Company Registration No. 00708826 (England and Wales)
WEARDALE MOTOR SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2024
St Matthews House
Haugh Lane
Hexham
Northumberland
NE46 3PU
WEARDALE MOTOR SERVICES LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10 - 11
Statement of cash flows
12
Notes to the financial statements
13 - 28
WEARDALE MOTOR SERVICES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mrs A M Gibson-Hewison
Mr R S Gibson
Mr A M Gibson
Mr I Gibson
Secretary
Mrs A M Gibson-Hewison
Company number
00708826
Registered office
The Garage
Stanhope
Bishop Auckland
Co Durham
DL13 2YQ
Auditor
TC Group
St Matthews House
Haugh Lane
Hexham
Northumberland
NE46 3PU
Business address
The Garage
Stanhope
Bishop Auckland
Co Durham
DL13 2YQ
WEARDALE MOTOR SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present the strategic report for the year ended 30 April 2024.
Fair review of the business
Overall we feel the business has grown in both size and revenue. The award of a substantial amount of 4-year contracts in October 2022 resulted in large increase in income for this financial year.
Growth of work from existing customer base and addition of new clients has also boosted the income within the company.
After the pandemic we feel that our own holiday brochure and day trip program got back on track to pre-Covid levels within this financial year as people once again felt confident to travel again. This was reassuring to us as we invest heavily in both programs in both time and money.
Working smarter within our allocations department meant by pre booking we reduced costs for hotels, parking and fuel.
Principal risks and uncertainties
With the award of the service contracts we had to source a large number of vehicles and drivers in a very short period of time.
The majority of these vehicle purchases were made before April 30th 2023, but now with a larger fleet to maintain our engineering work force had to increase.
Each vehicle requires ticket machines with contactless technology so the initial outlay and ongoing licences paid yearly doubled.
The parts and consumables costs for up to 12 extra buses on the road 6 days a week all needing tyres, fuel and add blue was considerable.
Growth from our existing client base saw us recruit in March 2024 2 full time experienced coach drivers as well as the addition of the 14 recent service personnel our NI and PAYE rose significantly.
Moving forward with new proposal for employer NI contributions and increase in wages we as company are expecting it to have a large impact and result in us asking higher rates from our customers which is always a possibility that they may seek other quotes.
Thankfully two of our main clients we have been able to negotiate a increase prior to the start of the season which is great for us moving forward.
Key performance indicators
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
Mr A M Gibson
Director
4 March 2025
WEARDALE MOTOR SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of public service and vehicle hire operators and vehicle fuel retailers.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £215,788. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs A M Gibson-Hewison
Mr R S Gibson
Mrs Sylvia Gibson
(Deceased 17 August 2023)
Mr A M Gibson
Mr I Gibson
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The directors do not expect there to be any significant changes to the way the company operates in the near future.
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
WEARDALE MOTOR SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr A M Gibson
Director
4 March 2025
WEARDALE MOTOR SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEARDALE MOTOR SERVICES LIMITED
- 5 -
Opinion
We have audited the financial statements of Weardale Motor Service Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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 30 April 2024 and of its 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
WEARDALE MOTOR SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEARDALE MOTOR SERVICES LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
WEARDALE MOTOR SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEARDALE MOTOR SERVICES LIMITED
- 7 -
Extent to which the audit was capable of detecting irregularities, including fraud
The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), and relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The prior years accounts were not audited.
WEARDALE MOTOR SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEARDALE MOTOR SERVICES LIMITED
- 8 -
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 an auditor's report 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.
Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
4 March 2025
St Matthews House
Haugh Lane
Hexham
Northumberland
NE46 3PU
WEARDALE MOTOR SERVICES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
7,905,842
6,271,563
Cost of sales
(6,272,278)
(5,022,950)
Gross profit
1,633,564
1,248,613
Administrative expenses
(198,360)
(68,350)
Other operating income
29,447
12,795
Operating profit
4
1,464,651
1,193,058
Interest receivable and similar income
7
34,680
3,399
Interest payable and similar expenses
8
(41,493)
(34,167)
Amounts written off investments
9
2,061
1,693
Profit before taxation
1,459,899
1,163,983
Tax on profit
10
(375,404)
(174,619)
Profit for the financial year
1,084,495
989,364
Retained earnings brought forward
3,930,642
3,157,066
Dividends
11
(215,788)
(215,788)
Retained earnings carried forward
4,799,349
3,930,642
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WEARDALE MOTOR SERVICES LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
5,235,194
4,778,156
Investment property
13
250,000
250,000
Investments
14
4,960
4,960
5,490,154
5,033,116
Current assets
Stocks
16
56,009
46,630
Debtors
18
567,788
1,058,021
Investments
17
17,626
19,674
Cash at bank and in hand
1,651,781
616,993
2,293,204
1,741,318
Creditors: amounts falling due within one year
19
(1,341,784)
(957,738)
Net current assets
951,420
783,580
Total assets less current liabilities
6,441,574
5,816,696
Creditors: amounts falling due after more than one year
20
(180,042)
(611,375)
Provisions for liabilities
Deferred tax liability
23
1,071,852
884,348
(1,071,852)
(884,348)
Net assets
5,189,680
4,320,973
Capital and reserves
Called up share capital
25
10,496
10,496
Share premium account
247,492
247,492
Other reserves
132,343
132,343
Profit and loss reserves
4,799,349
3,930,642
Total equity
5,189,680
4,320,973
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
WEARDALE MOTOR SERVICES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 4 March 2025 and are signed on its behalf by:
Mr I Gibson
Director
Company registration number 00708826 (England and Wales)
WEARDALE MOTOR SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,489,410
937,083
Interest paid
(41,493)
(34,167)
Income taxes refunded/(paid)
2,177
(25,842)
Net cash inflow from operating activities
2,450,094
877,074
Investing activities
Purchase of tangible fixed assets
(1,772,090)
(2,063,488)
Proceeds from disposal of tangible fixed assets
998,450
954,378
Proceeds from disposal of investments
4,109
Interest received
34,040
2,412
Dividends received
640
987
Net cash used in investing activities
(734,851)
(1,105,711)
Financing activities
Repayment of bank loans
(30,000)
(30,000)
Payment of finance leases obligations
(434,667)
528,459
Dividends paid
(215,788)
(215,788)
Net cash (used in)/generated from financing activities
(680,455)
282,671
Net increase in cash and cash equivalents
1,034,788
54,034
Cash and cash equivalents at beginning of year
616,993
562,959
Cash and cash equivalents at end of year
1,651,781
616,993
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information
Weardale Motor Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Garage, Stanhope, Bishop Auckland, Co Durham, DL13 2YQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has not prepared consolidated accounts on the grounds that its only subsidiary is a dormant company, and its balance sheet is immaterial.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on provision of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of services is recognised once performance of the service is complete, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
2% on cost
Land and buildings Leasehold
2% on cost
Plant and machinery
25% Reducing balance
Motor vehicles
16.6% and 25% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Borrowing costs related to fixed assets
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Carrying value of tangible fixed assets
The accounting policy for tangible fixed assets is set out in note 1.4. The carrying value at 31 March 2024 was £5,235,195 (2023: £4,778,156). In the current year additions totalled £1,772,090 (2023: £2,063,488) and the depreciation charge was £646,914 (2023: £522,431). Estimated useful economic lives of tangible fixed assets are based on management's judgement and experience. When management identifies that actual useful lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of capital investment, variations between actual and estimated useful lives could impact operating results both positively and negatively. Asset lives and residual values are reviewed annually and historically changes to remaining estimates of useful lives have not been material.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Transport services
7,021,852
6,021,063
Vehicle sales
883,990
250,500
7,905,842
6,271,563
2024
2023
£
£
Other revenue
Interest income
34,040
2,412
Dividends received
640
987
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,500
Depreciation of owned tangible fixed assets
646,914
522,431
Profit on disposal of tangible fixed assets
(330,312)
(372,731)
Operating lease charges
2,163
1,159
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and management
9
9
Operations and maintenance
62
53
Total
71
62
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,804,453
1,311,044
Social security costs
159,869
112,152
Pension costs
211,141
172,221
2,175,463
1,595,417
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
75,989
83,105
Company pension contributions to defined contribution schemes
180,000
150,000
255,989
233,105
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
34,040
2,412
Other income from investments
Dividends received
640
987
Total income
34,680
3,399
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
34,040
2,412
Dividends from financial assets measured at fair value through profit or loss
640
987
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
8,010
7,415
Other finance costs:
Interest on finance leases and hire purchase contracts
33,483
26,752
41,493
34,167
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
2,061
1,693
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
190,077
Adjustments in respect of prior periods
(2,177)
Total current tax
187,900
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
187,504
174,619
Total tax charge
375,404
174,619
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,459,899
1,163,983
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
364,975
290,996
Tax effect of expenses that are not deductible in determining taxable profit
536
581
Adjustments in respect of prior years
(2,177)
(15,261)
Depreciation on assets not qualifying for tax allowances
11,666
5,666
Dividend income
(160)
(247)
Permanent difference between depreciation and capital allowances
(105,840)
Adjustments in respect of other reversing timing differences
564
(1,276)
Taxation charge for the year
375,404
174,619
11
Dividends
2024
2023
£
£
Interim paid
215,788
215,788
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
12
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
1,170,292
235,851
565,756
6,662,017
8,633,916
Additions
58,149
1,713,941
1,772,090
Disposals
(1,023,975)
(1,023,975)
At 30 April 2024
1,170,292
235,851
623,905
7,351,983
9,382,031
Depreciation and impairment
At 1 May 2023
243,824
50,008
496,365
3,065,563
3,855,760
Depreciation charged in the year
16,780
4,629
18,554
606,951
646,914
Eliminated in respect of disposals
(355,837)
(355,837)
At 30 April 2024
260,604
54,637
514,919
3,316,677
4,146,837
Carrying amount
At 30 April 2024
909,688
181,214
108,986
4,035,306
5,235,194
At 30 April 2023
926,468
185,843
69,391
3,596,454
4,778,156
13
Investment property
2024
£
Fair value
At 1 May 2023 and 30 April 2024
250,000
The investment property was valued by the directors on an open market basis in April 2024.
