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REGISTERED NUMBER: 04711366 (England and Wales)











GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

FOR

MOTORLINE DIRECT LIMITED

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 16


MOTORLINE DIRECT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTOR: A Jobanputra





REGISTERED OFFICE: 29 Arboretum Street
Nottingham
Nottinghamshire
NG1 4JA





BUSINESS ADDRESS: The Locks
Belton Road West
Loughborough
Leicestershire
LE11 5XH





REGISTERED NUMBER: 04711366 (England and Wales)





AUDITORS: Lemans
Statutory Auditor
29 Arboretum Street
Nottingham
Nottinghamshire
NG1 4JA

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The director presents his strategic report of the company and the group for the year ended 31 May 2024.

REVIEW OF BUSINESS
The company sources quality prestigious used vehicles from across the UK and offers an extensive range of used car makes and models at prices which offer excellent value for money to customers.

The year to 31 May 2024 proved challenging due to fierce competition in the sector and difficulty in sourcing quality stock. Increasing finance costs also impacted on customer demand and as a result turnover for the year was down 12.4% on 2023 to £19.9M. Overall gross margin for the year was up to £1.1M with margins for the year being adversely affected by the price sensitivity of electric vehicles. To mitigate the company's exposure to price fluctuations vehicle stocks are constantly being reviewed to ensure that they are aligned to the market and customer demand.

Overheads remain under tight control but have increased over the year due to inflationary pressures and increased finance costs. The company continues to develop and enhance its workforce and its stock.

After taxation the group made a loss of £13,708 (2023 - Profit £158,665)

PRINCIPAL RISKS AND UNCERTAINTIES
Price risk, credit risk, liquidity risk and cash flow risk.

The business' principal financial instruments comprise bank overdraft and loan, stocking loan, trade debtors and trade creditors.

The company reviews and monitors prices on a regular basis and reacts quickly to any changes in the market.
Liquidity risk is managed by daily monitoring of its bank overdraft and vehicle stocking loan facility to ensure they are utilised in the most efficient way. It maintains a tight control over its trade debtors closely linked to vehicles delivered and collected from site. It carries out regular reviews of its cash flow position to ensure that there are sufficient funds available to meet amounts due to trade creditors.

FUTURE TRADING
The retail used car market remains very competitive and the sourcing of good quality used car stock remains key. The company continues to focus its efforts on purchasing quality used vehicles to ensure that it offers an excellent choice of competitively priced vehicles to its customers.

The director continues to build and develop the company's business model and is confident about the future trading and profitability.

ON BEHALF OF THE BOARD:





A Jobanputra - Director


27 February 2025

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2024

The director presents his report with the financial statements of the company and the group for the year ended 31 May 2024.

DIVIDENDS
The total distribution of dividends for the year ended 31 May 2024 is £120,000.

DIRECTOR
A Jobanputra held office during the whole of the period from 1 June 2023 to the date of this report.

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 he 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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 him to ensure that the financial statements comply with the Companies Act 2006. He 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Lemans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Jobanputra - Director


27 February 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MOTORLINE DIRECT LIMITED

Opinion
We have audited the financial statements of Motorline Direct Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 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 Consolidated 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 group's and of the parent company affairs as at 31 May 2024 and of the group's 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 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
MOTORLINE DIRECT 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 page three, 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:

- We exercise professional judgment and maintain professional scepticism throughout the planning and
performance of the audit;
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;
- Obtain 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
entity's internal control;
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management. We are required to communicate with those charged with governance
regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.

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
MOTORLINE DIRECT 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.




