Company registration number 2834670 (England and Wales)
KARL VELLA GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
KARL VELLA GROUP LIMITED
COMPANY INFORMATION
Director
Mr K B Vella MBE
Secretary
Mrs M Vella
Company number
2834670
Registered office
Gillibrands Road
Skelmersdale
WN8 9TA
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
KARL VELLA GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Director's responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12 - 13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 38
KARL VELLA GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents the strategic report for the year ended 30 June 2024.

Review of the business

The 2023-24 financial year was a positive year for the business, with strong financial and operational results and further expansion across the country.

The year saw a continuance of the strategic planning enacted last year, which has provided a stable environment for the business to operate in, despite ongoing economic difficulties in the general UK economy, and disruptions in the automotive repair market.

This has allowed the business to maintain a high level of reinvestment and growth through the year, with ongoing investments in apprentices, training, digital solutions, ESG and equipment.

Growth has also been pleasing in the year, with the business expanding by three sites, with the acquisition of Axiom Repair Centres and Brocksford Motors. The Group will continue to seek suitable opportunities to expand it’s national coverage.

The business returned an operating profit of £2,094,665 for the year, an increase of 66%. Revenue generated by the business was £40,722,915 , an increase of 20%.

The Directors and Senior Leadership Team have been pleased with the results for the year, especially with the a background of economic uncertainty and initiatives in the business to ensure growth and innovation keep pace with broader developments in the market

Relations with key partners in the supply chain have remained strong, with performance for insurer clients maintaining a high level of consistency.

KARL VELLA GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties

The UK economy has continued to experience difficulties through the year. While rates of inflation have slowed, and interest rates have decreased, there are still systemic issues that have led to uncertainty in many businesses and the overall economic environment looks set to remain challenging.

The business reviews the overall economic and market conditions regularly and establishes relevant risk, as part of strategic planning sessions. External partners such as insurer clients, large scale suppliers and financial institutions are consulted with to help shape actions designed to deal with any issues and potential other problems that are identified.

Workforce related risks remain the most pressing in the industry, with general staffing and skills shortages leading to notable pressures on salaries in what remains a very competitive environment.

The business has mitigated these issues by maintaining its award-winning apprenticeship programme and building on existing employee-based initiatives designed to cement the business’ position as an employer of choice.

While retention has remained at high levels and recruitment initiatives successful, wage inflation and shortages of suitable candidates will remain a pressing issue for some time.

The business continues to work with insurer clients and supply chain partners, to flag risks and ongoing cost pressures, to help ensure that there is awareness around the economic risks and challenges for repairers in the market.

The business maintains a digital roadmap, that is designed to help reduce these risks through tech related solutions.

The Directors and Leadership Team remain confident that the business will be able to meet its obligations over the next 12 months and reviews and future cashflow forecasts are in place, supported by a robust strategic business plan. Confidence is high that the group will meet all liabilities as they are expected to fall for at least the next twelve months. The Directors and Leadership Team conclude that there are no material uncertainties over adopting the going concern basis at the time of signing the financial statements of the group.

The group manages its borrowing requirements in order to minimise interest costs, whilst ensuring that there are sufficient liquid resources to meet the operating needs of the business. Relations with funders remain strong and are actively engaged with to ensure there are no liquidity risks.

The group is exposed to cash flow interest rate risk on bank overdrafts and loans. The Board reviews the exposure to interest rate risk on a regular basis to reduce exposure to changes in interest rates.

Credit terms are offered to customers, with an average 30 days. These are subject to credit verification procedures, though the vast majority of the group's customers are major insurance companies that pay on average within 14 days. Provisions are made for doubtful debts where necessary, though risk is low.

Key performance indicators

The business retains a broad level of metrics that are based around monthly and annual targets, in addition to its longer-term strategic planning. These metrics are focussed on a broad level of areas, reflecting a balanced approach to people, financials, operational performance, the environment and client satisfaction.

