Registration number:
Brent Cars Limited
for the Year Ended 30 September 2024
Brent Cars Limited
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Brent Cars Limited
Company Information
Directors |
S Winter G Bird K J Hector K K Twine |
Registered office |
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Auditors |
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Brent Cars Limited
Strategic Report for the Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The principal activity of the company is that of a second hand vehicle retailer.
Fair review of the business
Economic Overview
The financial year ended 30 September 2024 was a challenging period for the UK used vehicle sector, and our business was not immune to the significant market headwinds that emerged. The company generated revenues exceeding £150 million, reflecting a resilient top-line performance in the face of a turbulent trading environment. However, the business recorded a pre-tax loss of £2.2 million, compared to a profit in the prior year, primarily due to a sharp and rapid decline in used vehicle prices during the final quarter of 2023.
This market-wide correction in vehicle values, driven by a combination of oversupply, softening consumer demand, and macroeconomic uncertainty, severely impacted gross margins across the industry. Like many of our peers, we were forced to revalue inventory and absorb losses on stock acquired at higher price points earlier in the year. These margin pressures, coupled with inflationary cost increases, contributed to the overall loss for the year.
Encouragingly, both inflation and interest rates have begun to decline, with market consensus anticipating this trend to continue throughout 2025. This easing of financial conditions is expected to reduce funding costs for both consumers and businesses, thereby supporting a recovery in demand. Reflecting these more favourable market dynamics, the business is on track to deliver profitability in the 2024/25 financial year.
Financial headlines and trading performance
Turnover declined by 3% on a pro-rata basis, primarily due to a reduction in the average selling price of used vehicles following the sharp market correction. This decline reflects broader sector trends, as unit volumes remained consistent with the previous year.
Gross profit margin decreased from 7.1% to 6.5%, driven largely by compressed metal margins. However, this headline figure masks a deliberate strategic shift in the last quarter of the year toward sourcing vehicles with stronger margin potential, alongside continued refinement of our dynamic pricing model. These initiatives have begun to deliver positive results in the post-year-end trading period.
Income from finance and insurance products increased by 7%, building on strong growth in the prior year. This uplift reflects improved attachment rates across key ancillary offerings, including warranties, paint protection, and our Carbase Owners Club membership.
We maintained tight control over fixed overheads, limiting cost growth to just 1% despite ongoing inflationary pressures. This reflects our disciplined approach to cost management and operational efficiency.
Rising market interest rates have continued to impact our financing costs. These increased by a further 10% during the year, compounding the significant rises experienced over the previous two years. This increase is largely due to variable-rate arrangements with stocking funders, which are directly impacted by base rate fluctuations.
Brent Cars Limited
Strategic Report for the Year Ended 30 September 2024
Operational Highlights
Despite the challenging market conditions, the company demonstrated strong operational resilience. We continued to invest strategically in our digital infrastructure, customer service capabilities, and vehicle sourcing strategies to position the business for long-term, sustainable growth. Our diversified procurement model and disciplined focus on operational efficiency helped to mitigate some of the margin erosion caused by the sharp correction in used vehicle prices.
Customer-centric decision-making remains at the heart of our operations. We leverage proprietary marketing intelligence and a rich dataset encompassing customer demographics, sales analytics, and behavioural insights at key enquiry and purchasing stages. This data-driven approach enables us to refine the customer journey continuously, reduce friction, and automate interactions where appropriate, enhancing both speed and cost efficiency.
Our competitive edge is further strengthened by our advanced pricing and data modelling capabilities, which are designed to optimise stock turn and maximise overall returns. Most recently, we have extended this intelligence to support our procurement team, enhancing their ability to make informed, agile decisions in a dynamic market.
Carbase’s commitment to excellence was once again recognised in 2024, as we were named “Used Car Supermarket of the Year” by CarDealer magazine. The award acknowledged our exceptional service, transparent pricing, advanced use of business intelligence, and a trustworthy digital experience.
Over the past three years, we have also delivered an ambitious People, Learning, and Culture agenda. This has significantly reduced staff turnover through a series of initiatives focused on employee engagement, high-potential development, performance management, and smarter recruitment. Our efforts were validated in November 2023 when we achieved the internationally recognised “Great Place To Work” accreditation at our first attempt, an accolade rarely held by independent UK dealers. We were proud to retain this recognition again in November 2024.
