Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-302024-06-30false2023-01-01false34Sale of new cars and light motor vehicles Sale of used cars and light motor vehicles Maintenance and repair of motor vehicles Retail trade of motor vehicle parts and accessories58falsefalse 01055767 2023-01-01 2024-06-30 01055767 2024-06-30 01055767 2022-01-01 2022-12-31 01055767 2022-12-31 01055767 2022-01-01 01055767 1 2023-01-01 2024-06-30 01055767 1 2022-01-01 2022-12-31 01055767 2 2023-01-01 2024-06-30 01055767 2 2022-01-01 2022-12-31 01055767 3 2023-01-01 2024-06-30 01055767 3 2022-01-01 2022-12-31 01055767 5 2023-01-01 2024-06-30 01055767 5 2022-01-01 2022-12-31 01055767 6 2023-01-01 2024-06-30 01055767 6 2022-01-01 2022-12-31 01055767 d:Director1 2023-01-01 2024-06-30 01055767 d:Director2 2023-01-01 2024-06-30 01055767 d:Director3 2023-01-01 2024-06-30 01055767 d:Director4 2023-01-01 2024-06-30 01055767 d:RegisteredOffice 2023-01-01 2024-06-30 01055767 e:Buildings 2023-01-01 2024-06-30 01055767 e:Buildings 2024-06-30 01055767 e:Buildings 2022-12-31 01055767 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2024-06-30 01055767 e:Buildings e:ShortLeaseholdAssets 2023-01-01 2024-06-30 01055767 e:Buildings e:ShortLeaseholdAssets 2024-06-30 01055767 e:Buildings e:ShortLeaseholdAssets 2022-12-31 01055767 e:PlantMachinery 2023-01-01 2024-06-30 01055767 e:PlantMachinery 2024-06-30 01055767 e:PlantMachinery 2022-12-31 01055767 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2024-06-30 01055767 e:FurnitureFittings 2023-01-01 2024-06-30 01055767 e:FurnitureFittings 2024-06-30 01055767 e:FurnitureFittings 2022-12-31 01055767 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2024-06-30 01055767 e:OwnedOrFreeholdAssets 2023-01-01 2024-06-30 01055767 e:CurrentFinancialInstruments 2024-06-30 01055767 e:CurrentFinancialInstruments 2022-12-31 01055767 e:CurrentFinancialInstruments 4 2024-06-30 01055767 e:CurrentFinancialInstruments 4 2022-12-31 01055767 e:Non-currentFinancialInstruments 2024-06-30 01055767 e:Non-currentFinancialInstruments 2022-12-31 01055767 e:CurrentFinancialInstruments e:WithinOneYear 2024-06-30 01055767 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 01055767 e:Non-currentFinancialInstruments e:AfterOneYear 2024-06-30 01055767 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 01055767 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2024-06-30 01055767 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-12-31 01055767 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2024-06-30 01055767 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-12-31 01055767 e:ReportableOperatingSegment1 2023-01-01 2024-06-30 01055767 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 01055767 e:UKTax 2023-01-01 2024-06-30 01055767 e:UKTax 2022-01-01 2022-12-31 01055767 e:ShareCapital 2024-06-30 01055767 e:ShareCapital 2022-12-31 01055767 e:ShareCapital 2022-01-01 01055767 e:RevaluationReserve 2023-01-01 2024-06-30 01055767 e:RevaluationReserve 2024-06-30 01055767 e:RevaluationReserve 1 2023-01-01 2024-06-30 01055767 e:RevaluationReserve 2022-12-31 01055767 e:RevaluationReserve 2022-01-01 01055767 e:RetainedEarningsAccumulatedLosses 2023-01-01 2024-06-30 01055767 e:RetainedEarningsAccumulatedLosses 2024-06-30 01055767 e:RetainedEarningsAccumulatedLosses 1 2023-01-01 2024-06-30 01055767 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 01055767 e:RetainedEarningsAccumulatedLosses 2022-12-31 01055767 e:RetainedEarningsAccumulatedLosses 2022-01-01 01055767 e:AcceleratedTaxDepreciationDeferredTax 2024-06-30 01055767 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 01055767 e:TaxLossesCarry-forwardsDeferredTax 2024-06-30 01055767 e:TaxLossesCarry-forwardsDeferredTax 2022-12-31 01055767 e:RetirementBenefitObligationsDeferredTax 2024-06-30 01055767 e:RetirementBenefitObligationsDeferredTax 2022-12-31 01055767 d:OrdinaryShareClass1 2023-01-01 2024-06-30 01055767 d:OrdinaryShareClass1 2024-06-30 01055767 d:OrdinaryShareClass1 2022-12-31 01055767 d:FRS102 2023-01-01 2024-06-30 01055767 d:Audited 2023-01-01 2024-06-30 01055767 d:FullAccounts 2023-01-01 2024-06-30 01055767 d:PrivateLimitedCompanyLtd 2023-01-01 2024-06-30 01055767 e:Subsidiary1 2023-01-01 2024-06-30 01055767 e:Subsidiary1 1 2023-01-01 2024-06-30 01055767 e:WithinOneYear 2024-06-30 01055767 e:WithinOneYear 2022-12-31 01055767 e:BetweenOneFiveYears 2024-06-30 01055767 e:BetweenOneFiveYears 2022-12-31 01055767 e:MoreThanFiveYears 2024-06-30 01055767 e:MoreThanFiveYears 2022-12-31 01055767 6 2023-01-01 2024-06-30 01055767 f:PoundSterling 2023-01-01 2024-06-30 iso4217:GBP xbrli:shares xbrli:pure

