REGISTERED NUMBER: 09805945 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
REGISTERED NUMBER: 09805945 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
FOR |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows |
18 |
Notes to the Consolidated Financial Statements | 19 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
First Floor, Davidson House |
Forbury Square |
Reading |
Berkshire |
RG1 3EU |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
The directors present their strategic report of the company and the group for the year ended 31 December 2024. |
REVIEW OF BUSINESS |
The Group's principal activities during the year continued to be the retailing of motor vehicles and the provision of servicing and parts for vehicles. |
The key financial and other performance indicators during the year were as follows: |
2024 | 2023 | Change |
£'000 | £'000 | % |
Turnover | 157,352 | 178,761 | (12 | ) |
Operating profit | 1,073 | 3,985 | (73 | ) |
Profit before tax | 241 | 3,025 | (92 | ) |
Equity shareholders' funds | 12,525 | 12,898 | (3 | ) |
Average number of employees | 329 | 327 | 0.6 |
The global shortage of semi-conductor chips and various component supply shortages was well and truly resolved in 2024 and car oversupply returned to the market, which in turn meant dealers returned to offering large discounts to get stock moving. The Group's operating profit suffered as a result. |
2024 was also the year that many car manufacturers turned to the Agency model as the new way of selling cars. Under Agency terms the manufacturers sell the cars direct to the customer, taking the turnover, cost and profit in their accounts, and pay the dealer a commission to handle the transaction with the customer on their behalf. Amongst the Group's four Brands, Audi, Volkswagen and Honda all started the sale of retail Battery Electric Vehicles (BEV) through the agency channel in 2024. Audi also moved all remaining fleet sales onto the agency channel. The direct impact of this is that a dealer's turnover will now reduce. |
The Government's target for all manufacturers to achieve a 22% sales mix of BEV cars in 2024 also had a big impact on availability of stock for sale. It is well publicised in the press that whilst BEV cars sell through fleet channels because of the tax incentives in place, there is limited retail demand from the public due to a whole multitude of factors. As the year progressed and the manufacturers struggled to get enough uptake of BEV vehicles, they started to restrict the supply of Internal Combustion Engine (ICE) vehicles. This therefore slowed down the Group's rate of sales towards the end of 2024. The Group's new car sales through the retail, fleet and agency channels totalled 232 units less than 2023 as a result, and turnover was down accordingly. |
Used car demand has remained strong, but now new car supply has returned to normal the exceptional profitability of used cars in 2021, 2022 and the first part of 2023 has gone and profit margins have returned to more usual levels in 2024, further impacting Group operating profit. The Group has had particular success in retailing used BEV vehicles. Because they suffer from such poor residuals, as a low mileage used car deal they are attractively priced to customers. |
A combination of all of the above meant that Group turnover fell 12% from its record highest ever turnover achieved in 2023. |
Croydon Mazda has traded out of a leasehold site in Croydon whose lease term ended on the 7th December 2024. In recent years Mazda's volumes nationally have been declining and Mazda seem to be taking an alternative path compared to other manufacturers, concentrating on reducing the emissions of their ICE vehicles rather than developing BEV product. As a result the Group has been losing money at that site for the past few years and reluctantly took the decision to surrender the lease upon expiry. A provision for dilapidations has been taken in the accounts whilst the exact amount is negotiated with the landlord. At the date of signing these Statutory Accounts no agreement had been reached. The Group was unable to find an alternative affordable site in the Croydon area that was more appropriately sized for the Mazda brand, so the Group's franchise agreement with Mazda has now ended. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
With the Bank base rate not falling as rapidly as originally forecast due to inflation remaining stubbornly above the Bank of England's target the Group continues to self-fund as much used stock as it can afford in order to minimise the interest payable on stocking loans. Despite the Bank base rate only falling 0.5% during the year, the Group's actions have managed to reduce overall interest payable from £990k in 2023 to £858k in 2024. |
Even though there has been a big drop off in the Group's profitability this year, there remains strong cash generation in 2024 with cash balances increases year on year by £926k. |
Equity Shareholder funds have marginally decreased in the year due to a final dividend of £500,000 being paid. |
