Company registration number 00352956 (England and Wales)
J.P. ARTHUR & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
J.P. ARTHUR & SONS LIMITED
COMPANY INFORMATION
Directors
R N Williams
J M Jones
Secretary
Mr R N Williams
Company number
00352956
Registered office
Lower Brook Street
Oswestry
Shropshire
SY11 2HG
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
Business address
Lower Brook Street
Oswestry
Shropshire
SY11 2HG
Bankers
Barclays Bank Plc
Raymond Court
Princes Drive
Colwyn Bay
LL29 8HT
J.P. ARTHUR & SONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
J.P. ARTHUR & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
J.P Arthur & Sons Limited operate from three car and van dealerships in Newtown, Oswestry, and Wrexham.
The dealerships represent the following brands;-
Newtown
Ford Passenger Car - Service
Ford Light Commercial Vehicles - Service
Peugeot Passenger Car- Service
Peugeot Light Commercial Vehicles – Service
Vauxhall Passenger Car – Service
Vauxhall Light Commercial Vehicles – Service
Oswestry
Peugeot Passenger Car – Service
Peugeot Light Commercial Vehicles - Service
Vauxhall Passenger Car – Service
Vauxhall Light Commercial Vehicles – Service
Wrexham
Peugeot Passenger Car – New Car Sales
Peugeot Light Commercial Vehicles – New LCV Sales
Peugeot Passenger Car – Service
Peugeot Light Commercial Vehicles – Service
Sales for the year ending 31st December 2024 were £31,648,415 (2023 - £32,289,133) with a gross profit of 11.4%. Profit before tax was £580,616.
The Company was pleased to have received the ultimate accolade in the Peugeot UK dealer network by being named as the ‘Guild of Gold Lion Dealer of the Year in 2024’. This achievement was due to a great performance across a number of areas, including new car sales and customer satisfaction.
At the date of signing these accounts the company is in a great position to challenge for this award again in 2025.
Principal risks and uncertainties
The management of the business and the nature of the company's strategy are subject to a number of risks. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Where possible, processes are in place to monitor and mitigate such risks.
J.P. ARTHUR & SONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Development and performance
The company monitors its performance using key performance indicators. The primary key performance indicators used by the company are standard motor industry recognised figures.
The business continues its relentless pursuit of offering the highest levels of customer satisfaction.
The company’s major stakeholders continue to be supportive of the company.
Key performance indicators
Key performance indicators are considered to be turnover, net profit, and the level of funds within the business.
Economic downturn
The success of the business is reliant on consumer spending. An economic downturn, resulting in reduction of consumer spending power will have a direct impact on the income achieved by the company.
In response to this risk, senior management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect new market conditions.
R N Williams
Director
10 July 2025
J.P. ARTHUR & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of a motor vehicle retailer.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R N Williams
J M Jones
Financial instruments
Business Risks
The company's operations expose it to a variety of financial risks that include credit risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. The department has a policy and procedures manual that sets out specific guidelines to manage interest rate risk, credit risk and circumstances where it would be appropriate to use financial instruments to manage these.
Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.
Interest rate cash flow risk
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances which earn interest at a variable rate. Interest bearing liabilities are at variable interest rates.
Future developments
There are no significant developments to report.
Auditor
The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The auditor, Cooper Parry Group Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
J.P. ARTHUR & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R N Williams
Director
10 July 2025
J.P. ARTHUR & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.P. ARTHUR & SONS LIMITED
- 5 -
Opinion
We have audited the financial statements of J.P. Arthur & Sons Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.
J.P. ARTHUR & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.P. ARTHUR & SONS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report 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 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.
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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:
the nature of the industry and sector, control environment and business performance
any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance,
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
The matters discussed among the audit engagement team and involving relevant internal specialists, including tax, and industry specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
J.P. ARTHUR & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J.P. ARTHUR & SONS LIMITED (CONTINUED)
- 7 -
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: valuation of used vehicle stocks and recognition of supplier incentives. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included the company's FCA regulatory requirements.