Adrian Harby FCCA (Senior Statutory Auditor)
for and on behalf of Lemans
Statutory Auditor
29 Arboretum Street
Nottingham
Nottinghamshire
NG1 4JA

27 February 2025

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

31.5.24 31.5.23
Notes £    £   

TURNOVER 19,881,848 22,707,788

Cost of sales 18,784,240 21,710,613
GROSS PROFIT 1,097,608 997,175

Administrative expenses 1,204,855 1,230,002
(107,247 ) (232,827 )

Other operating income 255,439 240,805
OPERATING PROFIT 4 148,192 7,978

Interest receivable and similar income 103,651 18,540
251,843 26,518

Interest payable and similar expenses 5 264,115 216,195
LOSS BEFORE TAXATION (12,272 ) (189,677 )

Tax on loss 6 1,436 (31,012 )
LOSS FOR THE FINANCIAL YEAR (13,708 ) (158,665 )
Loss attributable to:
Owners of the parent (13,708 ) (158,665 )

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

31.5.24 31.5.23
Notes £    £   

LOSS FOR THE YEAR (13,708 ) (158,665 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(13,708

)

(158,665

)

Total comprehensive income attributable to:
Owners of the parent (13,708 ) (158,665 )

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

CONSOLIDATED BALANCE SHEET
31 MAY 2024

31.5.24 31.5.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 169,421 208,038
Investments 10 - -
169,421 208,038

CURRENT ASSETS
Stocks 11 3,055,429 3,510,042
Debtors 12 2,806,107 2,578,805
Cash at bank and in hand 2,496 101,881
5,864,032 6,190,728
CREDITORS
Amounts falling due within one year 13 3,904,056 3,988,263
NET CURRENT ASSETS 1,959,976 2,202,465
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,129,397

2,410,503

CREDITORS
Amounts falling due after more than one
year

14

(198,333

)

(338,333

)

PROVISIONS FOR LIABILITIES 18 (27,591 ) (34,989 )
NET ASSETS 1,903,473 2,037,181

CAPITAL AND RESERVES
Called up share capital 19 2 2
Retained earnings 20 1,903,471 2,037,179
SHAREHOLDERS' FUNDS 1,903,473 2,037,181

The financial statements were approved by the director and authorised for issue on 27 February 2025 and were signed by:





A Jobanputra - Director


MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

COMPANY BALANCE SHEET
31 MAY 2024

31.5.24 31.5.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 169,421 208,038
Investments 10 100 100
169,521 208,138

CURRENT ASSETS
Stocks 11 3,055,429 3,510,042
Debtors 12 1,801,974 1,793,996
Cash at bank and in hand 2,059 101,451
4,859,462 5,405,489
CREDITORS
Amounts falling due within one year 13 3,909,197 4,166,647
NET CURRENT ASSETS 950,265 1,238,842
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,119,786

1,446,980

CREDITORS
Amounts falling due after more than one
year

14

(198,333

)

(338,333

)

PROVISIONS FOR LIABILITIES 18 (27,591 ) (34,989 )
NET ASSETS 893,862 1,073,658

CAPITAL AND RESERVES
Called up share capital 19 2 2
Retained earnings 20 893,860 1,073,656
SHAREHOLDERS' FUNDS 893,862 1,073,658

Company's loss for the financial year (59,796 ) (158,630 )

The financial statements were approved by the director and authorised for issue on 27 February 2025 and were signed by:





A Jobanputra - Director


MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2022 2 2,315,844 2,315,846

Changes in equity
Dividends - (120,000 ) (120,000 )
Total comprehensive income - (158,665 ) (158,665 )
Balance at 31 May 2023 2 2,037,179 2,037,181

Changes in equity
Dividends - (120,000 ) (120,000 )
Total comprehensive income - (13,708 ) (13,708 )
Balance at 31 May 2024 2 1,903,471 1,903,473

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2022 2 1,352,286 1,352,288

Changes in equity
Dividends - (120,000 ) (120,000 )
Total comprehensive income - (158,630 ) (158,630 )
Balance at 31 May 2023 2 1,073,656 1,073,658

Changes in equity
Dividends - (120,000 ) (120,000 )
Total comprehensive income - (59,796 ) (59,796 )
Balance at 31 May 2024 2 893,860 893,862

