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Registration number: 00413728

Warners Trust plc

Consolidated Financial Statements

for the Year Ended 30 September 2024

 

Warners Trust plc

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Financial Statements

15 to 34

 

Warners Trust plc

Company Information

Directors

R A Warner

G D Warner

A M Rayer

Company secretary

D Ryland

Registered office

Eastern Avenue
Gloucester
Gloucestershire
GL4 3BS

Bankers

Lloyds Banking Group plc
19 Eastgate Street
Gloucester
GL1 1NU

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Warners Trust plc

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the group is that of motor vehicle distributor and garage proprietors.

Fair review of the business

The group’s chairman, Michael Warner, sadly passed at his home on 29 December 2024, at the age of 77. Michael was a prominent figure in the Gloucestershire business community, supporting Warners Motor Group, RHS Malvern Spring Show and a host of local charities. Michael’s input has left an indelible mark on the group, which the Board and Michael’s family will continue to build on, ensuring the group’s continued growth and success.

In August 2024, the group expanded their offerings by adding two new dynamic brands: Omoda and Jaecoo, making Warners one of only 75 dealerships in the UK. The brands have been well received and mark an exciting new chapter for the group.

The directors are pleased with the trading result for the year which saw an increase in turnover and an improvement in margins. The parts operation remains the strongest part of the business and enjoys an excellent reputation with both the franchise network and local independent motor traders. Demand for vehicle repairs and servicing was also much improved.

The group's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Sales (net of rebates and discounts)

£

28,014,852

27,211,953

Profit before taxation

£

411,460

398,322

Principal risks and uncertainties

Market Conditions
The business is reliant on consumer spending, which given uncertain market conditions, including high interest rates, can impact on the profitability of the group. The group offers a range of vehicles and payment options to ensure they can cater to the market.

Franchise
During the year, the group have added two new brands to their offering. The strategic change in the business will bring challenges associated with marketing the change in brand. The reaction in the market has been positive and the directors are confident that this will represent a great opportunity to appeal to a wider customer base.

Approved by the Board on 15 March 2025 and signed on its behalf by:


G D Warner
Director

 

Warners Trust plc

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the for the year ended 30 September 2024.

Directors of the group

The directors who held office during the year were as follows:

M D Warner (resigned 29 December 2024)

R A Warner

The following directors were appointed after the year end:

G D Warner (appointed 24 February 2025)

A M Rayer (appointed 5 March 2025)

Financial Instruments

Objectives and Policies

The group's financial instruments comprise cash and liquid resources, and various other items such as trade debtors, trade creditors, etc that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the group.

Price risk, credit risk, liquidity risk and interest rate risk

Liquidity risk
The group's principal liquidity risk is to ensure that it has sufficient liquid resources to meet its operational requirements. Liquidity is closely monitored and additional discretionary funding is drawn down if required. The group's primary sources of liquid resources are its bankers and providers of vehicle funding agreements.

Credit risk
The group offers credit to certain of its customers. Before credit terms are agreed, an assessment of the customers' credit rating is undertaken to ensure that the customer does not represent a major credit risk to the group. Credit limits are set accordingly. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

Price risk
Through careful monitoring of the group's market place and competitors the group's exposure to price risk is kept to a minimum.

Interest rate risk
The most significant interest rate risk involves the interest rate fluctuations of the group's loan portfolio, which is managed by balancing interest rate risk between variable and fixed rates. The directors view short term base rate volatility to be low. The group is well placed to deal with any rise in interest rates.

Going concern

The directors have prepared forecasts for the group for more than 12 months from the approval of the financial statements. After reviewing the group’s forecasts, and on the assumption that the bank continues to support the group, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from insufficient facilities being made available to the group.

Future developments

The group continues to seek new opportunities for growth, including exploring new options with Jaecoo and Omoda.

Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Disclosure of information to the auditor

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

 

Warners Trust plc

Directors' Report for the Year Ended 30 September 2024

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 15 March 2025 and signed on its behalf by:


G D Warner
Director

 

Warners Trust plc

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Warners Trust plc

Independent Auditor's Report to the Members of Warners Trust plc

Opinion

We have audited the financial statements of Warners Trust plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 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 auditor 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

Warners Trust plc

Independent Auditor's Report to the Members of Warners Trust plc

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 5, 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 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.

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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the group operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Warners Trust plc

Independent Auditor's Report to the Members of Warners Trust plc

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at 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.





Paul Fussell (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

18 March 2025

 

Warners Trust plc

Consolidated Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

28,014,852

27,211,953

Cost of sales

 

(24,813,461)

(24,315,620)

Gross profit

 

3,201,391

2,896,333

Administrative expenses

 

(2,800,053)

(2,602,155)

Other operating income

4

180,677

277,383

Operating profit

5

582,015

571,561

Other interest receivable and similar income

6

27,971

44,087

Interest payable and similar charges

7

(247,312)

(251,480)

Share of profit of equity accounted joint venture

15

33,981

34,154

Share of profit of equity accounted associate

15

14,805

-

Profit before tax

 

411,460

398,322

Taxation

11

(109,480)

(143,092)

Profit for the financial year

 

301,980

255,230

Profit attributable to:

 

Owners of the company

 

259,519

251,608

Minority interests

 

42,461

3,622

 

301,980

255,230

The above results were derived from continuing operations.

The group has no other comprehensive income for the year.

 

Warners Trust plc

(Registration number: 00413728)
Consolidated Balance Sheet as at 30 September 2024

Note

2024
 £

2023
 £

Fixed assets

 

Intangible assets

12

-

2,603

Tangible assets

13

746,744

845,929

Investment property

14

2,454,024

2,375,000

Joint venture

15

496,728

497,877

Associate

15

11,203

-

Other financial assets

16

1,788

4,808

 

3,710,487

3,726,217

Current assets

 

Stocks

17

2,318,969

2,906,086

Debtors

18

1,258,121

1,853,767

Cash at bank and in hand

 

496,925

239,875

 

4,074,015

4,999,728

Creditors: Amounts falling due within one year

20

(3,934,548)

(5,308,425)

Net current assets/(liabilities)

 

139,467

(308,697)

Total assets less current liabilities

 

3,849,954

3,417,520

Creditors: Amounts falling due after more than one year

20

(500,052)

(379,639)

Provisions for liabilities

23, 11

(205,267)

(106,826)

Net assets

 

3,144,635

2,931,055

Capital and reserves

 

Called up share capital

25

50,006

50,006

Capital redemption reserve

26

49,994

49,994

Profit and loss account

26

2,927,332

2,756,213

Equity attributable to owners of the company

 

3,027,332

2,856,213

Non-controlling interest

 

117,303

74,842

Total equity

 

3,144,635

2,931,055

Approved and authorised by the Board on 15 March 2025 and signed on its behalf by:
 

G D Warner
Director

 

Warners Trust plc

(Registration number: 00413728)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

53,343

69,133

Investment property

14

2,454,024

2,375,000

Investments

15

307,105

240,422

 

2,814,472

2,684,555

Current assets

 

Debtors

18

62,624

99,972

Cash at bank and in hand

 

83,069

23,096

 

145,693

123,068

Creditors: Amounts falling due within one year

20

(197,959)

(372,545)

Net current liabilities

 

(52,266)

(249,477)

Total assets less current liabilities

 

2,762,206

2,435,078

Creditors: Amounts falling due after more than one year

20

(207,207)

(37,584)

Deferred tax

23

(12,490)

(18,939)

Net assets

 

2,542,509

2,378,555

Capital and reserves

 

Called up share capital

25

50,006

50,006

Capital redemption reserve

26

49,994

49,994

Profit and loss account

26

2,442,509

2,278,555

Total equity

 

2,542,509

2,378,555

The company made a profit after tax for the financial year of £252,354 (2023 - profit of £144,034).