The Group retains access to under-utilised vehicle funding facilities and additionally has access to an unutilised overdraft facility, which renews annually. The Group is therefore well placed in the event of a repeat of some world event outside of our control such as the 2020 Covid pandemic. |
The Group's headcount remained steady year on year. However, the Government's announcement of a 1.2% increase in Employer's National insurance rate from April 2025 has a significant monetary impact on the Group. As a result, in common with many Companies, as and when people leave the business the Directors are considering carefully whether to replace that person before giving the go ahead for recruitment to happen. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group uses various financial instruments, these include cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. |
The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail below. |
The main risks arising from the Group's financial instruments are categorised as liquidity risk, market risk and credit risk. The directors review and agree policies for managing each of these risk and they are summarised below. |
Liquidity risk |
Funds available to the Group are above operating requirements. The directors have kept firm control of stocks especially used and new vehicle stocks and monitor on a weekly basis the funded percentage and ageing of every item. The EBITDA is also measured monthly to ensure liquidity. |
Market risk |
Whilst there continues to be strong demand for vehicles and services there is always a risk that demand may reduce over the medium term. The Directors do not anticipate any major increase in the industry volumes but believe that the franchises are investing in new product which could lead to improved market share. |
Credit risk |
The Group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is minimal. The principal credit risk therefore arises from its trade debtors. |
In order to manage credit risk the Group ensures receipt of cleared funds for vehicle sales before the vehicle is released. The bonuses due from the manufacturer are paid by direct credit transfer. Other trade debtors, principally as a result of servicing of vehicles, require approved credit in advance which is supported by credit reports, reference checks and payment is required within the Group's credit terms and hence credit risk is minimised within a process of bi monthly reviews. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
SECTION 172(1) STATEMENT |
The directors consider, both individually and together that they have acted in the way they consider in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) if the Act) in the decisions taken during the year ended 31 December 2024 and in creating future business plans ("our plans"): |
- | Our plans are designed to have a long-term beneficial impact on the company and to contribute to its success by providing high quality service to our customers. |
- | Our employees are fundamental to the delivery of our plans. We aim to be a responsible and attractive employer to in our approach to pay and the benefits our employees receive and the opportunities they have to develop their careers. |
- | Our plans rely on developing long term relationships with suppliers and customers, enabling us to gain a detailed understanding of their requirements and priorities. We aim to act responsibly and fairly in how we engage with all stakeholders. |
- | Our plans consider the impact of the Group's operations on the community and the environment. We encourage our employees to support the communities in which they work. |
- | As directors, our intention is to behave responsibly an ensure the management operate the business in a responsible manner, operating with the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plans. |
- | As directors, our intention is to behave responsibly to our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plans. |
GOING CONCERN |
In considering whether it is appropriate to prepare these financial statements on the going concern basis, the Directors have prepared financial forecasts to 31 March 2026 making realistic adjustments in respect of known changes in cashflows as a result of the continuing cost of living crisis, economic uncertainty, the significant monetary impact of the rise in Employer national Insurance from April 2025 and other known market conditions. The Directors have further applied sensitivities to those forecasts to consider the uncertainty of the future impact of the current cost of living crisis and economic uncertainty including a reverse stress test. A reverse stress test identifies the worst case scenario that would cause the business to utilise all of its available cash and finance facilities. In preparing the sensitivities and reverse stress test the Directors have primarily considered various levels of reductions in vehicle and service revenues. |
The Group has access to an unutilised overdraft facility which renews annually as well as underutilised vehicle funding facilities. The Directors have no reason to believe that these facilities will not continue to be available throughout the forecast period. They have also concluded that the reduction in revenue required under the reverse stress test scenario is not one which is plausible. |
