| REGISTERED NUMBER: |
| TANVIC GROUP LIMITED |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| AUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| REGISTERED NUMBER: |
| TANVIC GROUP LIMITED |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| AUDITED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 5 |
| Report of the Independent Auditors | 6 | to | 8 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Statement of Financial Position | 11 |
| Statement of Changes in Equity | 12 |
| Notes to the Financial Statements | 13 | to | 23 |
| TANVIC GROUP LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: |
| AUDITORS: |
| 4 Henley Way |
| Doddington Road |
| Lincoln |
| Lincolnshire |
| LN6 3QR |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their strategic report for the year ended 31 December 2024. |
| REVIEW OF BUSINESS |
| The performance of the Company is detailed within the annexed financial statements. |
| 2024 | 2023 | Change |
| £ | £ | % |
| Turnover | 70,022,887 | 69,265,178 | 1.1 |
| Gross profit | 19,929,876 | 18,322,902 | 8.8 |
| Administrative expenses | 13,618,719 | 12,678,909 | 7.4 |
| Profit before tax | 6,372,871 | 5,729,244 | 11.2 |
| Average number of employees | 264 | 262 |
| The Board are pleased with trading results achieved. Albeit a minimal rise in turnover, Gross Profit was up 8.8%. Overheads rose 7.4% within a continued inflationary environment, and interest income increased due to the yield on bank deposits, resulting in a 11.2% increase to net profit at £7.5m. Net return on sales rose to 9%. The Company continued to enjoy further gains in the year from a conscious departure from high volume low margin account business to a continued focus on more profitable business across all sectors resulting in improved labour efficiency. |
| The Company's balance sheet continues to reflect its strong financial position with no finance obligations or external debt. Net Asset Value rose by £2.2m to £15.9m. |
| KEY PERFORMANCE INDICATORS |
| The Company routinely uses KPI's where relevant throughout the business to monitor sales and profitability performance, return on capital employed, labour efficiency and the management of working capital. Some of the key performance indicators are noted below, but the Company considers others to be confidential and for internal purposes only. |
| Turnover is a key performance indicator, this has grown by £757k (1.1%) from £69.3m to £70m. |
| Gross profit has also improved, this has grown by £1.6m (8.8%) from £18.3m to £19.9m. This has been driven by a reduction in cost of sales and improvement in labour efficiency when compared to the prior year. |
| Ultimately, this has led to an increase in the gross profit margin from 26.5% to 28.5%, as a result of the company moving to higher margin accounts and improved labour efficiency. |
| Profit before tax has increased by £644k (11.2%) from £5.73m to £6.37m. |
| FINANCIAL INSTRUMENTS |
| The Company’s principal financial instrument comprises of cash from operating profit and bank facilities which alongside trade debtors and creditors providing the required finance for normal trading operations and capital investment. The key risks arising from the Company’s financial instruments are that of liquidity and credit and the Company manages these appropriately. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The key external risks are competitor pricing, industry shipping costs, stock availability and employee retention. The Company prudently manages, comprehensively insures, and hedges where considered appropriate against a multitude of credit, currency, property, stock, vehicular, employment, trading, and other operational risks within the business. As a result, none are considered to be materially significant against the comfort of the Company's overall profitability, cash position and net asset value. |
| FUTURE DEVELOPMENTS |
| The Company remain confident in their ability to continue to grow the business and deliver strong returns. Whilst opportunities to add additional capacity or new sites at sensible value for money and return will be prioritised, the Company will continue with its investment of surplus cash into a range of none tyre related equity, property and other long term investments through its associated companies, Tanvic Properties Limited and Tanvic Investments Limited. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| SECTION 172(1) STATEMENT |
| The Board ensures that decisions are always taken for the long term, and collectively and individually aims to uphold the highest standards of conduct. Similarly, it acknowledges that the Company's employees and customers are their most important assets, and the business can only grow and prosper over the long term if it understands, respects and responds to their views and needs as well as those of other stakeholders within the environment we operate. |
| The likely consequences of any decision in the long term |
| The directors continually review the Company's activities and carefully consider all potential opportunities and challenges that the business faces. It is considered that during the year there have been no decisions that have had, or will have, a material impact on the business. |
