Company registration number 03105115 (England and Wales)
WHEATCROFT (WORKSOP) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
WHEATCROFT (WORKSOP) LIMITED
COMPANY INFORMATION
Directors
J Wheatcroft
P Wheatcroft
Company number
03105115
Registered office
Walkers of Worksop
Retford Road
Worksop
S80 2RZ
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
WHEATCROFT (WORKSOP) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
WHEATCROFT (WORKSOP) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 December 2023.

Review of the business

2023 was a year of consolidation after a good 2022 with the business delivering a pre-tax profit of £32k. Turnover was up to just over £26 million due to New Car price increases and the price of used cars remaining high but margins under pressure both on new and used cars and with increased costs therefore we achieve 0.1% return on sales.

The staff have worked tirelessly under the leadership of Chris Matthewman once again to achieve these results.

New car demand is starting to wain as Manufacturers pass on increasing costs to the consumer making New cars more expensive. The used car market and used car values have continued to be historically high for most the year. However, used car prices have had a substantial market readjustment in Quarter 4 as prices were artificially high they have come back down to more sensible levels and with this realignment we still posted a company profit for 2023 which was commendable and we look forward to being in a good position going into 2024.

We have been working extremely hard to get consumers into and driving Electric Vehicles as with ZEV mandates for Manufacturers coming into place we believe this will be essential to hitting new car targets. The Electrification of both Vauxhall and Peugeot ranges and cars and vans in general continues at pace and we believe we are well placed to cater for all customers motoring needs in the future.

Principal risks and uncertainties

The management of the business and the nature of the company’s strategy are subject to a number of risks. The directors have set out below the principal risks facing the business.

 

Manufacturers supply of new and improved products

The company is reliant on new vehicle products from its manufacturers. This exposes the company to risks in a number of areas as the company is dependent on manufacturers/suppliers in respect of:

 

 

The directors are confident that future new products from manufacturers/suppliers will continue to be competitively priced and high quality, and therefore consider that this risk is minimal. It is in any case mitigated by other core business areas of the company.

 

Used vehicle price variation

Used vehicle prices can decline significantly. As a significant proportion of our business comprises used vehicle sales, these declines can have a material impact on our business. The impact of declines in used vehicle prices can result in reduced profits on sales and also write-downs in the value of used vehicle stock.

 

Competition

The company competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The company competes for the sale of new and used vehicles, the performance of warranty repairs and non-warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer’s brands and the quality of customer service.

Company, people and reputation

The company has invested heavily in its people and its reputation over a number of years. It is therefore reliant on these individuals to a degree in delivering the company result and reinforcing the underlying company brand. The company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

WHEATCROFT (WORKSOP) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -

Economic downturn

The success of the business is reliant on consumer spending. An economic downturn, resulting in the reduction of consumer spending power will have a direct impact on the income achieved by the company.

 

In response to this risk senior management aim to keep abreast of economic conditions. In cases of severe economic downturn marketing and pricing strategies are modified to reflect the new market conditions.

On behalf of the board

P Wheatcroft
Director
26 March 2025
WHEATCROFT (WORKSOP) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 December 2023.

Principal activities

The principal activity of the company continued to be that of a franchised motor dealer, together with associated activities.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £35,954. 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:

J Wheatcroft
P Wheatcroft
Financial instruments

The company uses various financial instruments which include bank, financial institution and stock loans, cash and various items such as trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the company’s operations. Their existence exposes the company to a number of financial risks.

 

The main risks arising from the company’s financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below.

Liquidity risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.

 

The company’s policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Interest rate risk

The company finances its operations through a mixture of bank and other external borrowings. The company’s exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities.

Credit risk

The company’s principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from trade debtors.

 

In order to manage credit risk, the directors set credit limits for customers based on a combination of credit history and third party credit references. Credit limits are reviewed by the finance director on a regular basis in conjunction with debt ageing and collection history.

Auditor

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The auditor, Cooper Parry Group Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

WHEATCROFT (WORKSOP) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
P Wheatcroft
Director
26 March 2025
WHEATCROFT (WORKSOP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHEATCROFT (WORKSOP) LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Wheatcroft (Worksop) Limited (the 'company') for the year ended 30 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:

Basis for qualified opinion

Due to challenges with the vehicle bonus allocation and systems for Stellantis dealers, the Company has not been able, within the timeframe required to finalise these financial statements, to accurately reconcile and confirm the amounts due from the manufacturer. The Company has not been able to commit adequate resources to recovering these amounts from the manufacturer since the year end and there has been no confirmation or further documentation made available by the manufacturer. This matter therefore remains unresolved at the date of this report.