Our procedures to respond to risks identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management and those charged with governance concerning actual and potential litigation claims;
In addressing the risk of fraud through inappropriate valuation of used vehicle inventory, assessing net realisable value of stock items sold after the year end was above cost or assessing their value with reference to third party data sources if unsold;
In addressing the risk of fraud through inappropriate recording of supplier incentives, ensuring amounts recorded as due were then subsequently acknowledged as such by the supplier;
In assessing the risk of fraud through management override of controls, testing the appropriateness of journal entries and assessing whether judgements made in making accounting estimates are indicative of potential bias.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Paul Daly BEng FCA (Senior Statutory Auditor)
For and on behalf of Cooper Parry Group Limited, Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
10 July 2025
J.P. ARTHUR & SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
31,648,416
32,289,133
Cost of sales
(28,055,410)
(28,871,113)
Gross profit
3,593,006
3,418,020
Administrative expenses
(3,010,197)
(3,143,603)
Operating profit
4
582,809
274,417
Interest receivable and similar income
3,564
Interest payable and similar expenses
7
(5,757)
(63,468)
Profit before taxation
580,616
210,949
Tax on profit
8
(140,537)
(57,868)
Profit for the financial year
440,079
153,081
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
J.P. ARTHUR & SONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
306,246
379,241
Current assets
Stocks
10
3,850,284
2,768,495
Debtors
11
1,012,886
842,167
Cash at bank and in hand
454,319
650,178
5,317,489
4,260,840
Creditors: amounts falling due within one year
12
(2,449,939)
(1,889,900)
Net current assets
2,867,550
2,370,940
Total assets less current liabilities
3,173,796
2,750,181
Provisions for liabilities
Deferred tax liability
13
61,047
77,511
(61,047)
(77,511)
Net assets
3,112,749
2,672,670
Capital and reserves
Called up share capital
15
15,000
15,000
Capital redemption reserve
16
7,541
7,541
Profit and loss reserves
16
3,090,208
2,650,129
Total equity
3,112,749
2,672,670
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 10 July 2025 and are signed on its behalf by:
R N Williams
Director
Company registration number 00352956 (England and Wales)
J.P. ARTHUR & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
15,000
7,541
2,497,048
2,519,589
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
153,081
153,081
Balance at 31 December 2023
15,000
7,541
2,650,129
2,672,670
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
440,079
440,079
Balance at 31 December 2024
15,000
7,541
3,090,208
3,112,749
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
J.P. Arthur & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is 9 Lower Brook Street, Oswestry, Shropshire, SY11 2HJ.
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 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Perthy Properties Limited. These consolidated financial statements are available from its registered office, 9 Lower Brook Street, Oswestry, Shropshire, United Kingdom, SY11 2HG.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Sales of motor vehicles, parts and accessories are recognised on the earlier of full payment by, or delivery date to, the customer. Any other manufacturer income in relation to achieving targets is recognised on an accrual basis. Servicing revenue is recognised on the completion of the agreed work.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% on cost
Plant and machinery
10% on cost
Computer equipment
33% on cost
Motor vehicles
25% reducing balance
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock.
Vehicles on consignment are recognised within the balance sheet when the vehicles are in substance an asset of the company. This is determined by reference to whether the principal risks and rewards of ownership have been transferred to the company. The corresponding liability is included under creditors: amounts falling due within one year.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets 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.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the 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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
Consignment
Consignment vehicles are recognised on the balance sheet when the significant risks and rewards of ownership have passed to the company even though legal title has not yet passed. The corresponding liability is included within creditors: amounts falling due within one year.
Stock
The carrying value of new and used cars held for sale is assessed by management using judgement, based on current market conditions to estimate the carrying value of its new and used car stock, and any provisions required. Total vehicle stock included within the accounts at the year end amounted to £3,685,480 (2023 - £2,557,347).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of vehicles and parts
27,655,029
28,647,556
Rendering of services
3,993,387
3,641,577
31,648,416
32,289,133
2024
2023
£
£
Other revenue
Interest income
3,564
-
All turnover arose within the UK.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,700
13,800
Depreciation of owned tangible fixed assets
69,497
66,338
Profit on disposal of tangible fixed assets
(15,100)
(176)
Operating lease charges
281,299
316,300
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
27
26
Service
35
36
Parts
3
3
Administrative
13
11
Directors
2
2
Total
80
78
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,229,928
2,133,418
Social security costs
223,771
182,476
Pension costs
42,935
41,531
2,496,634
2,357,425
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
34,000
111,928
Company pension contributions to defined contribution schemes
833
1,777
34,833
113,705
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Interest payable and similar expenses
2024
2023
£
£
Other interest
5,757
63,468
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
162,062
43,356
Adjustments in respect of prior periods
(5,061)
827
Total current tax
157,001
44,183
Deferred tax
Origination and reversal of timing differences
(16,464)
13,685
Total tax charge
140,537
57,868
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
580,616
210,949
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
145,154
49,615
Tax effect of expenses that are not deductible in determining taxable profit
459
6,587
Effect of change in corporation tax rate
810
Under/(over) provided in prior years
(5,061)
827
Other tax adjustments
(15)
29
Taxation charge for the year
140,537
57,868
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Tangible fixed assets
Leasehold improvements
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
29,479
757,706
269,697
140,075
1,196,957
Additions
2,526
76,135
4,084
2,070
84,815
Disposals
(105,645)
(105,645)
At 31 December 2024
32,005
833,841
273,781
36,500
1,176,127
Depreciation and impairment
At 1 January 2024
6,414
533,127
262,707
15,468
817,716
Depreciation charged in the year
3,504
47,163
4,121
14,709
69,497
Eliminated in respect of disposals
(17,332)
(17,332)
At 31 December 2024
9,918
580,290
266,828
12,845
869,881
Carrying amount
At 31 December 2024
22,087
253,551
6,953
23,655
306,246
At 31 December 2023
23,065
224,579
6,990
124,607
379,241
10
Stocks
2024
2023
£
£
Parts stock
164,804
211,148
Vehicle stock
3,685,480
2,557,347
3,850,284
2,768,495
During the period an impairment loss of £43,068, (2023: £16,641) was recognised against stock.
