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Registered number: 11272078









INDEPENDENT MOTOR FACTORS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2024

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
COMPANY INFORMATION


Directors
K E Anderson (resigned 27 March 2024)
J L Bennett 
M A Bennett 
N J Ratcliffe 
J P Austin 




Registered number
11272078



Registered office
Unit 3 Site J
Albert Drive

Burgess Hill

West Sussex

RH15 9TN




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
INDEPENDENT MOTOR FACTORS LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Statement of Cash Flows
 
11 - 12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 29


 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024

Introduction
 
The company sells motor factor parts to the general public and other traders. 

Business review
 
The directors are pleased with the current year's trading results
The company was able to successfully launch several new branches and the directors continue to search for new locations to facilitate further expansion.

Principal risks and uncertainties
 
The principal risks associated with the company's trade are anticipation of consumer demands throughout the
year and the related levels of stocks to hold, availability of adequate finance, the state of the general economy
and business confidence.
 
The directors acknowledge the importance of maintaining close relationships with key customers in order to be able to identify the early signs of potential financial difficulties. Sales and stock trends are constantly reviewed to enable early action to be taken in the event of sales declining and stock orders deteriorating.
 
Treasury Operations And Financial Instruments
The  company has various  financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
 
Liquidity Risk
The company has sufficient liquid resources to meet the operational needs of the business.
 
Credit Risk
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are
reviewed on a regular basis and provision is made for doubtful debts when necessary.
 
Price Risk
Expenditure incurred by the company is authorised prior to it being made by the management in order to ensure that goods and services are not obtained at a higher price than necessary

Financial key performance indicators
 
The company's key performance indicators are turnover, gross profit margin, stock levels and funding availabilities. 


This report was approved by the board on 25 September 2025 and signed on its behalf.



N J Ratcliffe
Director

J L Bennett
Director

Page 1

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the Period ended 31 December 2024.

Results and dividends

The profit for the Period, after taxation, amounted to £2,717,406 (2023 - £1,180,554).

An interim dividend of £3,000,000 (2023: £1,000,000) was paid during the period.  The directors do not propose the payment of a final dividend. 

Directors

The directors who served during the Period were:

K E Anderson (resigned 27 March 2024)
J L Bennett 
M A Bennett 
N J Ratcliffe 
J P Austin 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 September 2025 and signed on its behalf.
 





N J Ratcliffe
Director
J L Bennett
Director

Page 2

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2024

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENT MOTOR FACTORS LIMITED
 

Opinion


We have audited the financial statements of Independent Motor Factors Limited (the 'Company') for the Period ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENT MOTOR FACTORS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial Period 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENT MOTOR FACTORS LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and
determined that the most significant are those that:
- Had a direct effect on the determination of material amounts and disclosures in the financial statements.
These include the UK Companies Act and tax legislation etc; and
- Do not have a direct effect on the financial statements but compliance with which may be fundamental to
the company's ability to operate.
We assessed the susceptibility of the company's financial statements to material misstatement, including how
fraud might occur. Audit procedures performed by the audit engagement team include:
- Identifying and testing journal entries, in particular any unusual journal entries posted around the year
end and journal entries with no descriptions
- Assessing the extent of compliance with the relevant laws and regulations
- Identifying and assessing the design effectiveness of controls management has in place to prevent and
detect fraud.
- Challenging assumptions and judgements made by management in significant accounting estimates;
and
- Carrying out a review of large and unusual bank transactions


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 6

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INDEPENDENT MOTOR FACTORS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Thomas Rogers BA ACA (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

25 September 2025
Page 7

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2024

31 December
31 August
2024
2023
£
£

  

Turnover
 4 
26,409,885
16,619,253

Cost of sales
  
(11,371,707)
(8,162,481)

Gross profit
  
15,038,178
8,456,772

Administrative expenses
  
(11,144,693)
(6,794,871)

Exceptional administrative expenses
  
(14,999)
(431,212)

Operating profit
 5 
3,878,486
1,230,689

Income from shares in group undertakings
  
-
310,000

Interest receivable and similar income
 9 
300
19

Interest payable and similar expenses
 10 
(1,877)
-

Profit before tax
  
3,876,909
1,540,708

Tax on profit
 11 
(1,159,503)
(360,154)

Profit for the financial Period
  
2,717,406
1,180,554

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 29 form part of these financial statements.