Approved and authorised by the Board on 15 March 2025 and signed on its behalf by:
 

G D Warner
Director

 

Warners Trust plc

Consolidated Statement of Changes in Equity for the Year Ended 30 September 2024
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

Non-controlling interests
£

At 1 October 2023

50,006

49,994

2,756,213

2,856,213

74,842

Profit for the year

-

-

259,519

259,519

42,461

Dividends

-

-

(88,400)

(88,400)

-

At 30 September 2024

50,006

49,994

2,927,332

3,027,332

117,303

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

Non-controlling interests
£

At 1 October 2022

50,006

49,994

2,624,005

2,724,005

71,220

Profit for the year

-

-

251,608

251,608

3,622

Dividends

-

-

(119,400)

(119,400)

-

At 30 September 2023

50,006

49,994

2,756,213

2,856,213

74,842

Within the total value of profit and loss account reserves is £313,752 (2023 - £313,752) of non-distributable reserves.

 

Warners Trust plc

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

50,006

49,994

2,278,555

2,378,555

Profit for the year

-

-

252,354

252,354

Dividends

-

-

(88,400)

(88,400)

At 30 September 2024

50,006

49,994

2,442,509

2,542,509

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 October 2022

50,006

49,994

2,253,921

2,353,921

Profit for the year

-

-

144,034

144,034

Dividends

-

-

(119,400)

(119,400)

At 30 September 2023

50,006

49,994

2,278,555

2,378,555

Within the total value of profit and loss account reserves is £273,952 (2023 - £273,952) of non-distributable reserves.

 

Warners Trust plc

Consolidated Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
 £

2023
 £

Cash flows from operating activities

Profit for the year

 

259,519

251,608

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

129,598

179,148

Changes in fair value of investment property

14

-

(95,596)

Profit on disposal of tangible assets

5

(615)

(62,573)

Finance income

6

(27,971)

(44,087)

Finance costs

7

247,312

251,480

Share of profit of equity accounted investees

15

(48,786)

(27,317)

Income tax expense

11

109,480

143,092

Profit attributable to the NCI

 

42,461

3,622

 

710,998

599,377

Working capital adjustments

 

Decrease/(increase) in stocks

 

587,117

(471,436)

Decrease in trade debtors

 

666,381

184,043

(Decrease)/increase in trade creditors

 

(1,094,823)

337,847

Increase in provisions

23

114,750

-

Cash generated from operations

 

984,423

649,831

Income taxes paid

 

(80,035)

(89,422)

Net cash flow from operating activities

 

904,388

560,409

Cash flows from investing activities

 

Interest received

27,971

44,087

Acquisitions of tangible assets

(230,033)

(207,854)

Proceeds from sale of tangible assets

 

441,605

305,652

Additions to investment properties

 

(79,024)

(40,329)

Proceeds from sale of investment properties

 

-

57,180

Dividend income from financial assets

28,000

28,000

Acquisition of investments in financial assets

 

-

(33)

Net cash flows from investing activities

 

188,519

186,703

Cash flows from financing activities

 

Interest paid

 

(247,312)

(251,480)

Repayment of bank borrowing

 

(155,000)

(255,000)

Payments to finance lease creditors

 

(345,145)

(157,212)

Dividends paid

(88,400)

(119,400)

Net cash flows from financing activities

 

(835,857)

(783,092)

Net increase/(decrease) in cash and cash equivalents

 

257,050

(35,980)

Cash and cash equivalents at 1 October

 

239,875

275,855

Cash and cash equivalents at 30 September

19

496,925

239,875

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Eastern Avenue
Gloucester
Gloucestershire
GL4 3BS

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemption
Warners Trust Plc meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to presentation of the company statement of cash flows and presentation of the company profit and loss statement.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 September 2024.

No Profit and Loss account is presented for the company as permitted by section 408 of the Companies Act 2006.

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The directors have prepared forecasts for the group for more than 12 months from the approval of the financial statements. After reviewing the group’s forecasts, and on the assumption that the bank continues to support the group, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from insufficient facilities being made available to the group.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Key sources of estimation uncertainty

The directors do not consider there to be a material movement in the fair value of a number of the investment properties held, as detailed in note 14 to these financial statements. The directors assess fair value through the application of market rent yields. Where those indicate a material movement in fair value, formal valuations are obtained.

