Registration number:
N.E. Truck Spares Limited
for the
Period from 1 January 2023 to 31 March 2024
N.E. Truck Spares Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Statement of Comprehensive Income |
|
Statement of Financial Position |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
N.E. Truck Spares Limited
Company Information
Directors |
Mr P Reed Mr M Reed Mrs A Reed Mr J J Reed |
Company secretary |
Mrs A Reed |
Registered office |
|
Solicitors |
|
Auditors |
|
N.E. Truck Spares Limited
Strategic Report for the Period from 1 January 2023 to 31 March 2024
The directors present their strategic report for the period from 1 January 2023 to 31 March 2024.
Principal activity
The principal activity of the company is that of wholesale distribution, specialising in commercial vehicle parts and accessories.
Fair review of the business
During the period the company continued to operate out of its 6 branches in the north of England as well as operating commercial vehicle parts stores management sites nationwide, distributing quality commercial vehicle spares from all leading manufacturers.
The accounts to 31 March 2024 cover a 15 month period, compared with 12 month previous accounting period. The company was able to report an increase in turnover of 38%, which continues on from its 12% increase in 2022. This was achieved through growth in trading volume due to general growth in the underlying parts business and an increase in the number of stores management sites operated.
The results have also continued through to profit before tax resulting in an increase of £195,572 to £584,226.
Looking ahead the directors are confident that the company is in a strong position to continue to perform well as the UK economy continues to recover following the COVID pandemic and even in the event of growth stagnating, the company has the strength and resilience to come through whatever difficulties it may face in the near future.
Principal risks and uncertainties
Liquidity risk
The company aims to mitigate liquidity risk by managing cash generated by its operations. Flexibility is maintained by retaining surplus cash in readily accessible bank deposit accounts.
Competitive risk
The company competes in an open market environment. The company's customers select suppliers based on a combination of factors including price, delivery, quality and reputation. The company reviews key performance indicators (KPIs) to monitor its competitive position.
Approved and authorised by the
......................................... |
N.E. Truck Spares Limited
Directors' Report for the Period from 1 January 2023 to 31 March 2024
The directors present their report and the financial statements for the period from 1 January 2023 to 31 March 2024.
Directors of the company
The directors who held office during the period were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
A resolution to reappoint Torgersens as auditors will be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
......................................... |
N.E. Truck Spares Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
N.E. Truck Spares Limited
Independent Auditor's Report to the Members of N.E. Truck Spares Limited
Opinion
We have audited the financial statements of N.E. Truck Spares Limited (the 'company') for the period from 1 January 2023 to 31 March 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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:
• | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the period then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
N.E. Truck Spares Limited
Independent Auditor's Report to the Members of N.E. Truck Spares Limited
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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.
N.E. Truck Spares Limited
Independent Auditor's Report to the Members of N.E. Truck Spares Limited
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.
The objectives of our audit with regards to fraud are to design tailored and specific audit procedures to enable us to gather sufficient audit evidence. These tests are proportionate and appropriate to the company in terms of assessed risk level and the nature of the entity's activities. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:
• |
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
• |
we obtained an understanding of the legal and regulatory requirements which applied to the company, through discussions with directors and other management, and from our commercial knowledge and experience; |
• |
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment legislation, health & safety legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice FRS 102); |
• |
we discussed compliance with directors and those charged with governance; |
• |
we made enquiries of management as to where they considered there was susceptibility to fraud and enquired as to their knowledge of actual, suspected and alleged fraud; |
• |
we considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; |
N.E. Truck Spares Limited
Independent Auditor's Report to the Members of N.E. Truck Spares Limited
• |
we evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting unusual journal entries and the manipulation of accounting estimates which could be subject to management bias. |
We designed our audit work to test the controls in place regarding the processing of these transactions and how these controls are capable of preventing or detecting fraud or error. Our audit procedures gathered evidence to support the claims of the directors whilst maintaining professional scepticism to allow us to draw our own conclusion on the matter. Audit procedures performed by the engagement team included:
• |
we obtained an understanding of how the company had complied with these regulations by reviewing their treatment of transactions; |
• |
investigating the rationale behind significant or unusual transactions; |
• |
performing transactional testing on payroll costs in respect of those employees with responsibility or authority in connection with the payroll function; |
• |
assessing whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
• |
Enquire of management as to compliance with health & safety legislation, employment legislation and taxation legislation, including consideration of actual or potential litigation and claims; |
• |
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with Companies Act 2006 and Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice FRS 102). |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
N.E. Truck Spares Limited
Independent Auditor's Report to the Members of N.E. Truck Spares Limited
• |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
• |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
......................................