Financial position
The company’s financial position continues to be carefully managed, with robust daily cash flow forecasting in place to ensure the maintenance of adequate working capital and access to supportive funding facilities. We maintain regular, transparent engagement with all key financial partners, providing timely updates on performance and reinforcing confidence in our strategic approach to navigating ongoing market challenges.
Despite the difficult trading environment, the company’s cash at bank increased to £3.2 million over the course of the year. This improvement reflects the successful execution of a focused programme of site consolidation, significant cost-saving initiatives, and disciplined cash management. These actions have contributed to a return to profitability in the period following the year-end.
As a clear demonstration of their ongoing commitment to the business, the shareholders invested £1 million in new share capital in September 2024. This injection of equity was made to strengthen the company’s balance sheet and support its continued recovery and growth.
Looking ahead, we remain committed to rigorous cost control and continuous operational optimisation. We will continue to review our cost base, processes, and staffing requirements to ensure the business remains agile, efficient, and well-positioned to sustain the positive momentum through 2025 and beyond.
Brent Cars Limited
Strategic Report for the Year Ended 30 September 2024
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Customer review score |
% |
97 |
95 |
Sales growth/(decrease) |
% |
(3) |
7 |
Operating profit/(loss) |
£ |
(86,099) |
1,602,040 |
Average days in stock |
60 |
69 |
We always seek to build links with the local community and colleges and are especially keen to encourage young people with good people skills to consider Carbase as a career choice and test their skills in a dynamic retail environment for a multi-award-winning business.
Principal risks and uncertainties
Economic Risk
The company’s performance is directly impacted by the economic environment and any fluctuations in inflation, interest rates, employment levels and consumer confidence. To mitigate this risk the company strives to deliver a balanced offering of competitively priced vehicles and a high level of customer service and after sales care. We continue to deal exclusively in used vehicles and have a wide range of car and van stock covering budget to nearly new vehicles.
Used vehicle Supply Risk
The supply of used vehicles in our preferred age range of stock has been impacted by the pandemic era disruption to new vehicle production and will take several more years to work through the system. Over many years we have built strong and progressive relationships with a wide range of suppliers of used vehicles to help mitigate some of that risk when supply becomes constrained. Additionally, a focus on boosting the number of part exchanges and direct purchases we take in from customers is helping to offset the supply risk. We also maintain headroom on our stock funding facilities to help absorb the higher funding values required in the post Covid period.
Price Risk
Volatility in used vehicle values remains a risk to our vehicle margins. The sharp decline in prices during late 2023 had a material impact on margins and profitability. While prices have begun to stabilise, the market remains sensitive to changes in supply, consumer demand, and macroeconomic conditions. We have developed advanced in-house pricing systems utilising the power of AI, that can re-evaluate the market on a daily basis and constantly adjust our vehicle prices to optimise both stock turn and metal margin.
Compliance Risk
The company is exposed to all the usual laws and regulations plus industry specific regulations around customer finance and insurance products. We use an external compliance company to help monitor our regulatory risk, including regular detailed reviews of our website and sales documentation. We take our responsibilities very seriously and are confident that we continue to be fully compliant with all applicable regulations including the recently introduced Consumer Duty which further strengthens protections for the consumer on regulated products.
Brent Cars Limited
Strategic Report for the Year Ended 30 September 2024
Section 172(1) statement
The Directors of Brent Cars Limited are mindful of their duty under Section 172(1) of the Companies Act 2006 to promote the success of the company for the benefit of its members as a whole, while having regard to the broader interests of stakeholders and the long-term impact of their decisions.
In fulfilling this duty, the Directors consider the likely long-term consequences of strategic and operational decisions, the interests of employees, the importance of fostering strong relationships with customers, suppliers, and funding partners, and the company’s impact on the wider community and environment.
Long-term strategy and resilience
The Directors took decisive action in response to the sharp decline in used vehicle prices, including cost control, site consolidation, and investment in digital infrastructure. These actions were taken with a view to ensuring the long-term sustainability and competitiveness of the business.
Engagement with employees
Our employees are fundamental to the long-term success of the business. We are committed to attracting, developing, and retaining top talent by fostering a safe, inclusive, and values-driven workplace. Our culture is underpinned by core values such as integrity and care.
