Company registration number SC228871
HIGHLAND MOTOR PARTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
HIGHLAND MOTOR PARTS LIMITED
COMPANY INFORMATION
Directors
Mr D M MacLellan
Mr D J Cooper
Mr R MacLellan
Company number
SC228871
Registered office
Redwood
19 Culduthel Road
Inverness
IV2 4AA
Auditor
MacKenzie Kerr Limited
Chartered Accountants and Statutory Auditor
Redwood
19 Culduthel Road
Inverness
IV2 4AA
Business address
Units 3 & 4
Fresson Business Park
Stadium Road
Inverness
IV1 1FJ
HIGHLAND MOTOR PARTS LIMITED
CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 19
The following pages do not form part of the statutory financial statements:
Detailed trading and profit and loss account
HIGHLAND MOTOR PARTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

 

Highland Motor Parts Limited is the largest independent motor factor in the Highlands of Scotland. From our branches in Inverness and Elgin, we offer a full range of service parts.

Review of the business

The directors are satisfied with the year end financial position and performance of the company.

The financial results for the year are shown in the statement of income and retained earnings on page 7, which shows an increase in turnover during the year of 15.1%, some of which has been due to price increases.

It is expected that 2024-25 will continue to see pricing volatility.

The company has a strong balance sheet with net current assets at 30 June 2024 of £6,127,174 and total net assets of £6,617,399.

The customer base has remained largely the same over the year in what is expected to remain a competitive business environment.

Results

The operating profit for the year amounted to £3,094,798 (2023 - £2,418,337) and the profit for the year before taxation was £3,158,365 (2023 - £2,430,374).

Principal risks and uncertainties

The directors consider that the key risks affecting the company are the general economy and competition.

The directors have formulated appropriate strategies to minimise these risks.

Key performance indicators

The directors use a range of KPI's to monitor and manage the business activities, which includes turnover growth and the rate of stock turnover. These are monitored on a monthly basis.

Future developments

The directors believe that the company is well placed to meet the challenges of the current economic climate and that it will continue to widen its customer base.

On behalf of the board

Mr D M MacLellan
Director
26 March 2025
HIGHLAND MOTOR PARTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,176,000. 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:

Mr D M MacLellan
Mr D J Cooper
Mr R MacLellan
Financial instruments
Financial risk management objectives and policies

The company finances its operations using its retained profits. The management's objective is to retain sufficient funds to enable the company to meet its day-to-day obligations as they fall due whilst maximising returns on surplus funds.

Auditor

In accordance with the company's articles, a resolution proposing that MacKenzie Kerr Limited be re-appointed as auditor of the company will be put at a General Meeting.

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.

HIGHLAND MOTOR PARTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Statement of disclosure to auditor

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

On behalf of the board
Mr D M MacLellan
Director
26 March 2025
HIGHLAND MOTOR PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGHLAND MOTOR PARTS LIMITED
- 4 -
Opinion

We have audited the financial statements of Highland Motor Parts Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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 FRS 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 the provisions available for small entities, in the circumstances set out in note 22 to the financial statements, 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.

Opinions on other matters prescribed by the Companies Act 2006

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

HIGHLAND MOTOR PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND MOTOR PARTS LIMITED
- 5 -
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.

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

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

HIGHLAND MOTOR PARTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHLAND MOTOR PARTS LIMITED
- 6 -

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

 

During the planning meeting with the audit team, the Responsible Individual (RI) drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the RI's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

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

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.

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.

Rhona Wilson, BA, FCCA (Senior Statutory Auditor)
For and on behalf of MacKenzie Kerr Limited
26 March 2025
Chartered Accountants and Statutory Auditor
Redwood
19 Culduthel Road
Inverness
IV2 4AA
HIGHLAND MOTOR PARTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
15,409,671
13,393,690
Cost of sales
(8,483,412)
(7,344,142)
Gross profit
6,926,259
6,049,548
Administrative expenses
(3,872,608)
(3,648,771)
Other operating income
41,147
17,560
Operating profit
2
3,094,798
2,418,337
Interest receivable and similar income
6
69,805
12,037
Interest payable and similar expenses
7
(6,238)
-
0
Profit before taxation
3,158,365
2,430,374
Tax on profit
8
(801,011)
(534,257)
Profit for the financial year
2,357,354
1,896,117
Retained earnings brought forward
5,435,055
4,714,938
Dividends
9
(1,176,000)
(1,176,000)
Retained earnings carried forward
6,616,409
5,435,055

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

HIGHLAND MOTOR PARTS LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
629,017
650,614
Current assets
Stocks
11
2,074,806
1,788,276
Debtors
12
2,310,111
2,013,274
Cash at bank and in hand
4,934,494
3,793,355
9,319,411
7,594,905
Creditors: amounts falling due within one year
13
(3,192,237)
(2,673,767)
Net current assets
6,127,174
4,921,138
Total assets less current liabilities
6,756,191
5,571,752
Provisions for liabilities
Deferred tax liability
14
138,792
135,707
(138,792)
(135,707)
Net assets
6,617,399
5,436,045
Capital and reserves
Share capital
15
490
490
Capital redemption reserve
16
500
500
Profit and loss reserves
17
6,616,409
5,435,055
Total equity
6,617,399
5,436,045

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 26 March 2025 and are signed on its behalf by:
Mr D M MacLellan
Director
Company registration number SC228871
HIGHLAND MOTOR PARTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
3,005,528
2,712,707
Interest paid
(6,238)
-
0
Income taxes paid
(534,888)
(485,730)
Net cash inflow from operating activities
2,464,402
2,226,977
Investing activities
Purchase of tangible fixed assets
(300,281)
(175,536)
Proceeds from disposal of tangible fixed assets
83,213
54,696
Interest received
69,805
12,037
Net cash used in investing activities
(147,263)
(108,803)
Financing activities
Dividends paid
(1,176,000)
(1,176,000)
Net cash used in financing activities
(1,176,000)
(1,176,000)
Net increase in cash and cash equivalents
1,141,139
942,174
Cash and cash equivalents at beginning of year
3,793,355
2,851,181
Cash and cash equivalents at end of year
4,934,494
3,793,355
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information

Highland Motor Parts Limited is a private company limited by shares incorporated in Scotland. The registered office is Redwood, 19 Culduthel Road, Inverness, IV2 4AA.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention.

