The directors present the strategic report of the company for the year to 31 March 2025.
The comparative figures are for the period 1 July 2023 to 31 March 2024
The reported year represents a strong twelve months of resilient trading, which has materially improved the outlook of the business. Despite ongoing headwinds across the domestic automotive sector, including demand-led pressures driven by increased insurance premiums, the business has continued to perform strongly. In response to the cost-of-living crisis, consumers have increasingly opted for higher policy excesses, resulting in fewer claims being made nationally and a greater tendency for customers to live with minor vehicle damage.
The business has also faced cost pressures arising from Government-led increases to National Insurance and the National Minimum Wage. Due to the contractual nature of pricing within the sector, there has been limited scope to pass these increases on to customers, placing additional pressure on margins.
Despite these external challenges, the business delivered improved performance across its existing operational estate. Site-by-site contributions strengthened through increased output, improved operational discipline, and the consistent application of robust processes focused on efficiency and cost control. These actions resulted in a material improvement in overall gross margin and supported a more resilient operating model.
During the year, the business continued to gain market share within its core regions of South Wales and Hereford through strong staff retention, expansion of the customer base, and further contract wins. Improved operational consistency also contributed to stronger liquidity and working capital management, alongside improved customer satisfaction, all of which remain key performance indicators for the Board.
Despite operating within volume constraints, the group maintained operational momentum and delivered increased contribution, with gross profit rising from 30% to 39%. Improved stability in parts supply and more predictable demand conditions further supported performance during the year.
The Group remained financially disciplined throughout the year, honouring all debt repayment obligations while continuing to strengthen the performance of its existing estate. The year concluded with the business reporting an improved operating profit and improved underlying EBITDA. With strengthened processes, improved cost control, and normalising demand drivers, the Board remains cautiously optimistic about the outlook for the business.
Principal Activities and Review of the Business
The principal activity of the company is the provision of motor vehicle accident repair services. During the year, the business focused on consolidating and improving performance across its existing estate, with an emphasis on operational efficiency, margin improvement, and financial discipline.
The company benefits from a number of established competitive strengths. It continues to hold a strong position within the UK vehicle repair market and remains the largest operator in Wales. The business maintains a solid market share, supported by long-standing relationships with work providers, a stable and experienced workforce, and a consistent focus on service quality and customer satisfaction.
The Directors were pleased with the financial and operational performance achieved during the year. Despite operating in a challenging trading environment, the company delivered a record year since its inception in 1999 excluding exceptional items, reflecting stronger operational execution and cost control across the estate. These factors contributed to improved gross margins and operating profitability compared to prior periods.
Despite the reduction in sites, revenue remained buoyant and was driven by increased throughput across the existing estate, alongside improved pricing and operational efficiencies. The business reported an operating profit for the year, reflecting the sustained improvement in trading performance. Cash generation remained strong, supported by disciplined management of working capital, including debtor collection and inventory control.
The company’s financial performance and position are closely monitored by the Directors and senior management through regular review of key financial indicators, including revenue trends, gross margin, operating margins, cash flows, and covenant compliance. This ongoing oversight has strengthened the company’s financial resilience and improved its ability to respond to changes in market conditions.
The Directors consider that the business has made significant progress in strengthening its operating model and financial position during the year. This provides a stable platform from which the company can continue to operate effectively and meet its obligations as they fall due.
Principal activities and review of the business
The strategy of the business is to increase its share of the motor vehicle repair market through increasing sales and Gross margin at its existing outlets and through new outlets where appropriate. The company successfully negotiated improved customer contracts to support with its growth strategy.
The company enjoys a number of competitive advantages including strong brand recognition as being one of the top ten repairers in the UK, alongside being the largest employer in Wales for the sector it operates in. The company consistently achieves a strong market share, well established price for competitiveness, a stable and motivated workforce and a strong customer focus throughout the business.
The directors of the company were pleased with the overall result of the business during the year. The business' operational delivery has shown significant gains in operating in a challenging environment.
The Directors remain confident that the business will be able to meet its obligations over the next twelve months. Future cashflow projections are in place, supported by a robust business plan geared up to further market disruptions, in which the Directors and Leadership team are confident are achievable.
The management of the business and the execution of the company’s strategy are subject to a number of risks.
The UK economy has rebounded, in many areas, consumer behaviours have adapted, with 2 in 5 (41%) of workers in the UK working from home at least some of the week and other work life balance changes. This has ultimately led to fewer vehicles on the road and lower peak time traffic. Employment has been affected with further staff shortages felt through Brexit and high increases of NMW & NI alongside consumer behaviour in lifestyle adaptation of being on the government’s furlough scheme during the pandemic.
The business has mitigated the impact of demand drivers by robustly negotiating work provider contracts to ensure the operational required volumes are available.
Staff retention has become a primary focus for the business. The overall employment package offered by the business is industry leading and staff retention remains very strong.
The company has also secured a home office licence to acquire operative staff from overseas working under a company sponsored workplace visa.