Judgements

Management have assessed stock lines and have estimated the value of stock that requires provision in order to reflect the true value of stock within the financial statements. The carrying value of the provision is £37,227 (2023 - £35,863).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the group's activities.

Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. When the outcome of a transaction for the rendering of services can be estimated reliably in terms of revenue, costs and its stage of completion, the company recognises revenue on the sales of services in the reporting period in which the services are rendered by reference to the stage of completion of the specific transaction at the end of the reporting period. The stage of completion is determined on the basis of the actual completion of a proportion of the total services to be rendered. When the outcome of a service contract cannot be estimated reliably the company only recognises revenue to the extent of the recoverable expenses recognised.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Long leasehold land and buildings

Over the period of the lease

Plant and machinery

20%-33% of cost per annum

Motor homes

10% reducing balance

Motor vehicles

20% reducing balance

Investment property

Investment property is carried at fair value, mainly derived from the current market prices for comparable real estate determined by the directors. The directors use observable market prices adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

For investment properties where the directors consider there to be a material movement in the fair value, a formal valuation has been obtained, with reliance being placed on analysis using market rent yields.

Intangible assets

Separately acquired intangible assets are included at cost and amortised over their estimated useful economic life. Provision is made for any impairment.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Computer software

25% of cost per annum

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Investments in jointly controlled interests and associates of the group are accounted for under the equity method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Costs includes all direct costs and an appropriate proportion of variable overheads.

Consignment stock held but not owned by the group is recognised as an asset on the balance sheet with a corresponding liability included in creditors due within one year when the risks and reward of ownership transfer to the group.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Leases in which substantially all of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

3

Revenue

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

25,882,631

25,166,637

Rendering of services

2,132,221

2,045,316

28,014,852

27,211,953

The group's revenue for the year was all generated in the UK.

 

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Rental income

177,887

169,998

Other operating income

2,790

107,385

180,677

277,383

Included in other operating income of £2,790 (2023 - £107,385) is a gain on the revaluation of properties of £nil (2023 - £95,596).

 

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

126,995

171,345

Amortisation expense

2,603

7,803

Operating lease expense

364,450

360,243

Profit on disposal of tangible fixed assets

(615)

(60,659)

Revaluation of investment property

-

(95,596)

 

6

Other interest receivable and similar income

2024
£

2023
£

Other interest receivable

27,971

44,087

 

7

Interest payable and similar charges

2024
£

2023
£

Interest on bank overdrafts and borrowings

21,853

25,473

Interest on obligations under finance leases and hire purchase contracts

45,715

52,089

Interest expense on other finance liabilities

179,744

173,918

247,312

251,480

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

8

Staff costs

Group
The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

2,114,110

1,989,932

Social security costs

217,375

186,666

Pension costs, defined contribution scheme

128,453

137,187

2,459,938

2,313,785

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Production

26

26

Administration and support

29

30

Sales

11

12

66

68

Company
The aggregate payroll costs (including directors' remuneration) were as follows:

2024
 £

2023
 £

Wages and salaries

19,400

10,000

Social security costs

3,531

2,444

22,931

12,444

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Production

1

1

Administration and support

1

1

2

2

 

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration (including benefits in kind)

31,556

34,944

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

10

Auditors' remuneration

2024
 £

2023
 £

Audit of these financial statements

8,925

8,500

Audit of the financial statements of subsidiaries of the company pursuant to legislation

26,250

25,000

35,175

33,500

 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

139,228

96,961

UK corporation tax adjustment to prior periods

(13,439)

-

125,789

96,961

Deferred taxation

Arising from origination and reversal of timing differences

(28,141)

(8,533)

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

11,832

54,664

Total deferred taxation

(16,309)

46,131

Tax expense in the profit and loss account

109,480

143,092

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22.01%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

