N.E. Truck Spares Limited 01191566 false 2023-01-01 2024-03-31 2024-03-31 The principal activity of the company is that of wholesale distribution, specialising in commercial vehicle parts and accessories. 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Registration number: 01191566

N.E. Truck Spares Limited

Financial Statements

for the Period from 1 January 2023 to 31 March 2024

 

N.E. Truck Spares Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 29

 

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

Parkgate
Hetton Lyons Industrial Estate
Houghton-Le-Spring
Tyne & Wear
DH5 0RH

Solicitors

Jacksons Law
17 Falcon Court
Preston Farm Industrial Estate
Stockton on Tees
TS18 3TU

Auditors

Torgersens
Chartered accountants & statutory auditorEast Suite, Ground Floor
Avalon House
St Catherine's Court
Sunderland
SR5 3XJ

 

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 Board on 27 March 2025 and signed on its behalf by:
 

.........................................
Mr M Reed
Director

 

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:

Mr P Reed

Mr M Reed

Mrs A Reed - Company secretary and director

Mr J J Reed

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 Board on 27 March 2025 and signed on its behalf by:
 

.........................................
Mr M Reed
Director

 

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.

......................................
Paul Newbold BA FCA (Senior Statutory Auditor)
For and on behalf of Torgersens, Statutory Auditor
 East Suite, Ground Floor
Avalon House
St Catherine's Court
Sunderland
SR5 3XJ

27 March 2025

 

N.E. Truck Spares Limited

Statement of Comprehensive Income for the Period from 1 January 2023 to 31 March 2024

Note

2024
£

2022
£

Turnover

3

24,840,371

17,950,474

Cost of sales

 

(18,865,873)

(13,605,434)

Gross profit

 

5,974,498

4,345,040

Distribution costs

 

(3,133,588)

(2,252,175)

Administrative expenses

 

(1,930,313)

(1,522,374)

Other operating income

4

1,000

165

Operating profit

6

911,597

570,656

Interest payable and similar expenses

7

(327,371)

(182,002)

Profit before tax

 

584,226

388,654

Tax on profit

11

(159,863)

(68,690)

Profit for the financial period

 

424,363

319,964

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

12

425,921

346,366

Current assets

 

Stocks

13

3,365,197

3,190,170

Debtors

14

4,441,508

4,173,196

Cash at bank and in hand

 

71,304

166,320

 

7,878,009

7,529,686

Creditors: Amounts falling due within one year

16

(6,093,164)

(6,051,844)

Net current assets

 

1,784,845

1,477,842

Total assets less current liabilities

 

2,210,766

1,824,208

Creditors: Amounts falling due after more than one year

16

(241,206)

(275,056)

Provisions for liabilities

24

(92,865)

(51,943)

Net assets

 

1,876,695

1,497,209

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 Board on 27 March 2025 and signed on its behalf by:
 

.........................................
Mr M Reed
Director

 

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

6,000

167

1,491,042

1,497,209

Profit for the period

-

-

424,363

424,363

Dividends

-

-

(44,877)

(44,877)

At 31 March 2024

6,000

167

1,870,528

1,876,695

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2022

6,000

167

1,214,505

1,220,672

Profit for the period

-

-

319,964

319,964

Dividends

-

-

(43,427)

(43,427)

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

 

424,363

319,964

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

220,665

146,175

Profit on disposal of tangible assets

5

(8,629)

(15,747)

Finance costs

7

325,499

182,002

Income tax expense

11

159,863

68,690

 

1,121,761

701,084

Working capital adjustments

 

Increase in stocks

13

(175,027)

(238,640)

Increase in trade debtors

14

(268,312)

(357,268)

(Decrease)/increase in trade creditors

16

(76,368)

375,779

Cash generated from operations

 

602,054

480,955

Income taxes paid

11

(61,119)

(61,988)

Net cash flow from operating activities

 

540,935

418,967

Cash flows from investing activities

 

Acquisitions of tangible assets

(302,699)

(185,897)

Proceeds from sale of tangible assets

 

11,108

27,625

Net cash flows from investing activities

 

(291,591)

(158,272)

Cash flows from financing activities

 

