REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 August 2024 |
for |
BRD Retail Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 August 2024 |
for |
BRD Retail Ltd |
BRD Retail Ltd (Registered number: 07575561) |
Contents of the Financial Statements |
for the Year Ended 31 August 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
BRD Retail Ltd |
Company Information |
for the Year Ended 31 August 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
6 Lichfield Street |
Burton-on-Trent |
Staffordshire |
DE14 3RD |
BRD Retail Ltd (Registered number: 07575561) |
Strategic Report |
for the Year Ended 31 August 2024 |
The directors present their strategic report for the year ended 31 August 2024. |
The company is an independent company that was formed in 2011, it operates one of the largest Kia franchises in the UK. With a highly experienced management team, the company prides itself on working hard to deliver class leading value and service. |
REVIEW OF BUSINESS |
Financial year ending 31st August 2024 was a steady year for Burton Kia. New car supply wasn't as good as the year before and the retail new car market was down by 12%. The government's ZEV mandate continues to put pressure on manufacturers. Used car sales for Burton Kia were up year on year with unit sales up by 10%, although the part exchange market was difficult. |
Looking forward to 2025 we, as directors, feel that we will at least match this year's performance in both turnover and profit. |
We are in a good position alongside the Manufacturer, as Kia continues to win numerous awards, including 'Car of the year' and 'Manufacturer of the year' in 2024. |
We have completed a showroom refurbishment of the current premises to meet manufacturer's standards, which has given a more modern look, and matches Kia's all new branding, this was at the full expense of Burton Kia. |
FINANCIAL KEY PERFORMANCE INDICATORS |
Turnover for the year has risen to £31m (2023: £30m) whilst gross profit margin finished at a very strong 10.9% for the industry. |
The results of the company for the year, as set out in the income statement, balance sheet and supporting notes, show a net profit before taxation of £875k (2023: £1.3m) and an increase in shareholders funds to £4.4m from £4m |
OTHER KEY PERFORMANCE INDICATORS |
The company continues to monitor and achieve manufacturer partner performance objectives in terms of sales units, market share and customer service. |
BRD Retail Ltd (Registered number: 07575561) |
Strategic Report |
for the Year Ended 31 August 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company's principle financial controls remain robust and in place with strong day to day management of all key indicators and areas. |
The company's principle financial instruments comprise bank balances, stocking facilities, trade debtors and trade creditors. The purpose of these financial instruments is to manage the company's day to day working capital and finance growth as required. |
The company has processes in place to ensure that the majority of the Company's sales are paid in full ahead of delivery, the Company does not consider that it is exposed significantly to credit risk from retail customers. Other trade debtors are managed through regular monitoring of accounts outstanding for both time and credit limits. |
Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
The general economic environment gives rise to the company's market risk. |
Zero Emission Vehicle (ZEV) mandate, has brought some uncertainty with the recent change in government. The mandate originally was to stop all diesel & petrol new car sales by 2035, this has now changed to the year 2030. Uncertainty remains for manufacturers with regard to the fine system where manufacturers are arguing they are too high, this argument is ongoing. |
FUTURE DEVELOPMENTS |
Staff are a key part of the success of the business. The company is committed to the training and developing of its staff to ensure the success continues. |
The leadership team continuously review the performance of the business and are always eager to consider opportunities for growth. |
ON BEHALF OF THE BOARD: |
BRD Retail Ltd (Registered number: 07575561) |
Report of the Directors |
for the Year Ended 31 August 2024 |
The directors present their report with the financial statements of the company for the year ended 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of an automotive dealership selling new and used vehicles, providing servicing for vehicles and supply of parts to retail and trade customers. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
£0.900 | - 12 October 2023 |
£0.400 | - 24 January 2024 |
£0.875 | - 4 April 2024 |
£1.000 | - 29 July 2024 |
£ |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 August 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2023 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. |
BRD Retail Ltd (Registered number: 07575561) |
Report of the Directors |
for the Year Ended 31 August 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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: |
Report of the Independent Auditors to the Members of |
BRD Retail Ltd |
Opinion |
We have audited the financial statements of BRD Retail Ltd (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 August 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. |
Report of the Independent Auditors to the Members of |
BRD Retail Ltd |
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. |
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 pages four and five, 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 |
BRD Retail Ltd |
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: |
As part of our planning process: |
- |
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud. |
- |
We obtained an understanding of the legal and regulatory frameworks applicable to the company and considered those laws and regulations central to the operation of the business including motor industry specific regulations. |
- |
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- |