The business operates with a data led approach that ensures that metrics are analysed and reported on throughout the business and managed in a manner that provides direction for positive actions where required.

Performance metrics have continued to remain strong through the financial year, which has ensured that there has been a stable foundation to further grow the business.

KARL VELLA GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Future Developments

The business operates annual and three year plans, with the latter focussed on continuing investment within the business and the next stage of growth. Current financial year results highlight further successes in performance, with levels of profitability in the business increasing at a similar rate to last year and client and people metrics industry leading.

The business is looking to expand its digital strategy further, while also starting to grow footprint and capacity in key areas. At the time of writing of this report, the business will have acquired a further 3 sites, growing the total number of sites to 18.

 

On behalf of the board

Mr K B Vella MBE
Director
28 March 2025
KARL VELLA GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company and group continued to be that of the repair of accident damaged motor vehicles.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £196,800. The director does not recommend payment of a further dividend.

Director

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

Mr K B Vella MBE
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the director is considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup 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 director's report. It has done so in respect of financial risk management and 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 auditor of the company is unaware. Additionally, the director individually has taken all the necessary steps that he ought to have taken as director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

KARL VELLA GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
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
Mr K B Vella MBE
Director
28 March 2025
KARL VELLA GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

KARL VELLA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KARL VELLA GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of Karl Vella Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

Our responsibilities and the responsibilities of the director 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 director is 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.

KARL VELLA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KARL VELLA GROUP LIMITED
- 8 -

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

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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

 

 

 

KARL VELLA GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KARL VELLA GROUP LIMITED
- 9 -

We identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive) and compliance with the UK Companies Act.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognize the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Virginia Cooper FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
28 March 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
KARL VELLA GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
40,722,915
34,125,562
Cost of sales
(28,611,404)
(24,804,864)
Gross profit
12,111,511
9,320,698
Administrative expenses
(10,039,846)
(8,081,588)
Other operating income
23,000
23,000
Operating profit
4
2,094,665
1,262,110
Interest receivable and similar income
7
91
14
Interest payable and similar expenses
8
(135,665)
(94,917)
Profit before taxation
1,959,091
1,167,207
Tax on profit
9
(561,279)
(352,071)
Profit for the financial year
1,397,812
815,136
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
KARL VELLA GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,648,013
116,970
Tangible assets
13
7,532,342
7,139,825
9,180,355
7,256,795
Current assets
Stocks
15
1,183,832
869,803
Debtors
16
3,554,882
3,215,565
Cash at bank and in hand
518,315
1,276,405
5,257,029
5,361,773
Creditors: amounts falling due within one year
17
(7,545,987)
(6,349,963)
Net current liabilities
(2,288,958)
(988,190)
Total assets less current liabilities
6,891,397
6,268,605
Creditors: amounts falling due after more than one year
18
(1,070,608)
(1,817,019)
Provisions for liabilities
Deferred tax liability
21
930,644
762,453
(930,644)
(762,453)
Net assets
4,890,145
3,689,133
Capital and reserves
Called up share capital
23
22,830
22,830
Share premium account
207,170
207,170
Revaluation reserve
1,338,197
1,338,197
Profit and loss reserves
3,321,948
2,120,936
Total equity
4,890,145
3,689,133

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

The financial statements were approved and signed by the director and authorised for issue on 28 March 2025
28 March 2025
Mr K B Vella MBE
Director
Company registration number 2834670 (England and Wales)
KARL VELLA GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,428,292
2,289,918
Investments
12
3,187,290
650,816
5,615,582
2,940,734
Current assets
Debtors
16
1,281,933
1,541,009
Cash at bank and in hand
138,394
-
0
1,420,327
1,541,009
Creditors: amounts falling due within one year
17
(5,257,002)
(2,208,096)
Net current liabilities
(3,836,675)
(667,087)
Total assets less current liabilities
1,778,907
2,273,647
Creditors: amounts falling due after more than one year
18
(468,914)
(1,025,080)
Provisions for liabilities
Deferred tax liability
21
66,863
-
0
(66,863)
-
Net assets
1,243,130
1,248,567
Capital and reserves
Called up share capital
23
22,830
22,830
Share premium account
207,170
207,170
Revaluation reserve
978,042
978,042
Profit and loss reserves
35,088
40,525
Total equity
1,243,130
1,248,567

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £191,363 (2023 - £172,743 profit).