We engage with employees through regular business updates and Q&A sessions hosted by senior leadership, where staff are encouraged to submit questions in advance. We also conduct regular pulse surveys to monitor engagement and identify areas for improvement.
In November 2023, we were proud to achieve Great Place To Work accreditation at our first attempt, an accolade we retained in 2024. This recognition reflects our ongoing efforts to be an employer of choice in the automotive sector.
Customer focus
The Directors continue to place the customer experience at the heart of the company’s strategy. Leveraging data-driven insights and automation, we have enhanced service delivery, reduced friction, and improved responsiveness across the customer journey. Our commitment to excellence was recognised in 2024 when we were named Used Car Supermarket of the Year, reflecting our dedication to transparency, service quality, and innovation.
Our reputation for outstanding customer service remains a key differentiator. We consistently achieve high customer review scores across multiple platforms, and we actively monitor and refine our processes to ensure we deliver a seamless and satisfying experience, from initial enquiry through to aftersales care.
Brent Cars Limited
Strategic Report for the Year Ended 30 September 2024
Engagement with suppliers, customers and other relationships
We aim to build long-term, mutually beneficial relationships with our suppliers. This includes entering into multi-year agreements with key vehicle providers to help ensure supply stability during periods of market volatility.
We maintain open and transparent communication with our investors, providing regular updates on trading performance and financial strength. We actively seek feedback and respond promptly to investor queries to ensure clarity and confidence in our strategy.
Compliance, particularly in relation to health and safety, remains a top priority. We are uncompromising in our standards to protect both employees and customers.
We also recognise our role in the wider community. We support local causes, sponsor community sports teams, and are mindful of our environmental impact. We continue to engage with local colleges, encouraging young people to explore careers in the automotive retail sector.
Fairness Between Members
As a family-owned business, the interests of our members are closely aligned with the long-term success of the company. The Directors are committed to upholding high standards of business conduct and acting fairly between members of the company. These principles are embedded in the company’s governance and decision-making processes.
Approved by the
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Brent Cars Limited
Directors' Report for the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 30 September 2024 (2023 - £Nil).
Financial instruments
The company has procedures to identify risk and manage risks that may hinder financial performance objectives. The objective is to limit counterparty exposure, ensure sufficient capital and to mitigate risks identified.
Objectives and policies
The company's objectives are to operate a select number of profitable sites. Appropriate policies have been developed and implemented to identify, evaluate and manage the key risks to help them achieve the objectives.
Price risk, credit risk, liquidity risk and cash flow risk
a) Price risk – The company is exposed to price risk as a result of its operations. However, given the size of the company’s operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company’s operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed equity investments.
b) Credit risk – The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The credit given to customers is subject to limits which are determined and reassessed by the directors.
c) Liquidity risk – The company actively maintains a mixture of medium-term and short-term debt finance that is designed to ensure it has sufficient available funds for operations and planned expansions.
d) Interest rate cash flow risk – The company has interest bearing liabilities and has opted for variable interest rates.
Energy and carbon report
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Brent Cars Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
Brent Cars Limited
Directors' Report for the Year Ended 30 September 2024
Governance
In accordance with the Companies (Directors’ Report) Regulations 2018, Brent Cars Limited has prepared the following energy and carbon declaration. The data has been reported for all entities which operate under Brent Cars Limited without exclusion. Brent Cars Limited is not responsible for any energy consumption or emissions outside of the UK.