Using our knowledge of the company and the industry in which it operates, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- |
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- |
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- |
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to impairment of stock and fixed assets |
- | Assessing the extent of compliance, or lack of, with the relevant laws and regulations |
- |
Performing a physical verification of key assets including attendance at the annual stocktake and subsequent testing of values. |
Owing to the 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. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors. |
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 |
BRD Retail Ltd |
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. |
for and on behalf of |
Statutory Auditors |
6 Lichfield Street |
Burton-on-Trent |
Staffordshire |
DE14 3RD |
BRD Retail Ltd (Registered number: 07575561) |
Income Statement |
for the Year Ended 31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
901,676 | 1,280,207 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,086,660 | 1,537,537 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
BRD Retail Ltd (Registered number: 07575561) |
Other Comprehensive Income |
for the Year Ended 31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BRD Retail Ltd (Registered number: 07575561) |
Balance Sheet |
31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investment property | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRD Retail Ltd (Registered number: 07575561) |
Statement of Changes in Equity |
for the Year Ended 31 August 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Profit for the year | - | 1,077,715 | - | 1,077,715 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 August 2023 |
Changes in equity |
Profit for the year | - | 650,526 | - | 650,526 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 August 2024 |
BRD Retail Ltd (Registered number: 07575561) |
Cash Flow Statement |
for the Year Ended 31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Finance costs paid | (174,534 | ) | (125,287 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of investment property | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Amount introduced by directors | - | 1,900 |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,418,853 |
Cash and cash equivalents at end of year |
2 |
1,531,864 |
2,933,758 |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.8.24 | 31.8.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 210,761 | 163,682 |
Finance income | (43,764 | ) | (15,067 | ) |
1,088,807 | 1,595,172 |
Increase in stocks | ( |
) | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 1,531,864 | 2,933,758 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 2,933,758 | 2,418,853 |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,933,758 | (1,401,894 | ) | 1,531,864 |
2,933,758 | ( |
) | 1,531,864 |
Debt |
Debts falling due within 1 year | (3,068,993 | ) | 497,407 | (2,571,586 | ) |
Debts falling due after 1 year | (856,198 | ) | 67,480 | (788,718 | ) |
(3,925,191 | ) | 564,887 | (3,360,304 | ) |
Total | (991,433 | ) | (837,007 | ) | (1,828,440 | ) |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements |
for the Year Ended 31 August 2024 |
1. | STATUTORY INFORMATION |
BRD Retail Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
In preparing the financial statements management are required to make judgements and estimates that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported as revenues and expenses during the year |
Tangible assets are reviewed for impairment if there is any indication that the carrying value is not appropriate due to changes in the estimated useful lives or residual values of those assets. |
Vehicle stocks are reviewed on a regular basis to ensure any individual item of stock is not held at a value in excess of its estimated realisable value. Appropriate provisions are made when necessary. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of vehicles is recognised when the significant risks and rewards of ownership have transferred to the buyer, the amount of revenue can be reliably measured, it is probable that the Company will receive the consideration due and when the costs associated with the transaction can be measured reliably. |
Revenue from the sale of services is recognised in the period in which the services are provided when the amount of revenue can be reliably measured, it is probable that the Company will receive the consideration due and when the costs associated with the transaction can be measured reliably. |
Revenue from commissions is recognised as other operating income when the amount can be reliably measured and when it is probable that the Company will receive the consideration. |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are included at cost less depreciation and impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - | at varying rates on cost |
Plant and machinery | - | at varying rates on cost |
Fixtures and fittings | - | 20% on cost |
Motor vehicles | - | at varying rates on cost |
Computer equipment | - | at varying rates on cost |
The freehold property is depreciated at varying rates to write the cost off over periods between 10 and 50 years depending on the expected life of the various component parts with due consideration given to the residual value. |
Included within freehold property is land at a cost of £782,856 that is not depreciated. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell after making allowance for obsolete and slow moving item. |
The cost of vehicles includes the purchase cost plus directly attributable preparation and licensing costs. |
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 balance sheet date. |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 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 balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Grants |