Page 8

 
INDEPENDENT MOTOR FACTORS LIMITED
REGISTERED NUMBER: 11272078

BALANCE SHEET
AS AT 31 DECEMBER 2024

31 December
31 August
2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
576,738
410,450

  
576,738
410,450

Current assets
  

Stocks
 15 
3,301,136
2,478,914

Debtors: amounts falling due within one year
 16 
2,544,197
2,521,690

Cash at bank and in hand
 17 
863,991
1,497,628

  
6,709,324
6,498,232

Creditors: amounts falling due within one year
 18 
(3,456,681)
(2,835,447)

Net current assets
  
 
 
3,252,643
 
 
3,662,785

Total assets less current liabilities
  
3,829,381
4,073,235

Provisions for liabilities
  

Deferred tax
 19 
(140,678)
(101,938)

  
 
 
(140,678)
 
 
(101,938)

Net assets
  
3,688,703
3,971,297


Capital and reserves
  

Called up share capital 
 20 
1,000
1,000

Profit and loss account
 21 
3,687,703
3,970,297

  
3,688,703
3,971,297


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2025.




N J Ratcliffe
J L Bennett
Director
Director

The notes on pages 14 to 29 form part of these financial statements.

Page 9

 
INDEPENDENT MOTOR FACTORS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2023
1,000
3,970,297
3,971,297


Comprehensive income for the Period

Profit for the Period
-
2,717,406
2,717,406
Total comprehensive income for the Period
-
2,717,406
2,717,406


Contributions by and distributions to owners

Dividends: Equity capital
-
(3,000,000)
(3,000,000)


Total transactions with owners
-
(3,000,000)
(3,000,000)


At 31 December 2024
1,000
3,687,703
3,688,703



STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2022
1,000
3,789,743
3,790,743


Comprehensive income for the year

Profit for the year
-
1,180,554
1,180,554
Total comprehensive income for the year
-
1,180,554
1,180,554


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


At 31 August 2023
1,000
3,970,297
3,971,297


The notes on pages 14 to 29 form part of these financial statements.

Page 10

 
INDEPENDENT MOTOR FACTORS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024

31 December
31 August
2024
2023
£
£

Cash flows from operating activities

Profit for the financial Period
2,717,406
1,180,554

Adjustments for:

Amortisation of intangible assets
-
9,242

Depreciation of tangible assets
247,606
132,766

Impairments of assets
14,999
385,000

Loss on disposal of tangible assets
(2,410)
(8,188)

Interest paid
1,877
-

Interest received
(300)
(19)

Taxation charge
1,159,503
360,154

(Increase)/decrease in stocks
(822,222)
383,564

(Increase) in debtors
(32,721)
(492,805)

Increase in creditors
194,945
477,079

Corporation tax (paid)
(685,053)
(363,143)

Net cash generated from operating activities

2,793,630
2,064,204


Cash flows from investing activities

Purchase of intangible fixed assets
(14,999)
(75,000)

Purchase of tangible fixed assets
(416,533)
(202,417)

Sale of tangible fixed assets
5,050
11,472

Purchase of fixed asset investments
-
(310,000)

Interest received
300
19

Net cash from investing activities

(426,182)
(575,926)

Cash flows from financing activities

Dividends paid
(3,000,000)
(1,000,000)

Interest paid
(1,877)
-

Net cash used in financing activities
(3,001,877)
(1,000,000)
Page 11

 
INDEPENDENT MOTOR FACTORS LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024

31 December
31 August

2024
2023

£
£



Net (decrease)/increase in cash and cash equivalents
(634,429)
488,278

Cash and cash equivalents at beginning of Period
1,497,628
1,009,350

Cash and cash equivalents at the end of Period
863,199
1,497,628


Cash and cash equivalents at the end of Period comprise:

Cash at bank and in hand
863,991
1,497,628

Bank overdrafts
(792)
-

863,199
1,497,628


The notes on pages 14 to 29 form part of these financial statements.