411,460

398,322

Corporation tax at standard rate

102,865

68,330

Decrease in UK corporation tax from adjustment to prior periods

(13,439)

-

Tax increase/(decrease) from effect of capital allowances and depreciation

3,968

(2,512)

Effect of expense not deductible in determining taxable profit

4,254

3,541

Movement in deferred tax not recognised

-

54,664

Other tax effects for reconciliation between accounting profit and tax expense

-

19,069

Deferred tax expense from unrecognised temporary difference from a prior period

11,832

-

Total tax charge

109,480

143,092

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

(114,871)

Short term timing differences

24,354

(90,517)

2023

Liability
£

Accelerated capital allowances

(151,504)

Short term timing differences

44,678

(106,826)

Company

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

(12,490)

(12,490)

2023

Liability
£

Accelerated capital allowances

(18,939)

(18,939)

 

12

Intangible assets

Group

Computer software
 £

Cost

At 1 October 2023 and at 30 September 2024

23,411

Amortisation

At 1 October 2023

20,808

Amortisation charge

2,603

At 30 September 2024

23,411

Carrying amount

At 30 September 2024

-

At 30 September 2023

2,603

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

13

Tangible assets

Group

Long leasehold land and buildings
£

Plant and machinery
 £

Motor homes and motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

741,481

762,678

745,150

2,249,309

Additions

228,478

15,136

225,186

468,800

Disposals

-

(25,469)

(598,787)

(624,256)

At 30 September 2024

969,959

752,345

371,549

2,093,853

Depreciation

At 1 October 2023

644,743

636,839

121,798

1,403,380

Charge for the year

31,669

38,297

57,029

126,995

Eliminated on disposal

-

(25,458)

(157,808)

(183,266)

At 30 September 2024

676,412

649,678

21,019

1,347,109

Carrying amount

At 30 September 2024

293,547

102,667

350,530

746,744

At 30 September 2023

96,738

125,839

623,352

845,929

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

49,248

67,182

Motor homes and motor vehicles

350,530

494,695

399,778

561,877

Restriction on title and pledged as security

Plant and machinery with a carrying amount of £49,248 (2023 - £67,182) has been pledged as security for the related finance lease and hire purchase liabilities.

Motor homes and motor vehicles with a carrying amount of £350,530 (2023 - £494,695) has been pledged as security for the related finance lease and hire purchase liabilities.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Company

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

171,634

28,691

200,325

Additions

-

15,000

15,000

Disposals

-

(28,691)

(28,691)

At 30 September 2024

171,634

15,000

186,634

Depreciation

At 1 October 2023

116,621

14,571

131,192

Charge for the year

13,166

3,740

16,906

Eliminated on disposal

-

(14,807)

(14,807)

At 30 September 2024

129,787

3,504

133,291

Carrying amount

At 30 September 2024

41,847

11,496

53,343

At 30 September 2023

55,013

14,120

69,133

 

14

Investment properties

Group and Company

Investment properties
£

At 1 October 2023

2,375,000

Additions

79,024

At 30 September 2024

2,454,024

Investment property with a carrying amount of £790,000 (2023 - £790,000) has been pledged as security for the bank overdraft facility provided to the group. Investment property with a carrying value of £1,500,000 (2023 - £1,500,000) has been pledged as security for a bank loan held in Warners Trust plc.

Investment properties comprise:

1) An investment property valued in accordance with RICS valuation standard on the basis of market value at £790,000 (2023 - £790,000) by P J Pratt MRICS on behalf of Alder King LLP on 19 March 2024.

2) An investment property valued in accordance with RICS valuation standard on the basis of market value at £1,500,000 (2023 - £1,500,000), plus additions of £79,024, by P J Pratt MRICS on behalf of Alder King LLP on 19 March 2024.

3) An investment property valued in accordance with RICS valuation standard on the basis of market value at £85,000 (2023 - £85,000) by P J Pratt MRICS on behalf of Alder King LLP on 19 March 2024.

