Company Registration No. 00986050 (England and Wales)
Hadwins (Lindale) Limited
Annual Report and Financial Statements
For the Year Ended
31 December 2024
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
COMPANY INFORMATION
Directors
Mr R W Allen
Mrs R A Hebden
Secretary
Mrs R A Hebden
Company number
00986050
Registered office
Floor 1, Capital House
8 Pittman Court, Pittman Way
Fulwood
Preston
Lancashire
United Kingdom
PR2 9ZG
Auditor
Azets Audit Services
Chartered Accountants
Floor 1, Capital House
8 Pittman Court, Pittman Way
Fulwood
Preston
Lancashire
United Kingdom
PR2 9ZG
Bankers
Handelsbanken
1st Floor East
Bridge Mills
Navigation Way
Kendal
LA9 4BD
Solicitors
Oglethorpe, Sturton and Gillibrand
16 Castle Park
Lancaster
United Kingdom
LA1 1YG
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their strategic report for the year ended 31 December 2024.
Principal activities
The company's principal activities during the year continued to be the sale and maintenance of new cars under the Volkswagen and Audi marques, and also the sale and maintenance of used vehicles under the 'Hadwins Approved' banner at the Kendal site (Helsington). After sales business has been consistently good throughout the year. Hadwins remains one of the few independently owned Volkswagen and Audi dealerships in the UK.
Business review
In 2024 we focussed on Customer Satisfaction and retention which resulted in our VW dealership finishing Second overall in the UK for the One Business Scorecard.
The demand for New and Used vehicles has remained strong and this has driven increased turnover, however due to the limited supply of New Audi product and the availability of used vehicles margins have been squeezed.
The financial statements show an increase in turnover from £60,032,100 to £62,885,491. The company achieved a gross profit margin of 3.51%.
Economic conditions remain tough and pressure remain to be competitive. Our employees have worked hard through the year to continue to deliver high standards of sales and after care, and our thanks go to them for their continued hard work.
Position at the end of the year
The company current assets ratio has remained at 1.55.
Key performance indicators
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Operating profit Profit after tax Net current assets | | |
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HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties
As in all businesses, the company is subject to a number of risks, which it seeks to mitigate. The principal risks and areas of uncertainty are as follows:
Franchise agreement
The company relies on the continuation of its franchise agreement with Volkswagen Group and is dependent on them for the manufacture and supply of quality new vehicle products. However, Hadwins has a strong working relationship with VW Group and the directors are confident that VW will continue to produce competitively priced and high quality cars which meet customer expectations. Therefore, the directors consider that this "manufacturers risk" is minimal.
Competition risk
The new and used vehicle market is a competitive one and there is always a risk that customers will look to other suppliers or the internet. This risk is mitigated by building our strong reputation and ensuring that we remain competitive and meet customer expectations.
Customer satisfaction is a top priority of the Hadwins Group. Both Hadwins Volkswagen and Lake District Audi continued to perform consistently well.
Having the right team
Any business is only as good as its team, and we are proud of the fact that we have low staff turnover. We strive to attract and retain the best people, to ensure continuity for our customers. We invest heavily in training and communicate openly with staff. As a result, we have loyalty and longevity in our team with many knowledgeable and experienced staff who collaborate closely and have real empathy with our customers.
Economic downturn
The car market is affected by changes in general economic conditions, such as interest rate increases and fuel price rises which all affect consumer confidence and spending. However, any cyclical reduction in spending on new cars is generally offset with an increase in spending in the used car and after sales markets. Whilst we have experienced a few years of economic uncertainty, careful management and modification of pricing strategies has been used to reduce the impact on company results.
Stock value risk
Like all motor dealers, the company faces the risk that stock may fall in value due to specific industry/marque factors or a general downturn. To mitigate this risk the company aims to ensure that it carries an appropriate mix of vehicles both in terms of quantity and price, and that any fall in value is recognised immediately as required by the company's write down policy.
Supply risk
The company faces the risk that supply of vehicles from VW Group may not be available. To mitigate this risk the company has a close working relationship with VW Group and so is able to monitor any supply issues.