Company Registration Number 01055767























RICHARD HARDIE LIMITED





FINANCIAL STATEMENTS





 30 JUNE 2024
























img4f63.png

 
RICHARD HARDIE LIMITED
 

COMPANY INFORMATION


Directors
R P Hardie 
N R Hardie 
Mrs B Hardie 
Mrs R Luke 




Registered number
01055767



Registered office
Bittern Close
Silverlink Retail Park

Newcastle

NE28 9ND




Independent auditors
Armstrong Watson Audit Limited
Statutory Auditors

One Strawberry Lane

Newcastle Upon Tyne

NE1 4BX





 
RICHARD HARDIE LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 5
Independent auditors' report
 
6 - 9
Profit and loss account
 
10
Statement of comprehensive income
 
11
Statement of financial position
 
12
Statement of changes in equity
 
13
Statement of cash flows
 
14 - 15
Analysis of net debt
 
16
Notes to the financial statements
 
17 - 29


 
RICHARD HARDIE LIMITED
 

STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2024

Introduction
 
The directors present their strategic report for the period ended 30 June 2024.

Review of business
 
In the 18 months accounting period to 30 June 2024 the company recorded a comprehensive loss of (£265,392) compared to a profit of £158,302 in 2022. 
The factors contributing to this loss were:
1. An increase by MG Motor of the 2023 registrations target of over 60% compared to 2022. The impact of this was that the company was not able to achieve these targets and consequently did not earn lucrative bonus payments that had been enjoyed in prior years. Furthermore, in attempts to achieve these targets, the company had incurred increased costs for staffing and marketing.  
2. Reduced demand for used retail sales due to general economic conditions.
3. Decreases in the values of used battery electric cars as OEMs introduced increasingly competitive marketing offers on new cars as they struggled to meet the government ZEV mandate.
4. Loss of key staff. In early 2023 a senior and long serving manager resigned and disrupted the operation of all of the aftersales functions. This resulted in many staff leaving and it took over 12 months for the operation of the aftersales departments to recover. During the period of recovery the financial performances of these departments was very poor.
5. Continued supply difficulties and a lack of new product from the Fiat and Abarth brands that impacted on retail sales performance.
6. The sale of the Sunderland branch in March 2024. As the poor trading conditions of 2023 continued into early 2024 the directors made the decision to sell the dealership to a national group for net asset value with the acquiring group simultaneously buying the freehold property from Richard Hardie Directors Pension Scheme.
Having restructured the business to two dealerships the directors plan to operate low overhead operations with focus on the sale of used cars and service department activity.

Principal risks and uncertainties
 
There are certain risks which could materially and adversely impact the company's result compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact company profitability.

