Company registration number 00932753 (England and Wales)
SUPERTUNE AUTOMOTIVE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
SUPERTUNE AUTOMOTIVE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 27
SUPERTUNE AUTOMOTIVE LTD
COMPANY INFORMATION
Directors
C. M. McCarthy
C. Roper
Secretary
C. M. McCarthy
Company number
00932753
Registered office
Oldham Central Trading Park
Coulton Close
Off Cromford Street
Oldham
OL1 4EB
Auditor
Chadwick & Company (Manchester) Limited
Chartered Accountants and Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
Business address
Oldham Central Trading Park
Coulton Close
Off Cromford Street
Oldham
OL1 4EB
Bankers
Barclays Bank plc
Commercial Street
Sheffield
S1 2AT
SUPERTUNE AUTOMOTIVE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

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

Fair review of the business

The directors are pleased to announce that the company has continued to perform to its owners’ expectations during the year.

 

The turnover of the company has increased during the year to £24.69 million (2023: £22.17 million) due to increasing demand from existing customers as well as taking on new customers in the period. The directors continue to review the impact of the current economic and political climate at the local, national, and global levels on the business and then take the appropriate measures to mitigate any such impact.

 

In a time of increasing raw material and labour cost charges, the company's gross profit margin has remained relatively consistent with the previous year. The directors continue to monitor and tightly control the cost of purchases of direct supplies. Administrative overheads remain stable and are consistent with the previous year. The company continues to operate well within its agreed banking facilities. The company benefits from low staff turnover and continues to promote new skills where necessary, at the same time investing in Health and Safety with a resultant excellent record on accidents.

 

At the year end, the company had shareholders’ funds of £9.25 million including distributable reserves of £9.24 million. The directors consider the results for the year and the financial position at the year end to be satisfactory and expect continued growth in the foreseeable future.

Principal risks and uncertainties

The directors perceive inflationary pressures on the costs of the merchandise it supplies and a rising cost base in general as the key risk facing the company. To mitigate this risk, the directors continue to monitor and control costs whilst continuing to source products at competitive prices.

The company believes that the key risk to the business is the general economic climate. However, the directors see this risk is mitigated to a certain extent by its excellent reputation and the quality of the products it supplies.

The company in general operates in a competitive market. By continuing to focus on customer service, the directors believe they will not only mitigate any such risks, but achieve continuing growth going forward.

Interest rate risk

The company's funding is principally via invoice discounting which attracts interest at a variable rate. Thus debt costs and cash flow can be affected by the movements in interest rates.

 

Liquidity risk

The company manages its cash and borrowing requirements in order to minimise interest expense, and ensure there are sufficient liquid resources to meet day to day business needs.

 

Credit risk

Trade debtors are monitored on an ongoing basis to manage credit risk.

Development and performance

The company continues to exploit its reputation in the market and looks to the future with confidence.

By order of the board

C. M. McCarthy
Secretary
2 April 2025
SUPERTUNE AUTOMOTIVE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company in the year under review was that of wholesaling automotive refinishing products to the trade.

Results and dividends

The results for the year are set out on page 8.

Dividends of £278,794 have been paid in the year.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C. M. McCarthy
C. Roper
Auditor

The auditor, Chadwick & Company (Manchester) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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.

SUPERTUNE AUTOMOTIVE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
C. M. McCarthy
Secretary
2 April 2025
SUPERTUNE AUTOMOTIVE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SUPERTUNE AUTOMOTIVE LTD
- 4 -
Opinion

We have audited the financial statements of Supertune Automotive Ltd (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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.

SUPERTUNE AUTOMOTIVE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPERTUNE AUTOMOTIVE LTD
- 5 -

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

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

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.

SUPERTUNE AUTOMOTIVE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPERTUNE AUTOMOTIVE LTD
- 6 -
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.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We considered and updated our knowledge of the company's specific industry and its regulatory environment, and reviewed the company's documentation surrounding the policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. Based on this understanding, we identified and assessed the risks of material misstatement in the financial statements and designed and performed audit procedures in response to those risks.

