Registration number:
Read Motor Group Limited
for the Year Ended 31 December 2024
Read Motor Group Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Read Motor Group Limited
Company Information
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Directors |
M Read N Read |
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Company secretary |
N Read |
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Registered office |
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Solicitors |
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Bankers |
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Auditors |
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Read Motor Group Limited
Strategic Report for the Year Ended 31 December 2024
The Directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the Company is that of a Parent Company to its trading subsidiaries; the consolidated Group accounts including the results and assets of these Companies.
The Company’s only source of income is dividends from its subsidiary Companies. The principal activities of the Group continue to be those of Hyundai, MG, Alfa Romeo, Jeep and Suzuki motor dealers and garage proprietors with parts operations also including Volkswagen.
Fair review of the business
The Group has continued to perform satisfactorily in what has been another challenging year for all involved in the motor trade industry with continued volatility around electric vehicles and increasing competition as new brands seek market share in the UK.
After sales continues to deliver strong performances and reflects well on the Group’s focus on operational excellence and achieving high customer satisfaction levels.
The Group maintains very strong manufacturer relationships and it’s performance measured against it’s peers continues to excel, with various performance awards including a global award being achieved by various sites and the Group as a whole.
The Group has had specific challenges as well as those stated above as new acquisitions have under performed and affected the Group results significantly. Issues arising from the acquisition are being addressed and improvements are already being seen.
Group turnover and margins have fallen in line with the market generally but administration costs have increased by 19% as the Group has strengthened key operational support areas of the business positioning for ongoing growth and ensuring existing high levels of customer support are maintained.
There has been a substantial increase in interest costs as Bank Base rates escalated considerably during the period resulting in an unprecedented £240k increase in funding costs.
Once the losses incurred by the new acquisition are removed the Group losses amount to £75k which reflects a good performance from the established subsidiaries.
The results achieved continue to reflect the commitment and hard work of the Group’s loyal employees which remains fundamental to the ongoing success of the Group.
Currently the Group is trading well given the ongoing challenges referred to above and performance and cost reviews are already yielding improved results.
The Company's key financial and other performance indicators during the year were as follows:
|
Unit |
2024 |
2023 |
|
|
Turnover |
£ |
141,393,190 |
140,217,940 |
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Turnover growth |
% |
1 |
2 |
|
Gross profit |
£ |
12,624,404 |
11,835,691 |
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Gross profit % |
% |
9 |
8 |
Principal risks and uncertainties
The ongoing war in Ukraine , US tariffs and economic and political uncertainty in the UK continue to be concerns, coupled with increased competition particularly from new Chinese brands.
However, the Directors are confident that the business is well placed to deal with these risks and uncertainties as it continues it’s successful focus on high customer satisfaction levels.
Read Motor Group Limited
Strategic Report for the Year Ended 31 December 2024
Section 172(1) statement
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, are constantly considering be most likely approach to promote the success of the Group for the benefit of its shareholders, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Group are appropriately informed by s172 factors.
Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture. As part of managements decision-making process, we consider the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Group’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.
Engagement with suppliers, customers and other relationships
The Board of directors consider the need to develop excellent working relationships with all key stakeholders as emphasised in the Section 172(1) statement but specifically those with suppliers and customers. In all key decisions made by the Board the long term working relationship with suppliers is a key factor and the Group's excellent long standing relationship with Hyundai UK as principal supplier is testament to the relationships built up.
The results of the Group's approach to fostering good relationships with customers can be seen through the number of repeat customers obtained and the excellent performance of individual sites in the Hyundai UK Dealership awards. All sites are monitored using a balanced scorecard approach and a number of sites have won National awards in recent years.
Approved by the Board on
.........................................
M Read
Director
Read Motor Group Limited
Directors' Report for the Year Ended 31 December 2024
The Directors present their report and the consolidated financial statements for the year ended 31 December 2024.
Directors of the Group
The Directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Group uses basic financial instruments, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The Group's principal financial instruments comprise of bank balances and loan agreements, trade debtors, trade creditors and vehicle funding agreements.
