Company registration number 00658042 (England and Wales)
Marson Garages (Wolstanton) Limited
Annual report and financial statements
For the year ended 31 July 2024
Marson Garages (Wolstanton) Limited
Company information
Directors
Mrs P J Marson
Mr B P Marson
Mr D S P Marson
Mr R B S Marson
Mrs T L Marson-Holland
Secretary
Mrs P J Marson
Company number
00658042
Registered office
Madeley Heath Motors
Keele Road
Madeley Heath
Newcastle under Lyme
Staffordshire
ST5 5AL
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Marson Garages (Wolstanton) Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9 - 10
Statement of changes in equity
11
Notes to the financial statements
12 - 28
Marson Garages (Wolstanton) Limited
Strategic report
For the year ended 31 July 2024
- 1 -

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

Review of the business

2023/24 has been a mixed financial year for the business. A decrease in the publics confidence of the government, following the change of party and forecasted legislation changes, has resulted in a decrease to turnover and to the gross profit. To compensate for this, the company had shifted its focus to achieving a higher gross profit margin.

 

Stock levels continue to rise as more new and used vehicles are being held for sale.

 

Staff levels have slightly increased to match the increase in demand relating to workshop activity, such as additional engineers. Investments continue to be made with apprentices in the workshop.

 

In summary despite the challenges, the business has exceeded all targets.

 

Principal risks and uncertainties

 

In the current market the principal risks and uncertainties of the business include, in particular, supply issues in both new and used cars and challenges around stock levels to meet demand. The upcoming changes to both the minimum wage rates & the additional employers NI rates is a primary concern for the business, as well as the upcoming tax changes regarding pick up trucks.

 

Key performance indicators

 

The directors consider that the following KPI's are a fair measure of the performance of the business:

 

 

Turnover of the business has decreased by 9.30% to £10.72m (2023 - £11.82m).

A higher gross margin of 11.52% (2023- 11.20%) is a result of the fluctuation in the motor vehicle market.

A profit before tax of £78k (2023- £183k) has been achieved.

 

Future performance

 

The directors consider the future plans of the business to include the maintenance of the Isuzu franchise in sales and after sales service. Whilst also focusing on growing the used market side of the trade.

On behalf of the board

Mrs T L Marson-Holland
Director
6 March 2025
Marson Garages (Wolstanton) Limited
Directors' report
For the year ended 31 July 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be the provision of motor vehicle sales.

Results and dividends

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

Ordinary dividends were paid amounting to £138,000. The directors do not recommend payment of a final dividend.

Directors

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

Mrs P J Marson
Mr B P Marson
Mr D S P Marson
Mr R B S Marson
Mrs T L Marson-Holland
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.

Marson Garages (Wolstanton) Limited
Directors' report (continued)
For the year ended 31 July 2024
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs T L Marson-Holland
Director
6 March 2025
Marson Garages (Wolstanton) Limited
Independent auditor's report
To the members of Marson Garages (Wolstanton) Limited
- 4 -
Opinion

We have audited the financial statements of Marson Garages (Wolstanton) Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Marson Garages (Wolstanton) Limited
Independent auditor's report (continued)
To the members of Marson Garages (Wolstanton) Limited
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

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:

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.

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

Marson Garages (Wolstanton) Limited
Independent auditor's report (continued)
To the members of Marson Garages (Wolstanton) Limited
- 6 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

 

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.

Marson Garages (Wolstanton) Limited
Independent auditor's report (continued)
To the members of Marson Garages (Wolstanton) Limited
- 7 -

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.

Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
11 March 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Marson Garages (Wolstanton) Limited
Statement of comprehensive income
For the year ended 31 July 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,723,909
11,823,067
Cost of sales
(9,488,711)
(10,498,693)
Gross profit
1,235,198
1,324,374
Administrative expenses
(1,247,426)
(1,213,542)
Other operating income
35,968
37,449
Operating profit
4
23,740
148,281
Interest receivable and similar income
138,000
105,000
Interest payable and similar expenses
7
(83,858)
(63,268)
Other gains and losses
8
-
(6,800)
Profit before taxation
77,882
183,213
Tax on profit
9
54,836
(23,703)
Profit for the financial year
132,718
159,510
Marson Garages (Wolstanton) Limited
Statement of financial position
As at 31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,105,960
2,187,526
Investment property
13
1,093,820
1,055,350
Investments
14
2
3
3,199,782
3,242,879
Current assets
Stocks
16
2,880,497
2,657,420
Debtors
17
188,254
221,528
Cash at bank and in hand
354,636
393,106
3,423,387
3,272,054
Creditors: amounts falling due within one year
18
(4,021,749)
(3,820,182)
Net current liabilities
(598,362)
(548,128)
Total assets less current liabilities
2,601,420
2,694,751
Creditors: amounts falling due after more than one year
19
(9,422)
(34,471)
Provisions for liabilities
Deferred tax liability
22
228,400
291,400
(228,400)
(291,400)
Net assets
2,363,598
2,368,880
Capital and reserves
Called up share capital
24
100,100
100,100
Capital redemption reserve
25
11,000
11,000
Other reserves
656,714
713,549
Profit and loss reserves
28
1,595,784
1,544,231
Total equity
2,363,598
2,368,880
Marson Garages (Wolstanton) Limited
Statement of financial position (continued)
As at 31 July 2024
- 10 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
Mrs T L Marson-Holland
Director
Company registration number 00658042 (England and Wales)
Marson Garages (Wolstanton) Limited
Statement of changes in equity
For the year ended 31 July 2024
- 11 -
Share capital
Capital redemption reserve
Fair Value Reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 August 2022
100,100
11,000
720,349
1,552,921
2,384,370
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
-
159,510
159,510
Dividends
10
-
-
-
(175,000)
(175,000)
Transfers
-
-
(6,800)
6,800
-
Balance at 31 July 2023
100,100
11,000
713,549
1,544,231
2,368,880
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
-
132,718
132,718
Dividends
10
-
-
-
(138,000)
(138,000)
Transfers
-
-
(56,835)
56,835
-
Balance at 31 July 2024
100,100
11,000
656,714
1,595,784
2,363,598
Marson Garages (Wolstanton) Limited
Notes to the financial statements
For the year ended 31 July 2024
- 12 -
1
Accounting policies
Company information

Marson Garages (Wolstanton) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Madeley Heath Motors, Keele Road, Madeley Heath, Newcastle under Lyme, Staffordshire, ST5 5AL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. 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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Marson Garages (Wolstanton) Limited is a wholly owned subsidiary of Marson Garages Holdings Limited and the results of Marson Garages (Wolstanton) Limited are included in the consolidated financial statements of Marson Garages Holdings Limited which are available from Tern Hill Hall, Tern Hill, Market Drayton, TF9 3PU.

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.

 

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

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 13 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on collection of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5-15 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

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

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

Freehold land and buildings
2% - 20% reducing balance per annum
Plant and equipment
20 - 25% reducing balance/ 25% straight line per annum
Motor vehicles
25% reducing balance per annum

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
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 14 -

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

1.8
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.

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

 

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

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

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

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

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
- 17 -
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.

 

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 income statement, 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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

 

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 18 -
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.

Slow moving stock provision

Vehicle stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand and the prevailing state of the market.

Fair value of investment property

The fair value of commercial property has been arrived at on the basis of a valuation carried out by B P Marson, a director of the company who is not a professionally qualified valuer. The valuation was arrived at by reference to market evidence of transaction prices for similar properties and the state of the rental market in the area where the property is situated.

 

The fair value of land held for resale has been arrived at on the basis of two elements. The first land element has been arrived at on the basis of a valuation carried out by B P Marson, a director of the company who is not a professionally qualified valuer. The valuation was arrived at by reference to market evidence of transaction prices for similar land held.