Emissions and energy consumption
The following standards are used in the calculation of the below disclosures:
• 2019 HM Government Environmental Reporting Guidelines
• GHG Reporting Protocol – Corporate Standard
• 2024 UK Government's Conversion Factors for Company Reporting
Summary of scope 1 (direct) greenhouse gas emissions for the year ended 30 September 2024:
Name and description |
Unit of measurement |
2024 |
2023 |
Natural gas consumption |
Metric tonnes CO2e |
|
|
Business transport |
Metric tonnes CO2e |
|
|
Additional fuels |
Metric tonnes CO2e |
|
|
|
|
Summary of scope 2 (indirect) greenhouse gas emissions for the year ended 30 September 2024:
Name and description |
Unit of measurement |
2024 |
2023 |
Purchased electricity |
Metric tonnes CO2e |
|
|
Summary of scope 3 (other indirect) greenhouse gas emissions for the year ended 30 September 2024:
Name and description |
Unit of measurement |
2024 |
2023 |
Grey Fleet Transport |
Metric tonnes CO2e |
|
|
Summary of energy consumption for the year ended 30 September 2024:
Name and description |
Unit of measurement |
2024 |
2023 |
Gas |
kWh |
|
|
Electricity |
kWh |
|
|
Transport fuel |
kWh |
|
|
Additional fuels |
kWh |
|
|
|
|
Brent Cars Limited
Directors' Report for the Year Ended 30 September 2024
Intensity ratio
|
Energy effeciency action
2024 saw Brent Cars further increase the number of used electric and hybrid vehicles sold, a number that is set to increase substantially over the next few years. We have installed a number of EV charging points at our key sites to facilitate the sale of all such vehicles and help more customers make the transition to EV’s.
Brent Car’s energy conscious maintenance and procurement policies have led to continuous replacement of existing light fittings with LED installations. As strong lighting is one of the major contributors to our Carbon footprint, this goes a long way to increasing efficiency at our sites.
Future developments
The Directors remain confident in the long-term prospects of the business and are encouraged by the expected the return to profitability in the 2024/25 financial year. This recovery reflects the resilience of our operating model, the effectiveness of the strategic actions taken during a period of significant market disruption, and the strength of our team.
Looking ahead, the business is well-positioned to capitalise on improving market conditions. Easing inflation and falling interest rates are expected to support consumer confidence and reduce funding costs, creating a more favourable trading environment. We will continue to build on the operational and commercial improvements made over the past year, with a focus on enhancing margin performance, optimising stock turn, and driving further efficiencies across the business.
Investment in technology, data intelligence, and customer experience will remain central to our strategy, enabling us to differentiate in a competitive market and respond quickly to changing consumer behaviours. In parallel, we will maintain a disciplined approach to cost control and capital allocation to ensure the business remains agile and financially robust.
The Directors remain optimistic about the year ahead and are confident that the business is firmly on track for sustainable growth and enhanced shareholder value.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors ML Audit LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
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Brent Cars Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.
Brent Cars Limited
Independent Auditor's Report to the Members of Brent Cars Limited
Opinion
We have audited the financial statements of Brent Cars Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Brent Cars Limited
Independent Auditor's Report to the Members of Brent Cars Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 10, 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 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
Brent Cars Limited
Independent Auditor's Report to the Members of Brent Cars Limited
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Winchester House
Deane Gate Avenue
Somerset
TA1 2UH
Brent Cars Limited
Profit and Loss Account for the Year Ended 30 September 2024
Note |
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating (loss)/profit |
(86,099) |
1,602,040 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(2,127,693) |
(1,381,552) |
||
(Loss)/profit before tax |
( |
|
|
Tax on (loss)/profit |
|
|
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
Brent Cars Limited
Statement of Comprehensive Income for the Year Ended 30 September 2024
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
(Loss)/profit for the year |
( |
|
Deficit on property, plant and equipment revaluation |
- |
( |
Total comprehensive (expense)/income for the year |
( |
|
Brent Cars Limited
(Registration number: 04794864)
Balance Sheet as at 30 September 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
- |
|
Capital redemption reserve |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
|
|
Approved and authorised by the
|
Brent Cars Limited
Statement of Changes in Equity for the Year Ended 30 September 2024
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 October 2023 |
|
- |
|
( |
|
Loss for the year |
- |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
- |
( |
( |
New share capital subscribed |
|
|
- |
- |
|
At 30 September 2024 |
|
|
|
( |
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 January 2023 |
|
|
|
( |
|
Profit for the year |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
( |
- |
( |
Total comprehensive income |
- |
- |
( |
|
|
At 30 September 2023 |
925,200 |
1,302,654 |
- |
(534,314) |
1,693,540 |
Brent Cars Limited
Statement of Cash Flows for the Year Ended 30 September 2024
Note |
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes (paid)/received |
( |
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Proceeds from sale of joint venture |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Dividend income |
- |
|
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
|
|
|
Repayment of other borrowing |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 October |
|
|
|
Cash and cash equivalents at 30 September |
3,162,008 |
1,526,066 |
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England & Wales
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Group accounts not prepared
Disclosure of long or short period
Going concern
The financial statements have been prepared on a going concern basis as the directors, through the preparation of cashflow projections, are of the opinion the current cash balance and working capital generated by the company for the foreseeable future will be sufficient to enable the company to meet their liabilities for at least the next twelve months from the date of the approval of the financial statements.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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 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.
