Company Registration Number: 02786349
31 JANUARY 2025
NORTH EAST TRUCK & VAN LIMITED
COMPANY INFORMATION
NORTH EAST TRUCK & VAN LIMITED
CONTENTS
NORTH EAST TRUCK & VAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
The directors present their strategic report for the year ended 31 January 2025.
The Profit on ordinary activities before taxation was £106k (2024 - £275k).
The directors are pleased with the performance of the Company in the financial year which has been profitable despite the difficult macroeconomic environment and the impact of higher interest rates.
The directors feel the Company remains well placed to improve gross profits and further control costs in the coming years and the Company forecasts sufficient headroom within its banking facilities for at least the next 12 months. Accordingly, the directors are optimistic of continuing positive results in the year ahead.
The directors are pleased with the performance of the Company in the financial year which has been profitable despite the difficult macroeconomic environment and the impact of higher interest rates.
The directors feel the Company remains well placed to improve gross profits and further control costs in the coming years and the Company forecasts sufficient headroom within its banking facilities for at least the next 12 months. Accordingly, the directors are optimistic of continuing positive results in the year ahead.
The principal risks and uncertainties associated with the business mainly centre on credit risk, and exposure to interest rates.
The Company remains committed that its future expansion strategies should be achieved from cash generated by its operations.
The Company manages its exposure to interest rates by having facilities with varying providers on differing interest rate bases and thus spreading its risk accordingly.
As a matter of good business practice, the Company has taken steps to negotiate additional facilities which may be used if required to meet any expansion programmes over and above current strategies.
Other financial assets and liabilities are those generated from its trading activities and primarily comprise fixed assets, stocks, trade debtors and trade creditors.
Monitoring and control of trade debtors remains key, and the Company undertakes credit assessments of its customers monthly to minimise exposure on extended credit where there is a possibility of default. The Company ensures provision of such risk is maintained at historic rates.
The Company believes that due to its investment in properties and stringent accounting policies, the market value of its fixed assets exceeds their net book value.
The Company manages its exposure to interest rates by having facilities with varying providers on differing interest rate bases and thus spreading its risk accordingly.
As a matter of good business practice, the Company has taken steps to negotiate additional facilities which may be used if required to meet any expansion programmes over and above current strategies.
Other financial assets and liabilities are those generated from its trading activities and primarily comprise fixed assets, stocks, trade debtors and trade creditors.
Monitoring and control of trade debtors remains key, and the Company undertakes credit assessments of its customers monthly to minimise exposure on extended credit where there is a possibility of default. The Company ensures provision of such risk is maintained at historic rates.
The Company believes that due to its investment in properties and stringent accounting policies, the market value of its fixed assets exceeds their net book value.
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NORTH EAST TRUCK & VAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
Although the Company has several different operations within its commercial dealerships, the directors do not believe that a detailed analysis of key performance indicators is necessary in this report to understand the business, which is managed by regular preparation and review of detailed business analysis and management accounts.
During the year the Company’s turnover has decreased by £407k (0.67%) from £60,317k in 2024 to £59,910k in 2025. While we have seen growth in turnover for Parts, Service and labour, up £1,639k (7.28%) to £24,147k in 2025 from £22,508k in 2024, the overall decrease is driven by a fall in vehicle sales of £2,046k (5.4%) from £37,809k in 2024 to £35,763 in 2025. The Company continues to operate in a challenging market which has remained fairly static in the period with little growth. This is a direct result of economic factors such as political uncertainty and continuing high interest rates, which in turn are impacting customers capital spend decisions.
The Company’s stock levels have decreased by £7,932k (24.79%) from £31,993k in 2024 to £24,061k in 2025.This decrease is the result of a concerted effort to sell out of stock vehicles both to mitigate the impact of increased stocking interest costs, and to prepare for new model launches in mid to late 2025.
As well as quantitative KPIs, the directors monitor qualitative key performance indicators to measure and assess the performance of the business on a regular basis. These KPIs include detailed customer satisfaction surveys which are carried out both in house and by our manufacturer partners, vehicle time off road reporting, MOT performance and repair & maintenance contract penetration amongst others. All such KPIs are monitored and reviewed on a regular basis and are used to drive forward the strategy and management of the business.
During the year the Company’s turnover has decreased by £407k (0.67%) from £60,317k in 2024 to £59,910k in 2025. While we have seen growth in turnover for Parts, Service and labour, up £1,639k (7.28%) to £24,147k in 2025 from £22,508k in 2024, the overall decrease is driven by a fall in vehicle sales of £2,046k (5.4%) from £37,809k in 2024 to £35,763 in 2025. The Company continues to operate in a challenging market which has remained fairly static in the period with little growth. This is a direct result of economic factors such as political uncertainty and continuing high interest rates, which in turn are impacting customers capital spend decisions.