 

Despite conducting extended and alternative audit procedures, we have been unable satisfy ourselves as to the true value of £609,000 included in other debtors which are potentially misstated by unallocated credits of £435,000 held in other creditors. Additionally, we have been unable to determine if any of the resulting receivables are irrecoverable and could therefore result in an impact on the profit reported for the year in the Statement of Comprehensive income.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

WHEATCROFT (WORKSOP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHEATCROFT (WORKSOP) LIMITED (CONTINUED)
- 6 -

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the profit for the period then ended. We have concluded that where the other information refers to the profit for the period, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

Arising solely from the limitation on the scope of our work relating to other receivables, referred to above:

 

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

WHEATCROFT (WORKSOP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHEATCROFT (WORKSOP) LIMITED (CONTINUED)
- 7 -

Extent to which the audit was considered 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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of used vehicle stocks and recognition of supplier incentives. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override and irregularities in the recording of revenue recognition.

 

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the company’s FCA regulatory requirements.

Our procedures to respond to risks identified included the following:

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

WHEATCROFT (WORKSOP) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHEATCROFT (WORKSOP) LIMITED (CONTINUED)
- 8 -

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.

Ian McMahon FCCA FMAAT
Senior Statutory Auditor
For and on behalf of Cooper Parry Group Limited
26 March 2025
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
WHEATCROFT (WORKSOP) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
26,187,649
23,350,088
Cost of sales
(23,766,558)
(21,072,798)
Gross profit
2,421,091
2,277,290
Administrative expenses
(2,202,542)
(2,085,024)
Operating profit
4
218,549
192,266
Interest payable and similar expenses
7
(186,213)
(97,599)
Profit before taxation
32,336
94,667
Tax on profit
8
(19,147)
(15,444)
Profit for the financial year
13,189
79,223

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WHEATCROFT (WORKSOP) LIMITED
BALANCE SHEET
AS AT
30 DECEMBER 2023
30 December 2023
- 10 -
30 December 2023
31 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,285,354
1,368,843
Current assets
Stocks
12
3,368,317
3,214,988
Debtors
13
1,673,048
575,436
Cash at bank and in hand
1,133
806
5,042,498
3,791,230
Creditors: amounts falling due within one year
14
(4,530,904)
(3,292,899)
Net current assets
511,594
498,331
Total assets less current liabilities
1,796,948
1,867,174
Creditors: amounts falling due after more than one year
15
(250,000)
(290,000)
Provisions for liabilities
Deferred tax liability
17
49,970
57,431
(49,970)
(57,431)
Net assets
1,496,978
1,519,743
Capital and reserves
Called up share capital
19
161,560
161,560
Share premium account
20
110,832
110,832
Capital redemption reserve
21
268,160
268,160
Profit and loss reserves
22
956,426
979,191
Total equity
1,496,978
1,519,743
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
P Wheatcroft
Director
Company registration number 03105115 (England and Wales)
WHEATCROFT (WORKSOP) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
161,560
110,832
268,160
937,512
1,478,064
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
79,223
79,223
Dividends
9
-
-
-
(37,544)
(37,544)
Balance at 31 December 2022
161,560
110,832
268,160
979,191
1,519,743
Year ended 30 December 2023:
Profit and total comprehensive income
-
-
-
13,189
13,189
Dividends
9
-
-
-
(35,954)
(35,954)
Balance at 30 December 2023
161,560
110,832
268,160
956,426
1,496,978
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Wheatcroft (Worksop) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Walkers of Worksop, Retford Road, Worksop, S80 2RZ.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Wheatcroft Motor Holdings Limited and these financial statements may be obtained from Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Sales of motor vehicles, parts and accessories are recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer, 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. In general this occurs when vehicles or parts are delivered to the customer and title has passed.

 

Turnover from commission's receivable is recognised when the amount can be reliably measured and it is probable that the group will receive the consideration.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measures at cost less accumulated amortisation and accumulate impairment losses. Goodwill is amortised on a straight line basis to the Profit and Loss Account over its useful economic life. All goodwill has been fully amortised.

WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
over the period of the lease
Leasehold improvements
5 - 10 years
Plant and machinery
3 - 5 years
Fixtures and fittings
5 years
Motor vehicles
10% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock.

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.

 

Consignment stock

Consignment vehicle which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under the control of the company and, in accordance with FRS102 are included in stocks on the balance sheet, although legal title has not passed to the company. The corresponding liability is included within trade creditors and is secured directly on these vehicles.

1.8
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.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. The company does not have any non-basic financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 when the company has 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.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Consignment Stock

Vehicles held on consignment have been included in stocks on the basis that the company has determined that it holds the significant risks and rewards attached to those vehicles.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.

Useful lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives of the assets so these are re-assessed annually and amended when necessary to reflect current estimates. See the accounting policies note for the useful economic lives for each class of assets.

3
Turnover

All turnover arose within the United Kingdom.