Mr R W Allen
Director
14 May 2025
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £251,017. 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:
Mr R W Allen
Mrs R A Hebden
Financial instruments
The company's financial assets and liabilities consist of trade debtors and creditors, bank loans, stocking loans, and consignment stock. Their existence exposes the company to a number of financial risks, which the company seeks to manage and limit the potential adverse effect. These policies remain unchanged from previous years. The main risks are:
Interest rate risk
The company has access to a bank overdraft. Due to the limited use of the overdraft facility and low interest risk the company is well placed to absorb any risks in interest rates.
Liquidity risk
The liquidity risk of the company is considered to be low because the company has a healthy net assets position at the year end and strong cash flow generated from operations.
Credit risk
The company has very low trade debtors. The vast majority of transactions are not on credit terms. Customers pay for the goods or services at the point of sale. Trade on credit is with reputable, long standing customers and there is a strict credit control system in place. Hence credit risk is considered low.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr R W Allen
Director
14 May 2025
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HADWINS (LINDALE) LIMITED
- 5 -
Opinion
We have audited the financial statements of Hadwins (Lindale) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HADWINS (LINDALE) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HADWINS (LINDALE) LIMITED
- 7 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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.
Julie Flintoff BA(Hons) FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
29 May 2025
Chartered Accountants
Statutory Auditor
Floor 1, Capital House
8 Pittman Court, Pittman Way
Fulwood
Preston
Lancashire
United Kingdom
PR2 9ZG
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
62,885,491
60,032,100
Cost of sales
(60,677,313)
(57,188,067)
Gross profit
2,208,178
2,844,033
Administrative expenses
(1,755,150)
(2,057,270)
Other operating income
20,833
13,570
Operating profit
4
473,861
800,333
Investment income
7
70,178
60,737
Finance costs
8
(3,412)
(2,707)
Profit before taxation
540,627
858,363
Tax on profit
9
(180,529)
(230,674)
Profit for the financial year
360,098
627,689
The income statement has been prepared on the basis that all operations are continuing operations.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
4,702,737
4,893,772
Investments
12
1
1
4,702,738
4,893,773
Current assets
Inventories
14
10,346,954
9,352,188
Trade and other receivables
15
864,443
501,482
Cash and cash equivalents
1,187,975
1,845,217
12,399,372
11,698,887
Current liabilities
16
(7,977,545)
(7,559,197)
Net current assets
4,421,827
4,139,690
Total assets less current liabilities
9,124,565
9,033,463
Non-current liabilities
17
(4,520)
Provisions for liabilities
Deferred tax liability
19
209,215
222,674
(209,215)
(222,674)
Net assets
8,915,350
8,806,269
Equity
Called up share capital
23
3,000
3,000
Share premium account
56,785
56,785
Revaluation reserve
286,384
292,904
Retained earnings
8,569,181
8,453,580
Total equity
8,915,350
8,806,269
The financial statements were approved by the board of directors and authorised for issue on 14 May 2025 and are signed on its behalf by:
Mr R W Allen
Director
Company Registration No. 00986050
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
3,000
56,785
298,735
8,065,092
8,423,612
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
627,689
627,689
Dividends
10
-
-
-
(245,032)
(245,032)
Transfers
-
-
(5,831)
5,831
-
Balance at 31 December 2023
3,000
56,785
292,904
8,453,580
8,806,269
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
-
360,098
360,098
Dividends
10
-
-
-
(251,017)
(251,017)
Transfers
-
-
(6,520)
6,520
-
Balance at 31 December 2024
3,000
56,785
286,384
8,569,181
8,915,350
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Hadwins (Lindale) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Floor 1, Capital House, 8 Pittman Court, Pittman Way, Fulwood, Preston, PR2 9ZG.
The principal place of business is Lindale, Grange Over Sands, LA11 6LP.
The company's principal activities and nature of operations are detailed in the strategic report.
The company is tax resident in the United Kingdom.
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.
This 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:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument.
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Expertband Limited. These consolidated financial statements are available from its registered office, Floor 1 Capital House, 8 Pittman Court, Pittman Way Fulwood, Preston, Lancashire, PR2 9ZG.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Hadwins (Lindale) Limited is a wholly owned subsidiary of Expertband Limited and the results of Hadwins (Lindale) Limited are included in the consolidated financial statements of Expertband Limited.
