The directors present the strategic report for the year ended 31 December 2024. This strategic report covers Clarks Vehicle Holdings Limited ("the parent company") and its subsidiaries (together "the group").
The group remains focused on its main objective of becoming the UK’s leading supplier of specialist quality vehicle conversions for transient workforces and seeks to achieve long-term profitability of the business by maximizing sales revenues while driving down costs of operation. Continuous improvement of products, services and processes enable the group to supply clients with fit-for-purpose solutions.
The group continues to invest in manufacturing, conversion processes and human resources in pursuit of its commercial aims, which are supported by being the first in the field to achieve VCA Type Approval. The business continues to invest heavily in retaining its Type Approval accreditation as we see this as a key differentiator particularly for the Welfare sector.
The group recorded a turnover of £13,713,712 (2023 - £9,570,661) and reported a pre-tax net profit of £1,223,841 (2023 - £804,059). The impact of the Corona virus pandemic continued to cause severe shortages in the availability of newly manufactured vans from all the major OEMs particularly in the first six months of the year. The second half of the year saw vehicle supply become healthier and more consistent and allowed the business to plan production with more certainty around volume and capacity levels, which in turn saw the business return to good levels of production resulting in a healthy turnover and profit.
The board believes that the group and the parent company are in a robust financial position and well able to deal with the more challenging business environment we are currently experiencing.
The key risks that continue to surround the marketplace relate to material supply and price increases together with significant national labour cost increases which is linked to the geopolitical uncertainty in several areas of the world.
The move towards electric fleets continues to pose a level of uncertainty as customers look to move their fleets to zero CO2 emissions in line with government Zlev targets which stipulate that certain percentages of fleet renewals comply with government targets. The business continues to monitor the situation, adapting our output levels in accordance with order intake.
All salient external factors will continue to be closely monitored and form part of the decision-making process, with investments only being committed where the company identifies acceptable levels of business risk.
The directors believe that the business has considerable financial resources, as demonstrated by the group net current assets of more than £4.2 million as at 31 December 2024 (2023: over £3.5 million). The business is expected to continue to trade profitably during the next year.
The group and parent company’s principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to raise funds for the group and parent company’s operations and to finance the group's trading.
In respect of trade debtors, the group offers credit terms to its customers, subject to assessed limits. The risk of non-payment is managed by group policies that require appropriate credit checks on potential customers before sales are made. In addition, credit checks are made on those customers who are deemed to be a significant credit risk and then regular monitoring of amounts outstanding.
Trade creditors liquidity risk is managed by ensuring there are sufficient funds available to meet amounts due.
The financial key performance indicators of the group are presented below:
Turnover - £13,713,712 (2023 - £9,570,661)
Gross profit - £4,083,057 (2023 - £2,913,652)
Gross profit margin - 29.8% (2023 - 30.4%)
Total equity - £4,357,085 (2023 - £3,579,371)
The group and parent company are committed to conducting its business in an ethically responsible manner, and this commitment has been recognized in that the operating and management systems have been certified as meeting the standards required by 14001 (Environmental Management) as well as ISO 9001 (Quality Assurance). More emphasis is now being placed on businesses being aware of their impact on the environment and being able to measure their carbon footprint. There has been an unforeseen delay in gathering the necessary information to understand the impact of the group and parent company’s activities on the environment however we hope to have completed this work by the end of 2025 and be in a position to create a carbon pledge.
Our commitment and investment to our employees is a key focus area for the board and SLT at Clarks. We recognise that in our modern society employees face challenges from a wide range of areas and therefore the group has a process to ensure all employees have a quarterly one to one and continue to signpost our employees to our employee assistance program where necessary. This program is provided by a professional external provider.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £139,295 (2023: £159,951). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Group continued to undertake research and development activities during the year, focusing on improving the design and efficiency of its vehicle conversion process.
Post year end the parent Company has declared dividends totalling £87,547.
There were no other significant events affecting the Group or parent Company since the year-end.
The directors remain confident that their strategy will ensure a return to growth and profitability. The group remains focused on delivering the highest levels of service and quality to its customers whilst ensuring continued improvements and investments in the team.
The parent company will continue to act as a holding company.
The auditor, Parsons Accountants Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
In the opinion of the directors the group and parent company has sufficient financial resources together with clearly defined performance objectives. The group and parent company has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that the group and parent company is well placed to manage business risks successfully.
The directors have a reasonable expectation that the group and parent company has adequate financial resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Clarks Vehicle Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 group's and parent 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; or
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; or
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the parent company has not presented its own profit and loss account and related notes. The parent company’s loss for the year was £80,073 (2023 - £24,530 loss).
Clarks Vehicle Holdings Limited (“the company”) is a private limited by shares company, registered in the United Kingdom and incorporated in England and Wales. The registered office is No.2 Silkwood Office Park, Fryers Way, Wakefield, West Yorkshire, United Kingdom, WF5 9TJ
The group consists of Clarks Vehicle Holdings Limited and all of its subsidiaries as listed in the notes.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Clarks Vehicle Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
In the opinion of the directors the group and parent company has sufficient financial resources together with clearly defined performance objectives. The group and parent company has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that the group and parent company is well placed to manage business risks successfully.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Amortisation expense is charged to administration expenses in the Group statement of comprehensive income.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
There is no depreciation charged against assets under construction.
