Parkway Derby Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03784257 (England and Wales)

PARKWAY DERBY LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2021

Page

Company Information

1

Group Strategic Report

2

to

6

Report of the Directors

7

to

8

Report of the Independent Auditors

9

to

12

Consolidated Income statement

13

Consolidated Other Comprehensive Income

14

Consolidated Statement of Financial Position

15

to

16

Company Statement of Financial Position

17

to

18

Consolidated Statement of Changes in Equity

19

Company Statement of Changes in Equity

20

Consolidated Statement of Cash Flows

21

Notes to the Consolidated Statement of Cash Flows

22

Notes to the Consolidated Financial Statements

23

to

38

DIRECTORS:

S R Booth

A Booth

SECRETARY:

A Booth

REGISTERED OFFICE:

Parkway Volkswagen

Locomotive Way

Pride Park

Derby

Derbyshire

DE24 8PU

REGISTERED NUMBER:

03784257 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Phillips FCA

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

3 Princes Court

Royal Way

Loughborough

Leicestershire

LE11 5XR

BANKERS:

National Westminster Bank plc

501 Silbury Boulevard

Saxon Gate East

Central Milton Keynes

Milton Keynes

MK9 3ER

The directors present their strategic report of the company and the group for the year ended 30 November 2021.

The results for the year and financial position of the company and group are as shown in the annexed financial statements.

The directors aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. The review is consistent with the size and the non-complex nature of the company and group and is written in the context of the risks and uncertainties faced.

As a main Volkswagen retailer representing the Brand in Derbyshire, Leicestershire and Northamptonshire the group continues to deal in new and used motor cars and commercial vehicles, provide vehicle servicing and body repairs and sell spare parts. The group has now introduced a car and van rental division to the services offered to customers.

The directors consider the key performance and business performance indicators as being those that represent the financial performance and strength of the company and group as a whole.

REVIEW OF BUSINESS

2021 has been an exceptional year in many ways which resulted in the group making phenomenal profits. The industry as a whole has seen vehicle profit margins soar as demand outstripped supply of both new and used vehicles. And, this was despite the continued disruptions caused by the social and economic restrictions due to the Covid-19 pandemic.

The year started with yet another national lockdown throughout quarter one resulting in the closures of the showrooms once again across the group. The dealerships remained open for vehicle servicing and continued to sell new and used vehicles online which the company had learned to do very quickly and effectively in the previous lockdowns and was able to mitigate the effect of the showroom closures very well.

As the year continued and restrictions lifted, it became clear there was a built up demand which resulted in the transactions across the business increasing back to pre pandemic levels as we saw unprecedented levels of customer demand for both new and used vehicles.

But, as we progressed into quarter two, with the pandemic seemingly behind us, the group was met with substantial supply shortages due to the global shortage of semi-conductors and other raw materials, affecting the entire industry. The fall in new car sales did, however, result in maintained margin on new units sold. And, as the supply of new cars fell, subsequently, the consumer demand for used vehicles soared, often outstripping supply. This increased margin retention significantly and outweighed the negative impact of the volume shortages.

Aftersales has continued to be challenging due to the national shortage of vehicle technicians. The group, like many others in the sector, are struggling to find experienced technicians and as a result have made the decision to increase the number of apprentices taken on each in year in order to grow even more of our own talent across the group.

As a result of the above factors, the group's turnover increased by £34.1m in the year ended 30 November 2021 to £160.1m and encouragingly the gross profit increased by £5.7m being 10.2% of turnover, an increase to the previous year (2020: 8.4%). The increase in GP% is as a result of the factors mentioned above regarding vehicle profit margins and the continued strive of the group towards streamlining processes with the use of digitalisation for both customers and staff. Due to the hard work of our dedicated team, improved processes through digitalisation and the unique set of market circumstances created by the global pandemic detailed above, the net profit has increased by £3.8m.

DEVELOPMENT AND PERFORMANCE

As a business, Parkway Derby continues to look at ways to maximise on its returns, through strong management and leadership, whilst constantly reviewing the business, its performance and its opportunities.

Central TPS LLP has good levels of turnover and profitability again this year.

Whilst Brexit has impacted the local economy the group has responded and continues to increase its turnover and profits. It has done this despite the adverse publicity surrounding Volkswagen as well as the aggressive marketing from other retailers.