The Directors, having considered the sensitised forecasts, reverse stress test, the availability of finance for the Group together with the current revenue levels, have concluded that it remains appropriate to prepare these financial statements on the going concern basis. |
ON BEHALF OF THE BOARD: |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024. |
DIVIDENDS |
An interim dividend of £498.01 per share was paid on 19 December 2024. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2024 will be £ 500,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
DONATIONS AND EXPENDITURE |
No political donations were made during the period. |
ENGAGEMENT WITH EMPLOYEES |
Information of concern to employees is cascaded down from department managers. |
Employees are encouraged to discuss their views with their superiors, in order that these views can be taken into account when making decisions. |
Employees are encouraged to participate in the company's performance, by being notified of monthly performance and comparisons with targets/KPI's. This information is passed onto employees at regular intervals during the month. |
Department managers are kept aware of financial and economic factors affecting the business and this information will be passed onto employees as considered necessary. |
Disabled employees |
Full and fair consideration to employee applications from disabled persons is given, dependant on their ability to fulfil the tasks within the position being applied for. |
Wherever possible, employees who become disabled will have continued employment within the business. |
Disabled employees are not discriminated against, and are given the same training, career development and promotion opportunities as able-bodied employees. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The Board recognises that it is essential for the ongoing success and reputation of the business to foster strong relationships across its customer, supplier, vehicle manufacturer and wider stakeholder community. |
The is regular engagement with vehicle manufacturers and other suppliers at many levels including at Director level. Customer feedback is encouraged at many points of contact and action is taken to address issues identified in order to make the customer experience a memorable one. |
The Board considers the interests of all shareholders and stakeholders at is regular Senior Management meetings and ensures that all stakeholders' interests are considered when it is appropriate to do so. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION |
This section includes our mandatory reporting of greenhouse gas emissions for the period 1 January 2024 to 31 December 2024, the latest annual period for which data is available, and is pursuant to the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. We report our emissions data using an operational control approach taking data for which we deem ourselves responsible. In the 2024 calendar year, our business emitted 1,059.5 tonnes of carbon dioxide ("CO2"). Our emissions are principally of CO2 and are from the following sources: |
Greenhouse gas emissions data | Tonnes of | Tonnes of |
CO2 | CO2 |
2024 | 2023 |
Scope 1 |
Gas consumption | 209.0 | 210.1 |
Scope 2 |
Purchased electricity | 232.4 | 221.5 |
Scope 3 |
Fuel consumption | 618.1 | 617.9 |
Statutory total | 1,059.5 | 1,049.5 |
Revenue (£million) | 157.4 | 178.8 |
We have selected emissions £million of revenues per tonne as our intensity ratio as this, in our view, provides the best comparative measure over time. |
2024 intensity ratio: 6.7 tonnes of CO2 per £million of revenue. |
2023 intensity ratio: 5.9 tonnes of CO2 per £million of revenue. |
The Group's total energy consumption for the period 1 January 2024 to 31 December 2024 was 2.265 million kWh (2023: 2.221 million kWh). The methodology for calculating this annual energy consumption figure was the same as that outlined above for producing the estimate of the Company greenhouse gas emissions. |
All of the Group's energy consumption arose in the UK. |
Reducing carbon emissions |
During the year, we have continued to assess and monitor our energy use with improved data collection and, where practicable, we have implemented measures to reduce the environmental impact of our activities. During 2024 further significant investment has been spent on changing over all our sites to energy efficient LED lighting. |
Climate change influences seasonal energy usage and while, at times, we benefit from milder weather we are aware that any adverse change could affect energy usage. To minimise our energy usage we continue, where practicable, to install LED lighting at our sites as these use significantly less energy than conventional lighting. In addition, we limit the duration of periods when full lighting is used, using sensors and timers to further reduce the energy we use. We continue to improve our energy use and efficiency by replacing old equipment with new efficient units and ensuring workshop doors are closed when not in use by fitting automatic closing devices. We seek to limit our paper consumption and waste through increasingly paperless communications and systems. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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; |