| The interests of the Company's employees |
| Our Director's work closely with their team of Managers in the day to day running of the business and the Company routinely engages with its staff as appropriate and where relevant. All are aware of their expectations and benefit from numerous bonus incentives throughout the year. |
| The Company actively encourages career progression throughout the organisation and our Training Manager provides all employees with appropriate and relevant training and development support to meet their needs. Following an unacceptable increase in tyre fitter injury claims in recent years, significant investment in training was carried out in the year and will be maintained. |
| The Company seeks to foster an inclusive environment where all individuals have the same opportunities for a successful and rewarding career. |
| The need to foster the Company's business relationships with suppliers, customers and others |
| Our shareholders ensure the Company is well resourced, suppliers are always paid promptly to terms and stocks are maintained at such a level as to ensure availability beyond industry standard. We maintain a close relationship with all our suppliers, meeting routinely to identify sales opportunities and resolve any challenges. |
| Our customers, many of whom are extremely long standing and multi generational, are our lifeblood. Relationships are managed and nurtured through our Depot Managers,Business Development Managers and Sales personnel to ensure we are meeting expectations as a minimum. |
| Pricing is reviewed against the market on a continuous basis by our experienced Buying Team with the objective of delivering value for money for our customers comparative to our product availability and overall service levels. |
| The impact of the company's operations on the community and the environment |
| The Company always maintains regard for the environment in which it operates and is committed to reducing its environmental impact. It continually invests in environmental projects to reduce its energy consumption and as a result has always performed well in ESOS assessments. |
| In recent years we have added solar panels to the roof of all appropriate buildings (6 buildings), all lighting has been replaced with the most energy efficient LED, heating systems have been improved to reduce fuel consumption, all vehicles operate with telematics software to allow us to improve driving and fuel efficiency and we have experimented with electric vehicles. |
| We aim to replace vehicles on an average 4 year cycle thus engines are cleaner and more fuel efficient. |
| All our waste and recycling is collected and processed by an approved and reputable supplier who collates the appropriate data on our behalf and reports as necessary to the Environment Agency. |
| ON BEHALF OF THE BOARD: |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| Operating within the East Midlands, East Anglia and South Yorkshire, the Group's principal activities are organised into 3 Divisions across a total of 19 sites. The Retail Division provide tyre fitment and garage services from 9 centres, some having been established for over 50 years. The Commercial Division provide truck and agricultural tyre services from 6 depots and the Wholesale Division provide a comprehensive wholesale car tyre distribution service from 4 strategically located centres. |
| DIVIDENDS |
| An interim dividend of £12.71585 per share on the Ordinary A £1 shares was paid on 2 January 2024. |
| An interim dividend of £12.71585 per share on the Ordinary A £1 shares was paid on 18 April 2024. |
| An interim dividend of £12.71585 per share on the Ordinary A £1 shares was paid on 15 July 2024. |
| The directors recommend that no final dividend be paid on these shares. |
| No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares. |
| No interim dividend was paid on the Ordinary C £1 shares. The directors recommend that no final dividend be paid on these shares. |
| The total distribution of dividends for the year ended 31 December 2024 will be £3,000,000. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| ENGAGEMENT WITH EMPLOYEES |
| The Board ensures that decisions are always taken for the long term, and collectively and individually aims to uphold the highest standards of conduct. Similarly, it acknowledges that the Company’s employees and customers are their most important assets, and the business can only grow and prosper over the long term if it understands, respects and responds to their views and needs as well as those of other stakeholders within the environment we operate. |
| Our Directors work closely with their team of Managers in the day to day running of the business and the Company routinely engages with its staff as appropriate and where relevant. All are aware of their expectations and benefit from numerous bonus incentives throughout the year. The Company actively encourages career progression throughout the organisation and our Training Manager provides all employees with appropriate and relevant training and development support to meet their needs. The Company employs several disabled persons, including within managerial positions. It gives full consideration to disabled applications where the requirements of the job can be properly fulfilled and supports them as necessary. |
| ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
| Our shareholders ensure the Company is well resourced, suppliers are always paid promptly to terms and stocks are maintained at such a level as to ensure availability beyond industry standard. Pricing is reviewed against the market on a continuous basis with the objective of delivering value for money for our customers against our product availability and overall service levels. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| In line with reporting requirements we present our streamlined energy and carbon report; |
| 2024 | 2023 | Units |
| Total Energy consumption (all fuel and energies) | 6,779 | 6,357 | MWh |
| Scope 1 emissions (combustible fuel; diesel, gas) | 1,500 | 1,405 | tCO2e |
| Scope 2 emissions (purchased energy; electric) | 112 | 100 | tCO2e |
| Total Scope 1 and 2 emissions | 1,612 | 1,505 | tCO2e |
| Intensity ratio (tCo2e/£1m turnover) | 23.0 | 21.7 | tCO2e |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TANVIC GROUP LIMITED |
| Opinion |
| We have audited the financial statements of Tanvic Group Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 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. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| 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 Report of the Directors. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TANVIC GROUP LIMITED |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
| Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non compliance throughout the audit. |
| The potential impact of different laws and regulations varies considerably. Firstly, the Company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, re-performing the calculation and reviewing the outcome of current year estimates since the financial reporting date. |
| Secondly, the Company is subject to other laws and regulations where the consequence for non compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect are the Health and Safety regulations, the disposal of old tyres, oils and liquids and Employment laws. |
| Our work included a review of the external audits conducted within the year for any evidence of non compliance, reading minutes of meetings of those charged with governance and correspondence held with regulators, in addition to an assessment of the Company's legal expenses and possible contingencies.The company also uses accredited companies for the disposal of waste tyres and oils and liquids ensuring that relevant documentation is obtained on how the items are to be disposed of and that this is in accordance with required legislation. Through these procedures, if we became aware of any non compliance, we considered the impact on the procedures performed on the related financial statement items. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non compliance and cannot be expected to detect non compliance with all laws and regulations. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TANVIC GROUP LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| 4 Henley Way |
| Doddington Road |
| Lincoln |
| Lincolnshire |
| LN6 3QR |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| REVENUE |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| 6,311,157 | 5,643,993 |
| Other operating income |
| Gain/loss on revaluation of investments | 1,438 | 8,223 |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income | 6 |
| Other finance income | 20 |
| 135,645 | 121,687 |
| 6,448,243 | 5,775,024 |
| Interest payable and similar expenses | 7 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 8 |
| PROFIT FOR THE FINANCIAL YEAR |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME |
| Actuarial profit/(loss)on pension scheme |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| STATEMENT OF FINANCIAL POSITION |
| 31 DECEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
| PENSION ASSET | 20 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 18 |
| Share premium | 19 |
| Capital redemption reserve | 19 |
| Retained earnings | 19 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2024 |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Tanvic Group Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
| • | the requirements of Section 7 Statement of Cash Flows; |
| • | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
| • | the requirement of paragraph 33.7. |
| This information is included in the consolidated financial statements of Tanvic Properties Limited as at 31 December 2024 and these financial statements may be obtained from Granary Lodge, 96 Appletongate, Newark, Nottinghamshire, NG24 1LS. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
| Interest receivable |
| Interest income is recognised on the date in which it is received by the company. Any material balances received post year end have been reviewed and included if applicable. |
| 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. Cost includes costs directly attributable to making the asset capable of operating as intended. |
| Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