 

The fair value of the second land element has been arrived at on the basis of the directors post period end receiving and accepting conditional selling offers for such land based on the prevailing market price.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,723,909
11,823,067
2024
2023
£
£
Other revenue
Dividends received
138,000
105,000
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 19 -
4
Operating profit
2024
2023
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
19,843
18,192
Depreciation of owned tangible fixed assets
99,047
73,683
Depreciation of tangible fixed assets held under finance leases
16,446
21,931
Profit on disposal of tangible fixed assets
(23,072)
(1,978)
Operating lease charges
-
895
5
Employees

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

2024
2023
Number
Number
Staff
24
21
Directors
1
1
Total
25
22

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
705,707
626,419
Social security costs
65,534
59,796
Pension costs
14,180
12,616
785,421
698,831
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
9,100
11,500
Company pension contributions to defined contribution schemes
86
158
9,186
11,658

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 20 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
25,304
15,836
Other interest on financial liabilities
55,716
42,000
Interest on finance leases and hire purchase contracts
2,755
5,432
Other interest
83
-
0
83,858
63,268
8
Other gains and losses
2024
2023
£
£
Changes in the fair value of investment properties
-
(6,800)
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
8,164
15,574
Deferred tax
Origination and reversal of timing differences
(63,000)
8,129
Total tax (credit)/charge
(54,836)
23,703
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
9
Taxation
(Continued)
- 21 -

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
77,882
183,213
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
19,471
45,803
Tax effect of expenses that are not deductible in determining taxable profit
4,147
1,700
Tax effect of income not taxable in determining taxable profit
(34,500)
(26,250)
Effect of change in corporation tax rate
-
0
(2,961)
Depreciation on assets not qualifying for tax allowances
10,796
8,522
Under/(over) provided in prior years
(54,357)
-
0
Deferred tax adjustments in respect of prior years
(298)
(238)
Tax at marginal rate
(402)
-
0
Other tax adjustments, reliefs and transfers
307
298
Enhanced capital allowances
-
0
(3,171)
Taxation (credit)/charge for the year
(54,836)
23,703
10
Dividends
2024
2023
£
£
Interim paid
138,000
175,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
149,999
Amortisation and impairment
At 1 August 2023 and 31 July 2024
149,999
Carrying amount
At 31 July 2024
-
0
At 31 July 2023
-
0
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 22 -
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
2,318,563
351,410
258,462
2,928,435
Additions
-
0
29,223
139,357
168,580
Disposals
-
0
-
0
(187,522)
(187,522)
At 31 July 2024
2,318,563
380,633
210,297
2,909,493
Depreciation and impairment
At 1 August 2023
361,970
302,286
76,653
740,909
Depreciation charged in the year
45,232
16,780
53,481
115,493
Eliminated in respect of disposals
-
0
-
0
(52,869)
(52,869)
At 31 July 2024
407,202
319,066
77,265
803,533
Carrying amount
At 31 July 2024
1,911,361
61,567
133,032
2,105,960
At 31 July 2023
1,956,593
49,124
181,809
2,187,526

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
49,340
65,792
13
Investment property
2024
£
Fair value
At 1 August 2023
1,055,350
Additions through external acquisition
38,470
At 31 July 2024
1,093,820
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
13
Investment property
(Continued)
- 23 -

Investment property comprises commercial property and land held for resale.

 

The fair value of commercial property has been arrived at on the basis of a valuation carried out by B P Marson, a director of the company who is not a professionally qualified valuer. The valuation was arrived at by reference to market evidence of transaction prices for similar properties and the state of the rental market in the area where the property is situated.

 

The fair value of land held for resale has been arrived at on the basis of two elements. The first land element has been arrived at on the basis of a valuation carried out by B P Marson, a director of the company who is not a professionally qualified valuer. The valuation was arrived at by reference to market evidence of transaction prices for similar land held.

 

The fair value of the second land element has been arrived at on the basis of the directors post period end receiving and accepting conditional selling offers for such land based on the prevailing market price.

14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
2
3
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 August 2023
3
Disposals
(1)
At 31 July 2024
2
Carrying amount
At 31 July 2024
2
At 31 July 2023
3
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Showhome Properties Limited
Madeley Heath Motors Keele Road, Keele, Newcastle, Staffordshire, ST5 5AL
Ordinary
100.00
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 24 -
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,880,497
2,657,420

The total carrying amount of stocks pledged as security for liabilities is £560,528 (2023 - £571,849).