KEY PERFORMANCE INDICATORS

2021

2020

% inc /
(dec)

£'000

Revenue

160,115

126,060

27.0

Gross Profit

16,264

10,563

54.0

Gross Profit %

10.2%

8.4%

1.8

Net Profit Before Taxation

7,296

3,493

108.9

Net Profit %

4.6%

2.8%

1.8

Earnings Before Interest, Tax, Depreciation and Amortisation

8,550

4,723

81.0

PRINCIPAL RISKS AND UNCERTAINTIES

The board considers the areas of risk are the renewal of its franchise agreement with Volkswagen and the renewal of its leasehold property. To mitigate these risks the group ensures that Volkswagen's policies and procedures are adhered to and looks to purchase any freehold property which secures the business premises from which they operate from sale to third parties.

The group continues to have borrowings which are secured against some of the group's properties. These borrowings are subject to covenants which are regularly monitored by management, and are currently being met.

SECTION 172(1) STATEMENT

The Directors of the company and group, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172(1) of the Companies Act 2006 and are given below:

A Director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company and group for the benefit of its members as a whole, and in doing so have regard (amongst other matter) to;

(a) The likely consequences of any decision in the long term

(b) The interests of the company's employees

(c) The need to foster the company's business relationships with suppliers, customers and others

(d) The impact of the company's operations on the community and the environment

(e) The desirability of the company maintaining a reputation for high standard business conduct; and the need to act fairly as between members of the company.

The Directors have identified the Group's key stakeholder groups which are set out below, including details of the nature of the relationship and the methods used to engage with these groups.

Stakeholder

Importance of engagement

Methods of engagement

Colleagues

We consider our dedicated workforce

-

Regular team meetings and communications

to be one of our biggest assets and

-

Training and development courses

key to the group's success.

-

Apprenticeship programme

Customers

We recognise customer loyalty as

-

Customer satisfaction surveys

invaluable and strive to build solid

-

Trust pilot reviews

long term relationships. Customer

-

Google reviews

feedback is paramount in striving for

-

Social media engagement

the ultimate experience for our

customers.

Suppliers and

The Group's suppliers are crucial in

-

Periodic Supplier reviews with feedback

partners

providing the Group's business. The

and performance reviews

Group is a Franchise organisation and

-

Monthly financial reporting

therefore the strong ongoing

-

Manufacturers conferences

relationship with the manufacturer is

fundamental to the business.

Regulators

The Group operates in a highly

-

FCA engagement

and local

regulated industry and therefore is

-

Trading standards engagement

Government

vital that compliance is maintained at

-

VOSA regulation compliance

all times

Community

The Group values the importance of

-

Community investment

making a positive impact to the

-

Employment opportunities

community and environment in each

-

Monitoring of energy usage and investing in

of its dealership locations

low energy usage solutions

Streamlined Energy and Carbon Reporting (SECR)

This section includes the Group's mandatory reporting of energy and greenhouse gas emissions for the period 1 December 2020 to 30 November 2021, in relation to the parent company, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)' issued by DEFRA, using DEFRA's 2020 and 2021 conversion factors. In some cases consumption has been extrapolated from available data or direct comparison made to a comparable period.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

During the reporting period, the following energy efficient improvements have been made:

The continued replacement of existing lighting with energy efficient LED lighting.

Increased use of video conferencing technology for meetings to reduce non-essential travel.

The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.

Group

01/12/2020 -
30/11/2021

01/12/2019 -
30/11/2020

Total Energy Consumption - Used for Emissions Calculation (kWh)

2,356,294

2,268,670

Gas & Kerosene Combustion Emissions, Scope 1 (tCO2e)

180.6

185.4

Purchased Electricity Emissions, Scope 2 (tCO2e)

179.5

187.8

Vehicle Fuel Combustion Emissions, Scope 1 (tCO2e)

120.1

121.6

Vehicle Fuel Combustion Emissions, Scope 3 (tCO2e)

24.4

8.8

Total Gross Reported Emissions (tCO2e)

504.6

503.6

Turnover (£m)

159.8

125.7

Intensity Ratio: Turnover (tCO2e / £m)

3.2

4.0

ENVIRONMENT

Managements' aim is to continue to improve its performance in order to continue to meet regularity requirements and continue to minimise the effects on the environment. The group is undergoing the ESOS phase 2 assessment to help identify cost-effective energy saving measures.

EMPLOYEES

The group ensures that its employees are kept informed of developments within the group and within their individual departments as it appreciates the importance of communication for effective employee performance and to maintain morale. Regular meetings are held between management and employees where they are able to discuss any decisions made that are likely to affect employees' interests and announcement emails are sent to communicate important information to the teams.

The group always gives consideration to applications of employment from disabled persons where the requirements of the job can be adequately covered by said person. In the event of an employee becoming disabled, every effort is made to ensure that their employment within the group continues and the appropriate training is given. Training and development of a disabled person should, as far as possible, be the same as training and development of a non disabled person within the group.

