Registration number:
for the Year Ended
Registration number:
for the Year Ended
Azur Auto Limited
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
Azur Auto Limited
Company Information
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Director |
Mr I Sexton |
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Company secretary |
Lucraft Secretarial Limited |
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Registered office |
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Auditors |
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Azur Auto Limited
Strategic Report for the Year Ended 31 December 2024
The director presents his strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the retail and servicing of motor vehicles under franchise.
Fair review of the business
The company produced a loss before tax for the year of £77k (2023: profit £344k). At the end of the year the company had net current assets of £3.44m (2023: £3.41m) and net assets of £3.78m (2023: £3.84m).
Principal risks and uncertainties
The group's strategy and the general nature of the business are subject to a number of risks. The directors have set out below the principal risks facing the business.
The directors consider that through robust risk management procedures, involving the formal review of the risks identified below, systems are in place to monitor and mitigate such risks.
The market in which the group operates is highly competitive. Specific territories are allocated by manufacturers which mitigates direct competition in respect of new vehicles, used vehicle and servicing competition to a point. In addition, similar class vehicles are available from other manufacturers and as a result the group has a diverse portfolio of marques within the 'volume' vehicle market. The company has a relentless determination to understand the implications of the digital market and has resultantly created strategies to gain competitive advantage.
The group maintains exemplary dealer standards and prides itself on meeting and exceeding customer expectations. Policies of constant price monitoring and on-going market research are in place to mitigate competition risks.
The retail motor industry continues to face challenges to its traditional model. On top of supply issues, disruption through used retailing comes from large operators offering convenience through digital models with expediency and other innovative consumer assurances. Many OEM’s are to change their networks to ‘agency’ models whereby the OEM itself becomes the sole supplier, supported by its franchisees for physical elements of the purchase experience. The latter will mean a likely reduction in national sales points. The changing job market may have an effect on loyalty and retention, subsequently a switch to employers who can deliver an optimal work experience is required. Wage inflation may well continue to escalate. The digital revolution has handed control to consumers in their selection of inbound enquiry and expectations of the retail experience. This has led to proliferation of a host of ‘omni-channel’ tools which means that vehicle retailers are required to be able to deliver a high and convenient consumer experience whether it’s a pure on-line or a physical ‘walk-in’ enquiry, and all channels in-between.
Approved and authorised by the
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Azur Auto Limited
Director's Report for the Year Ended 31 December 2024
The director presents his report and the financial statements for the year ended 31 December 2024.
Director of the company
The director who held office during the year was as follows:
Financial instruments
Objectives and policies
The group uses financial instruments other than derivatives comprising borrowings, 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. The main risks arising from the group's financial instruments are interest rate risk and liquidity risk The directors review and agree policies for managing each of these risks and they are summarised below.
Price risk, credit risk, liquidity risk and cash flow risk
The group finances its operations through a mixture of reserves, related party loans, bank finance and trade borrowings from manufacturers. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.
The increase in the Bank of England base rate during the years has meant that the overall cost of borrowing has increased significantly. The directors keep borrowing levels under regular review.
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable requirements. The group policy throughout the year has been to ensure continuity of funding from manufacturers and from the group's bankers.
Other debt is structured so that repayments can be made out of cash generated through operations.
Disclosure of information to the auditors
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Approved and authorised by the
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Azur Auto Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 United Kingdom 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 director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Azur Auto Limited
Independent Auditor's Report to the Members of Azur Auto Limited
Opinion
We have audited the financial statements of Azur Auto Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 company's affairs as at 31 December 2024 and of its 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 company 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director are responsible for the other information. The other information comprises the information included in the annual report, 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.
Azur Auto Limited
Independent Auditor's Report to the Members of Azur Auto Limited
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 Director's 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 Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's 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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the 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:
Azur Auto Limited
Independent Auditor's Report to the Members of Azur Auto Limited
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management and from our commercial knowledge and experience of the motor dealership industry. Of these laws and regulations, we focused on those that we considered may have a direct material impact on the financial statements or the operations of the company.
Our assessment of the laws and regulations that may materially affect the financial statements or operations of the company included the Companies Act 2006, taxation legislation, employment law, health and safety regulations and environmental regulations. We also considered GDPR, anti-money laundering, FCA rules and the Consumer Credit Act throughout the audit. The extent of the company's compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting correspondence and other documentation. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the duration of 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 and directors as to where they have considered there is a susceptibility to fraud, and their knowledge of actual, suspected or alleged fraud;
• Considering the internal controls in place to mitigate the risk of fraud and non-compliance with laws and regulations.
To address the risk of fraud arising through management bias and override of controls we have:
• Performed analytical procedures to identify any unusual or unexpected relationships or balances;
• Tested journal entries to identify unusual transactions;
• Assessed whether judgements and assumptions made in determining the accounting estimates of the company were indicative of potential bias; and
• Investigated the rationale behind any significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• Agreeing disclosures in these financial statements to underlying supporting documentation;
• Enquiring of management as to actual and potential litigation and claims; and
• Reviewing correspondence with HMRC, the company’s franchisors and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The further removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identified non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence where present. Material misstatements that arise due to fraud can be more difficult to detect than those arising from error as they may involve deliberate concealment or collusion.
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.
Azur Auto Limited
Independent Auditor's Report to the Members of Azur Auto 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
2/4 Ash Lane
Rustington
West Sussex
BN16 3BZ
Azur Auto Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Other interest receivable and similar income |
- |
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Interest payable and similar charges |
( |
( |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/profit for the financial year |
( |
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Retained earnings brought forward |
3,842 |
3,628 |
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Retained earnings carried forward |
3,781 |
3,843 |
Azur Auto Limited
(Registration number: 06513466)
Balance Sheet as at 31 December 2024
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Note |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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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 |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
- |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
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Shareholders' funds |
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Approved and authorised by the
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Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
United Kingdom
The principal place of business is:
Birchwood Garage
Lottbridge Drove
Eastbourne
East Sussex
BN23 6PX
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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
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.
These financial statements are presented in Sterling, which is also the company's functional currency. The financial statements are rounded to the nearest £1,000.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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2 |
Accounting policies (continued) |
Judgements
Consignment inventories have been included within the statement of financial position on the grounds that the company considerably bears the risks and rewards of ownership attached to these vehicles. As such, the consignment inventories are considered to be under the control of the company. |
At each reporting date, property, plant and equipment is assessed for any indication of impairment. If such indication exists, the recoverable amount of each asset is determined based on value in use calculations which require estimates to be made of future cash flows. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
The company receives income in the form of various incentives which are determined by the company's brand partners. The amount receivable is generally based on achieving specific objectives such as specified sales volumes, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis. |
Key sources of estimation uncertainty
Potential provisions for the impairment of used vehicle values requires an assessment of the realisable value of such stocks. Realisable value is obtained using market reseach data based upon recent industry activity. Whilst this data is deemed to be representative of current values, it is possible that the ultimate sales values will differ from the realisable value applied. The carrying amount is £Nil (2023 -£Nil).
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, exclusive of trade discounts, value added tax and other sales related taxes.
Sales of motor vehicles, parts and accessories are recognised when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts are delivered to the customer and title has passed.
Income arising from servicing and bodyshop sales are recognised on completion of the agreed work.
Sales of peripheral goods and services such as road fund licences and insurance policies are recognised as miscellaneous sales when the company defrays its responsibilities under the contract.
Commissions and incentive payments from franchisors and finance providers are recognised as earned. Where such income relates to specific vehicles, this is recognised in line with the recognition of the relevant vehicle.
Government grants
Government grants relating to coronavirus support are recognised at the point that the company becomes eligible for the grant.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies (continued) |
Other grants
Other grants are credited to the profit and loss account as the related expenditure is incurred.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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 company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet 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.
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:
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Asset class |
Depreciation method and rate |
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Short leasehold property |
10 years straight line |
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Plant and machinery |
10 years straight line |
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Fixtures and fittings |
7 years straight line |
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Office equipment |
3 years straight line |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’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 held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies (continued) |
Intangible assets
Intangible assets are stated in the statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
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:
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Asset class |
Amortisation method and rate |
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Computer software and website development |
3 years straight line |
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.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties, and transport and handling directly attributable to bringing the stock to its present location and condition.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Throughout each reporting period, stocks are periodically 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.
Stocks include consignment stocks where the risks and rewards of ownership have been passed to the company. Where consignment stocks are recognised, the associated liability is included within creditors.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
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 profit and loss account 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies (continued) |
Financial instruments
Classification
Recognition and measurement
Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, such as the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case off an outright short term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow, discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Impairment
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying value and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
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2024 |
2023 |
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Sale of goods |
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Rendering of services |
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Commissions received |
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The analysis of the company's turnover for the year by class of business is as follows:
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2024 |
2023 |
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New vehicle sales |
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Used vehicle sales |
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Servicing and parts income |
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Other turnover |
761 |
507 |
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The analysis of the company's turnover for the year by market is as follows:
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2024 |
2023 |
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UK |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2024 |
2023 |
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Miscellaneous other operating income |
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Operating profit |
Arrived at after charging/(crediting)
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2024 |
2023 |
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Depreciation expense |
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Write-down of stocks to net realisable value |
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Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Other interest receivable and similar income |
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2024 |
2023 |
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Interest income on bank deposits |
- |
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Other finance income |
- |
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- |
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Interest payable and similar expenses |
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2024 |
2023 |
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Interest on bank overdrafts and borrowings |
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Interest expense on other finance liabilities |
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Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
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2024 |
2023 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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Other employee expense |
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The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
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2024 |
2023 |
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Administration and support |
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Sales |
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Other departments |
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Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Auditors' remuneration |
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2024 |
2023 |
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Audit of the financial statements |
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Taxation |
Tax charged/(credited) in the profit and loss account
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Current taxation |
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UK corporation tax |
( |
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Deferred taxation |
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Arising from origination and reversal of timing differences |
( |
|
||
|
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:
|
|
|||
|
(Loss)/profit before tax |
( |
|
||
|
Corporation tax at standard rate |
( |
|
||
|
Tax increase from effect of capital allowances and depreciation |
|
|
||
|
Tax decrease from other tax effects |
- |
( |
||
|
Total tax (credit)/charge |
( |
|
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
10 |
Taxation (continued) |
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Acclerated capital allowances |
- |
|
|
- |
|
|
2023 |
|
|
||
|
Acclerated capital allowances |
- |
|
||
|
- |
|
|
Intangible assets |
|
Other intangible assets |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
- |
- |
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Other property, plant and equipment |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of freehold land and buildings and £254,351 (2023 - £281,228) in respect of short leasehold land and buildings.
|
Stocks |
|
2024 |
2023 |
|
|
New vehicles |
|
|
|
Used vehicles |
|
|
|
Parts and merchandise |
|
|
|
|
|
Impairment of stocks
The amount of impairment loss included in profit or loss is £203,694 (2023 - £158,272). The impairment loss is included in cost of sales.
The carrying amount of stocks pledged as security for liabilities amounted to £
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Current |
Note |
|
|
||
|
Trade debtors |
|
|
|||
|
Amounts owed by related parties |
|
|
|||
|
Other debtors |
|
|
|||
|
Prepayments |
|
|
|||
|
Accrued income |
|
|
|||
|
Income tax asset |
|
- |
|||
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
- |
|
|
Cash at bank |
|
|
|
Short-term deposits |
( |
|
|
Creditors |
|
Note |
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 |
|
|
|
|
Income tax liability |
- |
28 |
|
|
Payments on account |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
- |
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £33,110 (2023 - £23,332).
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
|
|
|
1 |
|
1 |
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Loans and borrowings |
|
2024 |
2023 |
|
|
Non-current loans and borrowings |
||
|
Other borrowings |
|
- |
|
2024 |
2023 |
|
|
Current loans and borrowings |
||
|
Other borrowings |
|
|
|
|
|
|
Other borrowings
Other borrowings with a carrying amount of £166,667 (2023 - £266,667) is denominated in GBP with a nominal interest rate of . The final instalment is due on 11 August 2026.
|
Related party transactions |
|
|
Transactions with the director |
|
2023 |
|
|
|
|
|
|||||
|
Mr I Sexton |
||||||||||
|
Loan |
|
|
( |
7 |
- |
|||||
Summary of transactions with parent
During the year the company rented business premises from Sexton Holdings Limited and continued to provide loans to Sexton Holdings Limited.
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
21 |
Related party transactions (continued) |
Summary of transactions with other related parties
Outstanding balances with related parties are unsecured, interest free and cash settlement is expected within 30 days of invoice.
Income and receivables from related parties
|
2024 |
Other related parties |
|
Sale of goods |
|
|
Receipt of services |
|
|
|
|
|
Amounts receivable from related party |
|
|
|
|
|
2023 |
Other related parties |
|
Sale of goods |
|
|
Receipt of services |
|
|
|
|
|
|
|
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
21 |
Related party transactions (continued) |
Expenditure with and payables to related parties
|
2024 |
Parent |
Other related parties |
|
Purchase of goods |
- |
|
|
Rendering of services |
|
|
|
Leases |
|
|
|
|
|
|
|
Amounts payable to related party |
|
- |
|
|
||
|
2023 |
Parent |
Other related parties |
|
Purchase of goods |
- |
|
|
Rendering of services |
- |
|
|
Leases |
|
|
|
|
|
|
|
Amounts payable to related party |
|
|
|
|
||
Loans to related parties
|
2024 |
Parent |
Other related parties |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
Interest transactions |
- |
|
|
At end of period |
|
|
|
|
||
|
2023 |
Parent |
Key management |
Other related parties |
|
At start of period |
|
|
|
|
Advanced |
|
|
|
|
Repaid |
( |
( |
( |
|
Interest transactions |
- |
|
- |
|
At end of period |
|
- |
|
|
|
|||
Azur Auto Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
21 |
Related party transactions (continued) |
Terms of loans to related parties
Loans from related parties
|
2024 |
Key management |
Other related parties |
|
At start of period |
|
- |
|
Advanced |
- |
|
|
Repaid |
( |
- |
|
At end of period |
|
|
|
|
||
|
2023 |
Key management |
Other related parties |
|
At start of period |
- |
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
- |
|
|
||
Terms of loans from related parties
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is