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
25,231,450
22,346,418
Rendering of services
741,565
747,211
Commissions receivable
214,634
256,459
26,187,649
23,350,088
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
17,600
Depreciation of owned tangible fixed assets
99,116
107,627
Profit on disposal of tangible fixed assets
(50)
-
Operating lease charges
70,316
68,484
5
Employees

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

2023
2022
Number
Number
Servicing and parts
20
18
Selling and distribution
17
18
Administration
11
11
Total
48
47

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,243,550
1,197,913
Social security costs
122,088
109,706
Pension costs
52,299
22,745
1,417,937
1,330,364
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
28,289
26,879
Company pension contributions to defined contribution schemes
520
28
28,809
26,907

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 18 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
27,981
14,504
Stocking charges
158,232
83,095
186,213
97,599
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
26,660
24,337
Adjustments in respect of prior periods
(52)
(14,056)
Total current tax
26,608
10,281
Deferred tax
Origination and reversal of timing differences
(7,461)
5,163
Total tax charge
19,147
15,444

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:

2023
2022
£
£
Profit before taxation
32,336
94,667
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
7,605
17,987
Tax effect of expenses that are not deductible in determining taxable profit
72
-
0
Adjustments in respect of prior years
(52)
(14,056)
Depreciation on assets not qualifying for tax allowances
13,430
12,008
Deferred tax adjustments in respect of prior years
-
0
52
Tax at marginal rate
(1,466)
-
0
Movement in deferred tax not recognised
-
0
176
Super-deduction expenditure adjustments
-
0
(1,908)
Remeasurement of deferred tax for changes in tax rates
(442)
1,185
Taxation charge for the year
19,147
15,444
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 19 -
9
Dividends
2023
2022
£
£
Final paid
35,954
37,544
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 30 December 2023
138,543
Amortisation and impairment
At 1 January 2023 and 30 December 2023
138,543
Carrying amount
At 30 December 2023
-
0
At 31 December 2022
-
0
11
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,351,776
457,373
310,409
224,476
71,586
2,415,620
Additions
-
0
-
0
7,124
6,536
21,947
35,607
Disposals
-
0
-
0
-
0
-
0
(24,975)
(24,975)
At 30 December 2023
1,351,776
457,373
317,533
231,012
68,558
2,426,252
Depreciation and impairment
At 1 January 2023
307,964
260,269
280,641
166,450
31,453
1,046,777
Depreciation charged in the year
22,760
34,339
10,920
21,440
9,657
99,116
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(4,995)
(4,995)
At 30 December 2023
330,724
294,608
291,561
187,890
36,115
1,140,898
Carrying amount
At 30 December 2023
1,021,052
162,765
25,972
43,122
32,443
1,285,354
At 31 December 2022
1,043,812
197,104
29,768
58,026
40,133
1,368,843
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 20 -
12
Stocks
2023
2022
£
£
Parts stock
130,380
108,009
Vehicle stock
3,237,937
3,106,979
3,368,317
3,214,988

During the period an impairment loss of £19,251 (2022: reversal of £36,466) was recognised against stock.

 

All vehicle stock is pledged as security for the company's vehicle funding and bank facilities.

 

Included within vehicle stock are consignment vehicles amounting to £586,952 (2022: £517,879).

13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
640,609
171,861
Other debtors
926,078
340,918
Prepayments and accrued income
106,361
62,657
1,673,048
575,436
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
58,843
167,839
Trade creditors
3,634,950
2,496,993
Amounts owed to group undertakings
130,553
130,553
Corporation tax
19,139
17,841
Other taxation and social security
63,228
22,026
Other creditors
175,532
149,709
Accruals and deferred income
448,659
307,938
4,530,904
3,292,899

Vehicle funding of £1,591,681 (2022: £2,353,222) included within trade creditors is secured directly over the vehicles to which it relates.

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
250,000
290,000
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
15
Creditors: amounts falling due after more than one year
(Continued)
- 21 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
90,000
130,000
16
Loans and overdrafts
2023
2022
£
£
Bank loans
290,000
330,000
Bank overdrafts
18,843
127,839
308,843
457,839
Payable within one year
58,843
167,839
Payable after one year
250,000
290,000

The bank loan and overdrafts are secured by the way of fixed charges held over all assets of the company, together with a first legal charge over the property.

The bank loan amounts to £290,000 (2022: £330,000) repayable in equal instalments until 2031 with interest charged at 2.5% over base rate.

17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
56,095
59,841
Short term timing differences
(6,125)
(2,410)
49,970
57,431
2023
Movements in the year:
£
Liability at 1 January 2023
57,431
Credit to profit or loss
(7,461)
Liability at 30 December 2023
49,970
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 22 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
52,299
22,745

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £56,978 (2022: £25,189) were payable to the fund at the reporting date and are included in creditors.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150,250
150,250
150,250
150,250
Ordinary 'A' shares of £1 each
11,310
11,310
11,310
11,310
161,560
161,560
161,560
161,560

The Ordinary A shares carry a preferential right to a dividend, unless unanimously agreed otherwise by all shareholders. Each class of shares carries equal voting rights to participate in a distribution upon the winding up of the company.

