Company registration number 06976428 (England and Wales)
TUSTAIN MOTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TUSTAIN MOTORS LIMITED
COMPANY INFORMATION
Directors
B. Baxter
D. Storey
Company number
06976428
Registered office
13 Freeman Way
North Seaton Industrial Estate
Ashington
Northumberland
NE63 0YB
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
TUSTAIN MOTORS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
TUSTAIN MOTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the operation of motor dealerships.
Review of the business
The directors are pleased with the overall performance of the business during the year.
The financial statements report the results of trade from motor dealerships acquired since 2010. The group structure has been set up to facilitate the acquisition of further dealerships providing the geographical location of potential targets is beneficial to the running and welfare of the company.
As a motor dealer, the company deals in new vehicles, used vehicles, mechanical service and repair, accident damage and repair and sells spare vehicle parts. The company perfomed well this year resulting in a good level of turnover and increased profitability .Turnover has increased from 2023 rising from £38.1m to £40.9m. Operating profit increased from £0.5m in 2023 to £1.1m in 2024.
The company's key financial and other performance indicators during the year were as follows:
Principal risks and uncertainties
As for many businesses of our size, the business environment in which we operate continues to be challenging. The used vehicle car market in the UK continues to be highly competitive with tightening supply of ICE vehicles because of the increase in BEV new registrations driven by government policy and manufacturers. The business is subject to consumer spending patterns and consumers overall level of disposable income. The directors, however, remain confident that the business will continue to progress throughout 2025.
D. Storey
Director
19 May 2025
TUSTAIN MOTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
B. Baxter
D. Storey
Financial instruments
Objectives and Policies
The company finances its activities with a combination of cash and short term deposits and a working capital facility provided by the parent company. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.
Cash flow and liquidity risk is the risk that a company's available cash will not be sufficient to meet its financial obligations. The company actively manages its cash flow position including collection of debts and timely payment of creditors. This is deemed sufficient to minimise the company's exposure to cash flow and liquidity risk.
Post reporting date events
On 1 April 2025, following a group reconstruction, the company's immediate and ultimate parent became Minhoco 92 Limited.
Future developments
The directors aim to maintain the management policies which have resulted in the company's growth in recent years. They consider that the next year will show a further significant growth in sales from continuing operations. In addition, the company's directors continue to review and consider further growth through acquisitions of other motor dealerships.
Auditor
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditor of the company is to be proposed at the forthcoming Annual General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
D. Storey
Director
19 May 2025
TUSTAIN MOTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
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;
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.
TUSTAIN MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUSTAIN MOTORS LIMITED
- 4 -
Opinion
We have audited the financial statements of Tustain Motors Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TUSTAIN MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUSTAIN MOTORS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
TUSTAIN MOTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUSTAIN MOTORS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); anti-bribery and corruption; and compliance with the UK Companies Act.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Claire Hinshaw ACCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
19 May 2025
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
TUSTAIN MOTORS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
40,912,265
38,068,121
Cost of sales
(35,433,172)
(33,382,227)
Gross profit
5,479,093
4,685,894
Administrative expenses
(4,348,787)
(4,214,812)
Other operating income
6,000
6,000
Operating profit
4
1,136,306
477,082
Interest receivable and similar income
7
790
Interest payable and similar expenses
8
(22,501)
(25,609)
Profit before taxation
1,114,595
451,473
Tax on profit
9
(285,440)
(119,132)
Profit for the financial year
829,155
332,341
The income statement has been prepared on the basis that all operations are continuing operations.
TUSTAIN MOTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
829,155
332,341
Other comprehensive income
-
-
Total comprehensive income for the year
829,155
332,341
TUSTAIN MOTORS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
85,250
119,844
Tangible assets
12
1,013,480
708,982
1,098,730
828,826
Current assets
Stocks
13
5,959,479
4,900,255
Debtors
14
392,009
433,982
Cash at bank and in hand
99,634
95,016
6,451,122
5,429,253
Creditors: amounts falling due within one year
15
(5,392,697)
(4,782,586)
Net current assets
1,058,425
646,667
Total assets less current liabilities
2,157,155
1,475,493
Provisions for liabilities
Deferred tax liability
16
120,387
117,880
(120,387)
(117,880)
Net assets
2,036,768
1,357,613
Capital and reserves
Called up share capital
18
625,000
625,000
Profit and loss reserves
1,411,768
732,613
Total equity
2,036,768
1,357,613
The financial statements were approved by the board of directors and authorised for issue on 19 May 2025 and are signed on its behalf by:
D. Storey
Director
Company Registration No. 06976428
TUSTAIN MOTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
625,000
800,272
1,425,272
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
332,341
332,341
Dividends
10
-
(400,000)
(400,000)
Balance at 31 December 2023
625,000
732,613
1,357,613
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
829,155
829,155
Dividends
10
-
(150,000)
(150,000)
Balance at 31 December 2024
625,000
1,411,768
2,036,768
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Tustain Motors Limited is a private company limited by shares incorporated in England and Wales. The registered office is 13 Freeman Way, North Seaton Industrial Estate, Ashington, Northumberland, NE63 0YB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related part transactions with members of the same group that are wholly owned.
