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COMPANY REGISTRATION NUMBER: 05636168
Beck Evans (2000) Limited
Financial Statements
For the year ended
31 December 2023
R E Jones and Co.
Beck Evans (2000) Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
5
Independent auditor's report to the members
7
Statement of income and retained earnings
12
Statement of financial position
13
Statement of cash flows
15
Notes to the financial statements
16
R E Jones and Co.
Beck Evans (2000) Limited
Officers and Professional Advisers
The board of directors
Mrs L Evans
Mr D Evans
Mr S Evans
Company secretary
Mr D Rayner
Registered office
132 Burnt Ash Road
Lee
London
SE12 8PU
Auditor
R. E. Jones & Co.
Chartered accountants & statutory auditor
132 Burnt Ash Road
Lee
London
SE12 8PU
Bankers
National Westminster Bank plc
87 High Street
Sidcup
Kent
DA14 6DL
R E Jones and Co.
Beck Evans (2000) Limited
Strategic Report
Year ended 31 December 2023
Fair review of the business, and of its development and performance The company is a trading private limited company, with the principal activity of motor vehicle sales throughout this and the previous year. During the year, the business continued with its focus approach in line with its long-term business plan of expansion. The results are found on pages 16 to 28. Sales (pro-rata) have increased by 18.66% the Directors are satisfied with this given the market continues to be very competitive with aggressive pricing being offered by competitors. The approach of the Company has been cautious, not to purchase stock that is not profitable, and to concentrate on vehicles which can be sold quickly. The gross margin level has decreased slightly from 5.7% to 5.5% due to a more competitive market and higher unit costs. The company suffered an inter company loan loss of £324,157 after an associated company failed. This has resulted in the profit before taxation of £110,389 down from £294,383 in the previous year. Without this loss the company would have made a pre-tax profit of £434,546. The directors are satisfied with the results given the tough trading conditions and the credit crunch. Principal risks and uncertainties facing the company The directors have performed a robust and systematic review of those risks that they believe could seriously affect the Company's performance, future prospects, reputation or its ability to deliver against its priorities. They maintain a Risk Register of the principal risks faced by the Company. All departments perform regular risk assessments that consider and assess the Company's principal risks and specific local risks pertinent to the market in which they operate. The content of the Risk Register is considered and discussed through regular meetings with senior management and reviewed by the Directors. This development of our risk process has resulted in the inclusion of liquidity risk as a principal risk in this section. The Directors have also carefully considered the impact of Brexit and the credit crunch upon the business, they are convinced they have prepared as best they can and are confident they have mitigated this risk as much as possible, by research and training. Analysis of key performance indicators The Directors monitor the Company's performance by reviewing the following key performance indicators (KPI's):
2023 2022
Gross profit margin % 5 6
Operating margin % 1 1
Net profit margin % 1
Net asset turnover 24 20
2023 2022
Current ratio 2 1
2023 2022
Net gearing 56 58
Gross gearing 88 68
Asset cover ratio 2 3
Year end position The Directors are satisfied with the Company's Statement of Financial Position at the year end. The Directors continue to maintain their robust controls over debtors and creditors. The outlook for the business continues to remain positive with key personnel and business infrastructure in place, strong financial control, review of suppliers to maximise margins and a sufficient level of available working capital to allow the business to expand organically. Future developments The Directors are continuing to work towards having the new premises up and running as soon as possible.
This report was approved by the board of directors on 27 September 2024 and signed on behalf of the board by:
Mr S Evans
Director
R E Jones and Co.
Beck Evans (2000) Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mrs L Evans
Mr D Evans
Mr S Evans
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
The strategic report is on page 2.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 27 September 2024 and signed on behalf of the board by:
Mr S Evans
Director
R E Jones and Co.
Beck Evans (2000) Limited
Independent Auditor's Report to the Members of Beck Evans (2000) Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Beck Evans (2000) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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'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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. 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.
Opinions on other matters 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 the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Capability of the audit in detecting irregularities, including fraud The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Based on our understanding of the company and industry, and through discussion with the directors and other managed (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alter to any indications of non-compliance throughout the audit. We evaluated management's 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 inappropriate journal entries to increase revenue or or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included : " Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and " Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and " Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions that may indicate risks of material misstatements due to fraud; and " Identifying and testing journal entries, in particular any manual entries made ate year-end for financial statement preparation. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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. 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.
Stephen Jones
(Senior Statutory Auditor)
For and on behalf of
R. E. Jones & Co.
Chartered accountants & statutory auditor
132 Burnt Ash Road
Lee
London
SE12 8PU
27 September 2024
R E Jones and Co.
