Company Registration No. 02182711 (England and Wales)
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Annual report and
group financial statements
for the year ended 31 December 2024
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Company information
Directors
Peter Lovett
Julian Winterburn
Rebecca Maloney
Russell Trotman
Secretary
Julian Winterburn
Company number
02182711
Registered office
The Copse
Frankland Road
Swindon
Wiltshire
SN5 8YW
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Strategic report
For the year ended 31 December 2024
1

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

 

The strategic report has been prepared for the group as a whole and therefore gives greater emphasis to those matters which are significant to Dick Lovett Automobile Limited and its subsidiary undertakings when viewed as a whole.

Review of the business

2024 saw turnover reduce slightly from the prior year record, to a turnover of £810 million, while the pre-tax profits of £9.7 million were less than half of the prior year as the sector returned to the more traditional profitability levels of pre Covid.

Reduction in new and used car margins affected profitability in the year, while economic uncertainty continued to impact customer confidence. Interest rates remained high impacting finance rates on new and used vehicles, and stocking charges. In line with many businesses, resource was also a challenge given the limited labour market and therefore it has been essential that the group continues to invest significantly in training. Despite the challenges in the year the business performed strongly due to the excellent team and the strength and resilience of the business.

Net assets reduced in the year to £59 million as a result in a decrease in stock holdings, which allows the business to be more agile and reduces risk.

Principal risks and uncertainties

The management of the business and the execution of the Group’s strategy are subject to a number of risks. These include major changes in the general economic climate and the supply of new cars from the manufacturers with whom the Group deals.

Key performance indicators

The Directors are of the opinion that, given the nature of the business, analysis using non-financial KPIs is not necessary or appropriate for an understanding of the development and performance of the company. The directors consider the KPIs in the business review sufficient to enable a considered view of the Group’s performance to be undertaken.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Strategic report (continued)
For the year ended 31 December 2024
2
Section 172 statement

The Directors have carefully considered their duties under section 172 reporting.

The trading business have continued to benefit from the investments made by the parent company Dick Lovett Companies Limited. In 2024 the business has continued to make significant investments including the completion of the new Porsche Newport dealership which was opened in May 2024 to replace the existing Porsche Cardiff location. Demolition and construction has also started at Porsche Bristol in 2024 with the completion due in late 2025. In order to facilitate the rebuild of Porsche Bristol a new service centre was constructed on the Bristol campus during 2023 / 24 to allow Porsche Bristol to continue operating while the new facility is being built. BMW Hungerford has been fully refurbished in the year and the demolition of the MINI Hungerford site has occurred to allow a rebuild in 2025. In addition to the construction of new dealerships the business continues to invest in many areas including IT, property and EV charging.

It is of key importance to the company to maintain a reputation of supplying premium products and services to customers and this can be seen with the range of brands in the company’s portfolio. To ensure the continuation of high-quality services in 2024 there has been continued investment in training with our in-house training team working alongside external providers to cover all departments. In addition, the company continues to believe having an established apprentice programme is essential for long term success.

The Directors recognise that our employees are fundamental to our business and the delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. In turn we need to remain a responsible employer, by ensuring that our pay, benefits and workplace environment are appropriate. The Directors factor in and communicate the implications of decisions on employees where relevant and feasible.

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers and government bodies. The Board continually assess the priorities related to customers and engages with them to ensure the relevance of our business strategy and investment policies. We monitor our suppliers to ensure our product and service supply is maintained to our documented standard whilst also adhering to the required payment practices.

This year the company has continued to work with a number of local charities through the Lovett Foundation, which aims to support young care experienced people in our communities.

The Directors are satisfied that all section 172 matters are given appropriate and effective consideration with the necessary structures, policies and processes in place to promote a successful company.

On behalf of the board

Julian Winterburn
Director
20 May 2025
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Directors' report
For the year ended 31 December 2024
3

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

Principal activities

The principal activity of the Group during the year continued to be that of the sale and maintenance of BMW, MINI, Porsche, Ferrari, Aston Martin, Jaguar and Land Rover vehicles in the United Kingdom.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £16,000,000 (2023: £16,000,000). The directors do not recommend payment of a further dividend.