- | 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. |
The directors are 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 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 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 directors are 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 each director 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, Cooper Parry, were appointed as auditor to the Group 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Drift Bridge Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 December 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 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 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 directors with respect to going concern are described in the relevant sections of this report. |
Other audit matters |
The financial statements for the company for the year-ended 31 December 2023 were audited by another auditor who expressed an unmodified opinion on those statements on 12 March 2024. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
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 Directors 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 Directors 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 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 Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIFT BRIDGE GROUP HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the Companies Act 2006 and relevant tax compliance regulations in the UK. |
We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included: |
- | Challenging assumptions and judgements made by management in its significant accounting estimates; |
- | Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations; |
- | Confirming with management whether they have knowledge of any actual, suspected or illegal fraud; |
- | Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud. |
These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). 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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance with all laws and regulations. |
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 |
DRIFT BRIDGE GROUP HOLDINGS 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. |
for and on behalf of |
Statutory Auditor |
First Floor, Davidson House |
Forbury Square |
Reading |
Berkshire |
RG1 3EU |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 157,351,529 | 178,760,603 |
Cost of sales | 149,862,787 | 168,230,827 |
GROSS PROFIT | 7,488,742 | 10,529,776 |
Administrative expenses | 6,456,496 | 6,569,905 |
1,032,246 | 3,959,871 |
Other operating income | 41,112 | 24,802 |
OPERATING PROFIT | 6 | 1,073,358 | 3,984,673 |
Interest receivable and similar income | 25,393 | 30,570 |
1,098,751 | 4,015,243 |
Interest payable and similar expenses | 7 | 857,780 | 990,180 |
PROFIT BEFORE TAXATION | 240,971 | 3,025,063 |
Tax on profit | 8 | 113,544 | 747,061 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
127,427 |
2,278,002 |
Profit attributable to: |
Owners of the parent | 127,427 | 2,278,002 |
Total comprehensive income attributable to: |
Owners of the parent | 127,427 | 2,278,002 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 6,761,147 | 7,035,833 |
Investments | 12 | - | - |
Investment property | 13 | 852,000 | 852,000 |
7,613,147 | 7,887,833 |
CURRENT ASSETS |
Stocks | 14 | 17,156,207 | 25,614,656 |
Debtors | 15 | 2,637,254 | 2,870,567 |
Cash at bank | 2,374,593 | 1,448,192 |
22,168,054 | 29,933,415 |
CREDITORS |
Amounts falling due within one year | 16 | 16,657,806 | 24,325,280 |
NET CURRENT ASSETS | 5,510,248 | 5,608,135 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,123,395 |
13,495,968 |
PROVISIONS FOR LIABILITIES | 18 | 598,294 | 598,294 |
NET ASSETS | 12,525,101 | 12,897,674 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2,004 | 2,004 |
Retained earnings | 20 | 12,523,097 | 12,895,670 |
SHAREHOLDERS' FUNDS | 12,525,101 | 12,897,674 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 10 March 2025 and were signed on its behalf by: |
E J Frost - Director |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
961,886 |
(29,267 |
) |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2023 | 2,004 | 11,367,668 | 11,369,672 |
Changes in equity |
Dividends | - | (750,000 | ) | (750,000 | ) |
Total comprehensive income | - | 2,278,002 | 2,278,002 |
Balance at 31 December 2023 | 2,004 | 12,895,670 | 12,897,674 |
Changes in equity |
Dividends | - | (500,000 | ) | (500,000 | ) |
Total comprehensive income | - | 127,427 | 127,427 |
Balance at 31 December 2024 | 2,004 | 12,523,097 | 12,525,101 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2024 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,162,402 | 1,708,250 |
Interest paid | (857,780 | ) | (990,180 | ) |
Tax paid | (556,974 | ) | (677,896 | ) |
Net cash from operating activities | 1,747,648 | 40,174 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (258,471 | ) | (426,533 | ) |
Sale of tangible fixed assets | 20,000 | - |
Interest received | 25,393 | 30,570 |
Net cash from investing activities | (213,078 | ) | (395,963 | ) |
Cash flows from financing activities |