Impairment of goodwill
The company considers whether goodwill is impaired. Where an indication of impairment is identified an estimation of recoverable value is made. No indication of impairment existed at the year end. The carrying amount is £466,704 (2023 - £624,129).
Deferred tax asset
The deferred tax asset has been recognised for unutilised tax losses to the extent that it is probable that future taxable profits will be available against which the losses can be utilised. Estimations have been made to predict the expected future profit of the company. The carrying amount is £1,170,000 (2023 - £609,870).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when all of the following conditions are satisfied:
- the amount of revenue can be reliably measured;
- all of the significant risks and rewards of ownership have been transferred to the customer;
- the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the costs incurred or to be incurred in respect of the transaction can be measured reliably;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the company's activities.
Finance income and costs policy
Interest income and expenses are recognised using the effective interest rate method.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off as incurred unless it meets the recognition criteria of a tangible asset as defined by FRS 102 Section 18, in which case it is recognised as an asset of the company.
Intangible assets
Intangible assets acquired in a business combination are recognised as assets at their fair value at the acquisition date. Intangibles are amortised over their useful lives, which shall not exceed ten years if a reliable estimate of their useful lives cannot be made.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful lives as follows:
Asset class |
Amortisation method and rate |
Goodwill |
Straight line over 5 - 7 years |
Registered trademarks |
Straight line over 5 years |
Other intangible assets |
Straight line over 2 - 5 years |
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, less any estimated residual value, other than land and properties under construction, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land |
Nil |
Freehold buildings |
Nil |
Leasehold land and buildings |
Straight line over the life of the lease/ 5% straight line where substance over form has been adopted |
Motor vehicles |
25% reducing balance |
Plant and machinery |
10-25% reducing balance |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Business combinations
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination.
Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell.
Costs incurred in bringing each product to its present location and condition are based on purchase cost plus any reconditioning costs.
Debtors
Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. The aggregate benefit of lease incentives is recognised as a reduction to the expense recognised over the lease term on a straight line basis.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
A dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Recognition and measurement
Such assets are subsequently carried at amortised cost using the effective interest method.
Financial assets are derecognised when
a) the contractual rights to the cash flows from the asset expire or are settled, or
b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or
c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Basic financial liabilities, including trade and other payables and loans from related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of estimated cash flows discounted at the liability's original effective interest rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Impairment
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Turnover |
The company's turnover has arisen from continuing operations within the UK. An analysis of the company's turnover for the year by class of business is as follows:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Sale of second hand cars |
|
|
Sale of add on products |
|
|
Car repair and preparation services |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Miscellaneous other operating income |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
Year ended 30 September 2024 |
1 January |
|
Gain on disposal of tangible fixed assets |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting):
Year ended 30 September 2024 |
1 January |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Other interest receivable and similar income |
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Dividend income |
- |
|
Other finance income |
|
- |
|
|
Interest payable and similar expenses |
Year ended 30 |
1 January |
|
Interest on borrowings |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Year ended 30 |
1 January |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Administration and support |
|
|
Sales |
|
|
Other departments |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
Year ended 30 |
1 January |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
196,815 |
138,235 |
During the year the number of directors who were receiving benefits was as follows:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
Year ended 30 |
1 January |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
All other assurance services |
|
|
|
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Taxation |
Tax charged/(credited) in the income statement:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
Current taxation |
||
UK corporation tax |
- |
|
UK corporation tax adjustment to prior periods |
- |
( |
- |
(158,348) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax credit in the income statement |
( |
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Year ended 30 September 2024 |
1 January 2023 to 30 September 2023 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Decrease from tax losses for which no deferred tax asset was recognised |
- |
( |
Increase in UK and foreign current tax from unrecognised tax loss or credit |
- |
|
Deferred tax not recognised |
( |
- |
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
Tax decrease from effect of dividends from UK companies |
- |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax credit |
( |
( |
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Difference between accumulated depreciation and capital allowances |
( |
- |
Tax losses carried forward |
|
- |
|
- |
2023 |
Asset |
Liability |
Difference between accumulated depreciation and capital allowances |
( |
- |
Tax losses carried forward |
|
- |
|
- |
There are £Nil of unused tax losses (2023 - £2,649) for which no deferred tax asset is recognised in the balance sheet.