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

KARL VELLA GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
30 June 2024
- 13 -
The financial statements were approved and signed by the director and authorised for issue on 28 March 2025
28 March 2025
Mr K B Vella MBE
Director
Company registration number 2834670 (England and Wales)
KARL VELLA GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
22,830
207,170
1,338,197
1,502,600
3,070,797
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
815,136
815,136
Dividends
10
-
-
-
(196,800)
(196,800)
Balance at 30 June 2023
22,830
207,170
1,338,197
2,120,936
3,689,133
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
1,397,812
1,397,812
Dividends
10
-
-
-
(196,800)
(196,800)
Balance at 30 June 2024
22,830
207,170
1,338,197
3,321,948
4,890,145
KARL VELLA GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
22,830
207,170
978,042
64,582
1,272,624
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
-
172,743
172,743
Dividends
10
-
-
-
(196,800)
(196,800)
Balance at 30 June 2023
22,830
207,170
978,042
40,525
1,248,567
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
191,363
191,363
Dividends
10
-
-
-
(196,800)
(196,800)
Balance at 30 June 2024
22,830
207,170
978,042
35,088
1,243,130
KARL VELLA GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,556,842
1,393,316
Interest paid
(135,665)
(94,917)
Income taxes (paid)/refunded
(9,642)
106,108
Net cash inflow from operating activities
3,411,535
1,404,507
Investing activities
Purchase of intangible assets
-
(39,818)
Purchase of tangible fixed assets
(499,524)
(225,544)
Purchase of subsidiaries, net of cash acquired
(2,246,477)
-
Repayment of loans
-
64,000
Interest received
91
14
Net cash used in investing activities
(2,745,910)
(201,348)
Financing activities
Repayment of bank loans
(204,992)
(258,205)
Payment of finance leases obligations
(427,321)
(305,051)
Dividends paid to equity shareholders
(196,800)
(196,800)
Net cash used in financing activities
(829,113)
(760,056)
Net (decrease)/increase in cash and cash equivalents
(163,488)
443,103
Cash and cash equivalents at beginning of year
181,730
(261,373)
Cash and cash equivalents at end of year
18,242
181,730
Relating to:
Cash at bank and in hand
518,315
1,276,405
Bank overdrafts included in creditors payable within one year
(500,073)
(1,094,675)
KARL VELLA GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Going Concern

As indicated in note 1.3 it is the director's assessment that the group continues to be a going concern. Accordingly assets and liabilities have been valued on the basis that the group will continue in business. If this presumption is proven to be mistaken the carrying value of assets and liabilities would need to be reappraised to reflect the impact of cessation.

Assessing indicators of impairment

In assessing whether there have been any indicators of impaired assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairment identified during the current financial year.

In determining whether there are indicators of impairment of goodwill, factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. There were no indications that goodwill was materially impaired during the financial year.

Key sources of estimation uncertainty

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

Useful lives of land and buildings

The group depreciates tangible assets over their estimated useful lives. The estimation of useful lives of assets is based on expectations about future use as well as historic performance and therefore requires management to make some estimates based on assumptions.

 

The actual lives of assets, specifically buildings, can vary significantly due to external environmental factors and dilapidation, as well as the effect of regular maintenance.

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
2
Accounting policies
Company information

Karl Vella Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Gillibrands Road, Skelmersdale, WN8 9TA.

 

The group consists of Karl Vella Group Limited and all of its subsidiaries.