20
Share premium account

This reserve includes any premiums received on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

21
Capital redemption reserve

Includes the nominal value of redeemed shares.

22
Profit and loss reserves

This reserve included all current and prior period retained profit and losses less dividends paid and cash paid to redeem shares.

23
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
61,404
81,471
Between two and five years
250,845
329,690
In over five years
126,374
250,122
438,623
661,283
WHEATCROFT (WORKSOP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 23 -
24
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
P Wheatcroft
-
-
35,952
(35,952)
-
-
35,952
(35,952)
-
25
Ultimate controlling party

The ultimate parent company is considered to be Wheatcroft Motor Holdings Limited, which owns 100% of the issued share capital of Wheatcroft (Worksop) Limited.

 

The ultimate controlling party is J Wheatcroft by virtue of his majority shareholding in the ultimate parent company.

2023-12-302023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310J WheatcroftP Wheatcroft031051152023-01-012023-12-3003105115bus:Director12023-01-012023-12-3003105115bus:Director22023-01-012023-12-3003105115bus:RegisteredOffice2023-01-012023-12-30031051152023-12-30031051152022-01-012022-12-3103105115core:ContinuingOperations2023-01-012023-12-3003105115core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103105115core:RetainedEarningsAccumulatedLosses2023-01-012023-12-30031051152022-12-3103105115core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3003105115core:LeaseholdImprovements2023-12-3003105115core:PlantMachinery2023-12-3003105115core:FurnitureFittings2023-12-3003105115core:MotorVehicles2023-12-3003105115core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103105115core:LeaseholdImprovements2022-12-3103105115core:PlantMachinery2022-12-3103105115core:FurnitureFittings2022-12-3103105115core:MotorVehicles2022-12-3103105115core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3003105115core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103105115core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3003105115core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3103105115core:CurrentFinancialInstruments2023-12-3003105115core:CurrentFinancialInstruments2022-12-3103105115core:ShareCapital2023-12-3003105115core:ShareCapital2022-12-3103105115core:SharePremium2023-12-3003105115core:SharePremium2022-12-3103105115core:CapitalRedemptionReserve2023-12-3003105115core:CapitalRedemptionReserve2022-12-3103105115core:RetainedEarningsAccumulatedLosses2023-12-3003105115core:RetainedEarningsAccumulatedLosses2022-12-3103105115core:ShareCapital2021-12-3103105115core:SharePremium2021-12-3103105115core:CapitalRedemptionReserve2021-12-3103105115core:RetainedEarningsAccumulatedLosses2021-12-3103105115core:ShareCapitalOrdinaryShares2023-12-3003105115core:ShareCapitalOrdinaryShares2022-12-3103105115core:Goodwill2023-01-012023-12-3003105115core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3003105115core:LeaseholdImprovements2023-01-012023-12-3003105115core:PlantMachinery2023-01-012023-12-3003105115core:FurnitureFittings2023-01-012023-12-3003105115core:MotorVehicles2023-01-012023-12-3003105115core:UKTax2023-01-012023-12-3003105115core:UKTax2022-01-012022-12-310310511512023-01-012023-12-300310511512022-01-012022-12-310310511522023-01-012023-12-300310511522022-01-012022-12-310310511532023-01-012023-12-300310511532022-01-012022-12-310310511542023-01-012023-12-300310511542022-01-012022-12-310310511552023-01-012023-12-300310511552022-01-012022-12-3103105115core:Goodwill2022-12-3103105115core:Goodwill2023-12-3003105115core:Goodwill2022-12-3103105115core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3103105115core:LeaseholdImprovements2022-12-3103105115core:PlantMachinery2022-12-3103105115core:FurnitureFittings2022-12-3103105115core:MotorVehicles2022-12-31031051152022-12-3103105115core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3003105115core:Non-currentFinancialInstruments2023-12-3003105115core:Non-currentFinancialInstruments2022-12-3103105115core:WithinOneYear2023-12-3003105115core:WithinOneYear2022-12-3103105115core:BetweenTwoFiveYears2023-12-3003105115core:BetweenTwoFiveYears2022-12-3103105115core:MoreThanFiveYears2023-12-3003105115core:MoreThanFiveYears2022-12-3103105115bus:PrivateLimitedCompanyLtd2023-01-012023-12-3003105115bus:FRS1022023-01-012023-12-3003105115bus:Audited2023-01-012023-12-3003105115bus:FullAccounts2023-01-012023-12-30xbrli:purexbrli:sharesiso4217:GBP