Adaptation to technology continues to be a large investment to the business with its extensive manufacturer approvals and ensuring every repair is carried out to the British Standards Institution (BSI) standards at all of its locations.
Cash flow risk
The company carefully monitors its cashflow with short, medium and long term forecasting to meet liabilities as they fall due and ensuring that short term demands for customer outcomes are not compromised.
Credit Risk
Credit terms are offered to customers within 30 days with largely blue chip well capitalised entities. These are subject to credit verification procedures. Given the focus on liquidity the position is considered well managed with minimum risk for bad debt provisions.
Overall Debt
The group has substantial facilities across senior debt, trade facilities and asset finance facilities. All funders continue to work collaboratively within the group.
The group’s strategic plans assume continued success across its existing locations, supported by increased sales volumes and improved gross margins. This is expected to be achieved through the ongoing renegotiation of contracts with existing and new work providers, with a focus on maximising output and efficiency across the current estate.
The business has reaffirmed its long-term strategy to remain a largely Wales-based independent accident repair group. Growth is expected to be driven primarily through increased utilisation of existing sites, alongside selective expansion where appropriate.
A key area of focus is the continued development of manufacturer approvals. At the date of authorisation of these financial statements, the business had secured approvals from over twelve vehicle manufacturers and is in active discussions with a further four manufacturers. These approvals support increased volumes through the existing estate and strengthen relationships with work providers.
Alongside organic growth within the core business, securing additional locations remains a strategic priority. Expanding the site network will enable the company to enhance geographic coverage and further support its existing portfolio of work providers.
The group continues to invest in its apprenticeship programme, which has delivered positive results. This initiative supports the development of a sustainable pipeline of skilled operatives, ensuring the business continues to train and retain employees to the highest possible technical standards.
The business’s key performance indicators (KPIs) are summarised below;
KPI's | Period End 31 March 2024 | Year End 31 March 2025 |
Turnover | £19m | £17m |
Gross Margin | £5.6m | £6.6m |
The business has a strong focus on KPIs that are geared around financial and operational performance, together with customer and staff satisfaction.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Pierce C A Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of AVRC Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities we considered the following:
The nature of the industry and the group’s control environment.
Results of our enquiries of management.
The group’s procedures and controls on compliance with laws and regulations and the risks of fraud.
Discussions among the audit engagement team concerning potential indicators of fraud.
We are also required to perform specific procedures to respond to the risk of management override.
As a result of our audit procedures we did not identify a material risk of fraud or other non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £372,370 (2024 - £207,243 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
AVRC Ltd is a private company limited by shares incorporated in England and Wales. The registered office is iRG Cardiff, Whittle Road, Cardiff, Wales, CF11 8AT.
The group consists of AVRC Ltd and all of its subsidiaries.
The figures presented in these financial statements are prepared for the twelve month period ended 31 March 2025. The comparative figures are for the nine month period ended 31 March 2024.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company AVRC Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The group has delivered sustained improvements in trading performance, reporting an operating profit of £972k for the financial year. Trading has remained positive subsequent to the year end, with the group continuing to generate operating cash flows.
The group has external borrowings of £5.0m and participates in shared banking arrangements with security provided by way of a cross-guarantee between all group companies. The directors have reviewed the group’s funding position and note that the external funder has confirmed its ongoing support.
The directors have prepared cash flow forecasts for the group covering a period of at least twelve months from the date of approval of these financial statements. These forecasts reflect current trading conditions and expected future performance and demonstrate that the group are expected to continue to generate sufficient cash to meet their liabilities as they fall due and remain compliant with borrowing covenants throughout the forecast period.
The directors have considered all relevant information that could reasonably be expected to be available at the date of approval, including trading performance, cash flow forecasts, funding arrangements, and covenant compliance. On this basis, they consider it appropriate to prepare the financial statements on a going concern basis.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates. See the notes for the carrying amount of intangible assets.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amounts of the tangible assets.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024: 4).
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
In June 2023, the company's fixed assets were independently valued by GTC Appraisals Limited, who are unconnected to the company, following instruction from the company directors.
The historic cost of the fixed assets held at valuation is £1,972,661. The accumulated depreciation charged on the historic cost of the assets is £1,318,881.
Details of the company's subsidiaries at 31 March 2025 are as follows:
The following subsidiary is exempt from audit under Section 479A of the Companies Act 2006 as the parent company has given a guarantee in respect of all outstanding liabilities at the subsidiary's financial year end:
T.S.T Cosmetic Repairs Limited - Company number 12522298
Included in other debtors is an amount owed by the directors of £75,000 (2024: £75,000).
Included within other creditors is an amount of £315,125 (2024: £314,796) which is deferred consideration relating to the acquisition in the period ended 31 December 2020.
The loan creditors are secured by way of fixed and floating charges over the assets of the company, a composite company guarantee with iRG Group Limited and T.S.T Cardiff Limited, and a personal guarantee from the directors limited to £200,000.
Finance lease and hire purchase contracts are secured on the assets to which they relate.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 24 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The directors have agreed that there is not an ultimate controlling party.