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
4,960
4,960
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
15
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Stanhope Motor Services Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Stanhope Motor Services Limited
4,960
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
56,009
46,630
17
Current asset investments
2024
2023
£
£
Listed investments
17,626
19,674
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
245,995
544,340
Other debtors
57,841
246,891
Prepayments and accrued income
263,952
266,790
567,788
1,058,021
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
21
30,000
30,000
Obligations under finance leases
22
348,833
382,167
Trade creditors
400,577
271,201
Taxation and social security
222,509
25,939
Other creditors
169,942
172,413
Accruals and deferred income
169,923
76,018
1,341,784
957,738
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
42,500
72,500
Obligations under finance leases
22
137,542
538,875
180,042
611,375
Other creditors include hire purchase liabilities of £486,375 (2023 - £921,042) which are secured on the fixed assets to which they relate.
The bank loan is secured by a fixed and floating charge over all assets.
21
Loans and overdrafts
2024
2023
£
£
Bank loans
72,500
102,500
Payable within one year
30,000
30,000
Payable after one year
42,500
72,500
The long-term loans are secured by fixed and floating charges over all assets.
The company has a long term loan on which variable interest is charged at 3.99% above the Bank of England's base rate. The loan is expected to fully repaid by September 2026.
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
22
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
353,879
414,092
In two to five years
174,999
586,832
528,878
1,000,924
Less: future finance charges
(42,503)
(79,882)
486,375
921,042
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 1.4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,071,852
946,445
Tax losses
-
(62,097)
1,071,852
884,348
2024
Movements in the year:
£
Liability at 1 May 2023
884,348
Charge to profit or loss
187,504
Liability at 30 April 2024
1,071,852
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
23
Deferred taxation
(Continued)
- 27 -
Due to the depreciation accounting policy and expected useful lives of tangible fixed assets on which capital allowances have been claimed, the deferred tax liability which arises from these accelerated capital allowances set out above is not expected to fully reverse within the next 12 months. The company continues to invest in tangible fixed assets and therefore deferred tax liabilities may increase next year due to increased accelerated capital allowances.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
211,141
172,221
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,049,597
1,049,597
10,496
10,496
26
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
1,109
Between two and five years
90,348
112,054
90,348
113,163
WEARDALE MOTOR SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
27
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
922,702
145,732
28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,084,495
989,364
Adjustments for:
Taxation charged
375,404
174,619
Finance costs
41,493
34,167
Investment income
(34,680)
(3,399)
Gain on disposal of tangible fixed assets
(330,312)
(372,731)
Depreciation and impairment of tangible fixed assets
646,914
522,431
Other gains and losses
(2,061)
(1,693)
Movements in working capital:
(Increase)/decrease in stocks
(9,379)
1,134
Decrease/(increase) in debtors
490,233
(536,570)
Increase in creditors
227,303
129,761
Cash generated from operations
2,489,410
937,083
29
Analysis of changes in net funds/(debt)
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
616,993
1,034,788
1,651,781
Borrowings excluding overdrafts
(102,500)
30,000
(72,500)
Obligations under finance leases
(921,042)
434,667
(486,375)
(406,549)
1,499,455
1,092,906
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