Company registration number 06341151 (England and Wales)
AVONDALE SERVICE STATION LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
AVONDALE SERVICE STATION LTD
COMPANY INFORMATION
DIRECTOR
Mr A R Crees
COMPANY NUMBER
06341151
REGISTERED OFFICE
Avondale Road
Pontrhydyrun
Cwmbran
Torfaen
NP44 1TT
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
AVONDALE SERVICE STATION LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Statement of cash flows
14 - 15
Notes to the financial statements
16 - 30
AVONDALE SERVICE STATION LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The director presents the strategic report for the year ended 30 June 2024.
PRINCIPAL ACTIVITIES
The Company's principal activity continued to be that of a service station with a convenience store as well as providing vehicle hire and sales.
REVIEW OF THE BUSINESS
The Company has once again had a positive trading year. The company has seen an increase in fuel volumes and shop sales ion the year and as a result of this turnover has increased by 25% compared with the prior year and the Company remains profitable like previous years.
PRINCIPAL RISKS AND UNCERTAINTIES
The Company is reliant on fuel sales and therefore ay changes to the level of activity is likely to affect results. At the present time the market is highly competitive in the United Kingdom, and the directors believes that the market will remain this was for the foreseeable future.
The Company is exposed to a number of risks involved in general operations. The director actively manages the Company on a day to day basis and takes active measures to ensure these risks are understood and minimised. In order to manages these risks the Company has the following procedures in place:
Interest rate risk - The Company has some liabilities for which interest is charges at a variable rate. The director monitors these rates and is able to avoid significant increases in interest costs by settling debts early if required.
Supply chain risk - The Company has agreements in place which will protect future supplies.
KEY PERFORMANCE INDICATORS
The director believes that the key business indicators in this market are turnover, gross margin and profit before tax. The performance of the Company in these key performance indicators was as follows:
2024
2023
£'000
£'000
Turnover
15,357
15,647
Gross profit (%)
16.81%
17.92%
Profit before taxation
699
1,378
FUTURE DEVELOPMENTS
The Company's aim is to grow the business by increasing turnover and growing profits. This will be achieved by investing in the Company's infrastructure and vehicle fleet.
AVONDALE SERVICE STATION LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Mr A R Crees
Director
28 March 2025
AVONDALE SERVICE STATION LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The director presents his 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 10.
Ordinary dividends were paid amounting to £1,000. The director does not recommend payment of a further dividend.
DIRECTOR
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr A R Crees
STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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.
AVONDALE SERVICE STATION LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
MEDIUM-SIZED COMPANIES EXEMPTION
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A R Crees
Director
28 March 2025
AVONDALE SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVONDALE SERVICE STATION LTD
- 5 -
Opinion
We have audited the financial statements of Avondale Service Station Ltd (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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 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 30 June 2024 and of its profit for the year 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
AVONDALE SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVONDALE SERVICE STATION LTD (CONTINUED)
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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 director's 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
AVONDALE SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVONDALE SERVICE STATION LTD (CONTINUED)
- 7 -
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
AVONDALE SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVONDALE SERVICE STATION LTD (CONTINUED)
- 8 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
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.
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.
AVONDALE SERVICE STATION LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVONDALE SERVICE STATION LTD (CONTINUED)
- 9 -
Simon Tee
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
South Wales
NP10 8FY
28 March 2025
AVONDALE SERVICE STATION LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
TURNOVER
3
15,357,065
15,646,803
Cost of sales
(12,775,646)
(12,842,261)
GROSS PROFIT
2,581,419
2,804,542
Administrative expenses
(1,645,118)
(1,266,037)
Other operating income
154,603
82,152
OPERATING PROFIT
4
1,090,904
1,620,657
Interest receivable and similar income
6
8,047
2,479
Interest payable and similar expenses
7
(399,543)
(245,450)
PROFIT BEFORE TAXATION
699,408
1,377,686
Tax on profit
8
(234,682)
(310,080)
PROFIT FOR THE FINANCIAL YEAR
464,726
1,067,606
OTHER COMPREHENSIVE INCOME
Revaluation of tangible fixed assets
2,872,619
Tax relating to other comprehensive income
(718,155)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
464,726
3,222,070
The profit and loss account has been prepared on the basis that all operations are continuing operations.