Directors

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

Peter Lovett
Julian Winterburn
Lynn Campbell
(Resigned 31 March 2025)
Rebecca Maloney
Richard Davies
(Resigned 30 April 2024)
Russell Trotman
Financial instruments
Financial risk management

The Group’s operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

 

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set out by the board of directors are implemented by the Group’s finance department. The department has a policies and procedures manual that sets out specific guidelines to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.

Liquidity risk

The Group actively maintains a mixture of long term and short term debt finance that is designed to ensure the group has sufficient available funds for operations and planned expansions.

Interest rate and cash flow risk

The Group has interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances, all of which earn interest at a floating rate. The Group has a policy of maintaining debt at both fixed and variable rates. The directors will revisit the appropriateness of this policy should the Group’s operations change in size or nature.

Credit risk

The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Directors' report (continued)
For the year ended 31 December 2024
4
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The Group's policy is to consult and discuss with employees, matters likely to affect employees' interests.

 

Information about matters of concern to employees are given through regular communications issued by the board which have been further enhanced through the board communicating directly with management cohorts to spread a consistent message to their teams. The business regularly reports financial and economic factors affecting the Group's performance to all employees.

Future developments

In 2024, building work was completed on a new Porsche dealership at Celtic Springs in Wales to relocate Porsche Cardiff, with the dealership opening its doors to customers in May 2024. During 2024 work was completed on the refurbishment of BMW Hungerford and the redevelopment of MINI Hungerford started, which is scheduled to be completed in 2025. A new Bristol service centre building was completed in 2024 to allow the redevelopment of Porsche Bristol which started construction in 2024 and will be completed late 2025. Once Porsche Bristol have relocated back into their new dealership it is likely the service centre will be used to help facilitate the refurbishment of BMW Bristol. It is also anticipated that Porsche Swindon and Porsche Tewkesbury will need to expand their aftersales capacity to meet demand in 2025, with this investment being either on their existing sites or via an external service centre facility. Following the purchase of a small property in Melksham in 2023, investment was completed in 2024 to create a bodyshop facility to serve JLR and BMW/MINI. While the majority of investment in new buildings will continue to be made by the parent company, Dick Lovett Companies Ltd, the internal refurbishments and workshop equipment will be made by the individual trading companies in the group. The business will also continue to evaluate other opportunities that the Directors feel will add value to the group.

Auditor

In accordance with the company's articles, a resolution proposing that Saffery LLP be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

The energy and carbon reporting is covered as a group and reported under the parent company's group report. Further details of the parent company can be found within Note 26

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Directors' report (continued)
For the year ended 31 December 2024
5
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The trueGroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review, principal risks and uncertainties and key performance indicators.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Julian Winterburn
Director
20 May 2025
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Independent auditor's report
To the members of Dick Lovett Automobile Limited
6
Opinion

We have audited the financial statements of Dick Lovett Automobile Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent 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 included in the annual report other than the financial statements and our auditor's report 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.

 

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.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Independent auditor's report (continued)
To the members of Dick Lovett Automobile Limited
7

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Independent auditor's report (continued)
To the members of Dick Lovett Automobile Limited
8

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, UK Tax legislation and The Financial Services and Markets Act 2000, on which The Financial Conduct Authority (FCA) Handbook is based.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Independent auditor's report (continued)
To the members of Dick Lovett Automobile Limited
9

Use of our report

This report is made solely to the parent 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 parent company's members those matters we are required to state to them in an auditors 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

 

Neil Davies
Senior Statutory Auditor
For and on behalf of Saffery LLP
20 May 2025
Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Group statement of comprehensive income
For the year ended 31 December 2024
10
2024
2023
Notes
£000
£000
Turnover
3
810,421
822,043
Cost of sales
(745,884)
(747,081)
Gross profit
64,537
74,962
Distribution costs
(24,254)
(22,999)
Administrative expenses
(28,550)
(26,560)
Other operating income
1,056
667
Operating profit
4
12,789
26,070
Interest receivable and similar income
7
639
954
Interest payable and similar expenses
8
(3,705)
(3,054)
Profit before taxation
9,723
23,970
Tax on profit
9
(2,557)
(5,798)
Profit for the financial year
7,166
18,172
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Group statement of financial position
As at 31 December 2024
31 December 2024
11
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
12
11,605
7,811
Current assets
Stocks
15
121,284
131,620
Debtors
16
35,028
31,161
Cash at bank and in hand
14,953
23,117
171,265
185,898
Creditors: amounts falling due within one year
17
(121,476)
(124,499)
Net current assets
49,789
61,399
Total assets less current liabilities
61,394
69,210
Provisions for liabilities
Deferred tax liability
19
2,480
1,462
(2,480)
(1,462)
Net assets
58,914
67,748
Capital and reserves
Called up share capital
21
10,022
10,022
Merger reserve
(6,675)
(6,675)
Profit and loss reserves
55,567
64,401
Total equity
58,914
67,748
The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
20 May 2025
Peter Lovett
Director
Company Registration No.  (England and Wales)
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Company statement of financial position
As at 31 December 2024
31 December 2024
12
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Investments
13
9,822
9,822
Current assets
Debtors
16
6
6
Net current assets
6
6
Net assets
9,828
9,828
Capital and reserves
Called up share capital
21
10,022
10,022
Profit and loss reserves
(194)
(194)
Total equity
9,828
9,828