Page 12

 
INDEPENDENT MOTOR FACTORS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2024




At 1 September 2023
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

1,497,628

(633,637)

863,991

Bank overdrafts

-

(792)

(792)


1,497,628
(634,429)
863,199

The notes on pages 14 to 29 form part of these financial statements.

Page 13

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

1.


General information

Independent Motor Factors Limited is a private company, limited by shareas and incorporated in England & Wales, with a registration number 11272078.  The address of the registered office is Unit 3 Site J, Albert Drive, Burgess Hill, West Sussex, RH15 9TN.  The principal activities is that of selling motor factor parts. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.



The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Change in legth of reporting period

The period in covered by these financial statements is 1 September 2023 to 31 December 2024. The accounting period has changed from 12 months in 2023 to 16 months in 2024. This is due to a change in the year end date from 31 August to 31 December.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 14

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the Period in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the Period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 15

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods below.

Depreciation is provided on the following basis:

Motor vehicles
-
3 years straight line basis
Fixtures and fittings
-
15% reducing balance basis
Computer equipment
-
33% reducing balance basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the 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 balance sheet 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 profit or loss.

Page 16

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for
Page 17

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 18

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates
and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements,
estimates and assumptions are based on the best and most reliable evidence available at the time when
the decisions are made, and are based on historical experience and other factors that are considered to
be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and
assumptions, the actual results and outcomes may differ.
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, if the revision affects only that
period, or in the period of the revision and future periods, if the revision affects both current and future
periods.
The company provides for slow moving and obsolete stocks, based on stock which has not moved in the last sixth months. 


4.


Turnover

An analysis of turnover by class of business is as follows:


31 December
31 August
2024
2023
£
£

Sales
26,409,885
16,619,253

26,409,885
16,619,253


All turnover arose within the United Kingdom.

Page 19

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

31 December
31 August
2024
2023
£
£

Other operating lease rentals
720,567
401,391


6.


Auditors' remuneration

During the Period, the Company obtained the following services from the Company's auditors:


31 December
31 August
2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
20,500
19,000
Page 20

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


31 December
31 August
2024
2023
£
£

Wages and salaries
6,972,895
4,268,356

Social security costs
637,213
374,741

Cost of defined contribution scheme
108,855
54,646

7,718,963
4,697,743


The average monthly number of employees, including the directors, during the Period was as follows:


     31 December
       31 August
        2024
        2023
            No.
            No.







Directors
4
4



Admin
19
19



Sales
189
164

212
187

Page 21

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

8.


Directors' remuneration

31 December
31 August
2024
2023
£
£

Directors' emoluments
523,749
409,992

Company contributions to defined contribution pension schemes
5,504
1,101

529,253
411,093


During the Period retirement benefits were accruing to 4  (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £134,000 (2023 - £110,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £991 (2023 - £NIL).


9.


Interest receivable

31 December
31 August
2024
2023
£
£


Other interest receivable
300
19

300
19


10.


Interest payable and similar expenses

31 December
31 August
2024
2023
£
£


Other interest payable
1,877
-

1,877
-

Page 22

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

11.