AVONDALE SERVICE STATION LTD
BALANCE SHEET
- 11 -
2024
2023
Notes
£
£
FIXED ASSETS
Tangible assets
10
9,636,586
7,999,775
Investment property
11
2,566,871
1,200,515
12,203,457
9,200,290
CURRENT ASSETS
Stocks
13
1,750,292
1,700,882
Debtors
14
943,374
1,927,604
Investments
15
17,950
17,950
Cash at bank and in hand
786,301
567,399
3,497,917
4,213,835
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
16
(4,510,992)
(2,596,657)
NET CURRENT (LIABILITIES)/ASSETS
(1,013,075)
1,617,178
TOTAL ASSETS LESS CURRENT LIABILITIES
11,190,382
10,817,468
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
17
(3,670,665)
(3,814,779)
PROVISIONS FOR LIABILITIES
Deferred tax liability
20
(1,429,579)
(1,376,277)
NET ASSETS
6,090,138
5,626,412
CAPITAL AND RESERVES
Called up share capital
22
100
100
Revaluation reserve
2,154,464
2,154,464
Profit and loss reserves
3,935,574
3,471,848
TOTAL EQUITY
6,090,138
5,626,412
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
AVONDALE SERVICE STATION LTD
BALANCE SHEET (CONTINUED)
- 12 -
The financial statements were approved and signed by the director and authorised for issue on 28 March 2025
Mr A R Crees
Director
Company registration number 06341151 (England and Wales)
AVONDALE SERVICE STATION LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 1 JULY 2022
100
2,404,242
2,404,342
YEAR ENDED 30 JUNE 2023:
Profit
-
-
1,067,606
1,067,606
Other comprehensive income:
Revaluation of tangible fixed assets
-
2,872,619
-
2,872,619
Tax relating to other comprehensive income
-
(718,155)
(718,155)
Total comprehensive income
-
2,154,464
1,067,606
3,222,070
BALANCE AT 30 JUNE 2023
100
2,154,464
3,471,848
5,626,412
YEAR ENDED 30 JUNE 2024:
Profit and total comprehensive income
-
-
464,726
464,726
Dividends
9
-
-
(1,000)
(1,000)
BALANCE AT 30 JUNE 2024
100
2,154,464
3,935,574
6,090,138
AVONDALE SERVICE STATION LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year after tax
464,726
1,067,606
Adjustments for:
Taxation charged
234,682
310,080
Finance costs
399,543
245,450
Investment income
(8,047)
(2,479)
Gain on disposal of tangible fixed assets
(120,414)
(154,631)
Depreciation and impairment of tangible fixed assets
699,555
500,326
Movements in working capital:
Increase in stocks
(49,410)
(1,548,208)
Decrease/(increase) in debtors
880,376
(995,043)
Increase/(decrease) in creditors
39,978
(235,456)
Cash generated from/(absorbed by) operations
2,540,989
(812,355)
Interest paid
(399,543)
(245,450)
Income taxes paid
(84,505)
(55,934)
Net cash inflow/(outflow) from operating activities
2,056,941
(1,113,739)
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(510,746)
(687,841)
Proceeds from disposal of tangible fixed assets
1,100,084
1,156,104
Purchase of investment property
(42,356)
(340,133)
Interest received
8,047
2,479
Net cash generated from investing activities
555,029
130,609
FINANCING ACTIVITIES
Proceeds from new bank loans
1,800,000
Repayment of bank loans
(149,618)
(142,691)
Payment of finance leases obligations
(2,242,450)
(855,600)
Dividends paid
(1,000)
Net cash (used in)/generated from financing activities
(2,393,068)
801,709
AVONDALE SERVICE STATION LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2024
2023
Notes
£
£
- 15 -
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
218,902
(181,421)
Cash and cash equivalents at beginning of year
567,399
748,820
CASH AND CASH EQUIVALENTS AT END OF YEAR
786,301
567,399
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
1
ACCOUNTING POLICIES
Company information
Avondale Service Station Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Avondale Road, Pontrhydyrun, Cwmbran, Torfaen, NP44 1TT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
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.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Computers
15% straight line
Motor vehicles
5% - 25% straight line
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.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
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.