| Short leasehold | - 20% on cost |
| Plant and machinery | - 10% on cost |
| Fixtures and fittings | - at varying rates on cost |
| Motor vehicles | - 25% on reducing balance |
| Stocks |
| Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
| At each statement of financial position date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the income statement. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
| Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined benefit pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. The assets of the scheme are held separately from those of the company in an independently administered fund. A liability for the company's obligations under the plan is recognised net of plan assets. The net change in the net defined pension liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each statement of financial position date. |
| Investments in subsidiary |
| Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through a movement included within the profit or loss. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| The estimated and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
| Stock provisioning |
| The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock. |
| Useful economic lives of tangible assets |
| The annual deprecation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. See note 10 for the carrying amount of the property, plant and equipments and note 2 for the useful economic lives for each class of assets. |
| Impairment of debtors |
| The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of trade debtors. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Production staff | 194 | 189 |
| Administrative staff | 67 | 69 |
| Management staff | 3 | 4 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2024 | 2023 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| Profit on foreign exchange | ( |
) | ( |
) |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| 2024 | 2023 |
| £ | £ |
| Deposit account interest |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Bank interest |
| Corporation tax interest |
| Interest payable |
| Interest on pension obligation |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax |
| Tax on profit |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 8. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Timing differences on capital allowances | 87,323 | 112,264 |
| Timing differences on pension creditor | - | (28 | ) |
| Movement due to change in tax rates | - | (78,110 | ) |
| Pension scheme adjustment | (5,750 | ) | (4,425 | ) |
| Total tax charge | 1,589,569 | 1,354,042 |
| Tax effects relating to effects of other comprehensive income |
| 2024 |
| Gross | Tax | Net |
| £ | £ | £ |
| Actuarial profit/(loss)on pension scheme | - | 399,164 |
| 2023 |
| Gross | Tax | Net |
| £ | £ | £ |
| Actuarial profit/(loss)on pension scheme | - | 162,311 |
| 9. | DIVIDENDS |
| 2024 | 2023 |
| £ | £ |
| Ordinary A shares of £1 each |
| Interim |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 10. | TANGIBLE ASSETS |
| Fixtures |
| Short | Plant and | and | Motor |
| leasehold | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| 11. | FIXED ASSET INVESTMENTS |
| Interest |
| in other |
| participating |
| interests |
| £ |
| COST OR VALUATION |
| At 1 January 2024 | 18,934 |
| Revaluations | 1,438 |
| At 31 December 2024 | 20,372 |
| NET BOOK VALUE |
| At 31 December 2024 | 20,372 |
| At 31 December 2023 | 18,934 |
| Cost or valuation at 31 December 2024 is represented by: |
| Interest |
| in other |
| participating |
| interests |
| £ |
| Valuation in 2023 | 8,223 |
| Valuation in 2024 | 1,438 |
| Cost | 10,711 |
| 20,372 |
| If Group Tyre had not been revalued it would have been included at the following historical cost: |
| 2024 | 2023 |
| £ | £ |
| Cost | 10,711 | 10,711 |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 11. | FIXED ASSET INVESTMENTS - continued |
| The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Registered office: 96 Appleton Gate, Newark, Nottinghamshire, NG24 1LS |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2024 | 2023 |
| £ | £ |
| Aggregate capital and reserves |
| Registered office: 96 Appleton Gate, Newark, Nottinghamshire, NG24 1LS |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2024 | 2023 |
| £ | £ |
| Aggregate capital and reserves |
| 12. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Stocks |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Directors' current accounts | 221 | - |
| Prepayments |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts owed to group undertakings |
| Taxation |
| Other taxes and social security |
| VAT | 780,080 | 667,500 |
| Other creditors |
| Accrued expenses |
| Amounts owed to group undertakings are unsecured, interest free and repayable on demand. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| 16. | SECURED DEBTS |
| Any bank debt arising in the company is secured by a debenture, containing and fixed and floating charge, over all the property or undertakings of the company. |
| Tanvic Group Limited has given a floating charge and negative pledge against all property and income derived from the property to it's bankers as security for sums owing to the bank. |