The liquidity risk is managed by maintaining a balance between the need for continuity of funding and flexibility through the use of loan facilities and vehicle funding agreements. All business cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the consolidated balance sheet are net of allowances for trade debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Streamlined energy and carbon reporting
During the year the Group's total annual consumption of energy was 2,231,409kwh (2023: 1,816,360kwh) which equates to 255,018kwh (2023: 227,045kwh) per operating site. This was calculated using GHG reporting protocols and UK Government GHG 2023 conversion factors and represents 470,342kgC02e (2023: 382,982kgC02e) of greenhouse gas emissions.
The reporting includes all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained adequate records of calculations completed.
The main areas of energy usage were gas and electricity used in each of the Company showrooms and fuel for Company vehicles. The Directors consider energy consumption on an ongoing basis and are committed to increasing energy efficiency in all areas of operations as well as for consumers in the form of its electric vehicle offering.
Energy usage continues to be monitored and changes are implemented as appropriate.
Other matters
Some items required to be disclosed in the directors' report under Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 are set out in the strategic report in accordance with section 414C(11) of the Companies Act 2006.
Read Motor Group Limited
Directors' Report for the Year Ended 31 December 2024
Disclosure of information to the auditor
Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Read Motor Group Limited
Statement of Directors' Responsibilities
The Directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Read Motor Group Limited
Independent Auditor's Report to the Members of Read Motor Group Limited
Opinion
We have audited the financial statements of Read Motor Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the Group's and the parent Company's affairs as at 31 December 2024 and of the Group's loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the Strategic and Directors' reports, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Read Motor Group Limited
Independent Auditor's Report to the Members of Read Motor Group Limited
Matters on which we are required to report by exception
In the light of our 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 Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent Company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of Directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of Directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 Group and Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 auditor’s 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Discussions with management held, including consideration of known or suspected instances of non-compliance. |
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Enquiries of management and the Group's solicitors of actual and potential litigation claims. |
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Challenging assumptions and judgements made within significant accounting estimates and judgements such as vehicle stock valuation. |
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Identification of key laws and regulations central to the Group's operations and review of compliance with such laws including a review of FCA website and correspondence to identify any disciplinary action or ongoing issues. |
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Testing of journal entries and potential override of systems. |
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Because of the inherent limitations of an audit, there is risk that we will not detect 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 involved intentional concealment, forgery, collusions, omission or misrepresentation |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Read Motor Group Limited
Independent Auditor's Report to the Members of Read Motor Group Limited
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in 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.
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For and on behalf of
Grimsby
North East Lincolnshire
DN31 1LW
Read Motor Group Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(1,363,845) |
(1,125,685) |
||
|
(Loss)/profit before tax |
( |
|
|
|
Tax on (loss)/profit |
|
( |
|
|
(Loss)/profit for the financial year |
( |
|
Read Motor Group Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2024
|
2024 |
2023 |
|
|
(Loss)/profit for the year |
( |
|
|
Surplus on property, plant and equipment revaluation |
|
|
|
Total comprehensive income for the year |
( |
|
|
Total comprehensive income attributable to: |
||
|
Owners of the Company |
( |
|
Read Motor Group Limited
(Registration number: 07110298)
Consolidated Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Other financial assets |
5,000 |
- |
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Revaluation reserve |
|
|
|
|
Retained earnings |
|
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
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Read Motor Group Limited
(Registration number: 07110298)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
|
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Fixed assets |
|||
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Investments |
|
|
|
|
Current assets |
|||
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Debtors |
|
|
|
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Cash at bank and in hand |
|
- |
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
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Called up share capital |
|
|
|
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Retained earnings |
|
|
|
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Shareholders' funds |
|
|
No separate holding company income statement has been prepared in line with section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £206,048 (2023 - profit of £200,000).
