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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
COMPANY INFORMATION
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BALLYROBERT SERVICE STATION LIMITED
CONTENTS
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BALLYROBERT SERVICE STATION LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their strategic report of the Company and the Group for the year ended 31 December 2024.
Business activity increased by 13% over the year which was driven by an increase in used car volume which also augmented turnover in our aftersales departments.
New car volume declined due to delayed car model changeovers and the difficult retail environment. The increasing costs of new cars and the implementation of more expensive electric vehicle technology is not being adopted by retail customers that are already facing cost of living pressures. Part of the increase in used car sales is coming from customer affordability needs. The weakness of the new car market is making the used car market even more competitive as retailers grapple with stock restrictions brought about by the extended lack of new car production in the covid years. As well as the retail market being challenging, our cost base is under considerable upward pressure. So despite strong turnover growth this has not been reflected in net profit performance due to rising costs. Given the high level of challenges experienced in the year the financial result was satisfactory. Analysis of the development and performance of the business For the first eight months of 2025 there are considerable economic headwinds being encountered with customers experiencing cost of living increases, inflation and relatively high interest rates. The implementation of higher employer national insurance rates from the late 24 budget has led to our cost base increasing and at the same time customer demand reducing. This has particularly been the case from May 25 on. Turnover has dropped 6% in the first 8 months which is primarily in Vauxhall Motability sales as product launches were delayed and new vehicles replaced with more expensive models. This follows the trend that the Northern Ireland market is experiencing. The business acknowledges the hard work and loyalty of their staff at this challenging time and their dedication and effort to make the business perform. There is a realisation of how fragile the retail environment is and all indicators would point to a challenging trading environment for the foreseeable future. Mazda next year will launch the new CX5 which has been the best-selling model in its range. Mazda will also enhance its electric offering next year with the introduction of an electric saloon car and SUV. Vauxhall is trying to put more focus on growing its retail market share. The Corsa has always been one for the most popular models due to its wide appeal. The new Frontera should extend the retail appeal as its is a competitive offering for the family customer.
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BALLYROBERT SERVICE STATION LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of the position of the business
Despite challenging trading conditions the business continued to strengthen its balance sheet so that it can take advantage of further opportunities to expand. This has continued into 2025. The business is robustly weathering the major headwinds that are prevalent in the sector. The significant risk in continuing this would be any further major disruption due to substantial economic downturns.
The principal risks and uncertainties are monitored by the directors and are considered to be as follows:
The availability of affordable retail finance plans The majority of vehicles retailed are financed by third party institutions. The availability of funds is a requisite for customers being able to buy these vehicles. The increased interest rates in the market is meaning that vehicles are becoming more expensive to hold on a monthly basis for both customers and motor dealers. Hopefully interest rate reductions will continue after the substantial increases that we have encountered. Technology developments The utilisation of alternative methods of propelling vehicles away from petrol and diesel could lead to a significant decline in the service requirement for these vehicles which could lead to a considerable decline in revenues. The Z.E.V. (zero emission vehicle) mandate is in place in Great Britain with manufacturers having to achieving 28 % of their registrations in vehicles running purely on electricity or face fines of £15,000 per car. Northern Ireland has joined this requirement from 1 January 2025. There seems to be a realisation that the transition to electric vehicles is going much slower than expected and driving the change by fining manufacturers that are already struggling is counterproductive. The Northern Ireland new car market is facing its biggest struggle from the implementation of Brexit. New cars is Northern Ireland have to have type approval similar to the EU so that there is no hard border between Northern Ireland and the Republic of Ireland. Cars in Great Britain are required to have different Great Britain type approval which means that certain cars cannot come to Northern Ireland which is penalising the Northern Ireland customer and the practicalities and delays handling this difference is becoming increasingly more apparent and difficult. Currently cars are having to be specifically designated for Northern Ireland which is impinging on the free movement and choice of vehicles. Given that Northern Ireland is such a small market for Global manufacturers this something which has to be addressed by the Government. There are also additional duties and paperwork required for used vehicles that move from Great Britain to Northern Ireland and which are then bought by a customer from the Republic of Ireland. General business and economic condtions The profitability of the business is influenced by the economic environment in Northern Ireland and could be adversely affected by a worsening of general economic conditions. Factors such as unemployment levels, consumer confidence, the level of discretionary spending and cost of credit could significantly affect the market for the sale of new and used vehicles. Vehicle manufacturers and incentive programmes We depend on the vehicle manufacturers’ financial condition, marketing, vehicle design, production and distribution capabilities, reputation, management and industrial relations. A failure by the manufacturer in the areas noted could lead to losses. The PSA group (now Stellantis) and Mazda Motors provide a wide variety of sales incentives, warranties and other programmes that are intended to promote and support new vehicle sales at our dealerships. If the manufacturers reduce or discontinue incentive programmes, this could have an adverse impact on our business.