Loans advanced from directors | - | 616,419 |
Amount withdrawn by directors | (108,169 | ) | - |
Equity dividends paid | (500,000 | ) | (750,000 | ) |
Net cash from financing activities | (608,169 | ) | (133,581 | ) |
Increase/(decrease) in cash and cash equivalents | 926,401 | (489,370 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,448,192 |
1,937,562 |
Cash and cash equivalents at end of year |
2 |
2,374,593 |
1,448,192 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit for the financial year | 127,427 | 2,278,002 |
Depreciation charges | 533,157 | 734,652 |
Profit on disposal of fixed assets | (20,000 | ) | - |
Finance costs | 857,780 | 990,180 |
Finance income | (25,393 | ) | (30,570 | ) |
Taxation | 113,544 | 747,061 |
1,586,515 | 4,719,325 |
Decrease/(increase) in stocks | 8,458,450 | (5,630,842 | ) |
Decrease/(increase) in trade and other debtors | 261,046 | (717,110 | ) |
(Decrease)/increase in trade and other creditors | (7,143,609 | ) | 3,336,877 |
Cash generated from operations | 3,162,402 | 1,708,250 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2024 |
31/12/24 | 1/1/24 |
£ | £ |
Cash and cash equivalents | 2,374,593 | 1,448,192 |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 1,448,192 | 1,937,562 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/24 | Cash flow | At 31/12/24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,448,192 | 926,401 | 2,374,593 |
1,448,192 | 926,401 | 2,374,593 |
Total | 1,448,192 | 926,401 | 2,374,593 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
1. | STATUTORY INFORMATION |
Drift Bridge Group Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The financial statements are rounded to the nearest £. |
The Group's principal activities during the year continued to be the retailing of motor vehicles and the provision of servicing and parts for vehicles. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
The exemptions relate to company only, the information is included in the consolidated financial statements of Drift Bridge Group Holdings Limited as at 31 December 2024. |
Basis of consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of other business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive income from the date on which control is obtained. The are deconsolidated from the date control ceases. |
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2016. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
In considering whether it is appropriate to prepare these financial statements on the going concern basis, the directors have prepared financial forecasts to 31 March 2026 making realistic adjustments in respect of known changes in cashflows as a result of the current cost of living crisis, economic uncertainty and other known market conditions. The directors have further applied sensitivities to those forecasts to consider the uncertainty of the future impact of the current cost of living crisis and economic uncertainty including a reverse stress test. A reverse stress test identifies the worst case scenario that would cause the business to utilise all of its available cash and finance facilities. In preparing the sensitivities and reverse stress test the directors have primarily considered various levels of reductions in vehicle and services revenues. |
We have access to an unutilised overdraft facility which renews annually as well as underutilised vehicle funding facilities. The directors have no reason to believe that these facilities will not continue to be available throughout the forecast period. They have also concluded that the reduction in revenue required under the reverse stress test scenario is not one which is plausible. |
Therefore the directors, having considered the sensitised forecasts, reverse stress test, the availability of finance for the Group together with the current revenue levels, have concluded that it remains appropriate to prepare these financial statements on the going concern basis. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised. |
Sales of goods |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the Group has transferred the significant risks and rewards of ownership to the buyer; |
- | the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of turnover can be measured reliably; |
- | it is probable that the Group will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
This is usually at the point that the customer has signed for the delivery of the goods. |
Rendering of services |
Turnover form the provision of services is recognised in the period in which the services are provided, when the amount of turnover can be measured reliably and it is probably that the Group will receive the consideration. |
All turnover arose within the United Kingdom. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as detailed below: |
Depreciation is provided on the following basis: |
Freehold property | - | 2% on cost |
Short-term leasehold property | - | over the life of the lease |
Motor vehicles | - | on a straight line basis over a period of 4 years |
Fixtures and fittings | - | on a straight line basis over a period of 3 to 10 years |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings. |