2.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold & leasehold properties .The principal accounting policies adopted are set out below.

 

The 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 for parent company information presented within the consolidated financial statements:

 

2.2
Basis of consolidation

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

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 19 -

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

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

2.3
Going concern

At the time of approving the financial statements, the business has prepared detailed forecasts for the following 24 months. The Directors have concluded that there is a very reasonable expectation that the business has sufficient resources to support its operations for the foreseeable future.

The Directors and management team are very mindful of the ongoing challenges in the UK and wider economy, and the automotive repair industry, and approaches all strategic planning accordingly.

There is a high level of confidence that the business will continue to grow from strength to strength and continue the recent pace of growth and development, while maintaining a competitive level of profitability.

 

 

 

2.4
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.

2.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 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.

2.6
Tangible fixed assets

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

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 20 -

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

Freehold land and buildings
2 - 8% straight line basis
Long leasehold land and buildings
2 - 5% straight line basis
Leasehold improvements
5 - 20% straight line basis
Plant and equipment
5 - 33% straight line basis
Fixtures and fittings
5 - 33% straight line basis
Computer equipment
5 - 33% straight line basis
Motor vehicles
5 - 20% straight line basis

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

2.7
Fixed asset investments

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

 

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

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

2.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

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

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.

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 21 -

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.

2.9
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.

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.

2.10
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.11
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

All of the group's assets are basic financial assets.

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 22 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans,and loans from 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

All of the company's liabilities are basic financial liabilities.

Derecognition of financial liabilities

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

2.12
Equity instruments

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

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 23 -
2.13
Taxation

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

Current tax

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

Deferred tax

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

 

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

Where tax losses are transferred to another group company compensation is paid by that company at a rate commensurate with the tax benefit obtained.

2.14
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.

2.15
Retirement benefits

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

2.16
Leases

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

 

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

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Accounting policies
(Continued)
- 24 -

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Repair of accident damaged motor vehicles
40,722,915
34,125,562
2024
2023
£
£
Other revenue
Interest income
91
14
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
16,705
12,020
Depreciation of owned tangible fixed assets
400,201
341,047
Depreciation of tangible fixed assets held under finance leases
140,771
136,440
(Profit)/loss on disposal of tangible fixed assets
-
1,349
Amortisation of intangible assets
156,352
85,150
Operating lease charges
1,636,917
1,483,068
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
273
245
-
-
Adminstration and support
82
67
66
50
Total
355
312
66
50
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
5
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,527,410
10,118,271
3,152,446
2,357,003
Social security costs
1,215,960
979,677
297,603
232,724
Pension costs
246,382
199,284
49,694
40,064
13,989,752
11,297,232
3,499,743
2,629,791
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
68,838
65,923
Company pension contributions to defined contribution schemes
1,316
1,316
70,154
67,239

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

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
91
14
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
68,538
49,669
Interest on finance leases and hire purchase contracts
66,252
45,248
Other interest
875
-
Total finance costs
135,665
94,917
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
438,804
4,674
Adjustments in respect of prior periods
-
0
88
Total current tax
438,804
4,762
Deferred tax
Origination and reversal of timing differences
122,475
347,309
Total tax charge
561,279
352,071