| There is an unlimited inter company cross guarantee between Tanvic Group Limited and it's parent company Tanvic Properties Limited. |
| These charges have been satisfied post year end. |
| 17. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2024 |
| Accelerated capital allowances | 87,323 |
| Balance at 31 December 2024 |
| 18. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary A | £1 | 78,642 | 78,642 |
| Ordinary B | £1 | 57,890 | 57,890 |
| Ordinary C | £1 | 27,306 | 27,306 |
| 163,838 | 163,838 |
| The Ordinary A, Ordinary B and Ordinary C shares rank pari passu in all respects and have full voting and dividend rights. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 19. | RESERVES |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2024 | 13,529,509 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Actuarial profit on pension | 399,164 | - | - | 399,164 |
| At 31 December 2024 | 15,711,975 |
| Share premium account |
| Includes all amounts paid for issued share capital above the par value. |
| Capital redemption reserve |
| The statutory, non-distributable reserve into which amounts were transferred following the redemption of the company's own shares. |
| Retained earnings |
| Includes all current and prior period retained profits and losses less dividends paid. |
| 20. | EMPLOYEE BENEFIT OBLIGATIONS |
| The company operates a defined benefit scheme. The assets of the scheme are held separately from those of those company and are administered by trustees in funds independent from the group's assets. |
| The total pension cost of the company was £Nil (2023 - £Nil). The pension costs is assessed in accordance with the advice of an independent qualified actuary using the projected unit method with a three year control period. The most recent full actuarial valuation was carried out as at 30 June 2022. |
| The valuation has been based on the most recent actuarial valuation and updated by the Director, using the same assumptions as the Scheme Actuarial Reports for prior years, to take account of the requirements of FRS 102 in order to assess the liabilities of the scheme as at 31 December 2024. At this date the market value of the assets of the scheme was £2,177,000 (2023 - £1,890,000) and the actuarial value of the assets was sufficient to cover 186% (2023 - 170%) of the benefits which have accrued to members. The expected return on plan assets is based on market expectation at the beginning of the year for returns over the entire life of the benefit obligation. The overall contribution rate from 6 April 2015 is 0% of pensionable payroll to 31 December 2024. |
| The amounts recognised in profit or loss are as follows: |
| Defined benefit |
| pension plans |
| 2024 | 2023 |
| £ | £ |
| Current service cost |
| Net interest from net defined benefit asset/liability |
(23,000 |
) |
(17,700 |
) |
| Past service cost |
| (23,000 | ) | (17,700 | ) |
| Actual return on plan assets |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
| Changes in the present value of the defined benefit obligation are as follows: |
| Defined benefit |
| pension plans |
| 2024 | 2023 |
| £ | £ |
| Opening defined benefit obligation |
| Interest cost |
| Benefits paid | (171,164 | ) | (129,011 | ) |
| Changes in the fair value of scheme assets are as follows: |
| Defined benefit |
| pension plans |
| 2024 | 2023 |
| £ | £ |
| Opening fair value of scheme assets |
| Expected return | 59,000 | 56,700 |
| Benefits paid | (171,164 | ) | (129,011 | ) |
| Return on plan assets (excluding interest income) | 399,164 | 162,311 |
| The amounts recognised in other comprehensive income are as follows: |
| Defined benefit |
| pension plans |
| 2024 | 2023 |
| £ | £ |
| Return on plan assets (excluding interest income) | 399,164 | 162,311 |
| 399,164 | 162,311 |
| The major categories of scheme assets as a percentage of total scheme assets are as follows: |
| Defined benefit |
| pension plans |
| 2024 | 2023 |
| Equities | 47% | 46% |
| Cash | - | 1% |
| Property | 53% | 53% |
| 100% | 100% |
| Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
| 2024 | 2023 |
| Discount rate |
| Future salary increases |
| Future pension increases |
| Inflation assumption (RPI) |
| Inflation assumption (CPI) |
| Revaluation in deferment |
| The company expects employee contributions to be paid during the financial year to 31 December 2024 will be £Nil in relation to the funding deficit. |
| TANVIC GROUP LIMITED (REGISTERED NUMBER: 00985614) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2024 |
| 21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 December 2024 and 31 December 2023: |
| 2024 | 2023 |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| 22. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| 2024 | 2023 |
| £ | £ |
| Amount due to related party |
| During the year, a total of key management personnel compensation of £ |
| 23. | ULTIMATE CONTROLLING PARTY |
| The Company's immediate and ultimate parent undertaking is Tanvic Properties Limited. The ultimate controlling party in the current period is S D McCracken. |
| The consolidated financial statements of Tanvic Properties Limited can be obtained from Granary Lodge, 96 Appleton Gate, Newark, Nottinghamshire, NG24 1LS. |