General economic conditions

The general economic environment and levels of consumer and business confidence have a direct impact on levels of demand in the motor retail sector. In addition, fuel prices, interest rates, and levels of unemployment can all impact sales levels. Cost of living pressure, war in Ukraine and general economic unrest are all risks to the business. Demand levels are closely monitored on an ongoing basis by measuring enquiry levels and sales and actions are taken accordingly if these measures deviate from expectations.

Manufacturer relationships

The company relies on the strength of its relationship with the vehicle manufacturers to deliver a significant component of company profitability. Changes in the fortunes and strategy of the company's key manufacturer partners could directly and materially impact the company's result.

Page 1

 
RICHARD HARDIE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024

Used vehicle prices

Used vehicle price volatility can present a significant risk in the event that the market price moves rapidly between the point of purchase and the point of sale of a used vehicle. This leads to reduced margins and increased provisions on unsold stock. This risk is mitigated by a combination of regular monitoring of the used vehicle market by the group used car buyers, a focus on stock turn to reduce the length of time that used vehicles are held in stock, and regular review and re-pricing to ensure that vehicles are priced competitively in the market. 

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 brand. The company undertakes a regular review of remuneration and packages to ensure that it attracts and retains the best people.

The competitive environment

The overall competitive landscape In motor retail has changed as the Block Exemption legislation has been modified, opening the market to authorised repairers which could impact company market penetration and profitability. We are alert to this threat and work hard to provide a level and quality of customer service and experience which exceeds that of the Independent operators and therefore encourages customer loyalty. 

Financial key performance indicators
 
The company's key financial indicators during the year were as follows: 

30 June
31 December
31 December
2024
2022
Change
£'000
£'000
%
Turnover


62,299

40,902
 
52%
 
Gross profit


3,915

4,468
 
-12%
 
Gross profit margin


6%

11%
 
-42%
 
EBITDA


-1,179

354
 
-433%
 
Shareholder equity


2,541

2,807
 
-9%
 
Net current assets


-463

762
 
-161%
 


This report was approved by the board and signed on its behalf.





................................................
R P Hardie
Director

Date: 26 March 2025

Page 2

 
RICHARD HARDIE LIMITED
 

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2024

The directors present their report and the financial statements for the period ended 30 June 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the period, after taxation, amounted to £986,032 (2022 - profit £158,302).

Directors

The directors who served during the period were:

R P Hardie 
N R Hardie 
Mrs B Hardie 
Mrs R Luke 

Future developments

The primary focus of the company will be to build up trading operations and manage the business through the ongoing cost of living crisis.

Page 3

 
RICHARD HARDIE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024

Financial instruments

The company uses a number of financial instruments which include loans, cash and other various items such as trade debtors and trade creditors which arise directly from its operations. 
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. 
The significant risks arising from the company's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for the management of each of these risks which are noted below. These policies are consistent with those from the previous year. 
Interest rate risk 
The company sometimes uses bank borrowings and other loans to finance its operations during peak periods. Due to the limited use of this facility the directors do not deem it necessary to hedge against interest rate fluctuations. 
The management recognise that interest rates are rising and continue to monitor.
Liquidity risk 
The company makes efforts to manage the financial risk by the monitoring of cashflow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably. 
Credit risk 
The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors. 
In order to manage credit risk, the directors set credit limits for customers based on a combination of payment 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. 

Disclosure in the strategic report

The directors review of business, and their consideration of the risks and uncertainties surrounding the business may be found in the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
•  so far as the director is aware, there is no relevant audit information of which the company's auditors are
   unaware, and
•  the director has taken all the steps that ought to have been taken as a director in order to be aware of any
   relevant audit information and to establish that the company's auditors are aware of that information.

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 4

 
RICHARD HARDIE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024

Post balance sheet events

The company has operated the Spoticar Approved Used Car programme at both branches since October 2024 and the Hi-Q fast fit franchise at the Ashington dealership from February 2025.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
R P Hardie
Director

Date: 26 March 2025

Page 5

 
RICHARD HARDIE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHARD HARDIE LIMITED
 

Opinion


We have audited the financial statements of Richard Hardie Limited (the 'company') for the period ended 30 June 2024, which comprise the Profit and loss account, the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 6

 
RICHARD HARDIE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHARD HARDIE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' responsibilities statement set out on page 3, 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.