Depreciation expenses is charged to administration expenses in the Group statement of comprehensive income.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The judgements and estimates with the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.
This specifically applies, in the parent company, to the recoverability of group balances and the valuation of investments in subsidiaries, and in both the group and the parent company to the recoverability of connected-party balances.
(ii) Determining residual values and useful economic lives of tangible and intangible fixed assets
The group and parent company depreciate tangible fixed assets and amortises intangible fixed assets over their estimated useful lives. The estimation of the useful lives of tangible assets and intangible fixed assets is based on historic performance as well as expectation about future use and thus requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a wide variety of factors including technological innovation, product life cycles and maintenance programmes to plant and machinery. Judgement is also applied when determining the residual values for fixed assets. When determining the residual value the directors have assessed the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.
(iii) Determining the future demand of stock items to calculate a stock provision
The group and parent company have access to internal data including the current order book, historic raw materials wastage figures and external data including demand in the sector and availability of vans which are all analysed when determining the stock provision.
(iv) Determining the stage of completion of work in progress
The group and parent company have access to live system data throughout the vehicle conversion process which details the work performed by each department through the process. The group and parent company assign a stage of completion percentage to each vehicle depending on the number of sub-processes that have been completed in the conversion process. This percentage is calculated using historic data as to the length of time each sub-process takes relative to the process as a whole.
(iv) Determining obligations for a dilapidations provision
Where the Group is required to restore leased properties to their original condition at the end of the lease term, the directors estimate the expected cost of meeting these obligations. In doing so, they consider past experience of similar works and the current condition of the property.
The whole of the turnover arose due to operations within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
During the period retirement benefits were accruing to 3 (2023: 4) directors in respect of defined contribution pension schemes.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The tax charge assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the United Kingdom.
There are no known matters which will affect the tax charge in the future.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 December 2024 are as follows:
Clarks Technology Solutions Limited was exempt from the requirements of an audit of the individual financial statements by virtue of section 479A of the Companies Act 2006.
The principal activity of Clarks Vehicle Conversions Limited is that of a vehicle conversion specialist and of Clarks Technology Solutions Limited is that of the designing and distribution of electrical control systems and warning lighting for bespoke vehicles and fleets.
The bank loan is provided by Lloyds Bank PLC and is secured by a security dated 8 April 2019.
The group has provided by way of security a first fixed charge on all credit balances held with Lloyds Bank PLC and sufficient other assets as to repay the amounts due.
The obligation under finance leases are secured against the assets to which they relate.
The group and parent company is a party to four rent deposit deeds dated 12 October 2011 whereby the Group provides a fixed charge against its interest in the deposit accounts.
The bank loan is provided by Lloyds Bank PLC and is secured by a security dated 8 April 2019.
The group has provided by way of security a first fixed charge on all credit balances held with Lloyds Bank PLC and sufficient other assets as to repay the amounts due.
The obligation under finance leases are secured against the assets to which they relate.
The group and parent company is a party to four rent deposit deeds dated 12 October 2011 whereby the Group provides a fixed charge against its interest in the deposit accounts.
The bank loan is provided by Lloyds Bank PLC and is secured by a security dated 8 April 2019.
The group has provided by way of security a first fixed charge on all credit balances held with Lloyds Bank PLC and sufficient other assets as to repay the amounts due.
There are no amounts payable after more than five years.
Finance lease payments represent rentals payable by the company or group for certain capital assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability in the group largely relates to accelerated capital allowances which are expected to reverse over the useful lives of the assets to which they relate.
The deferred tax asset in the parent company relates to temporary timing difference associated to expenses that do not generate a tax deduction until a given future event.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
There were contributions payable to the fund at the date of the statement of financial position totalling £8,741 (2023: £7,487).
All shares carry one vote and the right to receive a dividend.
On incorporation the parent Company issued 1 Ordinary share. All other shares in the above table were allotted thereafter.
Share premium account
The share premium account represents the amount above the nominal value received for issued share capital less transaction costs.
Profit & loss account
The profit and loss account represents the accumulated profits and losses of the group and company less any dividends.
At the reporting end date the Group and parent Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Post year end the parent Company has declared dividends totalling £87,547.
There were no other significant events affecting the Group or parent Company since the year-end.
The group and parent company has advantage of the exemption made available in section 33 of FRS102 'The Financial Reporting Standard applicable in the UK and Republic Of Ireland' related party disclosures from the requirement to disclose transactions with group companies.
The group is related to entities that are under common control. At the balance sheet date the group owes these entities £997 (2023: £997). The group is related to entities that are under common control. At the balance sheet date the group was owed by these entities £1,941,565 (2023: £1,371,813). These balances are included within other creditors and other debtors respectively.
During the period the group made salary and associated pension payments of £31,386 (2023: £28,133) to other related parties in respect of employment services.
During the period the parent company declared dividends totalling £159,295 (2023: £155,868) on the shares held by directors and £nil (2023: £4,083) on the shares held by other shareholders.
During the period the group operated directors loan accounts on behalf of the directors. At the period-end the directors group was owed by the group £nil (2023: £8,522) and owed the group £40,653 (2023: £23,612). During the period there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the group in the period was £241,829 (2023: £58,737).
In the opinion of the directors there are no individuals categorised as key management personnel outside the director group.
Details of directors' remuneration, including details of company pension contributions, is outlined in Note 7 of these financial statements.