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REGISTERED NUMBER: 05751934 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

FOR

MELLING COMMERCIAL LIMITED

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 July 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


MELLING COMMERCIAL LIMITED

COMPANY INFORMATION
for the Year Ended 31 July 2024







DIRECTORS: C Melling
L Edwards



SECRETARY: L Edwards



REGISTERED OFFICE: Westwood Motor Group
272 Manchester Road
Ince
Wigan
Lancashire
WN2 2ED



REGISTERED NUMBER: 05751934 (England and Wales)



AUDITORS: Fairhurst Audit Services Ltd
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB



BANKERS: Lloyds TSB Bank PLC
53 King Street
Manchester
M60 2LE

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

STRATEGIC REPORT
for the Year Ended 31 July 2024

The directors present their strategic report for the year ended 31 July 2024.

Review of Business

Melling Commercial, trading as Westwood Motor Group, has found the last financial year extremely challenging in many respects. The motor industry faced many difficulties, with the biggest being the adjustments we have had to make to the standing values of our used vehicles. During the first half of the financial year manufacturers significantly reduced prices of newly registered vehicles which in turn had a huge effect on the value of our used stock. The rate in depreciation of these vehicles especially over the first 12 months took a massive tumble and we had no option but to readjust the retail value of such vehicles in order to re-set and adjust to the market place. This obviously had a significant impact on our profit levels, even though overall turnover has exceeded £25 million, which is satisfying in the circumstances.

Although manufacturers offered little or no support to the rental industry in the first half of the year we have now seen significant improvements in terms of discounts and support which we are now taking advantage of. We are now feeling confident in the pricing again and profit levels in rental and retail have resumed to a sustainable level.

Interest rates have remained high in comparison to previous years which has also been challenging. We have had to spend a lot more time negotiating better rates with lenders in order to stay as competitive as possible. Profit margins have remained tight as a result of this.

We have seen a slight decline in sales of new and used vehicles which we believe is down to the uncertainty of the economy. We see companies trying to cut costs especially in anticipation of wage bill rises and national insurance hikes that are due to come in the near future. As a result of this, companies are not changing over their fleet of vehicles as regularly as they perhaps would have. However, we see the rental side becoming more attractive as it allows companies to have flexibility in their transport costs.

We have suffered an element of bad debt this year despite our tight internal controls and procedures. Again we feel that many companies are finding the economy difficult, especially with interest rates, utility costs and wage & PAYE/NI rises.

The EV market has suffered even further in terms of residual value. This was a concern last year but has continued to decline further. We have therefore had to make further adjustments to our electric cars and vans values, in order to reflect their true position.

As we look to the future, we feel confident that the market place is now beginning to stabilise. In the year ending July 2024 we have still suffered the repercussions of Covid19 and supply issues -specifically in relation to the company having no choice but to overpay for stock when supply was low. Although initially we experienced high profit margins post Covid19 when disposing of second hand vehicles - we have more than paid this back when having to adjust for the extra depreciation in the overpriced stock we had to purchase in order to replace these.

Key performance indicators

KPI's include sales, margins, wages and overheads and cash flow which are regularly monitored by senior management.

2024 2023
£'000 £'000

Turnover 25,967 24,527
Gross profit 9,599 9,915
Gross margin (%) 36.9% 40.4%
EBITDA 7,636 7,740


MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

STRATEGIC REPORT
for the Year Ended 31 July 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The UK automotive industry and Rental sector is highly competitive and management are mindful of the need for regular review of market pricing, contract profitability and competitor activity within the sector.

The Company uses various financial instruments, which include cash and asset financing arrangements together with other items such as trade debtors and trade creditors that arise directly from its operations.

The existence of these financial instruments exposes the Company to a number of financial risks. These include supply and stock holding issues, and liquidity and credit risks. The Directors review and agree policies for managing each of these risks and they are summarised below

Supply and Stock Holdings
Whilst the constraints on lead times and delivery schedules have eased somewhat, there are now strains and constraints which have arisen in stock holding times, both from funding settlement costs and pressure on residual values. This is being monitored with regular management meetings and dialogue with asset funding partners.

Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. The Directors manage liquidity risk by maximising cash generation from its operations and short term flexibility is achieved through the Company's asset finance arrangements.

Credit Risk
The Company's main assets are its hire fleet, stocks and debtors. The Company's trade debtors relate to amounts owed by individuals, SME's and large national corporates. Given the current economic uncertainty, the Directors and management carefully monitor any default credit risk on an ongoing basis.

We would like to thank, once again, our dedicated team members, suppliers, manufacturers and funding partners for their ongoing support.

ON BEHALF OF THE BOARD:





L Edwards - Director


26 March 2025

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

REPORT OF THE DIRECTORS
for the Year Ended 31 July 2024

The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale and lease of motor vehicles, including contract hire and rentals.