For and on behalf of
Avalon House
St Catherine's Court
Sunderland
SR5 3XJ
N.E. Truck Spares Limited
Statement of Comprehensive Income for the Period from 1 January 2023 to 31 March 2024
Note |
2024 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
911,597 |
570,656 |
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial period |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the period other than the results above.
N.E. Truck Spares Limited
(Registration number: 01191566)
Statement of Financial Position as at 31 March 2024
Note |
2024 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
6,000 |
6,000 |
|
Other reserves |
167 |
167 |
|
Retained earnings |
1,870,528 |
1,491,042 |
|
Shareholders' funds |
1,876,695 |
1,497,209 |
Approved and authorised by the
......................................... |
N.E. Truck Spares Limited
Statement of Changes in Equity for the Period from 1 January 2023 to 31 March 2024
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
|
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
Share capital |
Other reserves |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
|
Profit for the period |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2022 |
6,000 |
167 |
1,491,042 |
1,497,209 |
N.E. Truck Spares Limited
Statement of Cash Flows for the Period from 1 January 2023 to 31 March 2024
Note |
2024 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the period |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
( |
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
( |
|
Payments to finance lease creditors |
|
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 March |
71,304 |
166,320 |
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
Basis of preparation
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 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below:
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 £.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Judgements and key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
Useful economic lives of tangible assets - The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets - The useful economic lives and residual values are reassessed annually and are amended when necessary to reflect current estimates. |
Stock obsolescence provision - The company holds stocks of vehicle parts, which are subject to changing customer demands. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provision required. Parts stock and vendor returns are reviewed in full annually to evaluate the age and movement of stock items and a provision is made for over-age stock. This has resulted in a provision at the year end of £403,701 (2022: £450,000). |
Debtor provisions - Trade debtors are reviewed regularly based on age and knowledge of customers and a provision is made where appropriate. The bad debt provision at the year end is £47,969 (2022: £50,574). |
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for the retail of vehicle spares, stated net of discounts and of Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Other grants
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
15% reducing balance |
Motor vehicles |
25% /33.33% straight line |
Computer equipment |
15% /20% /33.33% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Operating lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Finance lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
The company operates a defined contribution pension scheme covering a number of its employees. The scheme funds are administered by trustees and the assets of the scheme are held separately from those of the company . The pension costs charged against profits represent the amount of the contributions payable to the scheme in respect of the accounting period.
Share based payments
Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates.
Fair value is determined using an appropriate pricing model. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met.
Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification.
Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately.