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

CONSOLIDATED 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 1 295,728 470,429
Interest paid (264,115 ) (216,195 )
Tax paid (77,439 ) (163,507 )
Net cash from operating activities (45,826 ) 90,727

Cash flows from investing activities
Purchase of tangible fixed assets (2,700 ) (20,181 )
Interest received 103,651 18,540
Net cash from investing activities 100,951 (1,641 )

Cash flows from financing activities
Loan repayments in year (140,000 ) (184,381 )
Amount introduced by directors 62,015 -
Amount withdrawn by directors - 97,324
Equity dividends paid (120,000 ) (120,000 )
Net cash from financing activities (197,985 ) (207,057 )

Decrease in cash and cash equivalents (142,860 ) (117,971 )
Cash and cash equivalents at beginning of
year

2

(691,598

)

(573,627

)

Cash and cash equivalents at end of year 2 (834,458 ) (691,598 )

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED 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 (12,272 ) (189,677 )
Depreciation charges 41,317 44,580
Finance costs 264,115 216,195
Finance income (103,651 ) (18,540 )
189,509 52,558
Decrease in stocks 454,613 1,398,931
Increase in trade and other debtors (289,317 ) (326,660 )
Decrease in trade and other creditors (59,077 ) (654,400 )
Cash generated from operations 295,728 470,429

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 2,496 101,881
Bank overdrafts (836,954 ) (793,479 )
(834,458 ) (691,598 )
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 101,881 20,732
Bank overdrafts (793,479 ) (594,359 )
(691,598 ) (573,627 )


MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank and in hand 101,881 (99,385 ) 2,496
Bank overdrafts (793,479 ) (43,475 ) (836,954 )
(691,598 ) (142,860 ) (834,458 )
Debt
Debts falling due within 1 year (140,000 ) - (140,000 )
Debts falling due after 1 year (338,333 ) 140,000 (198,333 )
(478,333 ) 140,000 (338,333 )
Total (1,169,931 ) (2,860 ) (1,172,791 )

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1. STATUTORY INFORMATION

Motorline Direct 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 General Information page.

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


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.

Basis of consolidation
The consolidated financial statements include the financial statements of the Company and its subsidiary undertakings made up to 31 May 2022. Under section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account.

The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group. Control is achieved where the group has the power to govern the financial and operating policies of an entry so as to obtain benefits from its activities. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Turnover
Revenue is recognised to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer, usually on the despatch of goods;
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the transaction;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Computer equipment - 33% on cost

Stocks
Stock is valued at the lower of cost and net realised value, after due regard for for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

2. ACCOUNTING POLICIES - continued

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

Tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods.
It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of the current and previous periods.
It is recognised in respect of all timing differences, with certain exceptions.
Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements.
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.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.
Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at the transaction price.

Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. EMPLOYEES AND DIRECTORS
31.5.24 31.5.23
£    £   
Wages and salaries 548,381 539,601
Social security costs 54,354 55,875
Other pension costs 11,532 12,530
614,267 608,006

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

Sales and marketing 7 6
Workshop technicians and valeters 6 5
Office and administration 3 4
16 15

The average number of employees by undertakings that were proportionately consolidated during the year was 16 (2023 - 15 ) .

31.5.24 31.5.23
£    £   
Director's remuneration 27,035 28,695

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

4. OPERATING PROFIT

The operating profit is stated after charging:

31.5.24 31.5.23
£    £   
Hire of plant and machinery 10,376 9,350
Depreciation - owned assets 41,317 44,581
Auditors' remuneration 5,760 5,685

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.5.24 31.5.23
£    £   
Bank interest 73,151 41,954
Bank loan interest 40,162 38,822
Other interest 6,749 7,355
Stocking loan interest 144,053 128,064
264,115 216,195

6. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
31.5.24 31.5.23
£    £   
Current tax:
UK corporation tax 8,433 -
Under/(Over) provision in prior year 401 (27,203 )
Total current tax 8,834 (27,203 )

Deferred tax (7,398 ) (3,809 )
Tax on loss 1,436 (31,012 )

UK corporation tax has been charged at 25 % (2023 - 19 %).