The directors do not consider that the market value of these properties is materially different from their carrying value.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

15

Joint ventures and associates

Group

Interest in joint venture:

2024

£

At 1 October 2023

497,877

Group's share of loss

(1,149)

At 30 September 2024

496,728

Investment in associate

2024

£

At 1 October 2023

-

Acquisition cost

100

Group's share of profit

11,103

At 30 September 2024

11,203

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) are as follows:

Undertaking

Registered address

Holding

Proportion of voting rights and shares held

     

2024

2023

Joint ventures

Warners of Tewkesbury Limited

Eastern Avenue,
Gloucester,
GL4 3BS

Ordinary 'A'

50%

50%

         

Associates

M5 Leisure Limited*

Unit 2 130 Bristol Road, Gloucester, GL1 5SQ

Ordinary 'E'

18.3%

0%

         

* The shares in M5 Leisure Limited are held by Warners of Gloucester Limited.

Aggregate financial information of joint ventures

2024
£

2023
£

Group's share of loss in joint ventures

(1,149)

(683)

Aggregate financial information of associates

2024
£

2023
£

Group's share of profit in associates

11,103

-

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Joint ventures

The principal activity of Warners of Tewkesbury Limited is property investment.

Warners of Tewkesbury Limited is jointly controlled by the group and one other venture under a contractual arrangement and is consequently treated as a joint venture. The group's share of the results and assets of Warners of Tewkesbury Limited are accounted for using the equity method.

Associates

The principal activity of M5 Leisure Limited Limited is the lease and sale of motor homes.

M5 Leisure Limited is partly controlled by the group and the company's directors and is consequently treated as an associate. The group's share of the results and assets of M5 Leisure Limited are accounted for using the equity method.

Company

2024
 £

2023
 £

Investments in subsidiaries

302,105

235,422

Investments in joint ventures

5,000

5,000

307,105

240,422

Subsidiaries

£

Cost

At 1 October 2023

1,020,287

Disposals

(2)

At 30 September 2024

1,020,285

Provisions

At 1 October 2023

784,865

Provision reversal

(66,685)

At 30 September 2024

718,180

Cost and carrying amount

At 30 September 2024

302,105

At 30 September 2023

235,422

The provision reversal was made so the investment value at the year end in Warners of Gloucester is equal to Warners Trust share of net assets.

Joint ventures

£

Cost and carrying amount

At 30 September 2023 and 2024

5,000

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Warners of Gloucester Limited

Eastern Avenue,
Gloucester,
GL4 3BS

Ordinary / 'B' Ordinary

76%

81%

 

     

Warners Accident Repair Centre Limited

Eastern Avenue,
Gloucester,
GL4 3BS

Ordinary

100%

100%

 

     

Joint ventures

Warners of Tewkesbury Limited

Eastern Avenue,
Gloucester,
GL4 3BS

Ordinary 'A'

50%

50%

 

     


Subsidiary undertakings
Warners of Gloucester Limited
The principal activity of Warners of Gloucester Limited is as a garage proprietor.

Warners Accident Repair Centre Limited
The principal activity of Warners Accident Repair Centre Limited is that of a dormant company.

Joint Ventures
Warners of Tewkesbury Limited
The principal activity of Warners of Tewkesbury Limited is property investment.
 

 

16

Other financial assets

Group

Financial assets at fair value through profit and loss
£

Non-current financial assets

Cost or valuation

At 1 October 2023

4,808

Fair value adjustments

(468)

Disposals

(2,552)

At 30 September 2024

1,788

Carrying amount

At 30 September 2024

1,788

At 30 September 2023

4,808

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

17

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Parts and accessories

96,735

100,702

-

-

Work in progress

28,494

63,265

-

-

Finished goods and goods for resale

2,184,798

2,712,061

-

-

Vehicles on consignment from manufacturers

8,942

30,058

-

-

2,318,969

2,906,086

-

-

The principal terms of consignment stock agreement are that the group holds new vehicles on consignment from manufacturers and is liable to interest on the cost of those vehicles from the date on which they are allocated to the group.

