Company registration number 07357468 (England and Wales)
ENZO AUTOMOTIVE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ENZO AUTOMOTIVE LIMITED
COMPANY INFORMATION
Directors
Mr K S Aujla
Mr K Singh
Company number
07357468
Registered office
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
Auditor
Richard Place Dobson Services Limited
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
ENZO AUTOMOTIVE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 28
ENZO AUTOMOTIVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
page 1

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

Company Overview

The principal business of Enzo Automotive Ltd is maintenance & repair of motor vehicles & electric vehicles.

The Directors extend their gratitude to the entire organisation for staying focused on key business objectives and values, which has contributed to the company’s success throughout the year.

Principal risks and uncertainties

The principal risk facing the group is the shortage of skilled talent, a challenge further intensified by rising salary demands. The growing popularity of electric vehicles, coupled with the advanced technology they entail, underscores the importance of accessing a highly skilled workforce.

This talent gap poses a significant concern for our business, as it may hinder our ability to innovate and maintain a competitive edge in the rapidly evolving automotive industry.

Development and performance

Throughout the year, the company prioritised identifying challenges and implementing corrective actions. This proactive approach has facilitated significant operational improvements, positioning the organisation for enhanced performance and better results in the future.

 

By fostering a culture of continuous improvement, we are better equipped to adapt to changing market conditions and achieve our strategic objectives.

Key performance indicators

The Directors are dedicated to implementing innovative strategies aimed at delivering rapid results, thereby enabling the organisation to efficiently achieve its financial objectives. This commitment to innovation not only drives growth but also ensures we remain competitive in a dynamic market.

The turnover and operating profit of the group was as follows:

 

2024

2023

Turnover

£27,717,607

£24,497,709

Operating profit (loss)

£4,711,094

£2,420,420

Gross profit %

47.5%

39.1%

The group's capital and reserves have increased by £2,145,281 to £5,681,704.

 

Analysis of the position of the business

The Directors express satisfaction with the management team’s efforts in establishing a comprehensive and clearly defined strategic plan. This plan included well-communicated processes and deadlines that were effectively disseminated across the organisation. As a result, the financial performance met expectations, and the company made substantial strides toward its mission and vision of becoming an industry leader.

A strategic focus on high-level, long-term goals proved to be a pivotal factor in this success, enabling the organisation to align its resources and efforts effectively. Moving forward, the continued commitment to these strategic objectives will be essential for sustaining growth and achieving our ambitious targets.

ENZO AUTOMOTIVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 2

On behalf of the board

Mr K S Aujla
Director
13 December 2024
ENZO AUTOMOTIVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
page 3

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the group continued to be vehicle accident repair from sites across the South East of England.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,400,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr K S Aujla
Mr K Singh
Auditor

In accordance with the company's articles, a resolution proposing that Richard Place Dobson Services Limited be reappointed as auditor of the group will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr K S Aujla
Director
13 December 2024
ENZO AUTOMOTIVE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
page 4

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ENZO AUTOMOTIVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENZO AUTOMOTIVE LIMITED
page 5
Opinion

We have audited the financial statements of Enzo Automotive Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 information

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ENZO AUTOMOTIVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENZO AUTOMOTIVE LIMITED
page 6
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 their 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:

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 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 parent 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.

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

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

 

However it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team made enquiries of management, and those charged with governance, regarding the procedures relating to identifying, evaluating and complying with;

 

  1. laws and regulations and whether they were aware of any instances of non-compliance;

  2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Companies Act 2006, employment and tax law and regulations and data protection regulations. We performed audit procedures to detect non-compliance, which may have a material impact on the financial statements. These included reviewing financial statement disclosures and evaluating advice received from internal management. There were no significant laws and regulations we deemed as having an indirect impact on the financial statements.

ENZO AUTOMOTIVE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENZO AUTOMOTIVE LIMITED
page 7
Risks identified
Audit response
Fraud or error in revenue recognition

For the majority of the income during the year we obtained and reviewed the supporting documentation. We reviewed income recognition by vouching a sample of invoices from two internal systems and vouching them to supporting documentation. We reviewed the nominal ledger for any evidence of manipulation by management.

Management override of controls resulting in fraud or error

Discussion was had with management and amongst the engagement team to gain an understanding of the entities current activities, authorisation procedures and effectiveness of the control environment. Our understanding was tested during the audit work and the systems controls in place were found to be operating effectively. In addition we reviewed all material transactions and journal adjustments both during the year and after the year end for evidence of manipulation.

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.

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 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.

