The director presents the strategic report for the year ended 31 March 2025.
The results for the year and financial position of the company are as shown in the annexed accounts. The key financial highlights are as follows:
There are a number of potential risks and uncertainties which could have a material impact on the Group's long-term performance. These risks and uncertainties are monitored regularly by the director.
The director considers the implications of risk when making significant business decisions and regularly reassesses existing risks to ensure that changes in the Group's operations or the external environment are identified and appropriately managed. The principal risks affecting the Group are as follows:
Operational Risk
The Group's reputation and continued success depend upon its ability to source, prepare and supply vehicles to customers safely, efficiently and cost-effectively through its principal trading subsidiary, Big Van World Limited. The Group actively seeks to acquire vehicle stock that meets customer demand and maintains procedures and controls to support operational efficiency and customer satisfaction.
Market Risk
The Group operates in a highly competitive marketplace. To maintain its competitive position, the Group focuses on offering a broad range of suitable vehicles, delivering high levels of customer service and aftercare, and employing experienced and dedicated staff. Effective stock management and careful monitoring of market trends are essential to maintaining profitability and competitiveness.
People Risk
The Group's continued success depends upon its ability to attract, retain and develop skilled employees. Significant emphasis is placed on recruitment, training and professional development. Succession planning and the continued development of the management structure remain important considerations in supporting the Group's future growth and stability.
Financial Risk
The Group's trading operations require access to vehicle stocking and other funding facilities. Subsequent to the year end, certain funding arrangements of Big Van World Limited became subject to withdrawal and replacement, and the Group is currently seeking alternative facilities. The director continues to monitor the Group's liquidity position closely and prepares regular cash flow forecasts to assess funding requirements.
The Group's ability to generate profits and convert those profits into cash remains important to its financial performance. Changes in market conditions, customer demand, vehicle availability, interest rates and wider economic factors may adversely affect profitability and cash flows. These risks are managed through prudent financial management, regular forecasting, careful stock control and ongoing engagement with funding providers.
Going Concern
The director has considered the company's ability to continue trading for a period extending to at least twelve months from the date of approval of these financial statements. The director is satisfied taking into account, trading performance, gross profitability and market conditions that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £36,000. The director does not recommend payment of a further dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The auditor, DSA Prospect Audit Limited, is deemed to be appointed under section 487(2) of the Companies Act 2006.
This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.
United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has 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 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 group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the director is 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 director is 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. He is 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 Big Van World Holdings Limited (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, the company 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
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the director's responsibilities statement, 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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or parent company or to cease operations, or has no realistic alternative but to do so.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud, are detailed below.
Enquiry of management and those charge with governance around actual and potential litigation and claims;
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to support documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transitions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance, The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusions, omission or misrepresentation.
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.
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 profit for the year was £36,000 (2024 - £0 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Big Van World Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Big Van World Holdings Limited and all of its subsidiaries.
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. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, except where the measurement bases have been modified to reflect the revaluation of investment properties. Investment properties and certain financial instruments are carried at fair value in accordance with FRS 102. The principal accounting policies applied in the preparation of these financial statements are set out below.
The consolidated group financial statements comprise the financial statements of the parent company Big Van World Holdings Limited 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 of subsidiaries are prepared to the same reporting date as the parent (31 March 2025). Where necessary, adjustments are made to the financial statements of subsidiaries to align their accounting policies with those adopted 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 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 with one or more other parties under a contractual arrangement are treated as joint ventures. Entities other than subsidiaries or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group has significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost, adjusted for post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values include any acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in that entity, the group does not recognise further losses unless it has obligations to fund the entity or has made payments on its behalf.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
Merger reserve
The merger reserve represents the difference between the consideration paid and the nominal value of the shares issued (or net assets acquired) arising on group reconstructions accounted for under the principles of merger accounting. It is not distributable.
The financial statements have been prepared on a going concern basis.
Subsequent to the year end, certain funding arrangements of the Group's principal trading subsidiary, Big Van World Limited, with HSBC Bank plc and Lombard North Central plc became subject to withdrawal and replacement. The directors have reviewed the Group's current and forecast liquidity position and have prepared cash flow forecasts covering a period of at least twelve months from the date of approval of these financial statements.
The forecasts assume the successful completion of replacement funding facilities currently being negotiated with Handelsbanken. At the date of approval of these financial statements, those facilities had not been formally approved or completed.
Based on discussions held to date, the ongoing support received from existing funding providers and the progress made in the refinancing process, the directors believe that replacement funding will be secured and that the Group will continue to meet its obligations as they fall due. However, the outcome of the refinancing process cannot be regarded as certain at the date of approval of these financial statements.
Accordingly, these events and conditions indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern. Nevertheless, the directors consider it appropriate to prepare the financial statements on the going concern basis, as they have a reasonable expectation that adequate funding will be available to enable the Group to continue in operational existence for the foreseeable future.
The financial statements do not include any adjustments that would result if the Group were unable to continue as a going concern.
Revenue represents the amounts receivable from the sale of vehicles and rental income, net of value added tax, trade discounts, and rebates.