1.7
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.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 18 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
ACCOUNTING POLICIES
(Continued)
- 20 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
2
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
TURNOVER AND OTHER REVENUE
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
12,960,122
13,223,406
Rendering of services
2,396,943
2,423,397
15,357,065
15,646,803
2024
2023
£
£
Other revenue
Interest income
8,047
2,479
The whole of the turnover is attributable to the principal activity of the Company wholly undertaken in the United Kingdom.
4
OPERATING PROFIT
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
Depreciation of owned tangible fixed assets
283,797
221,729
Depreciation of tangible fixed assets held under finance leases
415,758
278,597
Profit on disposal of tangible fixed assets
(120,414)
(154,631)
Impairment of trade debtors
(5,570)
18,708
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
5
EMPLOYEES
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
10
10
Administrative staff
6
6
Total
16
16
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
373,983
387,975
Pension costs
2,418
2,230
376,401
390,205
6
INTEREST RECEIVABLE AND SIMILAR INCOME
2024
2023
£
£
Interest income
Other interest income
8,047
2,479
7
INTEREST PAYABLE AND SIMILAR EXPENSES
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
118,296
113,425
Other finance costs:
Interest on finance leases and hire purchase contracts
235,244
88,067
Other interest
46,003
43,958
399,543
245,450
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
8
TAXATION
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
180,617
227,560
Adjustments in respect of prior periods
763
Total current tax
181,380
227,560
Deferred tax
Origination and reversal of timing differences
53,302
82,520
Total tax charge
234,682
310,080
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
699,408
1,377,686
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
174,852
344,422
Tax effect of expenses that are not deductible in determining taxable profit
40,402
30,431
Effect of change in corporation tax rate
(50,008)
Under/(over) provided in prior years
763
In respect of depreciation and capital allowances
18,665
(14,765)
Taxation charge for the year
234,682
310,080
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
718,155
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
9
DIVIDENDS
2024
2023
£
£
Final paid
1,000
10
TANGIBLE FIXED ASSETS
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2023
3,650,000
402,831
57,771
5,542
4,783,534
8,899,678
Additions
881,033
75,223
2,359,780
3,316,036
Disposals
(1,311,431)
(1,311,431)
At 30 June 2024
4,531,033
478,054
57,771
5,542
5,831,883
10,904,283
Depreciation and impairment
At 1 July 2023
130,699
53,040
2,345
713,819
899,903
Depreciation charged in the year
74,468
50,866
2,165
831
571,225
699,555
Eliminated in respect of disposals
(331,761)
(331,761)
At 30 June 2024
74,468
181,565
55,205
3,176
953,283
1,267,697
Carrying amount
At 30 June 2024
4,456,565
296,489
2,566
2,366
4,878,600
9,636,586
At 30 June 2023
3,650,000
272,132
4,731
3,197
4,069,715
7,999,775
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
4,304,745
2,631,261
During the prior year a professional valuation was undertaking on the Freehold Property. The valuation was performed on an open market basis, valuing the property as a fully-equipped operational entity and considering its trading potential. The Freehold Property was then valued by the directors on the same basis at the year end found there to be no change in value.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
TANGIBLE FIXED ASSETS
(Continued)
- 25 -
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2024
2023
£
£
Cost
1,658,414
777,381
Accumulated depreciation
(17,016)
-
Carrying value
1,641,398
777,381
11
INVESTMENT PROPERTY
2024
£
Fair value
At 1 July 2023
1,200,515
Additions through external acquisition
1,366,356
At 30 June 2024
2,566,871
The fair value of the investment property has been arrived at on the basis of a valuation carried out at the balance sheet date by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
12
FINANCIAL INSTRUMENTS
13
STOCKS
2024
2023
£
£
Raw materials and consumables
1,750,292
1,700,882
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
14
DEBTORS
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
628,951
632,782
Amounts owed by group undertakings
953,799