Approved and authorised by the
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Read Motor Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
Total equity |
|
|
At 1 January 2024 |
|
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
( |
|
Other comprehensive income |
- |
|
- |
|
|
|
Total comprehensive income |
- |
|
( |
( |
( |
|
Dividends |
- |
- |
( |
( |
( |
|
Transfers |
- |
(686) |
686 |
- |
- |
|
At 31 December 2024 |
|
|
|
|
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
Total equity |
|
|
At 1 January 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Movement in deferred tax |
- |
|
- |
|
|
|
Total comprehensive income |
- |
|
|
|
|
|
Dividends |
- |
- |
( |
( |
( |
|
Transfers |
- |
(686) |
686 |
- |
- |
|
At 31 December 2023 |
|
|
|
|
|
Read Motor Group Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2023 |
10,000 |
75,000 |
85,000 |
Read Motor Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
(Loss)/profit for the year |
( |
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss on disposal of tangible assets |
|
- |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
( |
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of intangible assets |
( |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
|
- |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
(239,317) |
727,065 |
|
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
General information |
The company is a private company limited by share capital incorporated in the United Kingdom and the company registration number is 07110298.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling which is the functional currency of the Group and have been rounded to the nearest pound.
The financial statements have been prepared in sterling and are rounded to the nearest pound.
Summary of disclosure exemptions
The Parent Company has taken advantage of the reduced disclosure exemption from preparing a cash flow statement as described in section 1.12 of FRS 102.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December 2024.
No Profit and Loss Account is presented for the Company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £206,048 (2023 - profit of £200,000).
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Judgements
The Directors have made a number of judgements in applying the Group's accounting policies, the most significant of which is in relation to the valuation of vehicle stocks. The Group holds a considerable amount of vehicle stocks which is held at the lower of cost and net realisable value. The net realisable value of vehicle stocks is impacted by a number of factors including the condition of the vehicle and general economic factors outside of the Directors' control. The calculation of the net realisable value of individual vehicles and stock provisions is closely controlled by the Directors' and involves significant judgments made utilising the years of experience and knowledge of the industry held. |
Key sources of estimation uncertainty
The key sources of estimation uncertainty surround the net realisable value of year end stocks and the impact of external factors such as the electric car market and the ongoing cost of living crisis on the future trading. See the Strategic Report for the Directors' assessment of the potential future impact of such events on the future trading of the Company and the year end stock valuation..
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Specifically for the sale of new and used motor vehicles revenue is recognised when a valid sales contract exists and significant risks and rewards of ownership have transferred to the buyer, e.g. the vehicle is registered in the customer’s name. Revenue from service and repair work is recognised upon completion of the work and customer acceptance, where applicable.
Any manufacturer bonuses or incentives are recognised when entitlement is established, typically upon satisfaction of sales volume thresholds or specific conditions.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using rates and allowances that apply to the sale of the asset.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
2% straight line basis |
|
Furniture, fittings & equipment |
15 - 33% straight line basis |
|
Other property, plant and equipment |
15% straight line basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
5-20% straight line basis |
Investments
Investments in shares in subsidiaries are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are 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.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of income and retained earnings over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the Group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Rental income from investment property |
- |
|
|
Commissions received |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - other |
|
- |
|
Loss on disposal of property, plant and equipment |
|
- |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other finance income |
|
|
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
- |
|
|
Interest on stock financing |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales |
|
|
|
Servicing, aftersales and other departments |
|
|
|
|
|
|
Directors' remuneration |
The Directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
- |
|
|
50,798 |
118,745 |
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
3,250 |
3,000 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
39,600 |
25,750 |
|
|
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
( |
|
|
UK corporation tax adjustment to prior periods |
( |
|
|
(70,431) |
308,223 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Arising from changes in tax rates and laws |
|
- |
|
Total deferred taxation |
|
( |
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
(Loss)/profit before tax |
(453,868) |
900,510 |
|
Corporation tax at standard rate |
(113,467) |
211,620 |
|
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
(17,671) |
829 |
|
Tax increase from effect of capital allowances and depreciation |
24,186 |
10,299 |
|
Increase from effect of different UK tax rates on some earnings |
- |
8,332 |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
4,702 |
25,744 |
|
Increase from tax losses for which no deferred tax asset was recognised |
86,716 |
- |
|
Total tax (credit)/charge |
(15,534) |
256,824 |
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
On 24 May 2021 the UK Government enacted a bill which increased the main rate of corporation tax in the UK from 19% to 25% from 1 April 2023. The standard rate of tax has therefore increased in the year and will be 25% for the 2024 financial year onwards.