The new stocking loans & consignment stocking loans included in trade creditors amounting to £1,405,882 (2023: £789,206) are secured directly on the vehicles to which they relate.
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
626,532
624,040
Amounts owed by group undertakings
214,479
136,366
Other debtors
24,893
7,221
Prepayments and accrued income
146,982
74,540
1,012,886
842,167
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,866,536
1,657,473
Corporation tax
151,882
38,237
Other taxation and social security
128,119
57,118
Other creditors
2,832
2,585
Accruals and deferred income
300,570
134,487
2,449,939
1,889,900
Vehicle creditors included within trade creditors are secured directly on the vehicles to which they relate. Secured amounts as at 31 December 2024 totalled £1,405,882 (2023 - £789,206).
13
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
61,970
80,101
Short term timing differences
(923)
(2,590)
61,047
77,511
2024
Movements in the year:
£
Liability at 1 January 2024
77,511
Credit to profit or loss
(16,464)
Liability at 31 December 2024
61,047
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,935
41,531
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.
Contributions totalling £9,887 (2023: £10,361) were payable to the fund at the reporting date.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,000
6,000
6,000
6,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Cumulative 7% preference shares of £1 each
9,000
9,000
9,000
9,000
Preference shares classified as equity
9,000
9,000
Total equity share capital
15,000
15,000
The cumulative 7% preference shares are redeemable at par, at the discretion of the company.
Called up share capital represents the nominal value of shares that have been issued.
16
Reserves
Capital redemption reserve
The capital redemption reserve is a non-distributable reserve and represents the nominal value of shares repurchased by the company.
Profit and loss reserves
The profit and loss account includes all realised current and prior period retained profits and losses.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
17
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
£
£
Motor vehicles:
Within one year
72,685
89,939
Between two and five years
5,975
29,463
78,660
119,402
2024
2023
£
£
Land and buildings:
Within one year
380,000
380,000
Between two and five years
930,000
1,310,000
In over five years
-
1,310,000
1,690,000
18
Related party transactions
The company has taken advantage of the exemption available in FRS102 whereby it has not disclosed transactions with its 100% parent company or fellow subsidiary undertakings.
During the year the company entered into the following transactions with Arthurs of Oswestry Car Sales LLP, a related party due to common ownership:
The company made sales of £Nil (2023 - £66,589), and purchases of £Nil (2023 - £66,865) with Arthurs of Oswestry Car Sales LLP.
The company rents a property from an entity controlled by certain directors at a rate of £3,000 (2023 - £3,000) per annum.
The company rents a property from a director's pension fund. During the year £Nil (2023 - £6,000) was paid to the pension fund.
The company rents some land from one of the directors family members at a rate of £2,400 (2023 - £Nil) per annum.
The directors of the company are considered to be the key management personnel. Directors remuneration is disclosed in note 6.
19
Ultimate controlling party
The ultimate parent company is Perthy Properties Limited which owns 100% of the share capital in J.P. Arthur & Sons Limited.
J.P. ARTHUR & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Ultimate controlling party
(Continued)
- 22 -
The ultimate controlling party is R N Williams by virtue of his majority shareholding in the parent company.
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