Darren Harding ACA, FCCA, DChA
Senior Statutory Auditor
For and on behalf of Richard Place Dobson Services Limited
13 December 2024
Chartered Accountants
Ground Floor
1 - 7 Station Road
Crawley
West Sussex
RH10 1HT
ENZO AUTOMOTIVE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
page 8
2024
2023
Notes
£
£
Turnover
3
27,717,607
24,497,709
Cost of sales
(14,543,293)
(14,908,955)
Gross profit
13,174,314
9,588,754
Administrative expenses
(8,493,220)
(7,168,334)
Operating profit
4
4,681,094
2,420,420
Interest payable and similar expenses
7
(99)
(3,324)
Profit before taxation
4,680,995
2,417,096
Tax on profit
8
(1,135,714)
(574,413)
Profit for the financial year
3,545,281
1,842,683
Profit for the financial year is all attributable to the owners of the parent company.
ENZO AUTOMOTIVE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
page 9
2024
2023
£
£
Profit for the year
3,545,281
1,842,683
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
3,545,281
1,842,683
Total comprehensive income for the year is all attributable to the owners of the parent company.
ENZO AUTOMOTIVE LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,679,447
1,698,004
Current assets
Stocks
13
774,434
864,038
Debtors falling due after more than one year
14
478,712
165,939
Debtors falling due within one year
14
2,427,326
1,820,536
Cash at bank and in hand
3,007,128
2,638,606
6,687,600
5,489,119
Creditors: amounts falling due within one year
15
(3,253,197)
(3,334,110)
Net current assets
3,434,403
2,155,009
Total assets less current liabilities
6,113,850
3,853,013
Provisions for liabilities
Deferred tax liability
17
432,146
316,590
(432,146)
(316,590)
Net assets
5,681,704
3,536,423
Capital and reserves
Called up share capital
19
10
10
Profit and loss reserves
5,681,694
3,536,413
Total equity
5,681,704
3,536,423
The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
13 December 2024
Mr K S Aujla
Director
Company registration number 07357468 (England and Wales)
ENZO AUTOMOTIVE LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
1,012
3,029
Current assets
Debtors
14
10
10
Creditors: amounts falling due within one year
15
(1,012)
(3,029)
Net current liabilities
(1,002)
(3,019)
Net assets
10
10
Capital and reserves
Called up share capital
19
10
10

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,400,000 (2023 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
13 December 2024
Mr K S Aujla
Director
Company registration number 07357468 (England and Wales)
ENZO AUTOMOTIVE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
page 12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
10
1,693,730
1,693,740
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,842,683
1,842,683
Balance at 31 March 2023
10
3,536,413
3,536,423
Year ended 31 March 2024:
Profit and total comprehensive income
-
3,545,281
3,545,281
Dividends
9
-
(1,400,000)
(1,400,000)
Balance at 31 March 2024
10
5,681,694
5,681,704
ENZO AUTOMOTIVE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
page 13
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
10
-
0
10
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2023
10
-
0
10
Year ended 31 March 2024:
Profit and total comprehensive income
-
1,400,000
1,400,000
Dividends
9
-
(1,400,000)
(1,400,000)
Balance at 31 March 2024
10
-
0
10
ENZO AUTOMOTIVE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
page 14
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,824,984
3,224,629
Interest paid
(99)
(3,324)
Income taxes paid
(500,453)
(191,208)
Net cash inflow from operating activities
3,324,432
3,030,097
Investing activities
Purchase of tangible fixed assets
(1,503,927)
(138,209)
Proceeds from disposal of investments
(2,017)
-
Repayment of loans
-
(11,899)
Net cash used in investing activities
(1,505,944)
(150,108)
Financing activities
Repayment of borrowings
-
(367,130)
Payment of finance leases obligations
(49,966)
(49,966)
Dividends paid to equity shareholders
(1,400,000)
-
0
Net cash used in financing activities
(1,449,966)
(417,096)
Net increase in cash and cash equivalents
368,522
2,462,893
Cash and cash equivalents at beginning of year
2,638,606
175,713
Cash and cash equivalents at end of year
3,007,128
2,638,606
ENZO AUTOMOTIVE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
page 15
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
page 16
1
Accounting policies
Company information

Enzo Automotive Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ground Floor, 1 - 7 Station Road, Crawley, West Sussex, RH10 1HT.

 

The group consists of Enzo Automotive Limited and all of its subsidiaries.

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 freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Enzo Automotive Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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. The company relies on invoice financing for day to day cash flow needs. The going concern basis is being used as management do not consider it a material uncertainty that the facility would be suddenly withdrawn.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
page 17
1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch 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.

1.6
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.

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 Leasehold
15 years straightline
Plant and machinery
10 years straightline
Fixtures, fittings & equipment
10 years straightline and 3 years straightline

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
page 18

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
page 19
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.

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 group 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 group 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.

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.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
page 20
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

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 group’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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
page 21

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 leased 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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Work in progress

When determining the value of work in progress at the year end a number of estimates have to be made including the stage of completion of the job.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Maintenance and repair of motor vehicles
27,717,607
24,497,709
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
522,484
415,331
Operating lease charges
1,881,927
1,162,125
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
30,000
30,800
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Auditor's remuneration
(Continued)
page 22
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Senior management, accounts and administration
60
58
-
-
Customer service and quality control
88
86
-
-
Drivers and yardsmen
9
9
-
-
Total
157
153
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,380,638
5,896,048
-
0
-
0
Social security costs
447,731
408,760
-
-
Pension costs
107,441
106,283
-
0
-
0
6,935,810
6,411,091
-
0
-
0
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
99
3,324
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,020,157
500,452
Deferred tax
Origination and reversal of timing differences
115,557
73,961
Total tax charge
1,135,714
574,413
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
page 23

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
4,680,995
2,417,096
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,170,249
459,248
Tax effect of expenses that are not deductible in determining taxable profit
618
586
Effect of change in corporation tax rate
(35,153)
114,579
Taxation charge
1,135,714
574,413
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,400,000
-
10
Tangible fixed assets
Group
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 April 2023
375,117
2,984,693
601,366
3,961,176
Additions
-
0
74,820
1,429,107
1,503,927
At 31 March 2024
375,117
3,059,513
2,030,473
5,465,103
Depreciation and impairment
At 1 April 2023
162,741
1,615,726
484,705
2,263,172
Depreciation charged in the year
36,070
399,045
87,369
522,484
At 31 March 2024
198,811
2,014,771
572,074
2,785,656
Carrying amount
At 31 March 2024
176,306
1,044,742
1,458,399
2,679,447
At 31 March 2023
212,376
1,368,967
116,661
1,698,004
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 24
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
-
0
-
0
1,012
3,029
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 April 2023
3,029
Disposals
(2,017)
At 31 March 2024
1,012
Carrying amount
At 31 March 2024
1,012
At 31 March 2023
3,029
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
BHW Automotive Limited
England and Wales
Ordinary shares
100.00
Days Accident Repair Limited
England and Wales
Ordinary shares
100.00
Double Drive Exclusive Limited
England and Wales
Ordinary shares
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
160,155
158,287
-
-
Work in progress
614,279
705,751
-
-
774,434
864,038
-
-
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 25
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,924,303
1,312,050
-
0
-
0
Other debtors
11,921
13,938
10
10
Prepayments and accrued income
491,102
494,548
-
0
-
0
2,427,326
1,820,536
10
10
Amounts falling due after more than one year:
Other debtors
478,712
165,939
-
0
-
0
Total debtors
2,906,038
1,986,475
10
10
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
16
60,338
110,304
-
0
-
0
Trade creditors
1,167,675
1,578,705
-
0
-
0
Corporation tax payable
1,020,157
500,452
-
0
-
0
Other taxation and social security
382,972
616,460
-
-
Other creditors
26,659
28,975
1,012
3,029
Accruals and deferred income
595,396
499,214
-
0
-
0
3,253,197
3,334,110
1,012
3,029
16
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
In two to five years
60,338
110,304
-
0
-
0

Finance lease payments represent rentals payable by the company or group 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 10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 26
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
437,220
321,664
Retirement benefit obligations
(5,074)
(5,074)
432,146
316,590
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
316,590
-
Effect of change in tax rate - profit or loss
115,556
-
Liability at 31 March 2024
432,146
-

The deferred tax liability set out above is expected to reverse within 60 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
107,441
106,283

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10

The company has one class of ordinary shares which carry full and equal rights to participate in voting in all circumstances and in dividends and capital distributions. These shares are not redeemable.

ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 27
20
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
709,891
926,707
-
-
Between two and five years
5,284,068
7,083,444
-
-
5,993,959
8,010,151
-
-
21
Controlling party

The ultimate controlling party was the director, Kashmir Singh, who owned a majority stake in the issued share capital of Enzo Automotive Limited.

 

All subsidiary companies are 100% owned by the parent. All subsidiaries are incorporated in England and Wales and operate in England.

22
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
3,547,298
1,842,683
Adjustments for:
Taxation charged
1,135,714
574,413
Finance costs
99
3,324
Depreciation and impairment of tangible fixed assets
522,484
415,331
Pension scheme non-cash movement
2,826
1,023
Movements in working capital:
Decrease in stocks
89,604
876,144
(Increase)/decrease in debtors
(919,563)
157,125
Decrease in creditors
(553,478)
(645,414)
Cash generated from operations
3,824,984
3,224,629
ENZO AUTOMOTIVE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
page 28
23
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,638,606
368,522
3,007,128
Obligations under finance leases
(110,304)
49,966
(60,338)
2,528,302
418,488
2,946,790
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