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

2024
2023
£
£
Profit before taxation
1,959,091
1,167,207
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
489,773
239,277
Tax effect of expenses that are not deductible in determining taxable profit
68,705
48,727
Gains not taxable
-
0
3,934
Effect of change in corporation tax rate
(354)
62,621
Depreciation on assets not qualifying for tax allowances
746
19
Under/(over) provided in prior years
-
0
88
Deferred tax adjustments in respect of prior years
4,720
56
Tax at marginal rate
(2,311)
-
0
Super deduction
-
0
(2,651)
Taxation charge
561,279
352,071
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
196,800
196,800
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023
438,873
Additions - business combinations
1,687,395
At 30 June 2024
2,126,268
Amortisation and impairment
At 1 July 2023
321,903
Amortisation charged for the year
156,352
At 30 June 2024
478,255
Carrying amount
At 30 June 2024
1,648,013
At 30 June 2023
116,970
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,187,290
650,816
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023
650,816
Additions
2,536,474
At 30 June 2024
3,187,290
Carrying amount
At 30 June 2024
3,187,290
At 30 June 2023
650,816
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
13
Tangible fixed assets
Group
Freehold land and buildings
Long leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
249,706
2,711,481
417,953
3,802,703
1,751,037
681,411
1,304,604
10,918,895
Additions
-
0
-
0
67,025
113,747
115,924
229,169
(26,340)
499,525
Business combinations
-
0
15,508
58,251
280,629
-
0
28,088
51,488
433,964
At 30 June 2024
249,706
2,726,989
543,229
4,197,079
1,866,961
938,668
1,329,752
11,852,384
Depreciation and impairment
At 1 July 2023
7,822
46,150
84,965
1,996,397
594,404
501,107
548,225
3,779,070
Depreciation charged in the year
7,822
46,535
26,681
205,194
104,037
58,900
91,803
540,972
At 30 June 2024
15,644
92,685
111,646
2,201,591
698,441
560,007
640,028
4,320,042
Carrying amount
At 30 June 2024
234,062
2,634,304
431,583
1,995,488
1,168,520
378,661
689,724
7,532,342
At 30 June 2023
241,884
2,665,331
332,988
1,806,306
1,156,633
180,304
756,379
7,139,825
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Tangible fixed assets
(Continued)
- 29 -
Company
Freehold land and buildings
Long leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
195,000
2,000,000
49,445
4,484
209,295
18,205
2,476,429
Additions
-
0
-
0
1,198
-
0
202,352
-
0
203,550
At 30 June 2024
195,000
2,000,000
50,643
4,484
411,647
18,205
2,679,979
Depreciation and impairment
At 1 July 2023
7,822
27,081
5,672
3,839
125,983
16,114
186,511
Depreciation charged in the year
7,822
27,075
3,017
306
26,344
612
65,176
At 30 June 2024
15,644
54,156
8,689
4,145
152,327
16,726
251,687
Carrying amount
At 30 June 2024
179,356
1,945,844
41,954
339
259,320
1,479
2,428,292
At 30 June 2023
187,178
1,972,919
43,773
645
83,312
2,091
2,289,918
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
759,605
830,070
-
0
-
0
Fixtures and fittings
144,156
157,566
-
0
-
0
Motor vehicles
413,321
492,649
-
0
-
0
Computer equipment
17,385
22,184
-
0
-
0
1,334,467
1,502,469
-
-

Land and buildings with a carrying amount of £3,090,000 were revalued at 30 June 2022 by Peter E Gilkes & Company independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land & Buildings
2024
£
Group
Cost
854,463
Accumulated depreciation
(552,732)
Carrying value
301,731
Company
Carrying value
-
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Karl Vella Autobody Repairs Limited
1
Autobody Repairs
Ordinary Shares
100.00
-
Karl Vella Autobody Repairs (Preston) Limited
1
Dormant
Ordinary Shares
100.00
-
Karl Vella Autobody Repairs (Southport) Limited
1
Dormant
Ordinary Shares
100.00
-
Leominster Accident Repair Centre Ltd
1
Autobody Repairs
Ordinary Shares
100.00
-
Karl Vella (Deeside) Ltd
1
Dormant
Ordinary Shares
100.00
-
Gaskell Motor Bodies Limited
2
Autobody Repairs
Ordinary Shares
100.00
-
Axiom Repair Centres Limited
1
Autobody Repairs
Ordinary Shares
0
100.00
Axiom Repair Holdings Limited
1
Holding company
Ordinaty Shares
100.00
-
Brocksford Motors Limited
3
Autobody Repairs
Ordinary Shares
100.00
-
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Subsidiaries
(Continued)
- 31 -