Beck Evans (2000) Limited
Statement of Income and Retained Earnings
Year ended 31 December 2023
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
Note
£
£
Turnover
4
34,277,394
36,107,187
Cost of sales
32,399,524
34,043,154
--------------
--------------
Gross profit
1,877,870
2,064,033
Administrative expenses
1,866,065
1,977,803
Other operating income
5
341,952
416,113
-------------
-------------
Operating profit
6
353,757
502,343
Interest payable and similar expenses
10
243,368
207,960
-------------
-------------
Profit before taxation
110,389
294,383
Tax on profit
11
111,381
( 33,649)
----------
----------
(Loss)/profit for the financial year and total comprehensive income
( 992)
328,032
----------
----------
Dividends paid and payable
12
( 308,175)
( 1,999,419)
Retained earnings at the start of the year
1,765,888
3,437,275
-------------
-------------
Retained earnings at the end of the year
1,456,721
1,765,888
-------------
-------------
All the activities of the company are from continuing operations.
R E Jones and Co.
Beck Evans (2000) Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
13
248,491
229,450
Investments
14
100
100
----------
----------
248,591
229,550
Current assets
Stock
15
4,106,644
5,035,856
Debtors
16
2,001,286
1,917,009
Cash at bank and in hand
466,505
184,202
-------------
-------------
6,574,435
7,137,067
Creditors: amounts falling due within one year
17
4,027,663
5,493,780
-------------
-------------
Net current assets
2,546,772
1,643,287
-------------
-------------
Total assets less current liabilities
2,795,363
1,872,837
Creditors: amounts falling due after more than one year
18
1,283,225
65,815
Provisions
Taxation including deferred tax
20
54,417
40,134
-------------
-------------
Net assets
1,457,721
1,766,888
-------------
-------------
Capital and reserves
Called up share capital
23
1,000
1,000
Profit and loss account
24
1,456,721
1,765,888
-------------
-------------
Shareholders funds
1,457,721
1,766,888
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
R E Jones and Co.
Beck Evans (2000) Limited
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 27 September 2024 , and are signed on behalf of the board by:
Mr D Evans
Director
Company registration number: 05636168
R E Jones and Co.
Beck Evans (2000) Limited
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 992)
328,032
Adjustments for:
Depreciation of tangible assets
81,696
78,273
Interest payable and similar expenses
243,368
207,960
Gains on disposal of tangible assets
( 20,452)
( 52,277)
Tax on profit
111,381
( 33,649)
Accrued income
( 8,760)
( 148,019)
Changes in:
Stock
929,212
389,557
Trade and other debtors
( 84,277)
( 1,595,825)
Trade and other creditors
( 372,845)
1,863,903
----------
-------------
Cash generated from operations
878,331
1,037,955
Interest paid
( 243,368)
( 207,960)
Tax paid
( 39,966)
( 192,360)
----------
-------------
Net cash from operating activities
594,997
637,635
----------
-------------
Cash flows from investing activities
Purchase of tangible assets
( 130,699)
( 16,777)
Proceeds from sale of tangible assets
50,414
3,319,062
----------
-------------
Net cash (used in)/from investing activities
( 80,285)
3,302,285
----------
-------------
Cash flows from financing activities
Proceeds from borrowings
114,366
( 1,985,771)
Proceeds from loans from group undertakings
( 1,920)
Payments of finance lease liabilities
( 38,600)
( 116,182)
Dividends paid
( 308,175)
( 1,999,419)
----------
-------------
Net cash used in financing activities
( 232,409)
( 4,103,292)
----------
-------------
Net increase/(decrease) in cash and cash equivalents
282,303
( 163,372)
Cash and cash equivalents at beginning of year
184,202
347,574
----------
----------
Cash and cash equivalents at end of year
466,505
184,202
----------
----------
R E Jones and Co.
Beck Evans (2000) Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 132 Burnt Ash Road, Lee, London, SE12 8PU.
2. 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'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
Income tax
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. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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:
Freehold buildings
-
2% straight line
Plant and machinery
-
25% reducing balance
Office equipment
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
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.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts 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. 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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Sales of cars and associated income
34,277,394
36,107,187
--------------
--------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Rental income
10,930
30,069
Commission receivable
331,022
386,044
----------
----------
341,952
416,113
----------
----------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Depreciation of tangible assets
81,696
78,273
Gains on disposal of tangible assets
( 20,452)
( 52,277)
---------
---------
7. Auditor's remuneration
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Fees payable for the audit of the financial statements
11,400
10,875
---------
---------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
16
17
Administrative staff
2
2
Management staff
3
3
----
----
21
22
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Wages and salaries
576,757
739,560
Social security costs
81,414
98,385
Other pension costs
11,850
15,357
----------
----------
670,021
853,302
----------
----------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Remuneration
41,320
40,926
---------
---------
10. Interest payable and similar expenses
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Interest on banks loans and overdrafts
236,932
197,319
Interest on obligations under finance leases and hire purchase contracts
6,436
10,641
----------
----------
243,368
207,960
----------
----------
11. Tax on profit
Major components of tax expense/(income)
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Current tax:
UK current tax expense
97,098
Deferred tax:
Origination and reversal of timing differences
14,283
( 33,649)
----------
---------
Tax on profit
111,381
( 33,649)
----------
---------
Reconciliation of tax expense/(income)
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19 %).