The Company’s stock levels have decreased by £7,932k (24.79%) from £31,993k in 2024 to £24,061k in 2025.This decrease is the result of a concerted effort to sell out of stock vehicles both to mitigate the impact of increased stocking interest costs, and to prepare for new model launches in mid to late 2025.
As well as quantitative KPIs, the directors monitor qualitative key performance indicators to measure and assess the performance of the business on a regular basis. These KPIs include detailed customer satisfaction surveys which are carried out both in house and by our manufacturer partners, vehicle time off road reporting, MOT performance and repair & maintenance contract penetration amongst others. All such KPIs are monitored and reviewed on a regular basis and are used to drive forward the strategy and management of the business.
North East Truck & Van exists for the betterment of it’s customers, their vehicles and operations and the support and wellbeing of it’s employees. Our corporate culture is focused around ensuring the highest levels of customer service with each and every interaction, and the strategic pursuit of the long-term stability and progression of the organisation.
We consider our key stakeholders to be our customers, suppliers, employees and the wider surrounding community.
We have worked closely with both customers and suppliers to ensure we carefully manage the transition to more environmentally sustainable products, such as alternative fuel vehicles, a number of which are now available within our product portfolio, and avoiding waste in the supply chain.
We believe in the fundamental principles of honesty and integrity and seek to employ these in all aspects of our business practices.
We consider our key stakeholders to be our customers, suppliers, employees and the wider surrounding community.
We have worked closely with both customers and suppliers to ensure we carefully manage the transition to more environmentally sustainable products, such as alternative fuel vehicles, a number of which are now available within our product portfolio, and avoiding waste in the supply chain.
We believe in the fundamental principles of honesty and integrity and seek to employ these in all aspects of our business practices.
This report was approved by the board and signed on its behalf.
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NORTH EAST TRUCK & VAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
The directors present their report and the financial statements for the year ended 31 January 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the 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 Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Company operates franchises with Iveco, Fiat Professional, Maxus and MAN.
The profit for the year, after taxation, amounted to £63k (2024 - £352k.)
No dividends will be distributed for the year ended 31 January 2025.
The directors who served during the year were:
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NORTH EAST TRUCK & VAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
The directors continue to be confident that the business will continue to perform to plan, with the cost base being carefully controlled and monitored to react immediately to any volume fluctuations.
There have been no significant events affecting the Company since the year end.
Armstrong Watson Audit Limited will be deemed to have been reappointed as auditor 28 days after these finacial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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NORTH EAST TRUCK & VAN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EAST TRUCK & VAN LIMITED
We have audited the financial statements of North East Truck & Van Limited (the 'Company') for the year ended 31 January 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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NORTH EAST TRUCK & VAN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EAST TRUCK & VAN LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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NORTH EAST TRUCK & VAN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EAST TRUCK & VAN 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 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, including the requirements of FCA regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships; and
• tested journal entries to identify unusual transactions; and reviewed the application of accounting policies.
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; 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
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NORTH EAST TRUCK & VAN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORTH EAST TRUCK & VAN LIMITED (CONTINUED)
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.
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
Chartered Accountants & Statutory Auditors
Newcastle upon Tyne
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NORTH EAST TRUCK & VAN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
REGISTERED NUMBER: 02786349
STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 27 form part of these financial statements.
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NORTH EAST TRUCK & VAN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
North East Truck & Van Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company information page.
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 management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of North East Truck & Van Holdings Limited as at 31 January 2025 and these financial statements may be obtained from Cowpen Bewley Road, Haverton Hill, Billingham, TS23 4EX.
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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 on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks and work in progress are stated at the lesser of cost and net realisable value.
The cost of parts is determined on a weighted average basis and the cost of new and used vehicles is determined on an actual cost basis.
Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a finished condition.
Provision is made where necessary for obsolete, slow moving and defective stocks.
The cost of parts is determined on a weighted average basis and the cost of new and used vehicles is determined on an actual cost basis.
Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a finished condition.
Provision is made where necessary for obsolete, slow moving and defective stocks.
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic life of those assets. These are re-assessed annually and amended when necessary to reflect current estimates, based on the economic utilisation and physical condition of the assets.
(ii) Inventory provisioning
The company holds used vehicles for resale. Such vehicles are held at cost less any provision for impairment. The calculation of any provision for impairment required judgement. Such provisions are calculated using management's best estimates of likely future selling prices on an individual vehicle by vehicle basis.
(iii) Valuation of accrued income
Income is accrued for maintenance work performed. Where this income is not realised at the time of approving the accounts, there is an element of estimation in this amount. In this case, accrued income is estimated based on parts and labour costs incurred, and historic recovery rates against those costs in general and for specific customers.
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
11.Taxation (continued)
There is no future changes that will affect tax charges.
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
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Capital redemption reserve
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £229 k (2024 -237k). Contributions totaling £86 k (2024 -90 k) were payable to the fund at the balance sheet date.
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NORTH EAST TRUCK & VAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
The results of the Company are consolidated in the financial statements of
The directors consider the ultimate controlling party to be
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