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Revaluation of land and buildings |
- |
|
|
Tax losses carried forward |
- |
( |
|
- |
|
|
2023 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Revaluation of land and buildings |
- |
|
|
- |
|
There are £1,419,611 of unused tax losses (2023 - £Nil) for which no deferred tax asset is recognised in the balance sheet.
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
Additions acquired separately |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
Group
|
Freehold land and buildings |
Long leasehold land and buildings |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
||
|
Cost or valuation |
|||||||
|
At 1 January 2024 |
|
|
|
|
|
- |
|
|
Additions |
|
- |
|
|
|
|
|
|
Acquired through business combinations |
- |
- |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
( |
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
Depreciation |
|||||||
|
At 1 January 2024 |
|
|
|
|
|
- |
|
|
Charge for the year |
|
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
( |
|
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
Carrying amount |
|||||||
|
At 31 December 2024 |
|
|
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
- |
|
|
Total |
|||||||
|
Cost or valuation |
|||||||
|
At 1 January 2024 |
|
||||||
|
Additions |
|
||||||
|
Acquired through business combinations |
|
||||||
|
Disposals |
( |
||||||
|
At 31 December 2024 |
|
||||||
|
Depreciation |
|||||||
|
At 1 January 2024 |
|
||||||
|
Charge for the year |
|
||||||
|
Eliminated on disposal |
( |
||||||
|
At 31 December 2024 |
|
||||||
|
Carrying amount |
|||||||
|
At 31 December 2024 |
|
||||||
|
At 31 December 2023 |
|
||||||
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
The Group’s freehold properties were last revalued at a combined value of £2,400,000 in 2015 by an independent valuer on an existing use basis. The Group elected to adopt the transition exemption on first application of FRS 102 to use these previous valuations as deemed cost.
Had the properties not been revalued, the historical cost and accumulated provision for depreciation as at 31 December 2024 would have been £7,810,752 and £798,340 respectively (2023: £7,751,693 and £657,857).
|
Investments |
Company
Details of the investments (including principal place of business of unincorporated entities) in which the Group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
England |
|
|
|
|
|
|
|
|
|
|
England |
||||
|
|
|
|
|
|
|
England |
||||
|
|
|
|
|
|
|
England |
||||
|
|
|
|
|
|
|
England |
||||
* indicates direct investment of the company
Subsidiary undertakings
All subsidiary companies are included in the consolidated accounts and have the same registered office address as Read Motor Group Limited.
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2024 |
|
|
Additions |
|
|
At 31 December 2024 |
|
|
Provision |
|
|
At 1 January 2024 |
|
|
Provision |
- |
|
At 31 December 2024 |
|
|
Carrying amount |
|
|
At 31 December 2024 |
|
|
At 31 December 2023 |
|
|
Business combinations |
On
The new site contributed £
The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
|
Book value |
Fair value |
|
|
Assets and liabilities acquired |
||
|
Financial assets |
984,602 |
|
|
Stocks |
1,260,196 |
|
|
Tangible assets |
164,330 |
|
|
Financial liabilities |
(2,315,097) |
( |
|
Total identifiable assets |
94,031 |
|
|
Goodwill |
325,744 |
|
|
Total consideration |
419,775 |
419,775 |
|
Satisfied by: |
||
|
Cash |
271,496 |
|
|
Contingent consideration arrangement |
75,000 |
|
|
Settlement of pre-existing balance |
73,279 |
|
|
Total consideration transferred |
419,775 |
|
|
|
||
The useful life of goodwill is
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Other financial assets |
Group
|
Financial assets at cost less impairment |
Total |
|
|
Non-current financial assets |
||
|
Cost or valuation |
||
|
At 1 January 2024 |
5,000 |
5,000 |
|
At 31 December 2024 |
5,000 |
5,000 |
|
Impairment |
||
|
At 1 January 2024 & 31 December 2024 |
- |
- |
|
Carrying amount |
||
|
At 31 December 2024 |
|
5,000 |
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Vehicle and parts stocks |