17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
157,991
193,616
Other debtors
228
-
0
Prepayments and accrued income
30,035
27,912
188,254
221,528
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
780,894
857,716
Obligations under finance leases
21
24,762
23,256
Other borrowings
20
560,528
579,717
Trade creditors
1,040,894
619,041
Amounts owed to group undertakings
1,275,746
1,314,916
Corporation tax
8,164
15,491
Other taxation and social security
55,016
107,237
Other creditors
210,351
279,411
Accruals and deferred income
65,394
23,397
4,021,749
3,820,182

Bank loans and overdrafts are secured by a debenture and first legal charge over certain fixed assets and a floating charge over all of the assets of the company.

 

Other loans are secured on the related stock items.

 

The liability in respect of net obligations under finance leases is secured on the related assets.

19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
21
9,422
34,471
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
19
Creditors: amounts falling due after more than one year
(Continued)
- 25 -

Bank loans and overdrafts are secured by a debenture and first legal charge over certain fixed assets and a floating charge over all of the assets of the company.

 

The liability in respect of net obligations under finance leases is secured on the related assets.

20
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
780,894
857,716
Other loans
560,528
579,717
1,341,422
1,437,433
Payable within one year
1,341,422
1,437,433

Long term debt b/fwd was in the form of bank loans. During the period these loans were discharged and refinanced via a consolidated inter-company with the parent company Marson Garages Holdings Limited.

 

Bank loans were secured by a debenture and first legal charge over certain fixed assets and a floating charge over all of the assets of the company.

21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
24,762
23,256
In two to five years
9,422
34,471
34,184
57,727

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 26 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
40,864
291,400
Revaluations
187,536
-
228,400
291,400
2024
Movements in the year:
£
Liability at 1 August 2023
291,400
Credit to profit or loss
(63,000)
Liability at 31 July 2024
228,400
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
14,180
12,616

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. The pension cost charge represents contributions payable by the Company to the fund and amounted to £14,180 (2023 - £12,616). Contributions totalling £2,862 (2023 - £2,778) were payable to the fund at the balance sheet date and are included in creditors.

24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 10p each
275,275
275,275
27,527
27,527
Ordinary B shares of 10p each
275,275
275,275
27,528
27,528
Ordinary C shares of 10p each
150,150
150,150
15,015
15,015
Ordinary D shares of 10p each
150,150
150,150
15,015
15,015
Ordinary E shares of 10p each
150,150
150,150
15,015
15,015
1,001,000
1,001,000
100,100
100,100
Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
24
Share capital
(Continued)
- 27 -

All shares are entitled to one vote in any circumstances and each share is also entitled pari passu to dividend payments or any other distribution, including a distribution arising from a winding up of the company.

25
Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

26
Fair Value Reserve
2024
2023
£
£
At the beginning of the year
713,549
720,349
Additions
(56,835)
(6,800)
At the end of the year
656,714
713,549
27
Non-distributable reserve

The non-distributable reserve represents the historic cumulative uplift on the fair value of the investment properties, less the deferred tax liability recognised on the potential capital gain on such investment property.

28
Profit and loss reserves

Retained earnings are made up of accumulated profits less accumulated losses and distributions. This is a distributable reserve.

29
Cross guarantees

There are unlimited cross guarantees between the company, Martec Training Limited and Tern Hill Hall Limited. At the period end, debt subject to the guarantee amounted to £780,895 (2023 - £857,716). These amounts are included in bank overdrafts and bank loans within the company balance sheet under creditor falling due within 1 year and falling due after more than 1 year.

30
Financial commitments, guarantees and contingent liabilities

At the balance sheet date, the company had guaranteed borrowings of fellow group undertakings. At 31 July 2024 these borrowings amounted to £879,945 (2023 - £939,814). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.

31
Events after the reporting date

There is plans to dispose of investment property with a value of £716k. The property has been listed for sale post year end. There will be no P&L effect given the property is stated at its fair value.

Marson Garages (Wolstanton) Limited
Notes to the financial statements (continued)
For the year ended 31 July 2024
- 28 -
32
Ultimate controlling party

The company's immediate and ultimate parent undertaking is Marson Garages Holdings Limited, a company incorporated in England and Wales. Its registered office is Tern Hill Hall, Tern Hill, Market Drayton, England, TF9 3PU.

The ultimate controlling party is B P and P J Marson.

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