Taxation


31 December
31 August
2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,120,763
344,236


1,120,763
344,236


Total current tax
1,120,763
344,236

Deferred tax


Origination and reversal of timing differences
38,740
15,918

Total deferred tax
38,740
15,918


Tax on profit
1,159,503
360,154
Page 23

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5%). The differences are explained below:

31 December
31 August
2024
2023
£
£


Profit on ordinary activities before tax
3,876,909
1,540,708


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
969,227
331,252

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(1,673)
3,036

Capital allowances for period in excess of depreciation
(621)
2,822

Short-term timing difference leading to an increase (decrease) in taxation
-
23,044

Other differences leading to an increase (decrease) in the tax charge
192,570
-

Total tax charge for the Period/year
1,159,503
360,154


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

31 December
31 August
2024
2023
£
£


Ordinary dividends
3,000,000
1,000,000

3,000,000
1,000,000

Page 24

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

13.


Intangible assets






Goodwill

£



Cost


At 1 September 2023
167,422


Additions
14,999



At 31 December 2024

182,421



Amortisation


At 1 September 2023
167,422


Charge for the Period on owned assets
14,999



At 31 December 2024

182,421



Net book value



At 31 December 2024
-



At 31 August 2023
-



Page 25

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

14.


Tangible fixed assets







Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 September 2023
531,724
298,373
106,695
936,792


Additions
177,428
221,804
17,301
416,533


Disposals
(23,345)
-
-
(23,345)



At 31 December 2024

685,807
520,177
123,996
1,329,980



Depreciation


At 1 September 2023
333,613
109,769
82,960
526,342


Charge for the Period on owned assets
172,969
59,864
14,772
247,605


Disposals
(20,705)
-
-
(20,705)



At 31 December 2024

485,877
169,633
97,732
753,242



Net book value



At 31 December 2024
199,930
350,544
26,264
576,738



At 31 August 2023
198,110
188,604
23,736
410,450

Page 26

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

15.


Stocks

31 December
31 August
2024
2023
£
£

Finished goods and goods for resale
3,301,136
2,478,914

3,301,136
2,478,914



16.


Debtors

31 December
31 August
2024
2023
£
£


Trade debtors
2,248,628
2,311,079

Other debtors
56,726
50,060

Prepayments and accrued income
238,843
160,551

2,544,197
2,521,690



17.


Cash and cash equivalents

31 December
31 August
2024
2023
£
£

Cash at bank and in hand
863,991
1,497,628

Less: bank overdrafts
(792)
-

863,199
1,497,628


Page 27

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

18.


Creditors: Amounts falling due within one year

31 December
31 August
2024
2023
£
£

Bank overdrafts
792
-

Trade creditors
2,398,489
2,208,829

Corporation tax
442,376
-

Other taxation and social security
461,368
364,190

Other creditors
31,872
13,901

Accruals and deferred income
121,784
248,527

3,456,681
2,835,447



19.


Deferred taxation






2024


£






At beginning of year
(101,938)


Charged to profit or loss
(38,740)



At end of year
(140,678)

The provision for deferred taxation is made up as follows:

31 December
31 August
2024
2023
£
£


Accelerated capital allowances
(140,678)
(101,938)

(140,678)
(101,938)

The net reversal of deferred tax liabilities expected to reverse in 2025 is £73,654.  This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation. 

Page 28

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024

20.


Share capital

31 December
31 August
2024
2023
£
£
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1,000
1,000



21.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other
adjustments.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held
separately from those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £103,354.20 (2023:
£53,545). Contributions totalling £18,147 (2023: £13,758) were payable to the fund at the balance sheet
date and are included in creditors.


23.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 December
31 August
2024
2023
£
£


Not later than 1 year
531,780
344,605

Later than 1 year and not later than 5 years
1,941,021
1,241,094

Later than 5 years
720,804
683,793

3,193,605
2,269,492


24.


Related party transactions

During the year, dividends totalling £3,000,000 (2023: £1,000,000) were paid.


25.


Controlling party

Due to the shareholdings, there is no controlling party. 

Page 29

 
INDEPENDENT MOTOR FACTORS LIMITED
 
 
 Page 30