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £16,000,000 (2023 - £16,000,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
20 May 2025
Peter Lovett
Director
Company Registration No.  (England and Wales)
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Group statement of changes in equity
For the year ended 31 December 2024
13
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
Balance at 1 January 2023
10,022
(6,675)
62,229
65,576
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
18,172
18,172
Dividends
10
-
-
(16,000)
(16,000)
Balance at 31 December 2023
10,022
(6,675)
64,401
67,748
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
7,166
7,166
Dividends
10
-
-
(16,000)
(16,000)
Balance at 31 December 2024
10,022
(6,675)
55,567
58,914
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Company statement of changes in equity
For the year ended 31 December 2024
14
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 1 January 2023
10,022
(194)
9,828
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
16,000
16,000
Dividends
10
-
(16,000)
(16,000)
Balance at 31 December 2023
10,022
(194)
9,828
Year ended 31 December 2024:
Profit and total comprehensive income
-
16,000
16,000
Dividends
10
-
(16,000)
(16,000)
Balance at 31 December 2024
10,022
(194)
9,828
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Group statement of cash flows
For the year ended 31 December 2024
15
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
27
13,721
25,698
Interest paid
(3,705)
(3,054)
Income taxes paid
(2,702)
(5,117)
Net cash inflow from operating activities
7,314
17,527
Investing activities
Purchase of tangible fixed assets
(6,020)
(3,125)
Proceeds from disposal of tangible fixed assets
79
160
Interest received
639
954
Net cash used in investing activities
(5,302)
(2,011)
Financing activities
Repayment of borrowings
4,131
(3,313)
Dividends paid to equity shareholders
(16,000)
(16,000)
Net cash used in financing activities
(11,869)
(19,313)
Net decrease in cash and cash equivalents
(9,857)
(3,797)
Cash and cash equivalents at beginning of year
12,518
16,315
Cash and cash equivalents at end of year
2,661
12,518
Relating to:
Cash at bank and in hand
14,953
23,117
Bank overdrafts included in creditors payable within one year
(12,292)
(10,599)
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements
For the year ended 31 December 2024
16
1
Accounting policies
Company information

Dick Lovett Automobile Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is The Copse, Frankland Road, Swindon, Wiltshire, SN5 8YW.

 

The group consists of Dick Lovett Automobile Limited and all of its subsidiaries.

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 £1,000.

The financial statements have been prepared under the historical cost convention except for the group restructure of Dick Lovett Companies Limited and Dick Lovett Automobile Limited is accounted for under the merger method.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
17
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Dick Lovett Automobile Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The reconstructed group was consolidated using merger accounting principles, as outlined in Financial Reporting Standard FRS 102 ("FRS"), and the reconstructed group treated as if it had always been in existence. The Directors believe that this approach presents fairly the financial performance, financial position and cash flow of the Group.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

Revenue from the rendering of services is recognised when the service has been completed. All trading income received or receivable from the manufacturer has been included within revenue or cost of sales depending on the contractual arrangement. This income is recognised when the group has fulfilled its related contractual obligations.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
18
1.6
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 75 months.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Leasehold land and buildings
10 years or the life of the refurbishment if shorter
Plant and equipment
3 to 10 years

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 recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
19

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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. Cost is calculated using the FIFO (first-in, first-out) method.

 

Consignment stock is considered to be under control of the group and is included in stock as the group has the significant risk and rewards of ownership even though legal title has not yet passed to the group. A corresponding liability is recognised in creditors.

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.