1.2
Going concern
Atruet the time of approving the financial statements, the directors 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.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Revenue
Revenue is measured at the fair value of the consideration received or receivable in respect of the invoice value of vehicle sales, parts, servicing and bodyshop sales provided during the year, excluding value added tax and trade discounts.
Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.
Vehicle and parts sales are recognised when substantially all risks and rewards have been transferred to the customer. This is generally the time of delivery to the customer.
Service and bodyshop revenue is recognised on the day that the work is carried out.
The sale of warranties is recognised as revenue on the day the warranty commences. Warranties are sold onto an outside company and therefore none of the risks are borne by Hadwins (Lindale) Limited.
Rental and other income is recognised in the period to which it relates so long as the receipt of the income is more certain that not.
1.4
Property, plant and equipment
Property, plant and equipment 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:
Freehold buildings
2% Straight Line
Plant and machinery
10% Straight Line
Fixtures, fittings & equipment
10-50% Straight Line
Motor vehicles
4-25% Straight Line
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.
Included within freehold land & buildings is land which is not depreciated.
1.5
Non-current investments
Interests in subsidiaries 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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell after making due allowance for obsolete and slow moving stock.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.
Consignment inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Consignment inventories are recognised as being under the control of the company as the company bears the risks of obsolescence and slow moving inventory. The corresponding liability is included in trade creditors and is secured directly on these vehicles.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company only has financial assets (debtors, cash and bank balances) and liabilities (creditors and accruals) of a kind that qualify as basic financial instruments. They are initially recognised at transaction value and subsequently measured at their settlement value.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.11
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 company’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. Deferred tax is charged or credited in the income statement, 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.
1.12
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 non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. The company's holiday and financial year end are coterminus and no holiday entitlement is allowed to be carried forward.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock
As stocks are valued at the lower of cost and net realisable value this requires the estimation of the eventual sales price of goods in the future. Stock net realisable value includes, where necessary, provisions against vehicles and parts. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, competitive and economic environment and stock loss trends. The quantity, age and condition of stocks are measured monthly and assessed as to whether any provision is required.
Depreciation and residual values
The Directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values remain appropriate. Detail of the useful lives is included in the accounting policies.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Sale of goods
59,287,023
57,132,561
Rendering of services
3,598,468
2,899,539
62,885,491
60,032,100
2024
2023
£
£
Other revenue
Interest income
70,178
60,737
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
20,000
Depreciation of owned property, plant and equipment
317,577
290,076
Profit on disposal of property, plant and equipment
-
(3,000)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Service staff
56
52
Administrative staff
34
31
Management staff
6
6
Sales staff
21
21
Total
117
110
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,398,212
4,064,477
Social security costs
417,909
398,640
Pension costs
200,913
139,929
5,017,034
4,603,046
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
99,907
94,346
Company pension contributions to defined contribution schemes
10,000
10,000
109,907
104,346
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
70,082
60,664
Other interest income
96
73
Total income
70,178
60,737
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
70,082
60,664
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,412
-
Other finance costs:
Other interest
2,707
3,412
2,707
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
193,424
176,198
Adjustments in respect of prior periods
564
3
Total current tax
193,988
176,201
Deferred tax
Origination and reversal of timing differences
(13,459)
54,473
Total tax charge
180,529
230,674
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
540,627
858,363
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
135,157
214,591
Tax effect of expenses that are not deductible in determining taxable profit
21,542
4,584
Effect of change in corporation tax rate
(11,083)
Depreciation on assets not qualifying for tax allowances
23,230
23,230
Deferred tax adjustments in respect of prior years
600
Effect of superdeduction
(648)
Taxation charge for the year
180,529
230,674
10
Dividends
2024
2023
£
£
Final paid
251,017
245,032
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
11
Property, plant and equipment
Freehold land & buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
5,464,245
1,685,220
755,856
98,531
8,003,852
Additions
1,150
66,823
58,569
126,542
At 31 December 2024
5,465,395
1,752,043
814,425
98,531
8,130,394
Depreciation and impairment
At 1 January 2024
1,541,607
977,316
554,517
36,640
3,110,080
Depreciation charged in the year
101,348
109,870
91,425
14,934
317,577
At 31 December 2024
1,642,955
1,087,186
645,942
51,574
3,427,657
Carrying amount
At 31 December 2024
3,822,440
664,857
168,483
46,957
4,702,737
At 31 December 2023
3,922,638
707,904
201,339
61,891
4,893,772
Tangible fixed assets with a carrying amount of £4,702,737 (2023 - £4,893,772) have been pledged as security for the company's bank facilities. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
On transition to FRS 102 the company elected to take the valuation of the Lindale site of £840,000, being the open market value for existing use basis on 17 December 1997 by A D Taylor, BSc ARICS, as its deemed cost.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £3,536,056 (2023 - £3,640,436), being cost £5,065,594 (2023 - £5,064,444) and depreciation £1,529,538 (2023 - £1,434,008).