Amounts owed by undertakings in which the company has a participating interest
285,103
178,943
Other debtors
29,008
161,768
Prepayments and accrued income
312
312
943,374
1,927,604
15
CURRENT ASSET INVESTMENTS
2024
2023
£
£
Unlisted investments
17,950
17,950
16
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
2023
Notes
£
£
Bank loans
18
190,661
145,216
Obligations under finance leases
19
1,617,749
1,113,483
Trade creditors
812,178
868,364
Corporation tax
417,145
320,270
Other taxation and social security
139,134
19,482
Other creditors
1,319,708
115,425
Accruals and deferred income
14,417
14,417
4,510,992
2,596,657
Included in creditors due within one year is an amount of £1,617,749 (2023 - £1,113,483) relating to finance leases and hire purchases. This amount is secured on the assets to which the agreements relate. Also in creditors due within one year is an amount of £190,661 (2023 - £145,216) relating to bank loans. This amount is secured on the Company's freehold property.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
17
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
2023
Notes
£
£
Bank loans and overdrafts
18
1,437,301
1,632,364
Obligations under finance leases
19
2,118,461
2,059,887
Other creditors
114,903
122,528
3,670,665
3,814,779
Included in creditors due within one year is an amount of £2,118,461 (2023 - £2,059,887) relating to finance leases and hire purchases. This amount is secured on the assets to which the agreements relate. Also in creditors due within one year is an amount of £1,437,301 (2023 - £1,632,364) relating to bank loans. This amount is secured on the Company's freehold property.
Included in creditors due after more than one year is an amount of £20,000 which is secured by way of personal guarantee from the shareholder.
18
LOANS AND OVERDRAFTS
2024
2023
£
£
Bank loans
1,627,962
1,777,580
Payable within one year
190,661
145,216
Payable after one year
1,437,301
1,632,364
19
FINANCE LEASE OBLIGATIONS
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
1,821,827
1,234,233
In two to five years
2,306,907
2,268,010
4,128,734
3,502,243
Less: future finance charges
(392,524)
(328,873)
3,736,210
3,173,370
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
FINANCE LEASE OBLIGATIONS
(Continued)
- 28 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
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
711,424
658,122
Revaluations
718,155
718,155
1,429,579
1,376,277
2024
Movements in the year:
£
Liability at 1 July 2023
1,376,277
Charge to profit or loss
53,302
Liability at 30 June 2024
1,429,579
21
RETIREMENT BENEFIT SCHEMES
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,418
2,230
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
22
SHARE CAPITAL
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
23
OPERATING LEASE COMMITMENTS
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
2,052
2,052
Between two and five years
468
2,104
2,520
4,156
Lessor
The operating leases represent to third parties. There are no options in place for either party to extend the lease terms.
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
19,500
24
RELATED PARTY TRANSACTIONS
Included in other creditors/(debtors) is the following balance due to a sole trader business owned by the director. £1220146 (2023 - £(953799)) During the year purchases of £1,751,025 and sales of £92,746 were made with this entity. All transactions were conducted at market rate.
Included in other debtors is a balance of £283103 (2023 - £178943) due to a business owned by a close family member of the director. During the year sales of £1,812,650 were made to this entity. All transactions were conducted at market rate.
Included in other debtors is a balance of £2000 (2023 - £0) due to a business owned by a close family member of the director. During the year sales of £1,667 were made to this entity. All transactions were conducted at market rate.
AVONDALE SERVICE STATION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
25
DIRECTORS' TRANSACTIONS
Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.
Included within creditors is a balance of £90,590 (2023 - £103,569) due to the director. The balance is interest free and repayable on demand.
26
ANALYSIS OF CHANGES IN NET DEBT
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
567,399
218,902
-
786,301
Borrowings excluding overdrafts
(1,777,580)
149,618
-
(1,627,962)
Obligations under finance leases
(3,173,370)
2,242,450
(2,805,290)
(3,736,210)
(4,383,551)
2,610,970
(2,805,290)
(4,577,871)
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