 

The principal accounting policies adopted are set out below.

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, which is the sale of motor parts, 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. Turnover is recognised at the point of sale.

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 dispatch 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.

1.4
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:

Improvements to property
10% on cost
Fixtures and fittings
10% on cost
Office equipment
25% on cost
Motor vehicles
25% reducing balance

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.

1.5
Impairment of fixed assets

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

HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies (Continued)
- 11 -
1.6
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.

1.7
Cash and cash equivalents

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

1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies (Continued)
- 12 -
Basic financial liabilities

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

 

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.

1.9
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.

1.10
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 statement of income and retained earnings because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of income and retained earnings, 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.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

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

HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
223,238
207,105
Loss/(profit) on disposal of tangible fixed assets
15,427
(21,520)
Operating lease charges
162,601
160,827
3
Employees

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

2024
2023
Number
Number
Total
71
68

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,289,197
2,149,729
Social security costs
226,113
215,875
Pension costs
269,560
258,932
2,784,870
2,624,536

During the year, a total of key management personnel compensation of £363,428, excluding employer social security, (2023 - £371,180) was paid.

4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,500
12,000
For other services
All other non-audit services
10,245
16,400
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
193,013
202,940
Company pension contributions to defined contribution schemes
130,152
130,122
323,165
333,062

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

 

The number of directors whose annual remuneration was £60,000 or more amounted to 2 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
-
91,058

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

 

6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
68,679
6,307
Other interest income
1,126
5,730
Total income
69,805
12,037
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
68,679
6,307
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
6,238
-
0
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
797,926
507,541
Deferred tax
Origination and reversal of timing differences
3,085
26,716
Total tax charge
801,011
534,257

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
3,158,365
2,430,374
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
789,591
607,594
Tax effect of expenses that are not deductible in determining taxable profit
2,935
3,093
Permanent capital allowances in excess of depreciation
5,400
8,390
Change in tax rate
-
0
(111,536)
Deferred tax charge
3,085
(7,702)
Deferred tax change of tax rate
-
0
34,418
Taxation charge for the year
801,011
534,257
9
Dividends
2024
2023
£
£
Interim paid
1,176,000
1,176,000
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
10
Tangible fixed assets
Improvements to property
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
596,481
222,194
124,473
610,333
1,553,481
Additions
-
0
10,405
15,668
274,208
300,281
Disposals
-
0
(425)
(6,414)
(199,221)
(206,060)
At 30 June 2024
596,481
232,174
133,727
685,320
1,647,702
Depreciation and impairment
At 1 July 2023
402,271
128,034
109,905
262,657
902,867
Depreciation charged in the year
59,648
22,847
9,932
130,811
223,238
Eliminated in respect of disposals
-
0
(425)
(6,414)
(100,581)
(107,420)
At 30 June 2024
461,919
150,456
113,423
292,887
1,018,685
Carrying amount
At 30 June 2024
134,562
81,718
20,304
392,433
629,017
At 30 June 2023
194,210
94,160
14,568
347,676
650,614
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,074,806
1,788,276
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,792,739
1,587,722
Other debtors
507,664
424,014
Prepayments and accrued income
9,708
1,538
2,310,111
2,013,274
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,348,675
2,082,581
Corporation tax
472,096
209,058
Other taxation and social security
230,280
232,388
Other creditors
22,122
41,709
Accruals and deferred income
119,064
108,031
3,192,237
2,673,767
14
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
138,792
135,707
2024
Movements in the year:
£
Liability at 1 July 2023
135,707
Charge to profit or loss
3,085
Liability at 30 June 2024
138,792
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
490
490
490
490
16
Capital redemption reserve
2024
2023
£
£
At the beginning and end of the year
500
500
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
17
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
5,435,055
4,714,938
Profit for the year
2,357,354
1,896,117
Dividends declared and paid in the year
(1,176,000)
(1,176,000)
At the end of the year
6,616,409
5,435,055
18
Financial commitments, guarantees and contingent liabilities

A bond and floating charge over the whole assets of the company is provided in favour of the Bank of Scotland.

19
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
160,140
143,820
Between two and five years
241,740
285,320
401,880
429,140
20
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,357,354
1,896,117
Adjustments for:
Taxation charged
801,011
534,257
Finance costs
6,238
-
0
Investment income
(69,805)
(12,037)
Loss/(gain) on disposal of tangible fixed assets
15,427
(21,520)
Depreciation and impairment of tangible fixed assets
223,238
207,105
Movements in working capital:
Increase in stocks
(286,530)
(48,471)
Increase in debtors
(296,837)
(291,151)
Increase in creditors
255,432
448,407
Cash generated from operations
3,005,528
2,712,707
HIGHLAND MOTOR PARTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
21
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,793,355
1,141,139
4,934,494
22
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

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