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £210,354.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Intangible assets |
Goodwill |
Registered trademarks |
Other intangible assets |
Total |
|
Cost |
||||
At 1 October 2023 |
|
|
|
|
At 30 September 2024 |
|
|
|
|
Amortisation |
||||
At 1 October 2023 |
|
|
|
|
Amortisation charge |
|
- |
- |
|
At 30 September 2024 |
|
|
|
|
Carrying amount |
||||
At 30 September 2024 |
|
- |
- |
|
At 30 September 2023 |
|
- |
- |
|
The amortisation of intangible assets is included in administrative expenses in the profit and loss account.
Pledged as security
Individually material intangible assets
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Tangible assets |
Freehold buildings |
Freehold land |
Leasehold land and buildings |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
||||||
At 1 October 2023 |
|
|
|
|
|
|
Additions |
- |
- |
|
|
|
|
Disposals |
( |
( |
( |
( |
( |
( |
Transfers |
( |
- |
|
- |
- |
- |
At 30 September 2024 |
- |
- |
|
|
|
|
Depreciation |
||||||
At 1 October 2023 |
|
- |
|
|
|
|
Charge for the year |
- |
- |
|
|
|
|
Eliminated on disposal |
( |
- |
( |
( |
( |
( |
Transfers |
( |
- |
|
- |
- |
- |
At 30 September 2024 |
- |
- |
|
|
|
|
Carrying amount |
||||||
At 30 September 2024 |
- |
- |
|
|
|
|
At 30 September 2023 |
|
|
|
|
|
|
Restriction on title and pledged as security
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Investments |
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 October 2023 and as at 30 September 2024 |
|
Carrying amount |
|
At 30 September 2024 |
|
At 30 September 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Carbase, Aisecome Way, Weston-Super-Mare, North Somerset, BS22 8NA England and Wales |
|
|
|
Subsidiary undertakings |
N S Smart Repair Limited The principal activity of N S Smart Repair Limited is |
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Stocks |
2024 |
2023 |
|
Stocks |
|
|
Consignment stock is obtained on 30-45 day credit terms. The legal title to the vehicle does not pass to the company until the supplier is in receipt of cleared funds for the full amount of the agreed sales price. If a vehicle remains unsold at the end of the credit period then the company is obligated to purchase that vehicle unless a mechanical problem has been identified. No deposit is required and the final sales price is set when the company sells the vehicle. Due to the “obligation to buy” the consignment stock is recognised as stock in these financial statements. The value of the stock at 30 September 2024 amounted to £5,443,878 (2023 - £8,538,599). An equal amount is held in accruals within creditors.
On rare occasions the company can obtain a small number of vehicles on a sale or return basis. If unsold at the end of the agreed period, the company may choose to purchase or return the vehicles to the supplier, without penalty. These vehicles are typically excluded from stock.
Impairment of stocks
The amount of reversal of impairment recognised in profit or loss is £72,980 (2023 - £Nil).
The carrying amount of stocks pledged as security for liabilities amounted to £
Debtors |
Current |
Note |
2024 |
2023 |
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
Deferred tax assets |
|
|
|
Corporation tax asset |
|
|
|
|
|
Other debtors includes £350,000 (2023 - £350,000) of unpaid share capital at 30 September 2024.
Details of non-current trade and other debtors
£960,285 (2023 - £547,533) of deferred tax assets is classified as non current.
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
|
Other non-current creditors |
|
|
|
|
|
Accrued expenses includes £5,443,878 (2023 - £8,538,599) of consignment stock liability held at 30 September 2024. These liabilities are only billed to the company when either the vehicle is sold or it reaches the end of the 30-45 day credit terms.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Share capital |
Authorised, allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
585,000 |
|
500,000 |
|
|
200 |
|
200 |
|
|
350,000 |
|
350,000 |
|
|
75,000 |
|
75,000 |
|
|
|
|
New shares allotted
During the year 85,000 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Ordinary A and B shares have the following rights, preferences and restrictions: |
Preference shares have the following rights, preferences and restrictions: |
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Reserves |
Capital redemption reserve
The capital redemption reserve has arisen due to the company buying back and cancelling preference shares of £1 each. The creation of the capital redemption reserve preserves the capital of the company.