Vehicle Sales
Revenue from the sale of cars, bikes, and vans is recognised when the significant risks and rewards of ownership have transferred to the buyer, which is usually on delivery of the vehicle, and the amount of revenue can be measured reliably.
Rental Income
Rental income is recognised on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income.
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 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.
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.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
In preparing these financial statements, management has made certain judgements and estimates that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The directors have exercised judgement in assessing the group's ability to continue as a going concern. In making this assessment, they have considered cash flow forecasts, future trading performance, available financing facilities and ongoing discussions regarding replacement funding arrangements.
Judgement is applied in determining when control of a vehicle passes to the customer, which is generally upon delivery or collection of the vehicle.
Judgement is applied in assessing whether the group acts as principal or agent in respect of vehicle-related services, including warranties, finance commissions and other ancillary services, which determines whether revenue is recognised on a gross or net basis.
Judgement is exercised in assessing the recoverability of amounts due from related parties. This assessment considers the financial position of the related parties, expected future cash flows, repayment history and any supporting arrangements in place.
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 group has significant balances due from related parties at the balance sheet date. Management has assessed the recoverability of these balances based on the financial position of the counterparties, projected cash flows and anticipated repayment arrangements. Due to the size of these balances, a change in the assumptions used could result in a material adjustment to their carrying value within the next financial year.
Used vans, motorcycles and other vehicles held for resale are measured at the lower of cost and estimated selling price less costs to complete and sell. Estimation is required in determining:
expected selling prices based on current market conditions;
the condition, mileage, age and desirability of individual vehicles;
the impact of changing consumer demand and market trends;
the extent of any discounts required to achieve a sale.
Management reviews the age profile and turnover of vehicle stock to identify vehicles that may require impairment or discounting. The provision reflects estimates of future selling prices and the time required to realise the stock.
Where warranties are provided on vehicles sold, provisions are recognised based on management's estimate of future claims. The estimate takes account of historical claims experience, the nature of warranties provided and anticipated repair costs.
Where indicators of impairment exist, management estimates the recoverable amount of tangible fixed assets, including rental vehicles, freehold property and equipment. This requires estimates of future cash flows, residual values and market conditions.
The directors consider that a geographical analysis of turnover would be seriously prejudicial to the company's interest in terms of commercial sensitivity, and as such have not included a split of geographical turnover.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
Tangible fixed assets with a carrying amount of £6,357,225 (2024 - £6,268,254) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings.
The freehold property was valued on 31st March 2018 by the director of the company. The valuation was based on recent market evidence, including comparable property prices obtained from Zoopla and other publicly available property listing services, adjusted where necessary to reflect the specific characteristics of the property.
The revaluation surplus is disclosed in note 23.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 March 2025 are as follows:
The carrying amount of stocks includes £5,567,375 (2024 - £6,231,591) pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings.
Debtors with a carrying amount of £5,798,458 (2024 - £5,606,174) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings.
The stock loans are secured by way of an all monies debenture over the company with first unlimited priority over owned vehicles.
There is a fixed and floating charge over all the assets of the company to HSBC Bank Plc.
There is a second fixed and floating charge over the property or undertakings of the company to Firstrand Bank Limited trading as Motonovo Finance.
The stock loans are secured by way of an all monies debenture over the company with first unlimited priority over owned vehicles.
There is a fixed and floating charge over all the assets of the company to HSBC Bank Plc.
There is a second fixed and floating charge over the property or undertakings of the company to Firstrand Bank Limited trading as Motonovo Finance.
The stock loans are secured by way of an all monies debenture over the company with first unlimited priority over owned vehicles.
There is a fixed and floating charge over all the assets of the company to HSBC Bank Plc.
There is a second fixed and floating charge over the property or undertakings of the company to Firstrand Bank Limited trading as Motonovo Finance.
There is a third fixed charge granted to Lombard North Central Plc over the fixed asset as a first chargee by way of a secured mortgage.
There is a fourth fixed charge granted to Welford Properties Limited over the fixed asset as a first chargee by way of a secured mortgage.
The HSBC loans are also secured by personal guarantee by the director.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Ordinary shares are entitled to one vote in any circumstances, equal rights to dividends, to participate in a distribution on winding up of the company and are non-redeemable.
The director does not believe there are any financial commitments, guarantees or contingent liabilities that need to be disclosed.
There are no events after the year end that the directors believe need to be reported.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
During the year, the group entered into transactions with entities controlled by Mr M Austen, a director of the group companies. These entities comprised of Big MXworld Limited, of which Mr Austen owns 100% of the issued share capital, and Big Van World Marine Operations LLP, of which Mr Austen holds a 99% interest.
Transactions during the year included the sale and purchase of goods and services, rental income, and the recharge of costs incurred on behalf of the LLP, including finance payments relating to assets owned by the LLP. These transactions were undertaken in the normal course of business.
The directors consider that all transactions with related parties were carried out on terms equivalent to those prevailing in arm's length transactions.
At the reporting date, amounts were due to and from these related parties. The balances are unsecured, interest free and repayable on demand.
Dividends totalling £36,000 (2024 - £0) were paid in the year in respect of shares held by the company's directors.