Page 7

 
RICHARD HARDIE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHARD HARDIE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: 
- the nature of the industry, control environment and business performance including the design of the      company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; - results of our enquiries of management about their own identification and assessment of the risks of irregularities; 
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: 
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance, in particular in relation to the FCA; 
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
 
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: bank payment processing (for personal benefit), payroll, sales processing (misappropriation of income), credit card and cash transactions, together with the valuation of used vehicle stock and presentation of non-underlying items within 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. 
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing 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, pensions legislation 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. 
 
Page 8

 
RICHARD HARDIE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHARD HARDIE LIMITED (CONTINUED)



Audit response to risks identified 
As a result of performing the above, we identified the impact of bank payment processing, payroll, sales processing, and credit card and cash transactions, together with the valuation of used vehicle stock and presentation of non-underlying items within the financial statements as key audit matters related to the potential risk of fraud or non-compliance with laws and regulations. In addition to the above, our procedures to respond to risks identified included the following: 
-  reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; 
-  enquiring of management concerning actual and potential litigation and claims; 
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; 
-  reading minutes of board/management meetings and reviewing correspondence with the FCA; and 
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments: assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Simon Turner (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Statutory Auditors
Newcastle upon Tyne

26 March 2025
Page 9

 
RICHARD HARDIE LIMITED
 

PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2024

2024
2022
Note
£
£

  

Turnover
 3 
62,298,963
40,902,503

Cost of sales
  
(58,383,733)
(36,434,089)

Gross profit
  
3,915,230
4,468,414

Distribution costs
  
(89,908)
-

Administrative expenses
  
(5,126,610)
(4,166,892)

Operating (loss)/profit
 4 
(1,301,288)
301,522

Interest receivable and similar income
 7 
6,904
1,380

Interest payable and similar expenses
 8 
(20,326)
(19,625)

(Loss)/profit before tax
  
(1,314,710)
283,277

Tax on (loss)/profit
 9 
328,678
(124,975)

(Loss)/profit for the financial period
  
(986,032)
158,302

The notes on pages 17 to 29 form part of these financial statements.

Page 10

 
RICHARD HARDIE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2024

2024
2022
Note
£
£


(Loss)/profit for the financial period

  

(986,032)
158,302

Other comprehensive income
  


Other comprehensive income 1
  
720,640
-

Other comprehensive income for the period/year
  
720,640
-

Total comprehensive income for the period
  
(265,392)
158,302

The notes on pages 17 to 29 form part of these financial statements.

Page 11

 
RICHARD HARDIE LIMITED
REGISTERED NUMBER: 01055767

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

30 June
31 December
2024
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,626,556
1,668,084

Investments
 12 
1,518,000
716,581

  
3,144,556
2,384,665

Current assets
  

Stocks
 13 
6,163,905
6,585,245

Debtors: amounts falling due within one year
 14 
970,420
1,416,036

Cash at bank and in hand
 15 
88,530
555

  
7,222,855
8,001,836

Creditors: amounts falling due within one year
 16 
(7,686,414)
(7,239,750)

Net current (liabilities)/assets
  
 
 
(463,559)
 
 
762,086

Total assets less current liabilities
  
2,680,997
3,146,751

Creditors: amounts falling due after more than one year
 17 
(139,500)
(84,167)

Provisions for liabilities
  

Deferred tax
 19 
-
(255,695)

  
 
 
-
 
 
(255,695)

Net assets
  
2,541,497
2,806,889


Capital and reserves
  

Called up share capital 
 20 
5,000
5,000

Revaluation reserve
 21 
100,000
100,000

Profit and loss account
 21 
2,436,497
2,701,889

  
2,541,497
2,806,889


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
R P Hardie
Director

Date: 26 March 2025

The notes on pages 17 to 29 form part of these financial statements.

Page 12

 
RICHARD HARDIE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
5,000
100,000
2,618,587
2,723,587


Comprehensive income for the year

Profit for the year
-
-
158,302
158,302

Dividends: Equity capital
-
-
(75,000)
(75,000)



At 31 December 2022
5,000
100,000
2,701,889
2,806,889


Comprehensive income for the period

Loss for the period
-
-
(986,032)
(986,032)

Revaluations on investments
-
-
720,640
720,640


At 30 June 2024
5,000
100,000
2,436,497
2,541,497


The notes on pages 17 to 29 form part of these financial statements.