Impairment of fixed assets |
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGU's). Non-financial assets that have been previously impaired are review at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased. |
Investment property |
Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
Cost of vehicles and parts stock represents the purchase price plus any additional costs incurred. Where necessary, provision is made for obsolete, slow moving and defective stock. |
Vehicles used for demonstration purposes are valued at cost less an appropriate charge for use. |
Vehicles on consignment are included in inventories when substantially all of the principle benefits and inherent risks rest with the company. The corresponding liability after deducting any deposits is included under creditors secured on consignment stock. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand an deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group has elected to apply the provision of Section 11 "Basic Financial Instruments" of FRS 102 to all if its financial instruments. |
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. |
Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less an provision for impairment, 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. |
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due within the operating cycle fall into this category of financial instruments. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting date. |
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. |
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments - continued |
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 the deduction of all its liabilities. |
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transactions costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. |
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. |
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. |
Derecognition of financial instruments |
Derecognition of financial assets |
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the group transfers the assets and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Finance costs |
Finance costs are charged to the profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date, except that: |
- | The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; |
- | Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and |
- | Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probably in the foreseeable future. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Operating leases: the company as lessee |
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Employee 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. |
The Group provides a range of benefits to employees, including bonus arrangements, paid holiday arrangements and defined contribution pension plans. |
Short term benefits |
Short term benefits, including holiday pay and other similarly non-monetary benefits, are recognised as an expense in the period in which the service is received. |
Defined contribution pension plans |
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate legal entity. Once the contributions have been paid the company has no further payment obligations. The contribution are recognised as an expense when they are due. Amounts not paid are shown in accruals in the Statement of Financial Statement. The assets of the plan are held separately from the company in independently administered funds. |
Bonus plan |
The Group operates a bonus plan for employees. An expense is recognised in the profit or loss when the company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made. |
Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
Borrowing costs |
All borrowing costs are recognised in profit or loss in the year which they are incurred. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements in accordance with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. There are no judgements but the estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. |
Significant judgement in applying the accounting policies |
The Group holds Freehold property which can be either an investment property or part of property, plant and equipment. Some property held by the Group is not held primarily to earn rentals or for capital appreciation, as such the directors are of the opinion that it is part of property, plant and equipment in the Group's financial statements. House in the form of flats held primarily to earn rentals are presented as investment properties. |
Significant accounting estimates |
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities withing the next financial year are addressed below. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. |
Stock provision (note 14) |
The provision for slow or obsolete stock requires an estimate to be made on the recoverable value of old stock lines and forecasts of units to be sold in the future using judgements based on market expectations. |
Recoverable amount of leasehold improvements (note 11) |
The Group considers whether leasehold improvements are impaired. where an indication of impairment is identified, the recoverable value of the assets is estimated. This requires estimation of the future cash flows from the assets and also selection of appropriate discount rates in order to calculate the net present value of those cash flows. |