The financial statements of the company are consolidated in the financial statements of J B Tustain Motors Holdings Limited. These consolidated financial statements are available from its registered office, 13 Freeman Way, North Seation Industrial Estate, Ashington, Northumberland, NE63 0YB.
1.2
Going concern
The financial statements have been prepared on a going concern basis.true
The company meets its day to day working capital requirements through cash generated from operations and group banking facilities. The company also has the continued financial support of its parent company and its shareholders.
The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% straight line
Plant and equipment
10%-50% straight line
Fixtures and fittings
10%-20% straight line
Computer equipment
25%-50% straight line
Motor vehicles
11%-20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to 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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors do not consider there to be any judgements, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year.
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
37,202,663
35,030,787
Rendering of services
3,591,626
2,979,852
Other Revenue
117,976
57,482
40,912,265
38,068,121
2024
2023
£
£
Turnover analysed by geographical market
UK
40,912,265
38,068,121
2024
2023
£
£
Other revenue
Interest income
790
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
190,948
201,108
Loss on disposal of tangible fixed assets
2,797
45,174
Amortisation of intangible assets
34,594
35,890
Impairment of stocks reversed
(156,468)
(15,743)
Operating lease charges
409,926
448,149
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,900
18,435
For other services
Taxation compliance services
3,285
3,042
All other non-audit services
1,000
4,285
3,042
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Employees
The average monthly number of persons employed by the company during the year was:
2024
2023
Number
Number
Management
13
13
Sales
32
30
Administration and support
15
15
Parts and servicing
36
34
Total
96
92
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,682,203
2,466,140
Social security costs
307,257
267,015
Pension costs
82,247
75,561
3,071,707
2,808,716
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
790
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
22,501
25,609
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
282,933
127,719
Deferred tax
Origination and reversal of timing differences
2,507
(8,587)
Total tax charge
285,440
119,132
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
9
Taxation
(Continued)
- 18 -
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
1,114,595
451,473
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
278,649
106,186
Tax effect of expenses that are not deductible in determining taxable profit
1,581
317
Tax effect of income not taxable in determining taxable profit
(1,500)
(1,411)
Effect of change in corporation tax rate
(508)
Depreciation on assets not qualifying for tax allowances
6,710
14,548
Taxation charge for the year
285,440
119,132
10
Dividends
2024
2023
2024
2023
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
0.24
0.64
150,000
400,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
798,686
Amortisation and impairment
At 1 January 2024
678,842
Amortisation charged for the year
34,594
At 31 December 2024
713,436
Carrying amount
At 31 December 2024
85,250
At 31 December 2023
119,844
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
515,405
1,012,806
461,352
100,903
60,583
2,151,049
Additions
394,603
49,828
44,959
8,853
498,243
Disposals
(4,776)
(709)
(5,485)
At 31 December 2024
910,008
1,057,858
506,311
109,047
60,583
2,643,807
Depreciation and impairment
At 1 January 2024
332,253
739,405
266,053
85,323
19,033
1,442,067
Depreciation charged in the year
57,991
72,761
45,328
9,918
4,950
190,948
Eliminated in respect of disposals
(1,980)
(708)
(2,688)
At 31 December 2024
390,244
810,186
311,381
94,533
23,983
1,630,327
Carrying amount
At 31 December 2024
519,764
247,672
194,930
14,514
36,600
1,013,480
At 31 December 2023
183,152
273,401
195,299
15,580
41,550
708,982
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,959,479
4,900,255
The carrying amount of stocks pledged as security for liabilities amounted to £33,445 (2023 - £63,018).