1.11
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.

1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
20
Basic financial assets

Basic financial assets, which include debtors, 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.

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 group 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 group after deducting all of its liabilities.

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 group's contractual obligations expire or are discharged or cancelled.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
21
1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
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 income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leased asset are consumed.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
22
1.18
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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock Provision

Stock is valued at the lower cost and net realisable value. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

3
Turnover
2024
2023
£000
£000
Turnover analysed by class of business
Sale of goods
766,572
779,550
Rendering of services
34,720
32,327
Commission
9,129
10,166
810,421
822,043
4
Operating profit
2024
2023
£000
£000
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
2,155
1,617
Profit on disposal of tangible fixed assets
(8)
(7)
Operating lease charges
4,750
4,434
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
23
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
15
6
Audit of the financial statements of the company's subsidiaries
135
91
150
97
For other services
Taxation compliance services
25
24
Other taxation services
30
16
All other non-audit services
19
16
74
56
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
290
291
-
-
Parts
70
64
-
-
Servicing
416
392
-
-
Bodyshop
67
62
-
-
Admin
157
154
5
6
Total
1,000
963
5
6

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
35,570
32,456
-
0
-
0
Social security costs
3,764
3,392
-
-
Pension costs
3,488
3,126
-
0
-
0
42,822
38,974
-
0
-
0
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
24
7
Interest receivable and similar income
2024
2023
£000
£000
Interest income
Interest on bank deposits
639
954
8
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
338
583
Other interest on financial liabilities
3,367
2,471
Total finance costs
3,705
3,054
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
849
5,476
Adjustments in respect of prior periods
-
0
(35)
Group tax relief
691
-
0
Total current tax
1,540
5,441
Deferred tax
Origination and reversal of timing differences
1,017
320
Adjustment in respect of prior periods
-
0
37
Total deferred tax
1,017
357
Total tax charge
2,557
5,798
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
9
Taxation (continued)
25

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
£000
£000
Profit before taxation
9,723
23,970
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
2,431
5,638
Tax effect of expenses that are not deductible in determining taxable profit
123
128
Tax effect of income not taxable in determining taxable profit
(10)
-
0
Adjustments in respect of prior years
-
0
(36)
Permanent capital allowances in excess of depreciation
13
11
Deferred tax adjustments in respect of prior years
-
0
37
Change in deferred tax rate
-
0
20
Taxation charge
2,557
5,798
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£000
£000
Final paid
16,000
16,000
11
Intangible fixed assets
Group
Goodwill
£000
Cost
At 1 January 2024 and 31 December 2024
1,757
Amortisation and impairment
At 1 January 2024 and 31 December 2024
1,757
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
26
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Total
£000
£000
£000
Cost
At 1 January 2024
7,211
17,695
24,906
Additions
2,170
3,850
6,020
Disposals
(382)
(644)
(1,026)
Transfers
4
(105)
(101)
At 31 December 2024
9,003
20,796
29,799
Depreciation and impairment
At 1 January 2024
5,058
12,037
17,095
Depreciation charged in the year
572
1,583
2,155
Eliminated in respect of disposals
(353)
(618)
(971)
Transfers
(15)
(70)
(85)
At 31 December 2024
5,262
12,932
18,194
Carrying amount
At 31 December 2024
3,741
7,864
11,605
At 31 December 2023
2,153
5,658
7,811
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Investments in subsidiaries
14
-
0
-
0
9,822
9,822
Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 January 2024 and 31 December 2024
9,822
Carrying amount
At 31 December 2024
9,822
At 31 December 2023
9,822
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
27
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Nature of business
Class of
shares held
% Held
Direct
Indirect
Dick Lovett (Avon) Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett (Bath) Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett (Bristol) Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett (Hungerford) Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett (Specialist Cars) Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett Sporting Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett Sports Cars Limited
Sale and maintenance of motor vehicles
Ordinary
100.00
-
Dick Lovett (SV) Limited
Dormant
Ordinary
-
100.00
Dick Lovett (Swindon) Limited
Dormant
Ordinary
100.00
-
PLR Limited
Dormant
Ordinary
100.00
-
Spraymaster Limited
Dormant
Ordinary
100.00
-

The registered office of all of the company's subsidiaries is The Copse Frankland Road, Blagrove, Swindon, Wiltshire, England, SN5 8YW.