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1
1
13
Subsidiaries
Under the provision of section 400 of the Companies Act 2006 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Lake District Audi Limited - Dormant wholly owned subsidiary registered in England & Wales.
14
Inventories
2024
2023
£
£
New and used vehicles
3,841,376
4,257,261
Demonstrator vehicles
2,490,977
2,184,676
Consignment vehicles
3,873,264
2,732,579
Parts and other
141,337
177,672
10,346,954
9,352,188
All inventory is pledged as security.
15
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
433,065
239,109
Prepayments and accrued income
431,378
262,373
864,443
501,482
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Current liabilities
2024
2023
Notes
£
£
Bank overdrafts
18
2,953
Consignment Stock
3,873,264
2,732,579
Trade payables
2,725,227
3,642,636
Amounts due to group undertakings
1
1
Corporation tax
193,327
176,125
Other taxation and social security
425,000
444,716
Other payables
347,872
289,855
Accruals and deferred income
409,901
273,285
7,977,545
7,559,197
The stocking loans included in trade payables of £2,262,638 (2023: £2,920,356) and consignment stock of £3,873,264 (2023: £2,732,579) are secured against the assets to which they relate.
17
Non-current liabilities
2024
2023
Notes
£
£
Deferred income
21
4,520
18
Borrowings
2024
2023
£
£
Bank overdrafts
2,953
Payable within one year
2,953
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
211,715
229,839
Retirement benefit obligations
(2,500)
(6,565)
Other
-
(600)
209,215
222,674
2024
Movements in the year:
£
Liability at 1 January 2024
222,674
Credit to profit or loss
(13,459)
Liability at 31 December 2024
209,215
20
Provisions for liabilities
2024
2023
Notes
£
£
Deferred tax liabilities
19
209,215
222,674
209,215
222,674
21
Deferred income
2024
2023
£
£
Other deferred income
-
4,520
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
200,913
139,929
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.
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
23
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
3,000 Ordinary shares of £1 each
3,000
3,000
The company has one class of ordinary shares which carry no right to fixed income and have no restrictions.
This reserve represents the nominal value of share that have been issued.
24
Financial commitments, guarantees and contingent liabilities
Handelsbanken hold an unlimited multilateral guarantee between the following companies:
Hadwins (Lindale) Limited
Expertband Limited
Lake District Audi Limited
There are currently no amounts due to the bank in respect of loans.
25
Operating lease commitments
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
56,743
56,743
Between two and five years
7,509
20,287
64,252
77,030
HADWINS (LINDALE) LIMITED
Hadwins (Lindale) Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
26
Related party transactions
The company and its dormant subsidiary, Lake District Audi Limited, will be included in the consolidated accounts of the ultimate parent, Expertband Limited. The company has taken advantage of the exemptions provided by FRS 102 Section 1 in relation to paragraph 33.1A from disclosing transactions and balances with other group companies.
27
Ultimate controlling party
The company is a wholly owned subsidiary of Expertband Limited a company incorporated in England.
The company was under the control of Mrs R A Hebden, director and majority shareholder, throughout the current and previous year.
28
Directors' transactions
During the year a director provided a loan to the company. The amount outstanding at the balance sheet date is £122,064 (2023: £127,541). The unsecured loan is interest free and repayable on demand.
The company has use of a property owned by a related company. The amount paid in respect of rent was £Nil (2022: £Nil).
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