We identified the key laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, the most significant of these are The Hazardous Waste (England and Wales) Regulations 2005, Health and Safety At Work Act 1974 and the UK Companies Act 2006. We also gained knowledge of the legal and regulatory frameworks which do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

The audit engagement team were made aware of the potential opportunities and incentives that may exist within the company for fraudulent activity and how and where fraud might occur or be concealed within the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other manual adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

SUPERTUNE AUTOMOTIVE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SUPERTUNE AUTOMOTIVE LTD
- 7 -

In addition to the above, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 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.

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.

Michael Chadwick FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
3 April 2025
SUPERTUNE AUTOMOTIVE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,689,947
22,168,990
Cost of sales
(17,437,403)
(15,408,103)
Gross profit
7,252,544
6,760,887
Administrative expenses
(4,910,660)
(4,301,209)
Operating profit
4
2,341,884
2,459,678
Interest receivable and similar income
7
93,460
35,628
Interest payable and similar expenses
8
(14,273)
-
0
Profit before taxation
2,421,071
2,495,306
Tax on profit
9
(626,915)
(540,307)
Profit for the financial year
1,794,156
1,954,999

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Profit for the financial year is all attributable to the owners of the parent company.
SUPERTUNE AUTOMOTIVE LTD
BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
19,883
22,783
Tangible assets
12
948,384
969,540
Investments
13
1
1
968,268
992,324
Current assets
Stocks
14
2,358,827
2,078,860
Debtors falling due after more than one year
15
279,367
301,069
Debtors falling due within one year
15
7,291,530
7,102,984
Cash at bank and in hand
3,357,765
2,137,232
13,287,489
11,620,145
Creditors: amounts falling due within one year
16
(4,819,334)
(4,685,209)
Net current assets
8,468,155
6,934,936
Total assets less current liabilities
9,436,423
7,927,260
Provisions for liabilities
(190,648)
(196,847)
Net assets
9,245,775
7,730,413
Capital and reserves
Called up share capital
19
2,003
2,003
Capital redemption reserve
1
1
Profit and loss reserves
9,243,771
7,728,409
Total equity
9,245,775
7,730,413
The financial statements were approved by the board of directors and authorised for issue on 2 April 2025 and are signed on its behalf by:
C. M. McCarthy
Director
Company Registration No. 00932753
SUPERTUNE AUTOMOTIVE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
2,003
1
6,560,048
6,562,052
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
1,954,999
1,954,999
Dividends
10
-
-
(786,638)
(786,638)
Balance at 31 July 2023
2,003
1
7,728,409
7,730,413
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
1,794,156
1,794,156
Dividends
10
-
-
(278,794)
(278,794)
Balance at 31 July 2024
2,003
1
9,243,771
9,245,775
SUPERTUNE AUTOMOTIVE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,510,696
2,833,614
Interest paid
(14,273)
-
0
Income taxes paid
(841,430)
(386,048)
Net cash inflow from operating activities
1,654,993
2,447,566
Investing activities
Purchase of tangible fixed assets
(442,999)
(622,149)
Proceeds on disposal of tangible fixed assets
146,484
173,129
Receipts arising from loans made
47,389
4,135
Interest received
93,460
35,628
Net cash used in investing activities
(155,666)
(409,257)
Financing activities
Dividends paid
(278,794)
(786,638)
Net cash used in financing activities
(278,794)
(786,638)
Net increase in cash and cash equivalents
1,220,533
1,251,671
Cash and cash equivalents at beginning of year
2,137,232
885,561
Cash and cash equivalents at end of year
3,357,765
2,137,232
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the truedirectors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant & Machinery
25% Reducing balance
Fixtures & Fittings
25% Reducing balance
Motor Vehicles
25% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Unlisted investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The unlisted investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Ordinary shares are classified as equity. The Ordinary A shares have full participating rights, one vote for each share in this class. The Ordinary A shares also have the right to dividends approved by the directors in proportion to the number of shares held in that class and the right to receive a distribution on winding up. The Ordinary B, Ordinary E, and Ordinary F shares are all none participating shares and have no voting rights attached to them. These classes of shares each have the right to receive a dividend approved by the shareholders holding the Ordinary A shares, an entitlement to receive on winding up a sum representing 1% of the value of surplus assets available for distribution to the members and in the case of sale, 1% of the total consideration paid.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17
Company information