15
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Finished goods and goods for resale
121,284
131,620
-
0
-
0
Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
28
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
21,524
20,723
-
0
-
0
Corporation tax recoverable
1,359
196
-
0
-
0
Amounts owed by parent undertakings
456
602
6
6
Other debtors
9,603
7,889
-
0
-
0
Prepayments and accrued income
2,086
1,751
-
0
-
0
35,028
31,161
6
6
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Bank loans and overdrafts
18
12,292
10,599
-
0
-
0
Manufacturers' stocking loan
18
15,009
10,878
-
0
-
0
Consignment vehicle liabilities
36,569
37,144
-
0
-
0
Trade creditors
35,468
45,299
-
0
-
0
Amounts due to parent undertakings
2,538
1,823
-
0
-
0
Other taxation and social security
4,646
3,440
-
-
Deferred income
-
0
46
-
0
-
0
Other creditors
8,888
9,648
-
0
-
0
Accruals and deferred income
6,066
5,622
-
0
-
0
121,476
124,499
-
0
-
0
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Bank overdrafts
12,292
10,599
-
0
-
0
Manufacturers' stocking loan
15,009
10,878
-
0
-
0
27,301
21,477
-
-
Payable within one year
27,301
21,477
-
0
-
0

All bank loans and overdrafts are secured by a floating charge over the assets of Dick Lovett Companies Limited and its subsidiaries. Manufacturers' stocking loans are secured on the vehicles financed and bear commercial rates of interest.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
29
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£000
£000
Accelerated capital allowances
2,480
1,462
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£000
£000
Liability at 1 January 2024
1,462
-
Charge to profit or loss
1,018
-
Liability at 31 December 2024
2,480
-

The deferred tax liability set out above is expected to reverse over the life of the assets and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
3,488
3,126

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
10,021,938
10,021,938
10,022
10,022

The company has one class of ordinary shares which carry no right to fixed income.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
30
22
Merger reserve

The merger reserve represents the difference between the nominal value of shares issued and the fair value of the assets received during the reorganisation. The merger reserve arose following a share for share exchange between Dick Lovett Companies Limited and Dick Lovett Automobile Limited (formerly Western Counties Automobile Company Limited) as part of the group reorganisation during the prior year.

23
Financial commitments, guarantees and contingent liabilities

The company has given guarantees to the group's bankers in respect of overdrafts of subsidiary companies which at 31 December 2024 amounted to £12,290,000 (2023: £13,014,000).

24
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Within one year
4,716
4,065
-
-
Between two and five years
4,640
4,955
-
-
In over five years
8,836
10,165
-
-
18,192
19,185
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Acquisition of tangible fixed assets
198
770
-
-
26
Related party transactions

Controlling party

 

The company is controlled by Peter Lovett, a director who is the sole shareholder of the parent company Dick Lovett Companies Limited.

 

Pension scheme

The self-administered pension scheme of the ultimate controlling party owns land and buildings from which a number of the subsidiary companies operate from. The rental charges in the year amounted to £1,210,000 (2023: £1,159,000) and no amounts were outstanding as at the year end (2023 - £Nil). These transactions are at arm's length.

Dick Lovett Automobile Limited
(formerly Western Counties Automobile Company Limited)
Notes to the group financial statements (continued)
For the year ended 31 December 2024
31
27
Cash generated from group operations
2024
2023
£000
£000
Profit for the year after tax
7,166
18,172
Adjustments for:
Taxation charged
2,557
5,798
Finance costs
3,705
3,054
Investment income
(639)
(954)
Gain on disposal of tangible fixed assets
(8)
(7)
Depreciation and impairment of tangible fixed assets
2,155
1,617
Movements in working capital:
Decrease/(increase) in stocks
10,336
(25,587)
(Increase)/decrease in debtors
(2,704)
4,243
(Decrease)/increase in creditors
(8,801)
19,316
(Decrease)/increase in deferred income
(46)
46
Cash generated from operations
13,721
25,698
28
Analysis of changes in net funds/(debt) - group
1 January 2024
Cash flows
31 December 2024
£000
£000
£000
Cash at bank and in hand
23,117
(8,164)
14,953
Bank overdrafts
(10,599)
(1,693)
(12,292)
12,518
(9,857)
2,661
Borrowings excluding overdrafts
(10,878)
(4,131)
(15,009)
1,640
(13,988)
(12,348)
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