Profit and loss account
This reserve represents accumulated profits net of any distributions made to shareholders.
Share premium reserve
The share premium reserve has arisen due to the company issuing 85,000 new ordinary shares with a nominal value of £1 for £1,000,000.
Revaluation reserve
The revaluation reserve arose due to the company revaluing their freehold land and buildings under the transitional rules of FRS 102 Section 35. This revaluation was extinguished last year when the freehold land and buildings were impaired to their recoverable net realisable value.
The changes to each component of equity resulting from items of other comprehensive income for the prior period were as follows:
2023
|
2023
|
|
Surplus/(deficit) on property, plant and equipment revaluation |
( |
( |
|
Loans and borrowings |
Current loans and borrowings
2024 |
2023 |
|
Stocking loan facility |
|
|
Other borrowings |
|
|
|
|
Non-current loans and borrowings
2024 |
2023 |
|
Other borrowings |
|
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Stocking loan facility
£17,885,599 (2023 - £18,020,820) is secured by fixed and floating charges over various stock and fixed assets including all freehold property held in the company.
|
Other borrowings
The company has various private loans from individuals and companies is denominated in pounds with a nominal interest rate of varying amounts up to 10%, and the final instalment is due on 28 February 2030. The carrying amount at year end is £5,532,923 (2023 - £6,835,978).
The loans have varying terms ranging from 2 months notice to 5 years and the majority of investors re-invest when their loans reach maturity.
Loans from connected parties totalling £702,790 (2023 - £2,602,064) are included within the private loans detailed above. These loans become payable if 2 months notice is given, however all these loans are held for long term investment and redemptions are expected to be minimal. The loans are either controlled or strongly influenced by the directors.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Analysis of changes in net debt |
At 1 October 2023 |
Financing cash flows |
Other non-cash changes |
At 30 September 2024 |
|
Cash and cash equivalents |
||||
Cash |
1,526,066 |
1,635,942 |
- |
3,162,008 |
Borrowings |
||||
Long term borrowings |
(3,499,800) |
(118,287) |
1,000,000 |
(2,618,087) |
Short term borrowings |
(21,356,998) |
556,563 |
- |
(20,800,435) |
(24,856,798) |
438,276 |
1,000,000 |
(23,418,522) |
|
( |
|
|
( |
|
|
Related party transactions |
Key management compensation
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with other related parties
During the year other related parties rendered services to the company including commission charges and management charges.
During the year, the company purchased vehicles from other related parties.
The company continued to provide loans to other related parties which were interest free and repayable on demand.
Other related parties continued to provide loans to the company on which interest was charged at varying rates and are repayable under various terms as described in note 23 Loans and borrowings.
Income and receivables from related parties
2023 |
Joint ventures |
Dividends received |
|
Receipt of services |
|
|
|
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Expenditure with and payables to related parties
2024 |
Other related parties |
Purchase of goods |
|
Rendering of services |
|
|
|
Amounts payable to related party |
|
|
2023 |
Other related parties |
Purchase of goods |
|
Rendering of services |
|
|
|
Amounts payable to related party |
|
|
Loans to related parties
2024 |
Key management |
Other related parties |
Total |
At start of period |
|
|
|
At end of period |
|
|
|
|
2023 |
Key management |
Other related parties |
Total |
At start of period |
|
|
|
At end of period |
|
|
|
|
Loans from related parties
2024 |
Other related parties - stocking loan |
Key management |
Other related parties |
Total |
At start of period |
|
|
|
|
Advanced |
|
- |
|
|
Repaid |
- |
- |
( |
( |
Repaid via debt for equity swap |
- |
- |
( |
( |
At end of period |
|
|
|
|
|
Brent Cars Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
2023 |
Other related parties - stocking loan |
Key management |
Other related parties |
Total |
At start of period |
|
|
|
|
Advanced |
|
- |
|
|
Repaid |
- |
- |
( |
( |
At end of period |
|
|
|
|
|
Parent and ultimate parent undertaking |
The ultimate controlling party is