 

18

Debtors

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Trade debtors

889,181

1,410,006

52,096

29,616

Other debtors

76,950

151,109

-

45,933

Prepayments

241,182

250,652

10,528

24,423

Accrued income

50,808

42,000

-

-

1,258,121

1,853,767

62,624

99,972

 

19

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

500

435

-

-

Cash at bank

496,425

239,440

83,069

23,096

496,925

239,875

83,069

23,096

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

20

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Trade creditors

 

2,889,819

3,894,916

57,283

7,970

Amounts owed to group undertakings

 

-

-

11,001

71

Other taxes and social security

 

51,781

125,078

5,337

7,348

Outstanding defined contribution pension costs

 

-

4,576

-

-

Other payables

 

80,970

30,184

-

11,475

Accruals

 

539,567

513,275

34,751

34,952

Corporation tax

 

127,911

92,989

24,920

7,011

Consignment stock creditor

 

8,942

30,058

-

-

Loans and borrowings

21

235,558

617,349

64,667

303,718

 

3,934,548

5,308,425

197,959

372,545

Due after one year

 

Loans and borrowings

21

500,052

379,639

207,207

37,584

The group funds vehicle stock on extended credit terms from both the principal manufacturer and other providers of vehicle funding, which are secured on the assets of the company. The group classifies such creditors as vehicle funding agreements within trade creditors, which as at 30 September 2024 amounted to £2,284,818 (2023 - £3,380,376). Vehicle funding agreements bear interest at an average rate of 5.0% (2023 - 5.0%). The vehicle funding agreements creditor includes manufacturer liabilities of £1,294,135 (2023 - £2,138,894) in respect of other purchases which are also secured on the trade and assets of the group.

Consignment stock creditors are secured on the assets to which they relate.

The principal terms of consignment stock agreements are set out in note 17.

 

21

Loans and borrowings

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

155,000

392,500

50,000

287,500

Obligations under finance leases and hire purchase contracts

80,558

224,849

14,667

16,218

235,558

617,349

64,667

303,718

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

310,000

227,500

187,500

-

Obligations under finance leases and hire purchase contracts

190,052

152,139

19,707

37,584

500,052

379,639

207,207

37,584

Finance leases and hire purchase contracts are secured on the assets to which they relate.

Bank loans include an amount of £237,500 (2023 - £287,500) which attracts interest at a rate of 2.25% plus the Bank of England bank rate (2023 - 2.85% plus Bank of England bank rate). The final instalment is due in June 2029, with monthly repayments of £4,167 (2023 - quarterly repayments of £12,500).

Bank loans also include a Coronavirus Business Interruption Loan (CBILs) of £227,500 (2023 - £332,500). The loan attracts interest at 2.69% plus the banks base rate. The loan is repayable in 60 equal instalments of £8,750, starting in December 2021.

 

22

Obligations under leases and hire purchase contracts

Group

Finance leases and hire purchase contracts

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

153,742

283,213

Later than one year and not later than five years

274,221

253,039

427,963

536,252

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

227,215

258,549

Later than one year and not later than five years

452,348

501,508

Later than five years

275,600

275,600

955,163

1,035,657

The amount of non-cancellable operating lease payments recognised as an expense during the year was £364,450 (2023 - £360,243).

Operating leases - lessor

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

68,420

68,420

Later than one year and not later than five years

135,578

175,998

Later than five years

170,333

198,333

374,331

442,751

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

Company

Finance leases and hire purchase contracts

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

20,599

20,599

Later than one year and not later than five years

20,599

41,198

41,198

61,797

Operating leases - lessor

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

68,420

68,420

Later than one year and not later than five years

135,578

175,998

Later than five years

170,333

198,333

374,331

442,751

 

23

Provisions for liabilities

Group

Dilapidations provision
£

At 1 October 2023

102,750

Increase in existing provisions

12,000

At 30 September 2024

114,750

The dilapidations provision of £114,750 (2023 - £102,750) relates to the costs the group expects to incur in restoring the leased premises to its condition prior to occupancy.