DIVIDENDS
The total distribution of dividends for the year ended 31 July 2024 will be £ 228,793 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

C Melling
L Edwards

Other changes in directors holding office are as follows:

K J L Close - appointed 14 November 2023

K J L Close ceased to be a director after 31 July 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





L Edwards - Director


26 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MELLING COMMERCIAL LIMITED

Opinion
We have audited the financial statements of Melling Commercial Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 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.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MELLING COMMERCIAL LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MELLING COMMERCIAL LIMITED


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MELLING COMMERCIAL LIMITED


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 a Report of the Auditors 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.




John B S Fairhurst BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Fairhurst Audit Services Ltd
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

26 March 2025

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

INCOME STATEMENT
for the Year Ended 31 July 2024

2024 2023
Notes £    £   

TURNOVER 25,966,851 24,527,045

Cost of sales 16,367,397 14,611,462
GROSS PROFIT 9,599,454 9,915,583

Administrative expenses 7,575,948 6,048,564
2,023,506 3,867,019

Other operating income 23,940 11,299
OPERATING PROFIT 4 2,047,446 3,878,318

Interest receivable and similar income 27,716 -
2,075,162 3,878,318

Interest payable and similar expenses 5 1,732,557 1,145,156
PROFIT BEFORE TAXATION 342,605 2,733,162

Tax on profit 6 (175,529 ) 631,618
PROFIT FOR THE FINANCIAL YEAR 518,134 2,101,544

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 July 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 518,134 2,101,544


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

518,134

2,101,544

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

STATEMENT OF FINANCIAL POSITION
31 July 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 22,375,260 21,367,057

CURRENT ASSETS
Stocks 9 109,469 1,175,185
Debtors 10 4,242,814 3,447,957
Cash at bank and in hand 2,929,465 5,773,124
7,281,748 10,396,266
CREDITORS
Amounts falling due within one year 11 12,398,561 13,140,663
NET CURRENT LIABILITIES (5,116,813 ) (2,744,397 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,258,447

18,622,660

CREDITORS
Amounts falling due after more than one
year

12

(6,436,664

)

(7,779,212

)

PROVISIONS FOR LIABILITIES 16 (2,189,581 ) (2,500,587 )
NET ASSETS 8,632,202 8,342,861

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 8,632,102 8,342,761
SHAREHOLDERS' FUNDS 8,632,202 8,342,861

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by:





L Edwards - Director


MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 July 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2022 100 6,537,217 6,537,317

Changes in equity
Dividends - (296,000 ) (296,000 )
Total comprehensive income - 2,101,544 2,101,544
Balance at 31 July 2023 100 8,342,761 8,342,861

Changes in equity
Dividends - (228,793 ) (228,793 )
Total comprehensive income - 518,134 518,134
Balance at 31 July 2024 100 8,632,102 8,632,202

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 July 2024

1. STATUTORY INFORMATION

Melling Commercial Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements are estimates have been made include:

a) Depreciation
The useful economic lives of Vehicles on Rental are assessed as being in line with the underlying lease agreement with depreciation being calculated straight line over that period. The residual values of certain Vehicles on Rental are assessed on an annual basis based on the latest available information.

Turnover
Turnover represents the fair value of income received from the sale and rental of motor vehicles, excluding discounts and value added tax.

The company recognises revenue from the sales of stock items when the vehicles have been delivered and the title has passed.

The company recognises revenue from vehicle rentals on a straight line basis over the hire term.

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 15% on reducing balance
Vehicles on rental - 33% on cost and over the remaining term of the lease
Computer equipment - 20% on reducing balance

Tangible fixed assets are stated at cost or valuation, less depreciation and impairment.

Impairment of assets
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks of motor vehicles for sale are valued at the lower of cost and selling price, after making due allowance for obsolete and slow moving items.

Financial instruments
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Short term trade creditors are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due.

Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted amount due.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals payable under operating leases are charged to the profit or loss on a straight line basis over the term of the lease.

Short term employee benefits
Short-term employee benefits are recognised as an expense in the period in which they are incurred.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 745,048 1,094,197
Social security costs 89,244 63,932
Other pension costs 36,983 210,088
871,275 1,368,217

The average number of employees during the year was as follows:
2024 2023

Administration 30 25

2024 2023
£    £   
Directors' remuneration 123,133 79,893

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 1

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 539,980 933,157
Depreciation - assets on hire purchase contracts 5,048,152 2,929,041
Auditors' remuneration 21,000 21,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Hire purchase interest 1,199,713 699,381
Other loan interest 532,844 445,775
1,732,557 1,145,156

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 98,348 121,371
Under/(Over) provision in
prior year 37,129 (36,239 )
Total current tax 135,477 85,132

Deferred tax (311,006 ) 546,486
Tax on profit (175,529 ) 631,618

UK corporation tax has been charged at 25% .

