, East Yorkshire, HU8 8AE |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Right Car, Beck View Road, Beverley, HU17 0JT |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 45 Park Lane Cottingham HU16 5RX |
Nature of business: |
% |
Class of shares: | holding |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
MARKET VALUE |
At 1st June 2023 | 18,983,691 |
Additions | 2,504,177 |
Disposals | - |
Revaluation | 2,497,946 |
At 31st May 2024 | 23,985,814 |
Market Value at 31st May 2024 is represented by: |
Total |
£ |
Revaluations | 5,081,349 |
Cost | 18,904,465 |
At 31st May 2024 | 23,985,814 |
Company |
Total |
£ |
MARKET VALUE |
At 1st June 2023 | 18,983,691 |
Additions | 2,504,177 |
Disposals | - |
Revaluation | 2,497,946 |
At 31st May 2024 | 23,985,814 |
Market Value at 31st May 2024 is represented by: |
Total |
£ |
Revaluations | 5,081,349 |
Cost | 18,904,465 |
At 31st May 2024 | 23,985,814 |
Investment properties were valued in the group and the company as at 31st May 2024 by Garness Jones (Commercial) Limited at open market value. |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Goods for resale | 8,264,345 | 9,117,241 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 857,452 | 344,845 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,055,232 | 682,572 |
Prepayments | 192,013 | 173,331 |
2,104,697 | 1,200,748 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 3,029,403 | 580,035 |
Trade creditors | 4,236,378 | 5,066,145 |
Amounts owed to group undertakings | - | - |
Corporation tax | 817,385 | 681,604 |
Social security and other taxes | 774,548 | 270,193 |
Other creditors | 3,386,937 | 3,779,289 |
Director's loan account | 88,158 | 251,877 | - | - |
Accruals and deferred income | 559,898 | 658,009 |
12,892,707 | 11,287,152 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 580,573 | 2,151,086 |
Other creditors | - | 7,732 |
580,573 | 2,158,818 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 3,029,403 | 580,035 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 112,259 | 2,008,301 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 468,314 | 142,785 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 220,438 | 152,938 |
Between one and five years | 233,063 | 200,000 |
In more than five years | - | 40,000 |
453,501 | 392,938 |
Operating lease agreements where the group is the lessor |
The group and the company rent properties to third parties under non-cancellable operating leases. |
Future minimum rentals receivable under non-cancellable operating leases for the group and the company fall due as follows |
2024 | 2023 |
Net obligations receivable: | £ | £ |
Within one year | 618,926 | 549,270 |
Between one and five years | 1,488,205 | 1,135,663 |
Over 5 years | 790,243 | 302,406 |
2,897,374 | 1,987,339 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 3,609,976 | 2,731,121 |
The bank loans are secured by a legal charge over certain investment properties of the group. |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 1,287,967 | 861,377 | 1,242,768 | 830,033 |
Group |
Deferred |
tax |
£ |
Balance at 1st June 2023 | 861,377 |
Charge to Income Statement during year | 426,590 |
Balance at 31st May 2024 | 1,287,967 |
Company |
Deferred |
tax |
£ |
Balance at 1st June 2023 |
Charge to Income Statement during year |
Balance at 31st May 2024 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 70,000 | 70,000 |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
23. | RESERVES |
Group |
Capital | Non |
Retained | redemption | distributable |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1st June 2023 | 17,224,332 | 30,000 | 2,533,718 | 19,788,050 |
Profit for the year | 5,307,788 | - | - | 5,307,788 |
Dividends | (75,000 | ) | - | - | (75,000 | ) |
Property revaluations | (1,255,178 | ) | - | 1,255,178 | - |
At 31st May 2024 | 21,201,942 | 30,000 | 3,788,896 | 25,020,838 |
Company |
Non |
Retained | distributable |
earnings | reserves | Totals |
£ | £ | £ |
At 1st June 2023 | 13,857,585 |
Profit for the year | - |
Property revaluations | (1,255,178 | ) | 1,255,178 | - |
At 31st May 2024 | 18,144,780 |
24. | NON-CONTROLLING INTERESTS |
2024 | 2023 |
£ | £ |
At 1st June 2023 | 291,636 | 236,516 |
(Loss) for the year | (18,320 | ) | 55,120 |
At 31st May 2024 | 273,316 | 291,636 |
The minority interest represents a 33.3% shareholding in Robspeed Motorcycles Limited. That company's former subsidiaries Wheels (Grimsby) Limited and Tidecross Limited were dissolved in the year. |
25. | PENSION COMMITMENTS |
The group contributes to personal individual defined contribution pension schemes and also operates an independently administered defined contribution pension scheme for its director. The total cost for the year was £81,478 (2023 £481,776) and the amount outstanding at the year end was £17,641 (2023 £13,729). |
26. | RELATED PARTY TRANSACTIONS |
During the year, total dividends of £75,000 (2023 - £650,000) were paid to the directors . |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Right Car Holdings (UK) Limited (Registered number: 08038788) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st May 2024 |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 6,861,869 | 3,371,743 |
Depreciation charges | 175,320 | 134,505 |
Loss/(profit) on disposal of fixed assets | 195,283 | (137,367 | ) |
Gain on revaluation of fixed assets | (2,497,946 | ) | - |
Finance costs | 372,151 | 189,801 |
Finance income | (96,782 | ) | (31,133 | ) |
5,009,895 | 3,527,549 |
Decrease/(increase) in stocks | 852,896 | (1,711,917 | ) |
Increase in trade and other debtors | (1,067,668 | ) | (38,359 | ) |
(Decrease)/increase in trade and other creditors | (823,541 | ) | 1,777,167 |
Cash generated from operations | 3,971,582 | 3,554,440 |
28. | 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 31st May 2024 |
31/5/24 | 1/6/23 |
£ | £ |
Cash and cash equivalents | 4,489,969 | 2,697,783 |
Year ended 31st May 2023 |
31/5/23 | 1/6/22 |
£ | £ |
Cash and cash equivalents | 2,697,783 | 1,304,207 |
29. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/6/23 | Cash flow | At 31/5/24 |
£ | £ | £ |
Net cash |
Cash at bank | 2,697,783 | 1,792,186 | 4,489,969 |
2,697,783 | 1,792,186 | 4,489,969 |
Debt |
Debts falling due within 1 year | (580,035 | ) | (2,449,368 | ) | (3,029,403 | ) |
Debts falling due after 1 year | (2,151,086 | ) | 1,570,513 | (580,573 | ) |
(2,731,121 | ) | (878,855 | ) | (3,609,976 | ) |
Total | (33,338 | ) | 913,331 | 879,993 |
30. | CONTROL RELATIONSHIP |
The group is controlled by E M Kamis. |