| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements for the Period 1 November 2023 to 30 November 2024 |
| for |
| The Tyre Store Limited |
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements for the Period 1 November 2023 to 30 November 2024 |
| for |
| The Tyre Store Limited |
| The Tyre Store Limited (Registered number: 03704400) |
| Contents of the Financial Statements |
| for the Period 1 November 2023 to 30 November 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Statement of Comprehensive Income | 9 |
| Balance Sheet | 10 |
| Statement of Changes in Equity | 11 |
| Cash Flow Statement | 12 |
| Notes to the Cash Flow Statement | 13 |
| Notes to the Financial Statements | 14 |
| The Tyre Store Limited |
| Company Information |
| for the Period 1 November 2023 to 30 November 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Pinnacle House |
| 1 Pinnacle Way |
| Derby |
| Derbyshire |
| DE24 8ZS |
| The Tyre Store Limited (Registered number: 03704400) |
| Strategic Report |
| for the Period 1 November 2023 to 30 November 2024 |
| The directors present their strategic report for the period 1 November 2023 to 30 November 2024, this being a 13 month period. |
| The directors are pleased to announce that during the year the company joined the Malvern Tyres Holdings Limited group as a wholly owned subsidiary. This was completed by way of a purchase of the entire share capital of the company on 15/8/24. |
| This acquisition brings further synergies and opportunities for The Tyre Store Limited and the group as a whole. |
| REVIEW OF BUSINESS |
| The principal activity of the company in the period under review was that of the sale and fitting of motor vehicle tyres. |
| The company's revenue has increased in the current period, by 17.56% from 2023.The gross profit margin has increased slightly from 46.93% to 48.12%. |
| Although the company continues to face increased overhead costs, these have been controlled as far as possible to mitigate overall the decrease in net profitability. |
| During the period the company sold its freehold premises to the previous director, Mr I Grant, in a sale and lease back deal. |
| Given these factors the directors are pleased with the overall results for the period. |
| Cash projections are prepared frequently and reviewed by management to ensure that adequate financial resources exist for the company. The board has continued to maintain adequate funding capital within the company and no changes in facilities are envisaged in the foreseeable future. The financial results in 2024 were in line with the boards expectations and the company continues to be well placed to maintain its position in difficult trading conditions. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The trading performance of the company to the period ended 30/11/24 is in line with directors' expectations. |
| As inventories are purchased from overseas then the company is subject to some foreign exchange rate risk however this cost is mitigated with management taking advantage of bulk orders in order to reduce cost prices of supplies.Also present are increased costs of shipments from overseas, as found industry wide. |
| The general uncertainty of the worldwide economy including the effect of equity markets, inflation pressure and the worldwide energy markets are considered to be of greater risk to the business going forward. The directors and their management team are keeping all margins and costs under review. |
| Due to the wider group's backing, the directors feel the company is well placed to weather the economic effects of the current trading climate. |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| The directors use turnover, gross profit, operating profit and net profitability as key performance indicators for the business. |
| ON BEHALF OF THE BOARD: |
| The Tyre Store Limited (Registered number: 03704400) |
| Report of the Directors |
| for the Period 1 November 2023 to 30 November 2024 |
| The directors present their report with the financial statements of the company for the period 1 November 2023 to 30 November 2024. |
| DIVIDENDS |
| The total distribution of interim dividends on the Ordinary A Shares for the year ended 30 November 2024 was £50,400 (2023: £50,400). The directors do not recommend the payment of a final dividend on these shares. |
| DIRECTORS |
| The directors who have held office during the period from 1 November 2023 to the date of this report are as follows: |
| FINANCIAL INSTRUMENTS |
| Treasury operations |
| The company operates a centralised treasury function which is responsible for managing the liquidity and interest rate risks associated with the company's activities. The company's principal instruments are bank and cash balances. In addition the company has various other financial assets and liabilities such as trade debtors and trade creditors. |
| Liquidity risk |
| The company manages its cash requirements centrally to maximise interest income and minimise interest expense, whilst ensuring the the company has sufficient liquid resources to meet the operating needs of its business. |
| Interest rate risk |
| The company does not have a bank overdraft facility or any bank loan facilities. |
| Foreign currency risk |