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

6. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 342,605 2,733,162
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.005%)

85,651

574,101

Effects of:
Expenses not deductible for tax purposes 42,748 11,672
Income not taxable for tax purposes (7,661 ) (5,807 )
Adjustments to tax charge in respect of previous periods 37,129 (36,239 )
Deferred tax - Under/(over) provision of prior year (324,474 ) 13,890
Remeasurement od deferred tax for changes in tax rates - 33,254
Fixed asset differences - (105 )
Other tax adjustments, reliefs and transfers (117,307 ) (394,422 )
Chargeable gains/(losses) 108,385 435,274
Total tax (credit)/charge (175,529 ) 631,618

7. DIVIDENDS
2024 2023
£    £   
Interim 228,793 296,000

8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 August 2023 - 40,697 274,798
Additions 67,617 3,999 20,104
Disposals - - -
At 31 July 2024 67,617 44,696 294,902
DEPRECIATION
At 1 August 2023 - 27,030 126,314
Charge for year 2,023 3,400 21,152
Eliminated on disposal - - -
At 31 July 2024 2,023 30,430 147,466
NET BOOK VALUE
At 31 July 2024 65,594 14,266 147,436
At 31 July 2023 - 13,667 148,484

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

8. TANGIBLE FIXED ASSETS - continued

Vehicles Computer
on rental equipment Totals
£    £    £   
COST
At 1 August 2023 23,952,683 66,179 24,334,357
Additions 17,619,495 5,335 17,716,550
Disposals (14,388,472 ) - (14,388,472 )
At 31 July 2024 27,183,706 71,514 27,662,435
DEPRECIATION
At 1 August 2023 2,770,777 43,179 2,967,300
Charge for year 5,556,006 5,551 5,588,132
Eliminated on disposal (3,268,257 ) - (3,268,257 )
At 31 July 2024 5,058,526 48,730 5,287,175
NET BOOK VALUE
At 31 July 2024 22,125,180 22,784 22,375,260
At 31 July 2023 21,181,906 23,000 21,367,057

The net book value of tangible fixed assets includes £19,724,591(2023 - £12,078,161) in respect of assets held under finance contracts.

9. STOCKS
2024 2023
£    £   
Stocks 109,469 1,175,185

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,118,599 1,440,123
Amounts owed by group undertakings 2,841,977 1,607,567
Other debtors 243,909 324,118
Directors' current accounts 25,032 -
Prepayments 13,297 76,149
4,242,814 3,447,957

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Other loans (see note 13) 4,371,661 4,254,502
Hire purchase contracts (see note 14) 5,904,121 7,209,356
Trade creditors 339,489 387,013
Tax 98,348 189,740
Social security and other taxes 633,824 16,962
Other creditors 521,098 511,209
Directors' current accounts - 725
Deferred income 198,980 214,034
Accrued expenses 331,040 357,122
12,398,561 13,140,663

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Other loans (see note 13) 3,797,096 4,045,942
Hire purchase contracts (see note 14) 2,639,568 3,733,270
6,436,664 7,779,212

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 4,371,661 4,254,502

Amounts falling due between one and two years:
Other loans 3,797,096 4,045,942

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 5,904,121 7,209,356
Between one and five years 2,639,568 3,733,270
8,543,689 10,942,626

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

14. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 357,010 444,990
Between one and five years 465,924 393,750
822,934 838,740

The company has a lease fleet rental facility of up to £23.75m.

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Other loans 8,168,757 8,300,444
Hire purchase contracts 8,543,689 10,942,626
16,712,446 19,243,070

Hire Purchase and other loan liabilities are secured by fixed charges over the asset concerned together with a debenture over the assets of the company.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 2,189,581 2,500,587

Deferred
tax
£   
Balance at 1 August 2023 2,500,587
Credit to Income Statement during year (311,006 )
Balance at 31 July 2024 2,189,581

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

MELLING COMMERCIAL LIMITED (REGISTERED NUMBER: 05751934)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 July 2024

18. RESERVES
Retained
earnings
£   

At 1 August 2023 8,342,761
Profit for the year 518,134
Dividends (228,793 )
At 31 July 2024 8,632,102

19. ULTIMATE PARENT COMPANY

The ultimate parent company is Melling Property Holdings (Wigan) Limited, a company registered in England and Wales, which prepare group financial statements. Copies can be obtained from Westwood Motor Group, Manchester Road, Ince, Wigan, WN2 2LE.

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2024 and 31 July 2023:

2024 2023
£    £   
C Melling
Balance outstanding at start of year - -
Amounts advanced 161,712 -
Amounts repaid (136,680 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 25,032 -

Interest is charged at 2.25% on any overdrawn amounts.

21. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C Melling, by virtue of his shareholding in the ultimate parent company, Melling Property Holdings (Wigan) Limited.