Period from
Year to
1 Oct 21 to
31 Dec 23
31 Dec 22
£
£
Profit on ordinary activities before taxation
110,389
294,383
----------
----------
Profit on ordinary activities by rate of tax
25,964
55,933
Effect of expenses not deductible for tax purposes
663
324
Effect of capital allowances and depreciation
( 5,771)
4,886
Utilisation of tax losses
( 61,143)
Movement in deferred tax provision
14,283
( 33,649)
Other tax adjustment to increase/(decrease) tax liability
76,242
----------
----------
Tax on profit
111,381
( 33,649)
----------
----------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2023
2022
£
£
Dividends on equity shares
308,175
1,999,419
----------
-------------
13. Tangible assets
Plant and machinery
Office equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
371,128
77,388
229,807
678,323
Additions
126,699
4,000
130,699
Disposals
( 60,539)
( 60,539)
----------
---------
----------
----------
At 31 December 2023
437,288
77,388
233,807
748,483
----------
---------
----------
----------
Depreciation
At 1 January 2023
233,585
51,630
163,658
448,873
Charge for the year
57,720
6,440
17,536
81,696
Disposals
( 30,577)
( 30,577)
----------
---------
----------
----------
At 31 December 2023
260,728
58,070
181,194
499,992
----------
---------
----------
----------
Carrying amount
At 31 December 2023
176,560
19,318
52,613
248,491
----------
---------
----------
----------
At 31 December 2022
137,543
25,758
66,149
229,450
----------
---------
----------
----------
14. Investments
Shares in group undertakings
£
Cost
At 1 January 2023 and 31 December 2023
100
----
Impairment
At 1 January 2023 and 31 December 2023
----
Carrying amount
At 31 December 2023
100
----
At 31 December 2022
100
----
Subsidiaries, associates and other investments
Class of share
Percentage of shares held
Subsidiary undertakings
London South East Living Limited
Ordinary
100
15. Stock
2023
2022
£
£
Finished goods and goods for resale
4,106,644
5,035,856
-------------
-------------
16. Debtors
2023
2022
£
£
Trade debtors
77,063
92,543
Prepayments and accrued income
25,475
12,511
Other debtors
31,770
Other debtors
1,898,748
1,780,185
-------------
-------------
2,001,286
1,917,009
-------------
-------------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
883,711
1,494,612
Accruals and deferred income
40,575
49,335
Corporation tax
57,132
Social security and other taxes
27,614
20,355
Obligations under finance leases and hire purchase contracts
37,903
Director loan accounts
1,103,741
Other creditors
3,018,631
2,787,834
-------------
-------------
4,027,663
5,493,780
-------------
-------------
Santander Consumer (UK) plc, hold a fixed and floating charge over all property and undertakings of the Company. Natwest hold two debentures, the first dated 3 December 2018 over all assets of the Company and the second a legal charge over the property Kelseys Farm dated 19 September 2018.
18. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
24,912
Obligations under finance leases and hire purchase contracts
65,118
65,815
Director loan accounts
1,193,195
-------------
---------
1,283,225
65,815
-------------
---------
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
65,118
37,903
Later than 1 year and not later than 5 years
65,815
---------
----------
65,118
103,718
---------
----------
20. Provisions
Deferred tax (note 21)
£
At 1 January 2023
40,134
Additions
14,283
---------
At 31 December 2023
54,417
---------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 20)
54,417
40,134
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
40,134
40,134
Provisions
14,283
---------
---------
54,417
40,134
---------
---------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 11,850 (2022: £ 15,357 ).
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
-------
-------
-------
-------
24. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
184,202
282,303
466,505
Debt due within one year
(1,141,644)
1,141,644
Debt due after one year
(65,815)
(1,217,410)
(1,283,225)
-------------
-------------
-------------
( 1,023,257)
206,537
( 816,720)
-------------
-------------
-------------
26. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mrs L Evans
( 586,783)
( 63,940)
53,516
( 597,207)
Mr D Evans
( 443)
( 101,470)
101,118
( 795)
Mr S Evans
( 516,515)
( 101,470)
22,792
( 595,193)
-------------
----------
----------
-------------
( 1,103,741)
( 266,880)
177,426
( 1,193,195)
-------------
----------
----------
-------------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
Mrs L Evans
( 824,542)
( 115,460)
353,219
( 586,783)
Mr D Evans
( 452)
( 183,230)
183,239
( 443)
Mr S Evans
( 508,195)
( 183,230)
174,910
( 516,515)
-------------
----------
----------
-------------
( 1,333,189)
( 481,920)
711,368
( 1,103,741)
-------------
----------
----------
-------------
27. Related party transactions
The Company has taken advantage of the available exemption conferred by section 1AC.35 of FRS 102 not to disclose transactions with wholly owned members of the Group.
R E Jones and Co.
Beck Evans (2000) Limited
Notes to the Financial Statements (continued)
Year ended 31 December 2023
28. Controlling party
The Company's ultimate parent company is Beck Evans Holdings Limited which was registered in England and Wales, registration number 13400475, the registered office is 132 Burnt Ash Road, Lee, London England SE12 8PU. There is no overall controlling party.