Supertune Automotive Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Oldham Central Trading Park, Coulton Close, Off Cromford Street, Oldham, OL1 4EB.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.18

Invoice discounting

Amounts due in respect of invoice discounting are separately disclosed as current liabilities. The company can use these facilities to draw down a percentage of the value of certain sales invoices. The management and collection of trade receivables remains with the company.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
24,689,947
22,168,990
2024
2023
£
£
Turnover analysed by geographical market
24,689,947
22,168,990
2024
2023
£
£
Other revenue
Interest income
93,460
35,628
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(50,831)
(40,833)
Fees payable to the company's auditor for the audit of the company's financial statements
25,750
21,000
Depreciation of owned tangible fixed assets
254,673
176,483
Loss on disposal of tangible fixed assets
62,998
4,511
Amortisation of intangible assets
2,900
2,900
Cost of stocks recognised as an expense
17,488,234
15,448,936
Operating lease charges
275,228
256,724
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management
11
11
Other
85
78
Total
96
89

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,825,872
2,526,630
Social security costs
272,771
243,605
Pension costs
66,212
75,672
3,164,855
2,845,907
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
84,356
80,424
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
93,060
35,444
Other interest income
400
184
Total income
93,460
35,628
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on quarterly instalments of corporation tax
14,273
-
0
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
633,114
501,941
Deferred tax
Origination and reversal of timing differences
(6,199)
38,366
Total tax charge
626,915
540,307
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
9
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,421,071
2,495,306
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
605,268
524,151
Tax effect of expenses that are not deductible in determining taxable profit
13,187
9,246
Permanent capital allowances in excess of depreciation
8,460
6,910
Taxation charge for the year
626,915
540,307

The company has capital losses amounting to £49,208 (2023: £49,208) to carry forward and offset against any future capital gains that may arise.

 

10
Dividends
2024
2023
£
£
Interim dividends paid
278,794
786,638
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
58,000
Amortisation and impairment
At 1 August 2023
35,217
Amortisation charged for the year
2,900
At 31 July 2024
38,117
Carrying amount
At 31 July 2024
19,883
At 31 July 2023
22,783
12
Tangible fixed assets
Plant & Machinery
Fixtures & Fittings
Motor Vehicles
Total
£
£
£
£
Cost
At 1 August 2023
552,843
447,510
863,458
1,863,811
Additions
39,242
32,377
371,380
442,999
Disposals
-
0
-
0
(392,412)
(392,412)
At 31 July 2024
592,085
479,887
842,426
1,914,398
Depreciation and impairment
At 1 August 2023
438,544
286,050
169,677
894,271
Depreciation charged in the year
40,648
49,401
164,624
254,673
Eliminated in respect of disposals
-
0
-
0
(182,930)
(182,930)
At 31 July 2024
479,192
335,451
151,371
966,014
Carrying amount
At 31 July 2024
112,893
144,436
691,055
948,384
At 31 July 2023
114,299
161,460
693,781
969,540
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
13
Fixed asset investments
2024
2023
£
£
Unlisted investments
1
1

The company has an investment in an unlisted limited company incorporated in England and Wales. As this shareholding is less than 20% and as the company does not exert significant influence over it, the investment has been treated as an unlisted investment shown at cost.

Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 August 2023
1
At 31 July 2024
1
Impairment
At 1 August 2023 & 31 July 2024
-
Carrying amount
At 31 July 2024
1
At 31 July 2023
1
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,358,827
2,078,860

An impairment loss amounting to £129,593 (2023: £4,503 reversal of impairment loss) was recognised in cost of sales against stock during the year due to slow moving and obsolete stock.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,480,879
4,366,911
Amounts owed by group undertakings
2,455,333
2,455,333
Other debtors
75,821
92,130
Prepayments and accrued income
279,497
188,610
7,291,530
7,102,984
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
279,367
301,069
Total debtors
7,570,897
7,404,053
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,531,492
3,177,544
Corporation tax
293,440
501,756
Other taxation and social security
401,076
457,815
Other creditors
51,135
99,898
Accruals and deferred income
542,191
448,196
4,819,334
4,685,209
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
190,648
196,847
2024
Movements in the year:
£
Liability at 1 August 2023
196,847
Credit to profit or loss
(6,199)
Liability at 31 July 2024
190,648
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,212
75,672

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
2,000
2,000
2,000
2,000
Ordinary B share of £1 each
1
1
1
1
Ordinary E share of £1 each
1
1
1
1
Ordinary F share of £1 each
1
1
1
1
2,003
2,003
2,003
2,003
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
20
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee in place between Supertune Automotive Ltd and its parent company McCarthy Shanks Limited. As at 31 July 2024, the amount guaranteed was £nil (2023: £nil).

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
264,771
278,736
Between two and five years
662,077
813,466
In over five years
219,548
335,663
1,146,396
1,427,865
22
Events after the reporting date

On 14 August 2024, the entire share capital of the company's parent undertaking McCarthy Shanks Limited was acquired by Supertune Automotive Holdings Limited which became the ultimate parent company of the group.

23
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
559,478
537,633
SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
23
Related party transactions
(Continued)
- 26 -
Transactions with related parties

 

During the year, the company entered into the following transactions with related parties:

The company holds an unlisted investment in a company incorporated in England and Wales. During the year, Supertune Automotive Ltd made purchases from this company amounting to £254,047 (2023: £241,391) on normal commercial terms. As at 31 July 2024, Supertune Automotive Ltd owed the company £nil (2023: £nil) which is included in trade creditors.

 

During the year, Supertune Automotive Ltd made sales to the company amounting to £111,467 (2023: £152,833). Supertune Automotive Ltd also made rebates to the company amounting to £36,995 (2023: £93,314) during the year. As at 31 July 2024, a balance of £21,756 (2023: £74,883) was owed to Supertune Automotive Ltd.

24
Directors' transactions

Included in other debtors due less than one year is a director's loan account due to the company amounting to £37,516. No interest was paid on this loan during the year. The loan is repayable on demand.

 

The maximum balance outstanding on the director's loan account during the year was £349,076.

 

25
Ultimate controlling party

The company is controlled by McCarthy Shanks Limited, a company incorporated in England and Wales. McCarthy Shanks Limited is controlled by Mr C. M. McCarthy, by virtue of his majority shareholding in that company.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
McCarthy Shanks Limited
Smallest group
McCarthy Shanks Limited

Copies of the consolidated financial statements of McCarthy Shanks Limited can be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

SUPERTUNE AUTOMOTIVE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,794,156
1,954,999
Adjustments for:
Taxation charged
626,915
540,307
Finance costs
14,273
-
0
Investment income
(93,460)
(35,628)
Loss on disposal of tangible fixed assets
62,998
4,511
Amortisation and impairment of intangible assets
2,900
2,900
Depreciation and impairment of tangible fixed assets
254,673
176,483
Movements in working capital:
Increase in stocks
(279,967)
(44,520)
Increase in debtors
(214,233)
(535,628)
Increase in creditors
342,441
770,190
Cash generated from operations
2,510,696
2,833,614
27
Analysis of changes in net funds
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
2,137,232
1,220,533
3,357,765
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