Registered office addresses (all UK unless otherwise indicated):

1
Gillibrands Road, Skelmersdale, WN8 9TA
2
Unit 1 Gaskell Court, Alan Ramsbottom Way, Great Harwood, Lancs BB6 7UF
3
Spedding Road, Fenton Industrial Estate, Fenton, Stoke on Trent ST4 2ST

Karl Vella Group Limited has given a guarantee under s479c Companies Act 2006 in respect of Gaskell Motor Bodies Limited (company number 06031688) for the period ended 30 June 2024 and this company is thus exempt from the requirement to have its financial statements for the period ended 30 June 2024 audited.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
113,669
-
-
-
Work in progress
874,672
654,009
-
-
Finished goods and goods for resale
195,491
215,794
-
0
-
0
1,183,832
869,803
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,055,586
1,523,171
31,138
19,295
Corporation tax recoverable
18,655
18,708
18,655
18,655
Amounts owed by group undertakings
(345,042)
-
286,117
512,216
Other debtors
726,098
631,788
721,541
612,682
Prepayments and accrued income
1,099,585
854,903
224,482
191,166
3,554,882
3,028,570
1,281,933
1,354,014
Deferred tax asset (note 21)
-
0
186,995
-
0
186,995
3,554,882
3,215,565
1,281,933
1,541,009
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
695,955
1,296,760
190,000
1,296,760
Obligations under finance leases
20
294,988
386,468
-
0
-
0
Trade creditors
3,094,892
2,341,187
38,163
53,500
Amounts owed to group undertakings
(345,042)
-
0
3,622,117
-
0
Corporation tax payable
344,454
14,774
-
0
-
0
Other taxation and social security
1,182,638
915,492
401,975
304,345
Other creditors
1,128,593
423,532
651,736
374,242
Accruals and deferred income
1,149,509
971,750
353,011
179,249
7,545,987
6,349,963
5,257,002
2,208,096
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
297,459
459,974
268,047
459,974
Obligations under finance leases
20
462,250
791,939
-
0
-
0
Other creditors
310,899
565,106
200,867
565,106
1,070,608
1,817,019
468,914
1,025,080
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
493,341
662,059
458,047
662,059
Bank overdrafts
500,073
1,094,675
-
0
1,094,675
993,414
1,756,734
458,047
1,756,734
Payable within one year
695,955
1,296,760
190,000
1,296,760
Payable after one year
297,459
459,974
268,047
459,974
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Loans and overdrafts
(Continued)
- 33 -

The parent company has two loans including a CBILS loan and a further bank loan.

 

The CBILS loan is repayable in monthly instalments of £13,195 over 60 months commencing in September 2021 and is subject to interest at 2.96% over base rate. In relation to the first 12 months the annual interest rate applicable was in effect 0%.

 

The other bank loan is repayable in monthly instalments of £6,385 and is subject to interest at 2.5% over base rate.

 

The loans are secured as follows:

Chain Caul Way, Preston.

Southwest side of Gillibrands Road, Skelmersdale.

118A Cemetery Road, Southport,

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
294,988
386,468
-
0
-
0
In two to five years
462,250
791,939
-
0
-
0
757,238
1,178,407
-
-

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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
975,422
829,051
-
(29,559)
Tax losses
(38,339)
(72,602)
-
215,944
Revaluations
3,934
-
-
(3,934)
Short term timing differences
(10,373)
6,004
-
4,544
930,644
762,453
-
186,995
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Deferred taxation
(Continued)
- 34 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
73,302
-
-
(29,559)
Tax losses
-
-
-
215,944
Revaluations
3,934
-
-
(3,934)
Short term timing differences
(10,373)
-
-
4,544
66,863
-
-
186,995
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 July 2023
575,458
(186,995)
Charge to profit or loss
182,665
81,337
Other
172,521
172,521
Liability at 30 June 2024
930,644
66,863
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
246,382
199,284

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

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
18,830
18,830
18,830
18,830
B Ordinary shares of £1 each
4,000
4,000
4,000
4,000
22,830
22,830
22,830
22,830
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Share capital
(Continued)
- 35 -

The two classes of share have equal voting rights. have equal rights to any distribution of assets on a wind-up or return of capital (subject to a nominal different fixed element), and each shall be entitled to receive dividends save that the directors may declare a dividend in respect of one class and not in respect of any other class.