Cash-settled share-based payment transactions are measured at the fair value of the liability. Until the liability is settled, the fair value of the liability is re-measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit or loss for the period.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Financial instruments
Classification
Turnover |
The analysis of the company's turnover for the period from continuing operations is as follows:
2024 |
2022 |
|
Sale of goods |
|
|
The analysis of the company's turnover for the period by market is as follows:
2024 |
2022 |
|
UK |
|
|
Other operating income |
The analysis of the company's other operating income for the period is as follows:
2024 |
2022 |
|
Grants received |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the period is as follows:
2024 |
2022 |
|
Gain on disposal of tangible assets |
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Operating profit |
Arrived at after charging/(crediting)
2024 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Interest payable and similar expenses |
2024 |
2022 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
Foreign exchange gains |
|
- |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
SSAS pension contributions |
- |
|
Redundancy costs |
|
- |
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:
2024 |
2022 |
|
Other departments |
|
|
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Directors' remuneration |
The directors' remuneration for the period was as follows:
2024 |
2022 |
|
Remuneration |
|
|
Company contributions to defined contribution pension plans |
|
|
237,480 |
327,309 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2022 |
|
Accruing benefits under defined benefit pension scheme |
|
|
In respect of the highest paid director:
2024 |
2022 |
|
Remuneration |
|
|
Company contributions to defined contribution pension plans |
|
|
Auditors' remuneration |
2024 |
2022 |
|
Audit of the financial statements |
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Taxation |
Tax charged/(credited) in the statement of comprehensive income
2024 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
|
118,941 |
60,890 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Decrease from effect of different UK tax rates on some earnings |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Total tax charge |
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Tangible assets |
Fixtures and fittings |
Office equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
|
|
Charge for the period |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
Carrying amount |
||||
At 31 March 2024 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Stocks |
2024 |
2022 |
|
Finished goods and goods for resale |
|
|
Debtors |
Current |
2024 |
2022 |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Cash and cash equivalents |
2024 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2024 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accruals |
|
|
|
Corporation tax |
117,899 |
60,077 |
|
Payments on account |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Secured creditors
Included within other creditors amounts falling due within one year are amounts of £167,293 (2022- £111,459) relating to hire purchase agreements which are secured over the assets to which they relate. Also included within other creditors amounts falling due within one year are amounts of £1,873,292 (2022 - £1,813,903) relating to trade sales factored through an invoice discounting scheme.
Included within other creditors amounts falling due after more than one year are amounts of £201,763 (2022 - £152,757) relating to hire purchase agreements which are secured over the assets to which they relate.
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
There was also an amount of £nil (2022: £72,982) paid to a SSAS pension scheme of which all of the directors are trustees.
Share capital |
Allotted, called up and fully paid shares
2024 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
3,060 |
|
3,060 |
|
|
2,940 |
|
2,940 |
|
|
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Loans and borrowings |
Non-current loans and borrowings
2024 |
2022 |
|
Bank borrowings |
|
|
Hire purchase contracts |
|
|
Amounts due to related parties |
|
|
|
|
Current loans and borrowings
2024 |
2022 |
|
Bank borrowings |
|
|
Hire purchase contracts |
|
|
|
|
Other borrowings
is denominated in with a nominal interest rate of %. The carrying amount at year end is £Nil (2022 - £Nil).
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Share-based payments |
Scheme details and movements
Effect of share-based payments on profit or loss and financial position
The total expense recognised in profit or loss for the period was £Nil (2022 - £Nil).
The total carrying amount of the liabilities arising from share-based payments at the end of the period was £Nil (2022 - £Nil).
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Analysis of changes in net debt |
At 1 January 2023 |
Financing cash flows |
New finance leases |
At 31 March 2024 |
|
Cash and cash equivalents |
||||
Cash |
166,320 |
(95,016) |
- |
71,304 |
Borrowings |
||||
Long term borrowings |
(275,056) |
195,557 |
(161,707) |
(241,206) |
Short term borrowings |
(2,039,516) |
(66,099) |
(81,304) |
(2,186,919) |
(2,314,572) |
129,458 |
(243,011) |
(2,428,125) |
|
( |
|
( |
( |
|
|
Related party transactions |
Transactions with directors |
2022 |
At 1 January 2022 |
Advances to director |
Repayments by director |
At 31 December 2022 |
Mr J J Reed |
||||
|
|
|
( |
- |
Summary of transactions with entities with joint control or significant interest
|
|
N.E. Truck Spares Limited
Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024
Summary of transactions with other related parties
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2024 |
|
|
|