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

6. TAXATION - continued

Reconciliation of total tax charge/(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 (12,272 ) (189,677 )
Loss multiplied by the standard rate of corporation tax in the UK of 24.335
% (2023 - 19 %)

(2,986

)

(36,039

)

Effects of:
Expenses not deductible for tax purposes 2,022 4,377
Depreciation in excess of capital allowances 9,397 4,459
Adjustments to tax charge in respect of previous periods 401 -
Deferred tax (7,398 ) (3,809 )
forward

Total tax charge/(credit) 1,436 (31,012 )

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
31.5.24 31.5.23
£    £   
Dividend paid 120,000 120,000

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

9. TANGIBLE FIXED ASSETS

Group
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 June 2023 149,564 91,224 261,661 50,574 553,023
Additions - - - 2,700 2,700
At 31 May 2024 149,564 91,224 261,661 53,274 555,723
DEPRECIATION
At 1 June 2023 33,672 83,436 183,188 44,689 344,985
Charge for year 14,956 1,947 19,618 4,796 41,317
At 31 May 2024 48,628 85,383 202,806 49,485 386,302
NET BOOK VALUE
At 31 May 2024 100,936 5,841 58,855 3,789 169,421
At 31 May 2023 115,892 7,788 78,473 5,885 208,038

Company
Fixtures
Short Plant and and Computer
leasehold machinery fittings equipment Totals
£    £    £    £    £   
COST
At 1 June 2023 149,564 91,224 261,661 50,574 553,023
Additions - - - 2,700 2,700
At 31 May 2024 149,564 91,224 261,661 53,274 555,723
DEPRECIATION
At 1 June 2023 33,672 83,436 183,188 44,689 344,985
Charge for year 14,956 1,947 19,618 4,796 41,317
At 31 May 2024 48,628 85,383 202,806 49,485 386,302
NET BOOK VALUE
At 31 May 2024 100,936 5,841 58,855 3,789 169,421
At 31 May 2023 115,892 7,788 78,473 5,885 208,038

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

10. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1 June 2023
and 31 May 2024 100
NET BOOK VALUE
At 31 May 2024 100
At 31 May 2023 100

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Motorline Direct Properties Ltd
Registered office: 29 Arboretum Street, Nottingham, NG1 4JA.
Nature of business: Property investment company.
%
Class of shares: holding
Ordinary 100.00
31.5.24 31.5.23
£    £   
Aggregate capital and reserves 1,009,711 963,623
Profit/(loss) for the year 54,521 (36 )


11. STOCKS

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Stocks 3,055,429 3,510,042 3,055,429 3,510,042

Included in stocks is an amount of £2,502,215 in respect of vehicles held under a vehicle stocking facility with Black Horse Limited (2023 - £2,632,282).


Stock recognised in cost of sales during the year as an expense was £17,662,594 (2023 - £19,727,225).

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Trade debtors 116,857 126,632 116,857 126,631
Amounts owed by group undertakings - - 573,828 780,301
Other debtors 2,028,306 1,734,105 483,226 425,082
Directors' current accounts 648,817 710,832 616,179 454,968
VAT 243 222 - -
Prepayments 11,884 7,014 11,884 7,014
2,806,107 2,578,805 1,801,974 1,793,996

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Bank loans and overdrafts (see note 15) 976,954 933,479 979,538 1,133,523
Trade creditors 337,221 258,057 337,223 258,057
Stocking loan 2,148,762 2,090,953 2,148,762 2,090,953
Corporation tax 8,433 77,038 - 44,257
Social security and other taxes 200,183 225,812 200,183 225,812
Amounts owed to group
undertakings - - 12,301 12,301
Creditors 165,330 350,318 165,330 350,318
Accrued expenses 67,173 52,606 65,860 51,426
3,904,056 3,988,263 3,909,197 4,166,647

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Bank loans (see note 15) 198,333 338,333 198,333 338,333

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 836,954 793,479 839,538 993,523
Bank loans 140,000 140,000 140,000 140,000
976,954 933,479 979,538 1,133,523
Amounts falling due between one and two years:
Bank loans 140,000 140,000 140,000 140,000
Amounts falling due between two and five years:
Bank loans 58,333 198,333 58,333 198,333

Interest relating to long term secured loans is at an interest rate of bank base rate +2.9%.