Page 13

 
RICHARD HARDIE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2024

30 June
31 December
2024
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial period
(986,032)
158,302

Adjustments for:

Depreciation of tangible assets
45,547
50,830

Loss on disposal of tangible assets
8,924
-

Interest paid
20,326
19,625

Interest received
(6,904)
(1,380)

Taxation charge
(328,678)
124,975

Decrease/(increase) in stocks
421,340
(930,126)

Decrease/(increase) in debtors
397,866
(482,523)

Increase in creditors
714,532
979,216

Corporation tax paid
(124,975)
-

Net cash generated from operating activities

161,946
(81,081)

Cash flows from investing activities

Purchase of tangible fixed assets
(30,705)
(11,909)

Sale of tangible fixed assets
17,762
-

Purchase of unlisted and other investments
-
(20,003)

Purchase of fixed asset investments
(80,779)
-

Interest received
6,904
1,380

Net cash from investing activities

(86,818)
(30,532)
Page 14

 
RICHARD HARDIE LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024

30 June
31 December

2024
2022

£
£



Cash flows from financing activities

New secured loans
89,531
-

Repayment of loans
(14,198)
(49,904)

Loans due from/(repaid to) directors
129,750
-

Dividends paid
-
(75,000)

Interest paid
(20,326)
(19,625)

Amounts withdrawn by directors
-
(38,530)

Amount introduced by directors
-
7,380

Net cash used in financing activities
184,757
(175,679)

Net increase/(decrease) in cash and cash equivalents
259,885
(287,292)

Cash and cash equivalents at beginning of period
(212,668)
74,624

Cash and cash equivalents at the end of period
47,217
(212,668)


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
88,530
555

Bank overdrafts
(41,313)
(213,223)

47,217
(212,668)


The notes on pages 17 to 29 form part of these financial statements.

Page 15

 
RICHARD HARDIE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 30 JUNE 2024





At 1 January 2023
Cash flows
Other non-cash changes
At 30 June 2024
£

£

£

£

Cash at bank and in hand

555

87,975

-

88,530

Bank overdrafts

(213,223)

171,910

-

(41,313)

Debt due after 1 year

(84,167)

-

(55,333)

(139,500)

Debt due within 1 year

(322,000)

88,226

21,524

(212,250)


(618,835)
348,111
(33,809)
(304,533)

The notes on pages 17 to 29 form part of these financial statements.

Page 16

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

1.


Statutory information

Richard Hardie Limited is a private company, limited by shares, registered in England & Wales. The company's registered number is 01055767. The company's registered office address is Bittern Close, Silverlink Retail Park, Newcastle, England, NE28 9ND.
The presentation currency of the financial statements is Pound Sterling (£). 
There is no single principal place of business. The principal activity in the year under review was that of the operation of motor dealerships involving the sale, maintenance and repair of motor vehicles and the supply of related accessories. 

2.Accounting policies

 
Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

 
Going concern

The global economy has caused, and will continue to cause, widespread economic disruption but its impact will hopefully be temporary. Based on current bank balances and facilities, current funding and current trading, the directors believe that the company will be able to meet its debts as they fall due for the period of 18 months after the approval of these financial statements. They have therefore prepared the financial statements on a going concern basis. 

  
Preparation of consolidated financial statements

The company has not prepared consolidated financial statements as its subsidiary undertakings are dormant and are therefore not material to the group's financial position in accordance with section 405(2) of the Companies Act 2006. These financial statements therefore present information about the company as an individual undertaking and not its group. 
If the subsidiaries were to be consolidated there would be no impact on the profit and loss account in the year and fixed asset investments would be reclassified to other non current assets.

  
Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities in the Statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. 
The following judgements have been made by the directors in applying the company's accounting policies: 

  
Consignment stock

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

Page 17

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
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 Glass' and CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed. 

  
Brand incentives

The company receives income in the form of various incentives which are determined by the company's brand partner. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis. 
Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period. 
The company may also receive contributions towards advertising and promotional expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate. 

 
Turnover

Turnover from the sale of goods is recognised in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed. 
Commission income is accounted for on a receivable basis. 

 
Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

 
Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. 
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. 

Page 18

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. 
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. 
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

 
Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, according to the following bases:.