| The company purchases its inventories from overseas and is subject to some foreign exchange rate risk which is mitigated with management taking advantage of bulk orders in order to reduce cost prices of supplies. |
| Credit risk |
| Investments of cash surpluses are made with the company's main bankers. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The director has chosen to disclose the Review of the Business and consider the Principal Risks and Uncertainties of the business within the company's Strategic Report. |
| 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; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The Tyre Store Limited (Registered number: 03704400) |
| Report of the Directors |
| for the Period 1 November 2023 to 30 November 2024 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
| 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 |
| The Tyre Store Limited |
| Opinion |
| We have audited the financial statements of The Tyre Store Limited (the 'company') for the period ended 30 November 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 November 2024 and of its profit for the period 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. |
| Report of the Independent Auditors to the Members of |
| The Tyre Store Limited |
| 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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. |
| Report of the Independent Auditors to the Members of |
| The Tyre Store Limited |
| 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: |
| Identifying and assessing potential risks related to irregularities |
| In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following; |
| - The nature of the industry and sector, control environment and business performance |
| - The company's own assessment of the risks that irregularities may occur either as a result of fraud or error that was approved by the board |
| - Any matters identified having reviewed the company's procedures |
| - Matters discussed among our audit engagement team and other members of Duncan & Toplis regarding how fraud might occur in the financial statements. |
| As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risks of management override. |
| We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing 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 included UK companies Act and tax legislation. |
| Audit response to risks identified |
| As a result of performing the above, we identified the disclosure of adjusting items in the financial statements. |
| In addition to the above, our procedures to respond to risks identified included; |
| - Reviewing the financial statement disclosures |
| - Enquiring of management concerning actual and potential litigation and claims |
| - Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud |
| - In addressing the risk of fraud through management override of controls, testing the appropriateness of journals and assessing whether judgements made in making accounting estimates are indicative of potential bias. |
| We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
| There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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 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 |
| The Tyre Store 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 |
| Pinnacle House |
| 1 Pinnacle Way |
| Derby |
| Derbyshire |
| DE24 8ZS |
| The Tyre Store Limited (Registered number: 03704400) |
| Statement of Comprehensive |
| Income |
| for the Period 1 November 2023 to 30 November 2024 |
| Period | Year Ended |
| 1.11.23 to 30.11.24 | 31.10.23 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 5 |
| Cost of sales |
| GROSS PROFIT |
| Centre costs |
| Administrative expenses |
| 8,905,711 | 6,925,777 |
| 527,727 | 900,477 |
| Other operating income |
| OPERATING PROFIT | 8 |
| Profit/loss on sale of freehold properties | 10 |
| 2,475,568 | 1,003,938 |
| Interest receivable and similar income |
| 2,532,620 | 1,037,328 |
| Interest payable and similar expenses | 11 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 12 |
| PROFIT FOR THE FINANCIAL PERIOD |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
| The Tyre Store Limited (Registered number: 03704400) |
| Balance Sheet |
| 30 November 2024 |
| 2024 | 2023 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 14 |
| CURRENT ASSETS |
| Stocks | 15 |
| Debtors | 16 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PROVISIONS FOR LIABILITIES | 20 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Share premium | 22 |
| Capital redemption reserve | 22 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| The Tyre Store Limited (Registered number: 03704400) |
| Statement of Changes in Equity |
| for the Period 1 November 2023 to 30 November 2024 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 November 2022 |
| Changes in equity |
| Profit for the year | - | 772,790 | - | - | 772,790 |
| Total comprehensive income | - | - |
| Dividends | - | ( |
) | - | - | ( |
) |
| Balance at 31 October 2023 |
| Changes in equity |
| Profit for the period | - | 2,200,864 | - | - | 2,200,864 |
| Total comprehensive income | - | - |
| Dividends | - | ( |
) | - | - | ( |
) |
| Balance at 30 November 2024 |
| The Tyre Store Limited (Registered number: 03704400) |