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BALLYROBERT SERVICE STATION LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Used vehicle price variation
Used vehicle prices have remained high due to lack of supply in the market. In 2024 and 2025 the market has been robust. A reduction in demand could lead to material price movements. Electric vehicles had demonstrated high levels of volatility but they seemed to have reached their value level in the market. Franchise agreements The Group operates franchised Vauxhall and Mazda motor vehicle dealerships, which are awarded to us by the vehicle manufacturers. Failure to continue to hold franchised sites could result in significant reduction in the profits of the Group as this would end its rights to source new vehicles directly from the manufacturer to sell, to perform warranty repairs and display the vehicle manufacturer trademarks. Competition The Group competes with other franchised vehicle dealerships, independent used vehicle sellers, private buyers and sellers, internet based dealers, independent service and repair shops and vehicle manufacturers who have entered the retail market. The Group competes for the sale of new and used vehicles, the performance of warranty repairs, non warranty repairs, routine maintenance business and for the provision of spare parts. The principal competitive factors in service and parts sales are price, familiarity with a manufacturer's brands and models and the quality of customer service. The industry has experienced a vast increase in the number of motor manufacturers competing in the UK market particularly from the new Chinese entrants. The requirement for individual Northern Ireland type approval for new cars has slowed this development in Northern Ireland but it will be coming. Economic downturn The success of the business is reliant on consumer spending. An economic downturn, resulting in a reduction of consumer spending power, will have a direct impact on the income achieved by the company. To tackle inflation the government has increased interest rates and taxation which will dampen demand. In response to this risk, senior management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions. The car stock holding will be adjusted both in its size and holding value per car to reflect customer needs. The management team have reviewed the activities of the business and are removing those that are not adding value to the operations of the business. The current market is demanding an absolute focus on efficiency.
We utilise a number of financial KPIs to ensure the efficient and consistent performance of our operation. The key ones are:
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BALLYROBERT SERVICE STATION LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We also utilise non-financial KPIs on a regular basis to assist us managing the business, some of which are:
Customer satisfaction This is at the centre of what we do for a growing and sustainable business model. We operate under the manufacturers' customer satisfaction programmes which encompass new car customers and service customers. We have utilised the services of an outside agency Judge services to contact our used car customers. This ensures that we are getting feedback on all aspects of our business. We are pleased to say the scores have remained at 95%+ overall recommendation. This also allows us to advise potential customers of the level of service we offer and give peace of mind especially for customers that are out of the locality. The internet has speeded up the acceptance by customers of third party reviews and is acknowledged as highly influential in other retail consumer arenas. Our people and their efforts continue to underpin the success of the business. Our customer feedback continually reflects their high level of commitment.
This report was approved by the board on 30 September 2025 and signed on its behalf.
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BALLYROBERT SERVICE STATION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £209,347 (2023 - £205,909).
No interim dividend was paid during the year. The directors recommend a final dividend of £1.31579 per share.
The total distribution of dividends for the year ended 31 December 2024 will be £25,000 (2023: £25,000).
The Directors who served during the year were:
On the 8 June 2025 our esteemed founder, Robert Lyle died. He was extremely dedicated to the business over his entire long working life and looked after his many loyal customers. He demonstrated a great quality in the way he did business which is carried on by the staff today. We are grateful for his life and lasting contribution.
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BALLYROBERT SERVICE STATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group uses various financial instruments, other than derivatives, which include bank, financial institution and stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the Group's operations. Their existence exposes the Group to a number of financial risks.
The main risks arising from the Group's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.
Interest rate risk
The Group finances its operations through a mixture of bank and other external borrowings. The Group's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. The Statement of Financial Position includes trade debtors and creditors which do not attract interest.
Given the current level of Bank of England base rates (4%), the directors consider that interest rate risk is medium.
Liquidity risk
The Group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.
The Group's policy throughout the year has been to ensure the continuity of funding by matching the source of funds to the intended use of those funds, so that fixed assets are financed out of reserves and through use of long term borrowings with draw downs and repayment terms that are spread over a period of years. Short term flexibility is achieved by the use of overdraft facilities.
Credit risk
The Group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparts have high credit ratings assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors.
In order to manage credit risk, the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the finance director on a regular basis in conjunction with debt ageing and collection history.
The primary focus of the Group will be to build up trading operations now the most recent lockdown restrictions have been lifted with the safety of all stakeholders being paramount.
The directors review of business, and their consideration of the risks and uncertainties surrounding the business may be found in the Group Strategic Report.
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BALLYROBERT SERVICE STATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Information relating to events since the end of the year is given in the notes to the financial statements.
The auditors, UHY Hacker Young Fitch Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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BALLYROBERT SERVICE STATION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALLYROBERT SERVICE STATION LIMITED
We have audited the financial statements of Ballyrobert Service Station Limited (the 'parent Company' and the 'Company') its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the Consolidated Statement of Cash Flows, and the related notes, 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).
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 Group 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.
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 or the 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.