 

24

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £128,453 (2023 - £137,187).Contributions totalling £12,643 (2023 - £4,576) were payable to the scheme at the end of the year and are included in creditors.

 

25

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary 'A' shares of £1 each

47,500

47,500

47,500

47,500

Ordinary 'B' shares of £1 each

2,506

2,506

2,506

2,506

50,006

50,006

50,006

50,006

All shares rank pari passu in all respects except that they carry independent rights to dividends.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

26

Reserves

Group and Company

Called up share capital

This represents the nominal value of the issued share capital.

Capital redemption reserve

This represents paid up share capital from the buy back of shares by the company. These are undistributable reserves.

Profit and loss account

This represents the cumulative profit or losses, net of dividends and other adjustments.

Non-controlling interest (group only)

This represents the cumulative profits or losses, net of dividends and other adjustments, attributable to minority interests.

 

27

Dividends

2024
 £

2023
 £

Dividends paid

88,400

119,400

During the year, directors received dividends of £88,400 (2023 - £119,400).

 

28

Related party transactions

Group

During the year the group was charged rent of £68,000 (2023 - £68,000) by its joint venture. During the year interest of £nil (2023 - £316) was charged at a rate of 3.5%.

During the year the group made sales of £1,008,599 (2023 - £702,972) and purchases of £318,558 (2023 - £224,556) to companies under common control. At the balance sheet date, the amount due from companies under common control was £149,908 (2023 - £92,401) and £32,187 (2023 - £10,521) was owed to companies under common control.

During the year the group made sales of £627 (2023 - £9,913) to directors of the company. At 30 September 2024, the group was owed £180 (2023 - £2,750) by the directors.

During the year a loan was provided to a company under common control for £530,000 (2023 - £75,000). At the balance sheet date, the amount due was £nil (2023 - £75,000).


Company
During the year the company made sales of £110,560 (2023 - £41,725) and purchases of £80,661 (2023 - £96,912) to companies under common control. At the balance sheet date the amount due to companies under common control was £21,427 (2023 - £4,799) and the amounts due from companies under common control was £7,318 (2023 - £120).

During the year a loan was provided to a director for £nil (2023 - £47,500). A repayment of £34,000 (2023 - £13,500) was made and at the balance sheet date, £nil (2023 - £34,000) was owed to the company.

 

Warners Trust plc

Notes to the Financial Statements for the Year Ended 30 September 2024

 

29

Financial instruments

Group

Categorisation of financial instruments

2024
 £

2023
 £

Financial assets measured at fair value through profit or loss

1,788

4,808

Financial assets measured at fair value

Listed investments
Listed investments are valued using quoted share prices.

The fair value is £Nil (2023 - £Nil) and the change in value included in profit or loss is £Nil (2023 - £Nil).

Items of income, expense, gains or losses

2024

Income
£

Expense
£

Net gains
£

Net losses
£

Financial liabilities measured at amortised cost

-

201,597

-

-

2023

Income
£

Expense
£

Net gains
£

Net losses
£

Financial liabilities measured at amortised cost

-

199,391

-

-

The total interest income for financial assets not measured at fair value through profit or loss is £27,971 (2023 - £44,087). The total interest expense for financial liabilities not measured at fair value through profit or loss is £45,715 (2023 - £52,089).

 

30

Analysis of net debt

At 1 October 2023

Cash flow

Other non-cash changes

At 30 September 2024

£

£

£

£

Cash at bank and in hand

239,875

257,050

-

496,925

239,875

257,050

-

496,925

Bank loans

(620,000)

155,000

-

(465,000)

Other loan

-

-

-

-

Finance lease and hire purchase contract

(376,988)

345,145

(238,767)

(270,610)

Net debt

(757,113)

757,195

(238,767)

(238,685)

Other non-cash changes reflect advances under finance leases and hire purchase contracts.

 

31

Parent and ultimate parent undertaking

The ultimate controlling party is the estate of M D Warner.