Land and buildings freehold
-
Not depreciated on the basis that, in the opinion of the directors, the carrying value equals the realisable value
Land and buildings leasehold
-
5% straight line
Plant and machinery
-
20% reducing balance
Fixtures, fittings and equipment
-
20% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
Investments in subsidiaries

Interest in subsidiaries are measured at valuation. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the Statement of Comprehensive Income.

Page 19

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Consignment vehicles are regarded as being under the control of the company, and in accordance with FRS 102 are included in stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included in trade creditors and is secured directly on these vehicles. 


3.


Turnover

The turnover and loss before taxation are attributable to the one principal activity of the company.


An analysis of turnover by class of business is as follows:


2024
2022
£
£

Sale of goods and services
62,298,963
40,902,503



4.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2022
£
£

Other operating lease rentals
391,006
435,004

Depreciation - owned assets
45,547
50,830

Auditors' remuneration
20,000
15,500

Auditors' remuneration for non audit work
2,000
3,050

Page 20

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2022
£
£

Wages and salaries
3,211,487
2,132,707

Social security costs
340,666
235,029

Cost of defined contribution scheme
63,918
39,039

3,616,071
2,406,775


The average monthly number of employees, including the directors, during the period was as follows:


        2024
        2022
            No.
            No.







Office & management staff
17
27



Service staff
8
21



Parts staff
5
6



Directors
4
4

34
58


6.


Directors' remuneration

2024
2022
£
£

Directors' emoluments
582,648
360,000


The highest paid director received remuneration of £326,074 (2022 - £166,397).


7.


Interest receivable

2024
2022
£
£


Other loan interest
6,904
1,380

Page 21

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

8.


Interest payable and similar expenses

2024
2022
£
£


Bank interest
19,511
18,539

Group interest payable
815
1,086

20,326
19,625


9.


Taxation


2024
2022
£
£

Corporation tax


Adjustments in respect of previous periods
-
8,170


Total current tax
-
8,170

Deferred tax


Charge for the period
(328,678)
55,438

Changes to tax rates
-
61,367

Total deferred tax
(328,678)
116,805


Taxation on (loss)/profit on ordinary activities
(328,678)
124,975

Reconciliation of total tax credit included in profit and loss

The tax assessed for the period is the same as (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2024
2022
£
£


(Loss)/profit on ordinary activities before tax
(1,243,709)
283,277


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
-
53,823

Effects of:


Expenses not deductible for tax purposes
-
1,615

Adjustments to deferred tax to average rate of 25.00%
(328,678)
61,367

Other timing differences leading to an increase (decrease) in taxation
-
8,170

Total tax charge for the period/year
(328,678)
124,975

Page 22

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

10.


Dividends

30 June
31 December
2024
2022
£
£


Dividends paid
-
75,000


11.


Tangible fixed assets







Freehold property
Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
1,400,000
222,413
429,696
922,149
2,974,258


Additions
-
-
12,359
18,346
30,705


Disposals
-
-
(7,465)
(19,221)
(26,686)



At 30 June 2024

1,400,000
222,413
434,590
921,274
2,978,277



Depreciation


At 1 January 2023
-
120,659
355,071
830,444
1,306,174


Charge for the period on owned assets
-
11,120
13,324
21,103
45,547



At 30 June 2024

-
131,779
368,395
851,547
1,351,721



Net book value



At 30 June 2024
1,400,000
90,634
66,195
69,727
1,626,556



At 31 December 2022
1,400,000
101,754
74,625
91,705
1,668,084

Page 23

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

           11.Tangible fixed assets (continued)

Included in land and buildings (2024 - £1,400,000; 2022 - £1,400,000) is an element of land which is not subject to depreciation.
In the opinion of the directors, who have many years' expertise in the motor trade, the values of the
properties at the balance sheet date have not significantly changed. Buildings are not depreciated on the grounds that net book value equals realisable value.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts
included would have been as follows:








12.


Fixed asset investments








Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
716,581


Additions
80,779


Revaluations
720,640



At 30 June 2024
1,518,000





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

Hailsham LLC
USA
Property investment
Ordinary
100%



Page 24

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

13.


Stocks

30 June
31 December
2024
2022
£
£

Motor vehicles
6,008,371
6,451,107

Spares and accessories
155,534
134,138

6,163,905
6,585,245


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


14.