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
177,767
240,548
Amounts owed by group undertakings
49,930
41,768
Other debtors
8,615
13,759
Prepayments and accrued income
155,697
137,907
392,009
433,982
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,063,000
625,494
Amounts owed to group undertakings
50,000
65,402
Corporation tax
169,145
38,153
Other taxation and social security
330,059
326,090
Other creditors
2,759,942
2,593,079
Accruals and deferred income
1,020,551
1,134,368
5,392,697
4,782,586
16
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
120,387
117,880
2024
Movements in the year:
£
Liability at 1 January 2024
117,880
Charge to profit or loss
2,507
Liability at 31 December 2024
120,387
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,247
75,561
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.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
625,000
625,000
625,000
625,000
TUSTAIN MOTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
480,093
311,491
Between two and five years
2,694,609
240,915
In over five years
4,062,839
7,237,541
552,406
The amount of non-cancellable operating lease payments recognised as an expense during the year was £409,926 (2023:£331,533).New lease agreements were finalized on 1 April 2025 for a period upto 31 March 2040.
20
Ultimate controlling party
During the year, the company's immediate and ultimate parent was J B Tustain Motors Holdings Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is J B Tustain Motors Holdings Limited. These financial statements are available upon request from 13 Freeman Way, North Seaton Industrial Estate, Ashington, Northumberland, NE63 0YB.
On 1 April 2025. following a group reconstruction, the company's immediate and ultimate parent became Minhoco 92 Limited, incorporated in England and Wales.
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100B. BaxterD. Storey069764282024-01-012024-12-3106976428bus:Director12024-01-012024-12-3106976428bus:Director22024-01-012024-12-3106976428bus:RegisteredOffice2024-01-012024-12-31069764282024-12-31069764282023-01-012023-12-3106976428core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3106976428core:RetainedEarningsAccumulatedLosses2024-01-012024-12-3106976428core:Goodwill2024-12-3106976428core:Goodwill2023-12-31069764282023-12-3106976428core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3106976428core:PlantMachinery2024-12-3106976428core:FurnitureFittings2024-12-3106976428core:ComputerEquipment2024-12-3106976428core:MotorVehicles2024-12-3106976428core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3106976428core:PlantMachinery2023-12-3106976428core:FurnitureFittings2023-12-3106976428core:ComputerEquipment2023-12-3106976428core:MotorVehicles2023-12-3106976428core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3106976428core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3106976428core:CurrentFinancialInstruments2024-12-3106976428core:CurrentFinancialInstruments2023-12-3106976428core:ShareCapital2024-12-3106976428core:ShareCapital2023-12-3106976428core:RetainedEarningsAccumulatedLosses2024-12-3106976428core:RetainedEarningsAccumulatedLosses2023-12-3106976428core:ShareCapital2022-12-3106976428core:RetainedEarningsAccumulatedLosses2022-12-3106976428core:ShareCapitalOrdinaryShareClass12024-12-3106976428core:ShareCapitalOrdinaryShareClass12023-12-3106976428core:Goodwill2024-01-012024-12-3106976428core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3106976428core:PlantMachinery2024-01-012024-12-3106976428core:FurnitureFittings2024-01-012024-12-3106976428core:ComputerEquipment2024-01-012024-12-3106976428core:MotorVehicles2024-01-012024-12-3106976428core:UKTax2024-01-012024-12-3106976428core:UKTax2023-01-012023-12-310697642812024-01-012024-12-310697642812023-01-012023-12-3106976428bus:OrdinaryShareClass12024-01-012024-12-3106976428bus:OrdinaryShareClass12023-01-012023-12-3106976428core:Goodwill2023-12-3106976428core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3106976428core:PlantMachinery2023-12-3106976428core:FurnitureFittings2023-12-3106976428core:ComputerEquipment2023-12-3106976428core:MotorVehicles2023-12-31069764282023-12-3106976428core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3106976428bus:OrdinaryShareClass12024-12-3106976428bus:OrdinaryShareClass12023-12-3106976428core:WithinOneYear2024-12-3106976428core:WithinOneYear2023-12-3106976428core:BetweenTwoFiveYears2024-12-3106976428core:BetweenTwoFiveYears2023-12-3106976428core:MoreThanFiveYears2024-12-3106976428core:MoreThanFiveYears2023-12-3106976428bus:PrivateLimitedCompanyLtd2024-01-012024-12-3106976428bus:FRS1022024-01-012024-12-3106976428bus:Audited2024-01-012024-12-3106976428bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP