Company registration number 03977409 (England and Wales)
SLATERS NORTH WALES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
SLATERS NORTH WALES LIMITED
COMPANY INFORMATION
Directors
Mr C R Knowlson
Mr N A Knowlson
Company number
03977409
Registered office
Conway Road
Colwyn Bay
Conwy
LL29 7LY
Auditor
Sage & Company Business Advisors Ltd
102 Bowen Court
St Asaph Business Park
ST ASAPH
Denbighshire
LL17 0JE
SLATERS NORTH WALES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
SLATERS NORTH WALES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2024.
Review of the business
The company had another challenging year, shaped by uncertainties in the EV market disrupting manufacturers, dealerships and consumers. Aftersales continued to improve but all areas of the business were affected by higher wage costs. The company weathered these tough market conditions and produced a reasonable result for the year with a profit before tax of £153,105. This result was partially supported by business rates discounts.
Principal risks and uncertainties
The risks and uncertainties affecting the business can be summarised as follows:
Ongoing model changes and stock availability issues linked to Stellantis, along with the broader industry shift to EV’s continue to pose operational challenges. As the business is focused exclusively on the Vauxhall Motors range, any disruption with the manufacturer has direct consequences for trading.
The integration of Vauxhall into the Stellantis group has led to the consolidation of systems across multiple brands. The alignment of these systems has introduced short-term inefficiencies and requires time to stabilise.
Broader geopolitical and economic factors – including global tariff uncertainties, the conflicts in Ukraine and the Middle East, and domestic fiscal policy changes – contribute to a cautious outlook. The directors are acutely aware that the remainder of 2025 will require careful management.
Funding and Franchise partners
The funding of the business rests with two main sources. Car stocks are funded by Stellantis Finance, with facilities provided being increased to reflect the higher cost of electric vehicle stock.
Property finance and working capital is provided by Nat West Bank PLC. The Directors are pleased to report that the new facilities were put in place in June 2021 with it’s current bankers, with a new 10 year loan. There is now the certainty of a long term debt commitment and a more stable footing for the business moving forward.
Vauxhall Motors our franchise partner and ourselves are currently operating within a full franchise agreement.
Future Developments
The future is electric (and possibly Hydrogen) for both cars and commercial vehicles. Slaters have recognised this and are currently selling both electric and commercial vehicles as Vauxhall expand their electric range to encompass all the model range. Marketing is likewise changing with the introduction of a new consultant to reflect a new breed of buyers and sales channels with less reliance on showrooms and more virtual interaction with the customer.
Financial risk management and key performance measures
The management team continued to develop well in meeting the challenges of 2024 with operational and administrative improvements driving the business forward.
These changes and continuing tight financial and cash controls alongside detailed, timely and accurate management accounts have proved to be essential in these uncertain times. 2025 continues to benefit from these practices.
Environmental Matters
Management continues to promote good practice and careful waste management across all areas of the company. For example LED lighting has been installed across both sites reducing our electricity usage and carbon footprint. It is a key management objective to continually improve the environmental impact across all areas of the business.
SLATERS NORTH WALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Mr N A Knowlson
Director
3 June 2025
SLATERS NORTH WALES 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 company continued to be that of selling and repairing motor vehicles and other ancillary services.
Results and dividends
The results for the year are set out on the Statement Of Comprehensive Income.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C R Knowlson
Mr N A Knowlson
Future developments
Information is not shown within the Director's Report as it is instead included within the Strategic Report under S414c(11)
Auditor
The auditor, Sage & Company Business Advisors Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N A Knowlson
Director
3 June 2025
SLATERS NORTH WALES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
SLATERS NORTH WALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SLATERS NORTH WALES LIMITED
- 5 -
Opinion
We have audited the financial statements of Slaters North Wales Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
SLATERS NORTH WALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SLATERS NORTH WALES LIMITED (CONTINUED)
- 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through enquires of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company's remuneration policies.
SLATERS NORTH WALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SLATERS NORTH WALES LIMITED (CONTINUED)
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that rise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
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.
Christopher Morgans BA ACA (Senior Statutory Auditor)
For and on behalf of Sage & Company Business Advisors Ltd, Statutory Auditor
Chartered Accountants
102 Bowen Court
St Asaph Business Park
ST ASAPH
Denbighshire
LL17 0JE
3 June 2025
SLATERS NORTH WALES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,665,860
25,496,953
Cost of sales
(20,306,272)
(22,287,920)
Gross profit
3,359,588
3,209,033
Administrative expenses
(3,091,746)
(2,742,458)
Operating profit
4
267,842
466,575
Interest payable and similar expenses
7
(114,737)
(155,592)
Profit before taxation
153,105
310,983
Tax on profit
8
(35,929)
(72,987)
Profit for the financial year
117,176
237,996
SLATERS NORTH WALES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,216,621
2,258,622
Current assets
Stocks
10
5,224,905
5,318,288
Debtors
11
620,814
901,847
Cash at bank and in hand
251,653
38,106
6,097,372
6,258,241
Creditors: amounts falling due within one year
12
(5,273,047)
(5,358,117)
Net current assets
824,325
900,124
Total assets less current liabilities
3,040,946
3,158,746
Creditors: amounts falling due after more than one year
13
(372,945)
(597,966)
Provisions for liabilities
Deferred tax liability
15
9,955
-
(9,955)
Net assets
2,668,001
2,550,825
Capital and reserves
Called up share capital
17
1,984,726
1,984,726
Capital redemption reserve
2,674
2,674
Profit and loss reserves
680,601
563,425
Total equity
2,668,001
2,550,825
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
Mr N A Knowlson
Director
Company registration number 03977409 (England and Wales)
SLATERS NORTH WALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
1,984,726
2,674
325,429
2,312,829
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
237,996
237,996
Balance at 31 December 2023
1,984,726
2,674
563,425
2,550,825
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
117,176
117,176
Balance at 31 December 2024
1,984,726
2,674
680,601
2,668,001
SLATERS NORTH WALES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
516,157
193,691
Interest paid
(114,737)
(155,592)
Income taxes paid
(79,077)
(77,573)
Net cash inflow/(outflow) from operating activities
322,343
(39,474)
Investing activities
Purchase of tangible fixed assets
(2,772)
Net cash used in investing activities
-
(2,772)
Financing activities
Repayment of borrowings
(25,000)
Repayment of bank loans
(83,796)
(56,395)
Net cash used in financing activities
(108,796)
(56,395)
Net increase/(decrease) in cash and cash equivalents
213,547
(98,641)
Cash and cash equivalents at beginning of year
38,106
136,747
Cash and cash equivalents at end of year
251,653
38,106
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
Slaters North Wales Limited is a private company limited by shares incorporated in England and Wales. The registered office is Conway Road, Colwyn Bay, Conwy, LL29 7LY.
The company's principal activities continued to be that of purchasing, selling and repairing motor vehicles and other ancillary services.
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, including the provisions of the Large and Medium-sized Companies and Company's (Accounts and Reports) Regulations 2008, and under the historical cost convention, modified to include the revaluation of certain properties.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for sale of goods and services to external customers in the ordinary nature of the business. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Turnover is shown net of Value Added Tax. Revenue is recognised when the significant risks and rewards of ownership of goods have passed to the buyer, the amount of revenue can be measured reliably, and receipt of payment is probable.
Revenue from commission receivable is recognised when the amount can be reliably measured and it is probable that the company will receive the consideration.
1.4
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. The company chose the transitional exemption in FRS102 to elect the previous GAAP valuation of freehold property as deemed cost.
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:
Freehold buildings
2% straight line
Plant and machinery
10-33% straight line
Motor vehicles
25% straight line
Freehold land is not depreciated.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life.
Land and buildings are accounted for separately even when acquired together.
1.5
Impairment of fixed 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.
Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest company of cash-generating units for which a reasonable and consistent allocation basis can be identified.
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.
1.6
Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
At each reporting date, the company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock 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 stock
Under supply agreements with Vauxhall Motors Limited, the company has access to 'consignment stock' during a consignment period. Where the nature of these supply agreements transfers risks and rewards to the company, which in substance give the company control over the stock during the consignment period and liabilities in respect of holding costs, the company recognises these stocks in the balance sheet together with the equivalent liability.
Where supply agreements do not provide risks and rewards to the company until such time as legal title actually passes at the end of the consignment period, these stocks are not included in the balance sheet. Both the terms under which the stocks are held and the financial commitment in respect of these stocks are disclosed in the notes to the financial statements.
1.7
Cash and cash equivalents
Cash and cash equivalents 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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through profit or losses are measured at fair value.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets 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. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss is measured at fair value.
Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire
1.9
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.
1.10
Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.
Current and deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Current tax
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is not discounted.
Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements.
Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
1.11
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.
1.12
Retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
1.13
Leases
As lessee
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 leases asset are consumed.
1.14
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.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Critical accounting estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting estimate and assumptions will, by definition, seldom equal the related actual results.
The estimates and assumptions made regarding the valuation of the company's fixed assets are discussed in notes 1.4 and 1.5.
Provisions for bad debts are estimated on the basis that debtors recoverable amounts are recorded at the lower of cost and net realisable value.
Further estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Stock valuation
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass’ and CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Consignment stock
Vehicles held on consignment have been included in finished goods within stocks on the basis that the company has determined that it holds the significant risks and rewards attached to these vehicles.
3
Turnover
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Vehicle sales
20,650,504
22,645,422
Service sales
1,431,262
1,241,749
Parts sales
1,584,094
1,609,782
23,665,860
25,496,953
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
23,665,860
25,496,953
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
42,001
43,080
Operating lease charges
19,964
18,977
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management and administration
15
15
Sales, service and parts
38
37
Total
53
52
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,725,881
1,587,323
Social security costs
169,946
145,010
Pension costs
45,998
44,372
1,941,825
1,776,705
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
85,000
85,000
Company pension contributions to defined contribution schemes
9,659
13,000
94,659
98,000
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
55,631
55,825
Other finance costs:
Other interest
59,106
99,767
114,737
155,592
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
45,884
79,077
Deferred tax
Origination and reversal of timing differences
(9,955)
(6,090)
Total tax charge
35,929
72,987
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
153,105
310,983
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
38,276
73,143
Tax effect of expenses that are not deductible in determining taxable profit
10,499
8,840
Tax at marginal rate
(936)
Capital allowances
(11,910)
(8,996)
Taxation charge for the year
35,929
72,987
9
Tangible fixed assets
Freehold buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024 and 31 December 2024
2,383,000
180,705
47,284
2,610,989
Depreciation and impairment
At 1 January 2024
199,635
134,187
18,545
352,367
Depreciation charged in the year
6,360
23,198
12,443
42,001
At 31 December 2024
205,995
157,385
30,988
394,368
Carrying amount
At 31 December 2024
2,177,005
23,320
16,296
2,216,621
At 31 December 2023
2,183,365
46,518
28,739
2,258,622
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,224,905
5,318,288
The total carrying amount of stock is pledged as security for the vehicle funding and the bank loan.
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
266,695
466,686
Other debtors
354,119
435,161
620,814
901,847
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
142,892
60,000
Other borrowings
14
50,000
16,667
Trade creditors
4,415,133
4,530,354
Corporation tax
45,884
79,077
Other taxation and social security
34,186
103,638
Accruals and deferred income
584,952
568,381
5,273,047
5,358,117
The bank overdraft of £nil (2023: £nil) and bank loans of £515,837 (2023: £599,633) are secured by a debenture over all the company's assets together with a first legal charge over the land and buildings held by the company.
Amounts due under finance lease and hire purchase contracts are secured over the assets to which they relate.
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
372,945
539,633
Other borrowings
14
58,333
372,945
597,966
Creditors which fall due after five years are payable as follows:
Payable by instalments
202,780
262,104
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Loans and overdrafts
2024
2023
£
£
Bank loans
515,837
599,633
Other loans
50,000
75,000
565,837
674,633
Payable within one year
192,892
76,667
Payable after one year
372,945
597,966
The above borrowings consist of loans from National Westminster Bank Plc and General Motors UK Ltd.
The loan from General Motors UK Ltd is repayable in three instalments from 2023, with interest charged at 2% over Base Rate. Early repayments have been made. The loan is secured by both fixed and floating charges covering all the property and undertakings of the company.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated Capital Allowances
-
9,955
2024
Movements in the year:
£
Liability at 1 January 2024
9,955
Credit to profit or loss
(9,955)
Liability at 31 December 2024
-
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,998
44,372
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.
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
17
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1,650,000 Ordinary of £1 each
1,650,000
1,650,000
1,650,000
1,650,000
Preference share capital
Issued and fully paid
43,549 Redeemable of £1 each
43,549
43,549
291,177 Non-Redeemable of £1 each
291,177
291,177
334,726
334,726
Ordinary shares
The ordinary shares are equity based shares and the holders of these shares are entitled to one vote for every share held. Each share is entitled pari passu to any dividends or other distributions. Each share is also entitled pari passu to participate in a distribution arising from a winding up of the company.
Non-redeemable preference shares
The non-redeemable preference shares are equity shares and the holders of these shares are entitled to one vote for every share held. Each share is entitled pari passu to any dividends or other distributions.
Redeemable preference shares
The redeemable preference shares are equity shares and the holders of these shares are entitled to one vote for every share held. Each share is entitled pari passu to any dividends or other distributions.
18
Operating lease commitments
As lessee
Operating leases represents the rental of a unit from a third party, over a term of 5 years which ended August 2024 at a fixed rent of £16,000 pa. A new lease has been agreed covering a three year period ended 31 August 2027.
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 1 year
18,353
16,000
Years 2-5
33,315
51,668
16,000
SLATERS NORTH WALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
19
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
280,744
289,645
20
Ultimate controlling party
The company is controlled by its director and shareholder Mr N Knowlson.
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
117,176
237,996
Adjustments for:
Taxation charged
35,929
72,987
Finance costs
114,737
155,592
Depreciation and impairment of tangible fixed assets
42,001
43,080
Movements in working capital:
Decrease/(increase) in stocks
93,383
(1,613,364)
Decrease/(increase) in debtors
281,033
(171,601)
(Decrease)/increase in creditors
(168,102)
1,469,001
Cash generated from operations
516,157
193,691
22
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
38,106
213,547
251,653
Borrowings excluding overdrafts
(674,633)
108,796
(565,837)
(636,527)
322,343
(314,184)
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