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Company
Non-cancellable operating leases
31.5.24 31.5.23
£    £   
Within one year 73,000 36,500
Between one and five years 42,500 -
115,500 36,500

17. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Bank overdraft 836,954 793,479 839,538 993,523
Bank loans 338,333 478,333 338,333 478,333
Stocking loan 1,987,525 2,045,474 1,987,525 2,045,474
3,162,812 3,317,286 3,165,396 3,517,330

The bank overdraft and loans are secured by an unscheduled mortgage debenture incorporating a fixed and floating charge over the company's assets.

The stocking loan is secured by a debenture over the company's stock and other assets held by the Group and a personal guarantee given by the company's director in favour of Black Horse Limited.

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

18. PROVISIONS FOR LIABILITIES

Group Company
31.5.24 31.5.23 31.5.24 31.5.23
£    £    £    £   
Deferred tax 27,591 34,989 27,591 34,989

Group
Deferred
tax
£   
Balance at 1 June 2023 34,989
Accelerated capital allowances (7,398 )
Balance at 31 May 2024 27,591

Company
Deferred
tax
£   
Balance at 1 June 2023 34,989
Accelerated capital allowances (7,398 )
Balance at 31 May 2024 27,591

Deferred tax provisions for both the group and the company relate to accelerated capital allowances over depreciation.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.24 31.5.23
value: £    £   
2 Ordinary shares £1 2 2

20. RESERVES

Group
Retained
earnings
£   

At 1 June 2023 2,037,179
Deficit for the year (13,708 )
Dividends (120,000 )
At 31 May 2024 1,903,471

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

20. RESERVES - continued

Company
Retained
earnings
£   

At 1 June 2023 1,073,656
Deficit for the year (59,796 )
Dividends (120,000 )
At 31 May 2024 893,860


21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension charge for the period represents contributions payable to the scheme and amounted to £11,532 (2023 - £12,530).

22. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2024 and 31 May 2023:

31.5.24 31.5.23
£    £   
A Jobanputra
Balance outstanding at start of year 710,832 808,156
Amounts advanced 237,898 100,467
Amounts repaid (299,913 ) (197,791 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 648,817 710,832

Interest is being charged on the loan at a rate of 2.25% per annum. The amount charged on this loan during the year and credited to the profit and loss account was £14,036 (2023 - £17,302).

MOTORLINE DIRECT LIMITED (REGISTERED NUMBER: 04711366)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

23. RELATED PARTY DISCLOSURES

Included in the balance sheet are the following related party transactions:

Group Company

Other Debtors 31.5.24 31.5.23 31.5.24 31.5.23
£ £ £ £

JRJ Developments (UK) Ltd 1,391,572 1,246,284 288,091 271,497

JRJ Investments (UK) Ltd 376,749 364,236 21,273 30,000

Box of Smiles Ltd 25,000 25,000 25,000 25,000

1,793,321 1,635,520 334,364 326,497

Other Creditors
Charnwood Investments Limited 165,330 350,318 165,330 350,318


Included in the profit and loss are the following related party transactions:

Group Company

31.5.24 31.5.23 31.5.24 31.5.23
£ £ £ £
Administration charge income

JRJ Developments (UK) Ltd 12,000 - 12,000 -


Interest received

JRJ Developments (UK) Ltd 66,487 - 22,793 -

JRJ Investments (UK) Ltd 22,513 - 1,273 -

89,000 - 24,066 -

Mr A Jobanputra is a director and shareholder of the above named companies.