The recoverable amount of the asset is a source of significant estimation uncertainty and determining this involved the use of significant assumptions, particularly as they relate to the forecasting of future cash flows and discount rate. The outcome of the impairment tests is not sensitive to any reasonable possible changes in respect of the projected cash flows, nor the discount rate. The terminal growth rate was assumed at nil. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sale of goods | 146,622,295 | 168,192,010 |
Rendering of services | 10,729,234 | 10,568,593 |
157,351,529 | 178,760,603 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 11,614,895 | 11,803,017 |
Social security costs | 1,235,595 | 1,294,238 |
Other pension costs | 1,139,967 | 1,088,695 |
13,990,457 | 14,185,950 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production and sales staff | 294 | 288 |
Office and management staff | 35 | 39 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 184,685 | 239,886 |
Directors' pension contributions to money purchase schemes | 17,846 | 17,160 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 862,280 | 792,668 |
Depreciation - owned assets | 533,157 | 734,652 |
Profit on disposal of fixed assets | (20,000 | ) | - |
Auditors' remuneration | 41,000 | 44,150 |
Preparation of accounts | 7,000 | 7,000 |
Taxation compliance services | 7,750 | 8,650 |
VAT services | - | 14,860 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest payable | 857,780 | 990,180 |
8. | 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 | 113,544 | 805,090 |
Adjustments in respect of |
prior periods | - | (78 | ) |
Total current tax | 113,544 | 805,012 |
Deferred tax: |
Deferred tax | - | (58,153 | ) |
Adjustments in respect of |
prior periods | - | 202 |
Total deferred tax | - | (57,951 | ) |
Tax on profit | 113,544 | 747,061 |
UK corporation tax has been charged at 25 % (2023 - 23.52 %). |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge 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: |
2024 | 2023 |
£ | £ |
Profit before tax | 240,971 | 3,025,063 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 23.520 %) |
60,243 |
711,495 |
Effects of: |
Expenses not deductible for tax purposes | (4,036 | ) | 1,877 |
Income not taxable for tax purposes | (5,000 | ) | (146 | ) |
Depreciation in excess of capital allowances | 62,337 | 37,136 |
Adjustments to tax charge in respect of previous periods | - | 124 |
Remeasurement of tax for changes in tax rates | - | (3,425 | ) |
Total tax charge | 113,544 | 747,061 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 500,000 | 750,000 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Short | and | Motor |
property | leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2024 | 8,364,211 | 2,511,020 | 4,344,510 | 75,237 | 15,294,978 |
Additions | - | 1,978 | 256,493 | - | 258,471 |
Disposals | - | (2,079,760 | ) | (320,702 | ) | - | (2,400,462 | ) |
At 31 December 2024 | 8,364,211 | 433,238 | 4,280,301 | 75,237 | 13,152,987 |
DEPRECIATION |
At 1 January 2024 | 3,106,119 | 2,347,915 | 2,759,652 | 45,459 | 8,259,145 |
Charge for year | 155,033 | 43,082 | 318,359 | 16,683 | 533,157 |
Eliminated on disposal | - | (2,079,760 | ) | (320,702 | ) | - | (2,400,462 | ) |
At 31 December 2024 | 3,261,152 | 311,237 | 2,757,309 | 62,142 | 6,391,840 |
NET BOOK VALUE |
At 31 December 2024 | 5,103,059 | 122,001 | 1,522,992 | 13,095 | 6,761,147 |
At 31 December 2023 | 5,258,092 | 163,105 | 1,584,858 | 29,778 | 7,035,833 |
Included within cost of Freehold property is freehold land of £559,500 (2023: £559,500) which is not depreciated. |
An impairment charge to the carrying value of the Croydon leasehold has been incurred in the year totalling £nil (2023: £106,699). |
Company |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2024 |
and 31 December 2024 |
DEPRECIATION |
At 1 January 2024 |
Charge for year |
At 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2024 |
and 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Drift Bridge Garage, Reigate Road, Epsom, Surrey, KT17 3LA |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
London South TPS Limited |
Registered office: Drift Bridge Garage, Reigate Road, Epsom, Surrey, KT17 3LA |
Nature of business: Sale of car parts |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 3,443,244 | 3,302,826 |
Profit for the year | 140,418 | 272,085 |
London South TPS Limited is a subsidiary of Drift Bridge Garage Limited. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
COST |
At 1 January 2024 |
and 31 December 2024 | 852,000 |
NET BOOK VALUE |
At 31 December 2024 | 852,000 |
At 31 December 2023 | 852,000 |
The 2024 valuations were made by the directors, on an open market value for existing use basis. |
Included in cost or valuation of investment property is freehold land of £15,000 (2023: £15,000) which is not depreciated. |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2024 |
and 31 December 2024 |
NET BOOK VALUE |
At 31 December 2024 |
At 31 December 2023 |