ON BEHALF OF THE BOARD:

S R Booth - Director

27 July 2022

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2021.

PRINCIPAL ACTIVITY

The company owns 100% of the shares in Assured Group (Derby) Limited (formerly known as Parkway Autopoint Limited) and is entitled to 100% of the profits in Central TPS LLP. The group's principal activities during the year were:-

Company

Nature of business

Parkway Derby Limited

The sale of motor vehicles, vehicle parts, servicing and bodywork and the
contract hire of fleet vehicles.

Central TPS LLP

The supply of parts to the motor trade.

Assured Group (Derby) Limited

The provision of freight transport and storage services.

Assured Group (Derby) Limited had been non-trading from 30 November 2016 to 25 February 2021. The company recommenced trading on 26 February 2021 as a transport and storage company.

DIVIDENDS

An interim dividend of £22.22 per share on the Ordinary A £1 shares was paid on 2 March 2021. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 November 2021 will be £ 2,000,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2020 to the date of this report.

S R Booth

A Booth

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S R Booth - Director

27 July 2022

Opinion

We have audited the financial statements of Parkway Derby Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2021 which comprise the Consolidated Income statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 November 2021 and of the group's profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the 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

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the parent company and group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as slow moving stock provisions for parts, used and demonstrator vehicles, as well as the risk of inappropriate journal entries to manipulate reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates such as reviewing after date sales of slow moving stock for parts, used and demonstrator vehicles, reperforming the calculation, reviewing the outcome of prior year estimates, and reviewing the outcome of current year estimates since the financial reporting date.

Secondly, the parent company and group is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Franchise Licensing requirements, Health and Safety regulations and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the franchise audit reports to confirm compliance. Health and safety requirements were reviewed for any evidence of non-compliance, in addition to an assessment of the parent company and group's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Ian Phillips FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

3 Princes Court

Royal Way

Loughborough

Leicestershire

LE11 5XR

27 July 2022

REVENUE

3

160,114,601

126,060,269

Cost of sales

143,850,527

115,497,511

GROSS PROFIT

16,264,074

10,562,758

Administrative expenses

9,644,002

8,881,086

6,620,072

1,681,672

Other operating income

1,294,678

2,423,768

OPERATING PROFIT

5

7,914,750

4,105,440

Interest receivable and similar income

52,092

38,998

7,966,842

4,144,438

Interest payable and similar expenses

6

671,027

651,064

PROFIT BEFORE TAXATION

7,295,815

3,493,374

Tax on profit

7

1,440,744

658,759

PROFIT FOR THE FINANCIAL YEAR

5,855,071

2,834,615

Profit attributable to:

Owners of the parent

5,855,071

2,834,615

PROFIT FOR THE YEAR

5,855,071

2,834,615

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,855,071

2,834,615

Total comprehensive income attributable to:

Owners of the parent

5,855,071

2,834,615

FIXED ASSETS

Intangible assets

10

-

Property, plant and equipment

11

13,820,012

13,417,486

Investments

12

472,609

452,042

14,292,621

13,869,528

CURRENT ASSETS

Inventories

13

31,824,359

33,835,468

Debtors

14

2,378,929

2,093,092

Cash at bank and in hand

4,127,593

3,083,882

38,330,881

39,012,442

CREDITORS

Amounts falling due within one year

15

37,219,301

35,752,279

NET CURRENT ASSETS

1,111,580

3,260,163

TOTAL ASSETS LESS CURRENT LIABILITIES

15,404,201

17,129,691

CREDITORS

Amounts falling due after more than one year

16

-

(5,735,786

)

PROVISIONS FOR LIABILITIES

21

(218,482

)

(63,257

)

NET ASSETS

15,185,719

11,330,648

CAPITAL AND RESERVES

Called up share capital

22

100,000

Revaluation reserve

23

438,800

440,909

Retained earnings

23

14,646,919

10,789,739

SHAREHOLDERS' FUNDS

15,185,719

11,330,648

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2022 and were signed on its behalf by:

S R Booth - Director

FIXED ASSETS

Intangible assets

10

-

Property, plant and equipment

11

13,591,092

13,344,735

Investments

12

472,611

452,045

14,063,703

13,796,780

CURRENT ASSETS

Inventories

13

31,824,359

33,835,468

Debtors

14

2,918,583

2,303,311

Cash at bank and in hand

3,529,975

2,748,192

38,272,917

38,886,971

CREDITORS

Amounts falling due within one year

15

37,123,511

35,652,203

NET CURRENT ASSETS

1,149,406

3,234,768

TOTAL ASSETS LESS CURRENT LIABILITIES

15,213,109

17,031,548

CREDITORS

Amounts falling due after more than one year

16

-

(5,735,786

)