Debtors

30 June
31 December
2024
2022
£
£


Trade debtors
199,239
456,044

Other debtors
608,369
780,188

Prepayments and accrued income
89,829
179,804

Deferred taxation
72,983
-

970,420
1,416,036



15.


Cash and cash equivalents

30 June
31 December
2024
2022
£
£

Cash at bank and in hand
88,530
555

Less: bank overdrafts
(41,313)
(213,223)

47,217
(212,668)


Page 25

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

16.


Creditors: Amounts falling due within one year

30 June
31 December
2024
2022
£
£

Bank overdrafts
41,313
213,223

Bank loans
70,000
50,000

Trade creditors
823,535
2,517,961

Social security and other taxes
66,378
63,458

Other creditors
6,397,987
4,068,222

Directors' current accounts
142,250
272,000

Accruals
144,951
54,886

7,686,414
7,239,750


The following liabilities were secured:

30 June
31 December
2024
2022
£
£



Bank loans
209,500
134,167

Vehicle funding
5,625,859
3,811,106

5,835,359
3,945,273

Details of security provided:

The bank loans are secured by a fixing and floating charge over all assets of the company.
Consignment stocks creditors and vehicle funding balance are included within trade creditors and are secured on the assets to which they relate. 


17.


Creditors: Amounts falling due after more than one year

30 June
31 December
2024
2022
£
£

Bank loans
139,500
84,167


Page 26

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

18.


Loans


Analysis of the maturity of loans is given below:


30 June
31 December
2024
2022
£
£

Amounts falling due within one year or on demand:

Bank loans
70,000
50,000

Amounts falling due between one and two years:

Bank loans
30,833
50,000

Amounts falling due between two and five years:

Bank loans
108,667
34,167


209,500
134,167



19.


Deferred taxation






2024


£






At beginning of year
255,695


Charged to profit or loss
328,678



At end of year
(72,983)

The deferred taxation balance is made up as follows:

30 June
31 December
2024
2022
£
£


Accelerated capital allowances
255,695
267,054

Short term timing differences
-
(1,273)

Deferred taxation on losses
(328,678)
(10,086)

(72,983)
255,695

Page 27

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

20.


Share capital

30 June
31 December
2024
2022
£
£
Allotted, called up and fully paid



5,000 (2022 - 5,000) Ordinary shares of £1.00 each
5,000
5,000



21.


Reserves

Revaluation reserve

This reserve includes the cumulative increase in the fair value of the freehold land and buildings.

Retained earnings

This reserve includes all current and prior period retained profits and losses, less dividends paid.


22.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £63,918 (2022: £39,039). At the reporting date, unpaid contributions of £5,955 (2022: £5,090) were due to the fund. They are included within accrued expenses. 


23.


Commitments under operating leases

At 30 June 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

30 June
31 December
2024
2022
£
£


Not later than 1 year
140,000
140,000

Later than 1 year and not later than 5 years
560,000
560,000

Later than 5 years
1,446,667
1,586,667

2,146,667
2,286,667

Page 28

 
RICHARD HARDIE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024

24.


Directors' advances, credits and guarantees

30 June
31 December
2024
2022
£
£

Mr R P Hardie


At 1 January
247,000
187,000

Amounts drawn down
44,997
60,000

Amounts repaid
(66,997)
-

At 30 June
225,000
247,000

Interest has not been charged on this balance in 2024 (2022: £Nil).

30 June
31 December
2024
2022
£
£

Mr N R Hardie


At 1 January
(47,750)
(68,900)

Amounts drawn down
-
28,530

Amounts repaid
(35,000)
(7,380)

At 30 June
(82,750)
(47,750)

Interest has been not been charged on this balance in 2024 (2022: £Nil) and the amounts are deemed to be repayable upon demand.


25.


Related party transactions

During the period, the company paid rent of £216,000 (2022: £288,000). This was paid to the Richard Hardie Directors Pension Scheme.
A dividend payment of £Nil was made to the shareholders (2022: £75,000) on the ordinary shares during the period. 


26.


Ultimate controlling party

The company was under the control of R P Hardie and N R Hardie throughout the current and previous period by virtue of their majority shareholding.

Page 29