|
|
- |
- |
Group
The carrying amount of stocks pledged as security for liabilities amounted to £
|
Debtors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
2,769,492 |
- |
- |
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
152,482 |
|
- |
|
|
Prepayments |
|
286,685 |
- |
- |
|
|
Corporation tax asset |
|
- |
- |
- |
|
|
|
3,208,659 |
|
|
||
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
- |
|
|
|
|
- |
|
|
Bank overdrafts |
( |
- |
- |
- |
|
Cash and cash equivalents in statement of cash flows |
(239,317) |
727,065 |
349 |
- |
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Other payables |
|
|
- |
- |
|
|
Accrued expenses |
|
|
- |
- |
|
|
Corporation tax liability |
- |
26,251 |
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
- |
|
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
10,000 |
|
10,000 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Reserves |
Group
Share capital
Share capital comprises of the value of issued share capital at par in the parent company.
Revaluation reserve
The revaluation reserve is made up of a previous revaluation adopted, less deferred tax recognised on this revaluation.
Profit and loss account
The profit and loss account consists of profits made by the group attributable to the shareholders of the parent company.
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
|
Revaluation reserve |
Total |
|
|
Surplus/deficit on property, plant and equipment revaluation |
|
|
|
|
||
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
Share capital
Share capital comprises of the value of issued share capital at par in the parent company.
Profit and loss account
The profit and loss account consists of profits made by the group attributable to the shareholders of the parent company.
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
- |
Current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
- |
|
Bank overdrafts |
|
- |
- |
- |
|
|
|
|
- |
|
Included in the loans and borrowings are the following amounts due after more than five years:
|
2024 |
2023 |
|
|
After more than five years by instalments |
|
|
Bank loans and overdrafts after five years
Bank loans due after more than five years are repayable by quarterly instalments over the full terms of the loans and have interest rates ranging from 2.1% to 3.78% over base rate.
Secured creditors
|
Bank borrowings are secured by an unlimited cross guarantee debenture over the assets of all companies within the group. |
|
Secured trade creditors are secured against the vehicles to which they relate. |
The aggregate amount of secured creditors across all liabilities is £28,539,056 (2023: £23,018,808).
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Analysis of changes in net debt |
Group
|
At 1 January 2024 |
Financing cash flows |
Acquisition of subsidiaries |
At 31 December 2024 |
|
|
Cash and cash equivalents |
||||
|
Cash |
727,065 |
(605,991) |
- |
121,074 |
|
Overdrafts |
- |
(360,391) |
- |
(360,391) |
|
727,065 |
(966,382) |
- |
(239,317) |
|
|
Borrowings |
||||
|
Long term borrowings |
(2,147,128) |
525,182 |
(419,775) |
(2,041,721) |
|
Short term borrowings |
(632,707) |
(35,000) |
- |
(667,707) |
|
(2,779,835) |
490,182 |
(419,775) |
(2,709,428) |
|
|
|
||||
|
( |
( |
( |
( |
|
|
Related party transactions |
Group
Key management compensation
|
2024 |
2023 |
|
|
Salaries and other short term employee benefits |
|
|
|
Other long-term benefits |
- |
|
|
|
|
Summary of transactions with key management
Personal guarantees totalling £100,000 have been given by members of key management personnel relating to outstanding bank loan facilities.
|
Transactions with directors |
Dividends paid to directors and close family members during the year total £240,000 (2023: £200,000).
Read Motor Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Expenditure with and payables to related parties
|
2024 |
Key management/ |
|
Amounts payable to related party |
|
|
|
|
|
2023 |
Key management/ |
|
Amounts payable to related party |
|
|
|
|
|
Parent and ultimate parent undertaking |
The ultimate controlling party is