24
Acquisition of a business

On 18 April 2024 the group acquired 100 percent of the issued capital of Axiom Repair Holdings limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
337,249
-
337,249
Inventories
137,991
-
137,991
Trade and other receivables
597,963
-
597,963
Cash and cash equivalents
58,141
-
58,141
Borrowings
(36,274)
-
(36,274)
Obligations under finance leases
(6,152)
-
(6,152)
Trade and other payables
(1,394,893)
-
(1,394,893)
Tax liabilities
(73,092)
-
(73,092)
Deferred tax
(71,025)
-
(71,025)
Total identifiable net assets
(450,092)
-
(450,092)
Goodwill
1,574,566
Total consideration
1,124,474
The consideration was satisfied by:
£
Cash
1,124,474
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,257,292
Loss after tax
(19,602)
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
24
Acquisition of a business
(Continued)
- 36 -

On 26 June 2024 the group acquired 100 percent of the issued capital of Brocksford Motor Bodies Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
96,716
-
96,716
Inventories
57,879
-
57,879
Trade and other receivables
1,040,212
-
1,040,212
Cash and cash equivalents
231,856
-
231,856
Trade and other payables
(138,327)
-
(138,327)
Deferred tax
10,835
-
10,835
Total identifiable net assets
1,299,171
-
1,299,171
Goodwill
112,829
Total consideration
1,412,000
The consideration was satisfied by:
£
Cash
1,205,000
Deferred consideration
207,000
1,412,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
5,666
Loss after tax
(17,063)
KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 37 -
25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,267,515
851,633
-
22,577
Between two and five years
3,979,917
2,696,892
-
37,801
In over five years
4,276,190
3,683,606
-
-
9,523,622
7,232,131
-
60,378
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
463,857
410,614
Transactions with related parties

The company paid rent of £90,000, and vehicle hire of £27,150 to Karl Vella Limited, a company controlled by Karl Vella,

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
411,923
398,390
Company
Entities over which the company has control, joint control or significant influence
411,923
398,390
27
Directors' transactions

Final dividends of £196,800 (2023 - £196,800) were paid in the year.

KARL VELLA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 38 -
28
Controlling party

By virtue of his shareholding director Mr K B Vella MBE controls the company.

29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,397,812
815,136
Adjustments for:
Taxation charged
561,279
352,071
Finance costs
135,665
94,917
Investment income
(91)
(14)
(Gain)/loss on disposal of tangible fixed assets
-
1,349
Amortisation and impairment of intangible assets
156,352
85,150
Depreciation and impairment of tangible fixed assets
540,972
477,487
Movements in working capital:
(Increase)/decrease in stocks
(118,159)
73,655
Decrease/(increase) in debtors
1,111,810
(542,558)
(Decrease)/increase in creditors
(228,798)
36,123
Cash generated from operations
3,556,842
1,393,316
30
Analysis of changes in net debt - group
1 July 2023
Cash flows
Other non-cash changes
30 June 2024
£
£
£
£
Cash at bank and in hand
1,276,405
(758,090)
-
518,315
Bank overdrafts
(1,094,675)
594,602
-
(500,073)
181,730
(163,488)
-
18,242
Borrowings excluding overdrafts
(662,059)
168,718
-
(493,341)
Obligations under finance leases
(1,178,407)
427,321
(6,152)
(757,238)
(1,658,736)
432,551
(6,152)
(1,232,337)
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