| Cash Flow Statement |
| for the Period 1 November 2023 to 30 November 2024 |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Amount withdrawn by directors | (6,300 | ) | (37,800 | ) |
| Amounts loaned to group companies | ( |
) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| (Decrease)/increase in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of period |
2 |
1,001,475 |
| Cash and cash equivalents at end of period |
2 |
( |
) |
1,806,438 |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Cash Flow Statement |
| for the Period 1 November 2023 to 30 November 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Finance costs | 4,831 | 3,477 |
| Finance income | (57,052 | ) | (33,390 | ) |
| 2,697,637 | 1,180,529 |
| Decrease/(increase) in stocks | ( |
) |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Period ended 30 November 2024 |
| 30.11.24 | 1.11.23 |
| £ | £ |
| Cash and cash equivalents | - | 1,806,438 |
| Bank overdrafts | ( |
) |
| (169,976 | ) | 1,806,438 |
| Year ended 31 October 2023 |
| 31.10.23 | 1.11.22 |
| £ | £ |
| Cash and cash equivalents | 1,806,438 | 1,001,475 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
| At 1.11.23 | Cash flow | At 30.11.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank | 1,806,438 | (1,806,438 | ) | - |
| Bank overdrafts | - | (169,976 | ) | (169,976 | ) |
| 1,806,438 | ( |
) | (169,976 | ) |
| Total | 1,806,438 | (1,976,414 | ) | (169,976 | ) |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements |
| for the Period 1 November 2023 to 30 November 2024 |
| 1. | STATUTORY INFORMATION |
| The Tyre Store Limited is a |
| 2. | PERIOD END |
| The company's accounts period was extended from 31/10/24 to 30/11/24, therefore these accounts show the results for the 13 month period. |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention in accordance with the accounting policies set out below. |
| Consolidated financial statements |
| These financial statements are consolidated in the financial statements of Malvern Tyres Holdings Limited. |
| Turnover |
| The company recognises revenue when the amount of revenue can be reliably measured, and it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity. Revenue from the sale of motor vehicle tyres is recognised when the risks and rewards of ownership are transferred to the customer. |
| Tangible fixed assets |
| Freehold property | - |
| Short leasehold | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Office equipment | - |
| The company changed its depreciation policy within the year from a reducing balance to straight line basis. |
| Stocks |
| Stocks are stated at the lower of cost and estimated selling price less costs to sell, after making allowance for obsolete and slow moving items. |
| Costs, which comprise tyre purchases, are based on the most recent purchase price method. Estimated selling price less costs to sell is based on the sale price closest to the year end. |
| When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. |
| The amount of any write-down of obsolete and slow-moving stocks are recognised as an expense in the period in which the write-down or loss occur. The amount of any reversal of any write-down of stock is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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 balance sheet 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 profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Financial instruments |
| The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from and to related parties and bank loans. |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
| Trade debtors |
| Trade debtors are amounts due for goods sold or services rendered in the ordinary course of business. |
| Trade debtors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtor. |
| Trade creditors |
| Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. |
| Trade creditors are classified as current liabilities of the company does not have an unconditional right, at the end of the reporting date, to defer settlement of the creditor for at least twelve months after the reporting date.If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
| Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
| Provisions for liabilities |
| Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the Balance Sheet. |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| The Company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| The estimates and assumptions that have an increased risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
| In preparing these financial statements, the directors have made the following judgements: |
| Depreciation and residual values |
| The directors have reviewed the asset lives and associated residual values of all tangible fixed asset classes and have concluded that asset lives and residual values are appropriate. |
| The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
| Recoverability of trade debtors |
| Trade and other debtors are recognised to the extent that they are judged recoverable. Management reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is considered to be uncertain. |