Grants received towards revenue expenditure are recognised as other income in the year in which the revenue expenditure is incurred. |
Grants received towards capital expenditure are accounted for on the accruals basis and are released to the profit and loss account to match the depreciation policy of the asset to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
The company recognises a provision for annual leave accrued by employees as a result of services rendered which employees are entitled to carry forward and use. The provision is measured at the salary cost payable for the period of leave. |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.8.24 | 31.8.23 |
£ | £ |
All sales were in the UK. |
4. | EMPLOYEES AND DIRECTORS |
31.8.24 | 31.8.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.8.24 | 31.8.23 |
Directors | 4 | 4 |
Support staff | 30 | 27 |
31.8.24 | 31.8.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
31.8.24 | 31.8.23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.8.24 | 31.8.23 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.8.24 | 31.8.23 |
£ | £ |
Bank loan interest and charges |
HM Revenue & Customs interest |
Vehicle financing charges |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.8.24 | 31.8.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.8.24 | 31.8.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Change in tax rate relating to deferred tax provision | - | (5,003 | ) |
Non-qualifying assets | 3,445 | 3,446 |
Total tax charge | 225,373 | 296,140 |
8. | DIVIDENDS |
31.8.24 | 31.8.23 |
£ | £ |
Ordinary shares of £1 each |
Interim |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Disposals | ( |
) |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 September 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
10. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
Additions |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
The directors consider that the fair value of the property is the price paid during the year. |
11. | STOCKS |
31.8.24 | 31.8.23 |
£ | £ |
Stocks |
Stock recognised in cost of sales during the year as an expense was £27,757,716 (2023: £26,513,715). |
Included in stock are vehicles held for rental/courtesy amounting to £828,347 (2023: £742,974). |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.24 | 31.8.23 |
£ | £ |
Trade debtors |
Tax |
Value added tax |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.24 | 31.8.23 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Value added tax | 45,636 | - |
Other creditors |
Accruals and deferred income |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.8.24 | 31.8.23 |
£ | £ |
Bank loans (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.8.24 | 31.8.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Vehicle funding |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans due in more than 5 years | 489,539 | 568,789 |
The bank loan includes aggregate amounts of £489,539 which fall due after 5 years and are payable by monthly instalments of £8,396. The loan has a fixed rate of interest of 4.02% due to end in January 2025, interest will vary after that date.. |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.8.24 | 31.8.23 |
£ | £ |
Within one year |
Between one and five years |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.8.24 | 31.8.23 |
£ | £ |
Bank loans |
Vehicle funding |
The bank borrowing is secured by a first charge over the company's freehold property and by an unlimited fixed and floating charge. |
The vehicle funding is secured by a fixed and floating charge on all company assets and specifically on the vehicles held in stock to which it relates. |
18. | PROVISIONS FOR LIABILITIES |
31.8.24 | 31.8.23 |
£ | £ |
Deferred tax | 27,970 | 6,673 |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
Timing differences | 21,297 |
Change in provision tax rate |
Balance at 31 August 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.8.24 | 31.8.23 |
value: | £ | £ |
Ordinary | £1 | 60,000 | 60,000 |
Each ordinary share carries one vote, has an equal right to dividends, has an equal interest in any residual on a winding up and carries no redemption rights. |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
20. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 September 2023 | 3,959,935 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 August 2024 | 4,419,961 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 August 2024 and 31 August 2023: |
31.8.24 | 31.8.23 |
£ | £ |
Balance outstanding at start of year |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The amounts provided to directors were interest free and were repaid in accordance with a monthly repayment plan. |
22. | RELATED PARTY DISCLOSURES |
Dividends paid to director's in their capacity as shareholders amounted to £190,500 (2023 - £121,000). |
BRD Retail Ltd (Registered number: 07575561) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2024 |
23. | GOVERNMENT GRANTS |
In 2015 the company received a grant of £100,000 towards the cost of the freehold property. |
The grant was being released to the profit and loss account as other income over the useful life of the property, taking into account component parts, with the balance included as deferred income. |
In the year to 31st August 2023 £28,842 was recognised in the profit and loss account, at which point the grant had been fully released. |
24. | OTHER GRANTS |
In 2015 the company received a grant of £120,000 from Kia Motors (UK) Limited towards the development of the freehold property and to meet KMUK corporate standards. |
The grant is being released to the profit and loss account as other income over the useful life of the property, taking into account component parts, with the balance included as deferred income. |
In the year to 31st August 2023 £34,611 was recognised in the profit and loss account, at which point the grant had been fully released. |
Terms are attached to the grant that would require repayment of the grant in full if the terms were breached by the company within a ten year period of first occupying the new premises. |