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BALLYROBERT SERVICE STATION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALLYROBERT SERVICE STATION LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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BALLYROBERT SERVICE STATION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALLYROBERT SERVICE STATION LIMITED (CONTINUED)
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 Group 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:
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. As part of the audit in accordance with ISAs (UK) we exercised professional judgement and maintained professional scepticism throughout the audit. 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 and 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 and the Financial Services and Markets Act 2000. We assessed the susceptibility of the 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. We obtained an understanding of internal controls relevant to the audit in order to design audit procedures that were appropriate in the circumstances but not for the purpose of expressing an opinion of the effectiveness of the Company’s internal controls. 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; evaluated the appropriateness of accounting policies used, including managements’ use of the going concern basis of accounting, and the reasonableness of accounting estimates and related disclosures made by management; 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; and enquiring of management as to actual and potential litigation and claims.
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.
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BALLYROBERT SERVICE STATION LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALLYROBERT SERVICE STATION LIMITED (CONTINUED)
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 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.
for and on behalf of
Suite 2.06, Custom House
Custom House Square
BT1 3ET
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BALLYROBERT SERVICE STATION LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
REGISTERED NUMBER: NI009585
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 37 form part of these financial statements.
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BALLYROBERT SERVICE STATION LIMITED
REGISTERED NUMBER: NI009585
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 37 form part of these financial statements.
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BALLYROBERT SERVICE STATION LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Ballyrobert Service Station Limited is a private Company, limited by shares, registered in Northern Ireland. The registered number of the Company is included NI009585.
The address of the Company's registered office and its principal place of business is 402 Belfast Road, Bangor, Co. Down, BT19 1UE. The Group's and Company's functional and presentational currency is Pound Sterling (£). The principal activity of the Group and the Company in the year under review was that of the sale and service of motor vehicles and the provision of ancillary goods and services
2.Accounting policies
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The directors have reviewed the cash flow and facilities available to the Group and the Company, together with current trading results, and are confident that the Group and the Company will be able to meet their debts as they fall due. Accordingly, the financial statements have been prepared on a going concern basis.
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Commission income is accounted for on an accrual basis.
The Group receives income in the form of various incentives which are determined by the brand partners. The amount received is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.
Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period. The Group may also receive contributions towards advertising, promotional and rent expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.
Page 20
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Page 21
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:
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.
Consignment vehicles which bear considerably more of the risks and responsibilities of ownership are regarded effectively as being under control of the Group and, in accordance with the FRS 102 are included in stocks on the Consolidated Balance Sheet and Balance Sheet, although legal title has not passed to the Group. The corresponding liability is included in trade creditors and is secured directly on these vehicles.
Page 22
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group 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.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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 Group'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 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
Page 23
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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 instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
Page 24
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements: Consignment stock Vehicles held on consignment have been included in vehicle stock on the basis that the Group has determined that it holds the significant risks and rewards attached to these vehicles. Stock valuation Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass’ and CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed. Property, plant and equipment assets Long-lived assets comprising of property, plant and equipment represents a significant portion of the Group's total assets. The annual depreciation charge depends primarily on the estimated useful lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumptions, physical condition and expected useful economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charges for the financial year. Service plans In accounting for car service plans, management is required to exercise significant judgment in determining the appropriate accounting treatment, particularly in distinguishing between revenue recognition over time versus at a point in time. This involves assessing whether the service plan constitutes a separate performance obligation and whether the revenue should be deferred and recognised over the life of the plan. Additionally, the accounting for car service plans involves key sources of estimation uncertainty, including: Estimated cost of future services: Management must estimate the expected costs to be incurred in fulfilling service obligations, which may vary based on vehicle usage patterns, inflation, and parts/labour costs. Customer behaviour and plan utilisation: Estimations are made regarding the likelihood and frequency of customers utilising the service plans, which affects the timing and amount of revenue and cost recognition. Contract duration and renewal rates: Where service plans are renewable or cancellable, assumptions about renewal rates and customer retention impact the recognition of revenue and liabilities. These estimates are reviewed periodically and adjusted as necessary based on experience.
Page 25
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 28
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
Page 29
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
14.Tangible fixed assets (continued)
Page 31
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The bank overdraft is secured by a first legal charge over the premises of 402 Belfast Road, Bangor, BT19 1UE and an all monies debenture held over Ballyrobert Limited and Ballyrobert Service Station Limited.
Vehicle funding is secured against the vehicles to which it relates.
Page 34
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
During the financial year ended 31 December 2024, the Group undertook a review of its nominal ledger
mapping to ensure that all transactions were appropriately classified under the correct reporting headings. As a result of this review, certain comparative figures for the year ended 31 December 2023 have been restated to reflect the revised classifications. This restatement has affected the presentation of Turnover, Cost of Sales and Administrative Expenses. There has been no impact on the reported net profit for the prior year.
The Company is party to a Group overdraft facility with Ballyrobert Limited which incorporates a cross guarantee between the companies. At the reporting date the total was £393,112 (2023: £585,591).
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £46,347 (2023: £108,673). Contributions totalling £11,938 (2023: £77,277) were payable to the fund at the reporting date and are included in accruals.
Page 36
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BALLYROBERT SERVICE STATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company and Group are under the control of the Estate of Robert John Lyle due to his majority shareholding.
Page 37
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