| Management makes allowance for doubtful debts based on an assessment of the recoverability of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyse historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account. |
| Taxation |
| There are many transactions and calculations for which the ultimate tax determination is uncertain. The Company recognises liabilities for anticipated tax issues based on estimates of whether additional taxes will be due. |
| Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
| Provisions |
| A provision is recognised when the Company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flow at a rate that reflects the time value of money and the risks specific to the liability. |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 5. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of income is given below: |
| 2024 | 2023 |
| £ | £ |
| Sale of goods | 19,604,157 | 16,675,203 |
| Rental income | 109,336 | 103,461 |
| 19,713,493 | 16,778,664 |
| 6. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the period was as follows: |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| Direct and sales | 105 | 100 |
| Administration | 20 | 20 |
| 7. | DIRECTORS' EMOLUMENTS |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| 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 |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 8. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Exchange rate gains | ( |
) |
| 9. | AUDITORS' REMUNERATION |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
16,275 |
16,450 |
| Other non- audit services |
| 10. | EXCEPTIONAL ITEMS |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Profit/loss on sale of freehold properties |
| During the year, the company sold its freehold properties to former director, Mr I Grant, at market value. |
| 11. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Bank interest |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 12. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the period was as follows: |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Depreciation in excess of capital allowances |
| year |
| Deferred tax movement | (16,911 | ) | 3,890 |
| Tax on capital gain | 149,395 | - |
| Total tax charge | 326,925 | 261,061 |
| Profits in excess of £250,000 will be taxed at the standard rate of 25%. |
| 13. | DIVIDENDS |
| Period |
| 1.11.23 |
| to | Year Ended |
| 30.11.24 | 31.10.23 |
| £ | £ |
| Ordinary "A" Shares shares of 10p each |
| Interim |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 14. | TANGIBLE FIXED ASSETS |
| Freehold | Short | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 November 2023 |
| Additions |
| Disposals | ( |
) |
| At 30 November 2024 |
| DEPRECIATION |
| At 1 November 2023 |
| Charge for period |
| Eliminated on disposal | ( |
) |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| At 31 October 2023 |
| Motor | Office |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 November 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 November 2024 |
| DEPRECIATION |
| At 1 November 2023 |
| Charge for period |
| Eliminated on disposal | ( |
) | ( |
) |
| At 30 November 2024 |
| NET BOOK VALUE |
| At 30 November 2024 |
| At 31 October 2023 |
| 15. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Finished goods |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Prepayments and accrued income |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 18) |
| Trade creditors |
| Corporation Tax |
| Social security and other taxes |
| VAT | 262,964 | 404,652 |
| Other creditors |
| Directors' current accounts | - | 6,300 |
| Accruals and deferred income |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 20. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Deferred tax | (3,136 | ) | - |
| 47,684 | 64,595 |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 2024 | 2023 |
| £ | £ |
| Other provisions | 25,000 | 25,000 |
| Aggregate amounts | 72,684 | 89,595 |
| Deferred |
| tax |
| £ |
| Balance at 1 November 2023 |
| Credit to Statement of Comprehensive Income during period | ( |
) |
| On fair value movement |
| Balance at 30 November 2024 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary "A" Shares | 10p | 31,500 | 31,500 |
| The above shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption. |
| 22. | RESERVES |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 November 2023 | 3,714,567 |
| Profit for the period |
| Dividends | ( |
) | ( |
) |
| At 30 November 2024 | 5,865,031 |
| 23. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the entity in an independently administrated fund. The amount charged against profits represents the contributions payable to the scheme in respect of the accounts accounting period and amounts to £53,805 (2023: £44,244). There were £3,517 (2023: £5,864) of outstanding contributions payable at the year end. |
| 24. | ULTIMATE PARENT COMPANY |
| Malvern Tyres Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
| 25. | RELATED PARTY DISCLOSURES |
| During the year, the company sold its freehold properties to former director, Mr I Grant, at market value. |
| The Tyre Store Limited (Registered number: 03704400) |
| Notes to the Financial Statements - continued |
| for the Period 1 November 2023 to 30 November 2024 |
| 26. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is |