Interest paid

7

(325,499)

(182,002)

Proceeds from bank borrowing draw downs

 

(78,824)

(56,579)

Payments to finance lease creditors

 

104,840

21,447

Dividends paid

(44,877)

(43,427)

Net cash flows from financing activities

 

(344,360)

(260,561)

Net (decrease)/increase in cash and cash equivalents

 

(95,016)

134

Cash and cash equivalents at 1 January

 

166,320

166,186

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

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Parkgate
Hetton Lyons Industrial Estate
Houghton-Le-Spring
Tyne & Wear
DH5 0RH

These financial statements were authorised for issue by the Board on 27 March 2025.

2

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

Grants or assistance of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
 

3

Turnover

The analysis of the company's turnover for the period from continuing operations is as follows:

2024
£

2022
£

Sale of goods

24,840,371

17,950,474

The analysis of the company's turnover for the period by market is as follows:

2024
£

2022
£

UK

24,840,371

17,950,474

4

Other operating income

The analysis of the company's other operating income for the period is as follows:

2024
£

2022
£

Grants received

1,000

165

5

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

8,629

15,747

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2022
£

Depreciation expense

220,665

146,176

Operating lease expense - plant and machinery

26,692

23,883

Profit on disposal of property, plant and equipment

(8,629)

(15,747)

7

Interest payable and similar expenses

2024
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

42,433

26,045

Interest expense on other finance liabilities

283,066

155,957

Foreign exchange gains

1,872

-

327,371

182,002

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2022
£

Wages and salaries

2,921,615

2,150,839

Social security costs

286,004

215,450

Pension costs, defined contribution scheme

57,860

43,231

SSAS pension contributions

-

72,982

Redundancy costs

12,000

-

Other employee expense

3,335

2,811

3,280,814

2,485,313

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

2024
No.

2022
No.

Other departments

88

83

88

83

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

9

Directors' remuneration

The directors' remuneration for the period was as follows:

2024
£

2022
£

Remuneration

234,178

251,686

Company contributions to defined contribution pension plans

3,302

75,623

237,480

327,309

During the period the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2022
No.

Accruing benefits under defined benefit pension scheme

4

4

In respect of the highest paid director:

2024
£

2022
£

Remuneration

87,888

93,961

Company contributions to defined contribution pension plans

1,651

37,812

10

Auditors' remuneration

2024
£

2022
£

Audit of the financial statements

7,015

7,980


 

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

11

Taxation

Tax charged/(credited) in the statement of comprehensive income

2024
£

2022
£

Current taxation

UK corporation tax

117,689

60,077

UK corporation tax adjustment to prior periods

1,252

813

118,941

60,890

Deferred taxation

Arising from origination and reversal of timing differences

40,922

7,800

Tax expense in the income statement

159,863

68,690

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 25% (2022 - 19%).

The differences are reconciled below:

2024
£

2022
£

Profit before tax

584,226

388,654

Corporation tax at standard rate

146,057

73,844

Increase in UK and foreign current tax from adjustment for prior periods

1,252

813

Tax increase/(decrease) from effect of capital allowances and depreciation

16,403

(7,112)

Decrease from effect of different UK tax rates on some earnings

(5,906)

-

Effect of expense not deductible in determining taxable profit (tax loss)

2,057

1,145

Total tax charge

159,863

68,690

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

12

Tangible assets

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

213,604

221,023

769,217

1,203,844

Additions

2,007

7,032

293,660

302,699

Disposals

(1,291)

(150)

(22,625)

(24,066)

At 31 March 2024

214,320

227,905

1,040,252

1,482,477

Depreciation

At 1 January 2023

154,303

208,137

495,038

857,478

Charge for the period

11,223

10,434

199,008

220,665

Eliminated on disposal

(880)

(149)

(20,558)

(21,587)

At 31 March 2024

164,646

218,422

673,488

1,056,556

Carrying amount

At 31 March 2024

49,674

9,483

366,764

425,921

At 31 December 2022

59,301

12,886

274,179

346,366

13

Stocks

2024
£

2022
£

Finished goods and goods for resale

3,365,197

3,190,170

14

Debtors

Current

2024
£

2022
£

Trade debtors

4,034,916

3,737,682

Other debtors

347,881

366,736

Prepayments

58,711

68,778

 

4,441,508

4,173,196

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

15

Cash and cash equivalents

2024
£

2022
£

Cash on hand

1,633

360

Cash at bank

69,671

165,960

71,304

166,320

16

Creditors

Note

2024
£

2022
£

Due within one year

 

Loans and borrowings

19

233,988

174,122

Trade creditors

 

3,501,350

3,756,328

Amounts due to related parties

23

79,639

51,491

Social security and other taxes

 

201,166

61,453

Other payables

 

12,318

20,282

Accruals

 

73,512

114,188

Corporation tax

11

117,899

60,077

Payments on account

 

1,873,292

1,813,903

 

6,093,164

6,051,844

Due after one year

 

Loans and borrowings

19

241,206

275,056

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

17

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 £57,860 (2022 - £43,231).

There was also an amount of £nil (2022: £72,982) paid to a SSAS pension scheme of which all of the directors are trustees.

18

Share capital

Allotted, called up and fully paid shares

2024

2022

No.

£

No.

£

Ordinary shares of £1 each

3,060

3,060

3,060

3,060

Ordinary A shares of £1 each

2,940

2,940

2,940

2,940

6,000

6,000

6,000

6,000

 

N.E. Truck Spares Limited

Notes to the Financial Statements for the Period from 1 January 2023 to 31 March 2024

19

Loans and borrowings

Non-current loans and borrowings

2024
£

2022
£

Bank borrowings

11,443

94,299

Hire purchase contracts

201,763

152,757

Amounts due to related parties

28,000

28,000

241,206

275,056

Current loans and borrowings

2024
£

2022
£

Bank borrowings

66,695

62,663

Hire purchase contracts

167,293

111,459

233,988

174,122

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

20

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

15,500

19,963

Later than one year and not later than five years

10,333

29,708

25,833

49,671

21

Share-based payments

Scheme details and movements

The company established a share option plan to allow the grant of Enterprise Management Incentives (EMI) incentives to 2 employees in 2019. The company grants the option, which is the right to acquire the option shares at the exercise price. These options are not subject to any vesting or exercise conditions. The valuation of the company's shares was determined by applying the Price/Earnings (P/E) ratios to the weighted average earnings of the company. This calculated a fair value of £1 per option share. The total number of EMI option shares is 500, 333 of which were cancelled in 2021 leaving 167 as at 31 December 2021. No options were exercised in the year to 31st December 2022 or the period ended 31st March 2024.

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

22

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)

 

(2,148,252)

34,442

(243,011)

(2,356,821)

23

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

2,679

891

(3,570)

-

Summary of transactions with entities with joint control or significant interest

Onestop Supply Chain Limited Mr M. Reed and Mr J. Reed have significant influence over both N.E. Truck Spares Limited (NETS) and Onestop Supply Chain Limited (OSSC).
During the period, OSSC sold goods to NETS of £979,990 at market value (2022: £645,621). Included within trade creditors are amounts payable to OSSC of £176,371 (2022: £171,774)

Parkgate Group Limited Parkgate Group Limited is a company which has common significant influence and control as N.E. Truck Spares Limited (NETS).
During the period NETS recharged wages and other expenses to Parkgate totalling £40,134 (2022: £32,037). Parkgate received rent from NETS of £8,433 (2022: £nil) and provided security services of £3,188 (2022: £2,850). Included within trade creditors are amounts payable to Parkgate of £10,349 (2022: £nil)

 

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

N.E. Truck Spares SSAS N.E. Truck Spares SSAS is a pension scheme of which Mr P. Reed, Mrs A. Reed, Mr J. Reed and Mr M. Reed are trustees. The company paid rent of £37,800 (2022: £30,240) to N.E. Truck Spares SSAS. The company funded costs relating to the SSAS of £4,775 (2022: £4,235) and paid pension contributions of £nil (2022: £72,982). No amounts were outstanding at the current or previous reporting date.

24

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

51,943

51,943

Increase (decrease) in existing provisions

40,922

40,922

At 31 March 2024

92,865

92,865