The 2024 valuations were made by the directors, on an open market value for existing use basis. |
Included in cost or valuation of investment property is freehold land of £15,000 (2023: £15,000) which is not depreciated. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 16,671,374 | 25,177,622 |
Parts stock | 359,992 | 325,358 |
Work-in-progress | 124,841 | 111,676 |
17,156,207 | 25,614,656 |
Included in vehicle stocks are vehicle consignment stocks amounting to £4,810,023 (2023: £5,050,263). This has no financial effect on the results of the company as the related secured vehicle creditor has also been included in the financial statements. |
An impairment release of £29,329 (2023: £19,342) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock. |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 715,547 | 1,205,877 |
Other debtors | 1,893,974 | 1,664,690 |
Tax | 27,733 | - |
2,637,254 | 2,870,567 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 1,962,807 | 2,383,740 |
Creditors secured on other stock | 6,555,113 | 13,765,894 | - | - |
Amounts owed to group undertakings | - | - |
Tax | 89,240 | 504,938 |
Social security and other taxes | 973,732 | 422,132 |
Other creditors | 198,653 | 178,678 |
Consignment stock creditors | 4,810,023 | 5,050,265 | - | - |
Directors' loan accounts | 864,367 | 972,535 | - | - |
Accruals and deferred income | 1,203,871 | 1,047,098 |
16,657,806 | 24,325,280 |
Creditors are secured on other stock are in regards to vehicle stocks and other specified assets subject to a legal charge by Volkswagen Bank. |
Amount owed by group undertakings are unsecured, interest free, have no fixed date of repayment and repayable on demand. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year | 676,777 | 727,258 |
Between one and five years | 1,675,240 | 1,604,861 |
In more than five years | 857,867 | 633,156 |
3,209,884 | 2,965,275 |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 598,294 | 598,294 | 376,210 | 376,210 |
Group |
Deferred tax |
£ |
Balance at 1 January 2024 | 598,294 |
Balance at 31 December 2024 | 598,294 |
Company |
Deferred tax |
£ |
Balance at 1 January 2024 |
Balance at 31 December 2024 |
The provision for deferred taxation is made up as follows: |
Group | Group | Company | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Accelerated capital allowances | (494,750 | ) | (494,750 | ) | (253,218 | ) | (253,218 | ) |
Capital gains | (122,992 | ) | (122,992 | ) | (122,992 | ) | (122,992 | ) |
Short term timing differences | 19,448 | 19,448 | - | - |
(598,294 | ) | (598,294 | ) | (376,210 | ) | (376,210 | ) |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 2,004 | 2,004 |
There is a single class of ordinary shares. The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets. |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2024 | 12,895,670 |
Profit for the year | 127,427 |
Dividends | (500,000 | ) |
At 31 December 2024 | 12,523,097 |
Company |
Retained |
earnings |
£ |
At 1 January 2024 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2024 |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £1,139,967 (2023: £1,088,695). Contributions totalling £70,168 (2023: £77,497) were payable to the fund at the reporting date. |
DRIFT BRIDGE GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 09805945) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2024 |
22. | CONTINGENT LIABILITIES |
A cross guarantee and debenture has been provided to Barclays Bank PLC by Drift Bridge Group Holdings Limited, Drift Bridge Garage Limited, and London South TPS Limited, dated 2 December 2013. As at 31 December 2024, £Nil (2023: £Nil) was due to Barclays Bank PLC by the Group. |
A deed of priority has been provided to Volkswagen Bank dated 14 March 2017. As at 31 December 2024 £10,405,977 (2023: £14,186,086) was due to Volkswagen Bank by the Group. |
Volkswagen Bank have additional security over certain stocks and properties with the Group. |
23. | RELATED PARTY DISCLOSURES |
Drift Bridge Garage Limited (a subsidiary within the Group) leased a property from the Drift Bridge Garage Executive Pension Scheme, rent of £121,708 (2023: £112,000) was recognised by the company during the year. |
The Drift Bridge Garage Executive Pension Scheme is related to the Group as its beneficiaries are Mr E J Frost, Mr M V Frost and Mrs V Frost. |
Mr E J Frost purchased a vehicle from Drift Bridge Garage Limited during the year for £10,385 (2023: Sold a vehicle to Drift Bridge Garage Limited receiving £10,900). |
Mr R Frost acquired a vehicle from Drift Bridge Garage Limited during the year paying £48,000 (2023: £23,700) in accordance with its CAP valuation at that time. Four months later, also during the year, Mr R Frost sold the same vehicle back to Drift Bridge Garage Limited for £51,000 (2023: £33,000). |
At the year end Drift Bridge Garage Limited owed amounts to the ultimate controlling parties totalling: |
2024 | 2023 |
£ | £ |
Mr E J Frost | 533,212 | 532,208 |
Mr R Frost | 279,737 | 375,000 |
Mr M Frost | 51,418 | 65,327 |
864,367 | 972,535 |
The Group 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
24. | ULTIMATE CONTROLLING PARTY |
At December 2024, the company's controlling parties were E J Frost, M V Frost and R C Frost. |