PROVISIONS FOR LIABILITIES

21

(175,835

)

(63,257

)

NET ASSETS

15,037,274

11,232,505

CAPITAL AND RESERVES

Called up share capital

22

100,000

Revaluation reserve

438,800

440,909

Retained earnings

14,498,474

10,691,596

SHAREHOLDERS' FUNDS

15,037,274

11,232,505

Company's profit for the financial year

5,804,769

2,824,187

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2022 and were signed on its behalf by:

S R Booth - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

Balance at 1 December 2019

100,000

7,982,113

433,920

8,516,033

Changes in equity

Dividends

-

(20,000

)

-

(20,000

)

Total comprehensive income

-

2,827,626

6,989

2,834,615

Balance at 30 November 2020

100,000

10,789,739

440,909

11,330,648

Changes in equity

Dividends

-

(2,000,000

)

-

(2,000,000

)

Total comprehensive income

-

5,857,180

(2,109

)

5,855,071

Balance at 30 November 2021

100,000

14,646,919

438,800

15,185,719

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

Balance at 1 December 2019

100,000

7,894,398

433,920

8,428,318

Changes in equity

Profit for the year

-

2,824,187

-

2,824,187

Other comprehensive income

-

(6,989

)

6,989

-

Total comprehensive income

-

2,817,198

6,989

2,824,187

Dividends

-

(20,000

)

-

(20,000

)

Balance at 30 November 2020

100,000

10,691,596

440,909

11,232,505

Changes in equity

Profit for the year

-

5,804,769

-

5,804,769

Other comprehensive income

-

2,109

(2,109

)

-

Total comprehensive income

-

5,806,878

(2,109

)

5,804,769

Dividends

-

(2,000,000

)

-

(2,000,000

)

Balance at 30 November 2021

100,000

14,498,474

438,800

15,037,274

Cash flows from operating activities

Cash generated from operations

1

4,170,114

4,587,852

Interest paid

(671,027

)

(649,085

)

Interest element of hire purchase or finance
lease rental payments paid

-

(1,979

)

Tax paid

(876,131

)

(199,938

)

Net cash from operating activities

2,622,956

3,736,850

Cash flows from investing activities

Purchase of tangible fixed assets

(1,040,861

)

(520,867

)

Purchase of fixed asset investments

(20,566

)

-

Sale of tangible fixed assets

21,445

69,453

Sale of fixed asset investments

-

324

Interest received

52,092

38,998

Net cash from investing activities

(987,890

)

(412,092

)

Cash flows from financing activities

Loan repayments in year

(243,900

)

(141,497

)

Hire purchase repayments in year

-

(40,133

)

Amount introduced by directors

1,851,084

20,000

Amount withdrawn by directors

-

(379,743

)

Equity dividends paid

(2,000,000

)

(20,000

)

Net cash from financing activities

(392,816

)

(561,373

)

Increase in cash and cash equivalents

1,242,250

2,763,385

Cash and cash equivalents at beginning of year

2

2,885,343

121,958

Cash and cash equivalents at end of year

2

4,127,593

2,885,343

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

Profit before taxation

7,295,815

3,493,374

Depreciation charges

635,325

617,743

Profit on disposal of fixed assets

(18,435

)

(9,851

)

Finance costs

671,027

651,064

Finance income

(52,092

)

(38,998

)

8,531,640

4,713,332

Decrease/(increase) in inventories

2,011,109

(2,692,632

)

(Increase)/decrease in trade and other debtors

(453,472

)

1,297,954

(Decrease)/increase in trade and other creditors

(5,919,163

)

1,269,198

Cash generated from operations

4,170,114

4,587,852

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 November 2021

30.11.21

1.12.20

£

Cash and cash equivalents

4,127,593

3,083,882

Bank overdrafts

-

(198,539

)

4,127,593

2,885,343

Year ended 30 November 2020

30.11.20

1.12.19

£

Cash and cash equivalents

3,083,882

699,538

Bank overdrafts

(198,539

)

(577,580

)

2,885,343

121,958

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.12.20

Cash flow

At 30.11.21

£

Net cash

Cash at bank and in hand

3,083,882

1,043,711

4,127,593

Bank overdrafts

(198,539

)

198,539

-

2,885,343

1,242,250

4,127,593

Debt

Debts falling due within 1 year

(204,604

)

(5,491,886

)

(5,696,490

)

Debts falling due after 1 year

(5,735,786

)

5,735,786

-

(5,940,390

)

243,900

(5,696,490

)

Total

(3,055,047

)

1,486,150

(1,568,897

)

1.	STATUTORY INFORMATION

Parkway Derby Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The nature of the company's operations and principal activities are included in the report of the directors.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements cover the individual entity.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation

The group accounts consolidate the accounts of Parkway Derby Limited and its subsidiary undertakings for the year ended 30 November 2021. No income statement has been presented for Parkway Derby Limited as permitted by section 408 of the Companies Act 2006.

Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired or disposed of in the period are included in the consolidated income statement from the date of acquisition or up the date of disposal.

Financial reporting standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

-

the requirements of Section 7 Statement of Cash Flows;

-

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44,
11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c)

The disclosure above is incorporated within these consolidated financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

(i) Valuation of freehold property

One of the freehold properties has been revalued based on the valuations performed by Colliers International, and used as a deemed cost on transition to FRS 102. The valuers used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset.

(ii) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of 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 investment, economic utilisation and the physical condition of assets.

Revenue

Revenue is measured at the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes.

Vehicle sales and parts sales are recognised upon delivery to the customer, or upon collection by the customer. Servicing and workshop sales are recognised in the period in which the services are rendered. Forecourt sales are recognised at the point of sale.

Revenue also includes manufacturer's bonuses along with income from operating leases as described in accounting policy Hire purchase and leasing commitments.

Property, plant, equipment and depreciation

Property, plant and equipment assets other than freehold land are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value ofeach asset over its expected useful life, as follows::

Freehold buildings

2% Straight Line

Building alterations

10% Straight Line

Land and buildings Leasehold

6.67-10% Straight Line

Plant and machinery

10-33% Straight Line

Computer equipment

10-33% Straight Line

Fixtures, fittings and equipment

10-33% Straight Line

Company Vehicles

25% Straight Line

Contract hire vehicles

Over period of lease

The company generally capitalises property, plant and equipment assets valued over £1,000.

Government grants

Government grants receivable for the purpose of giving immediate financial support to the entity with no future related costs are recognised as income in the period in which it becomes receivable. Government grants received relate to 'Furlough' income and the amount received is disclosed in the operating profit note.

Inventories

(i) New vehicle inventories are stated at cost, as charged by the manufacturer. Used vehicle inventories are stated at purchase cost, or part exchange value less any adjustment to reflect over allowance on exchange value, less provision for slow moving inventory.

(ii) Consignment vehicles are included within inventories in the statement of financial position, together with an equivalent liability, when the terms of the consignment agreement and normal commercial practice indicate that the group enjoys the principal benefit equivalent to owning the inventory, being the ability to sell it, and carries the principal risks of ownership which are the cost of inventory holding and some risks of obsolescence. Where these criteria are not met, consignment inventories are not accounted for in the statement of financial position but disclosed in the notes to the financial statements.

(iii) Parts inventories are stated at the lower of cost and net realisable value. Cost is determined on an average cost basis. Net realisable value is the price at which the inventory can be realised in the normal course of business after allowing for the costs of realisation. Provision is made for obsolete, slow moving and defective inventory.

Financial instruments

The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies 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 receipts discounted at a market rate of interest.

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. Accounts 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as property, plant and equipment and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit and loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Assets held for hiring as operating leases are included within fixed assets and are depreciated over their useful economic lives. Rental income is allocated to profit and loss on a straight line basis over the period of the lease.

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Defined contribution pension scheme

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments

Fixed asset investments are stated at cost less provision for impairment.

3.

REVENUE

The total turnover of the group for the year has been derived from its principal activities wholly undertaken in the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2021

2020

£

Wages and salaries

9,564,122

9,079,656

Social security costs

939,757

822,845

Other pension costs

177,182

184,944

10,681,061

10,087,445

The average number of employees during the year was as follows:

2021

2020

Sales

95

107

Administration

61

65

Productive

131

150

287

322

2021

2020

£

Directors' remuneration

39,326

45,613

Directors' pension contributions to money purchase schemes

6,696

6,599

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

The Group, in order to motivate and incentivise its officers and employees, established an employer financed retirement benefit scheme for the benefit of the Company's Officers, employees and their wider families, The Parkway Derby Limited Employer Financed Retirement Benefit Scheme ('the Scheme'). No scheme contributions were made during the year.

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

£

Depreciation - owned assets

635,325

607,056

Depreciation - assets on hire purchase contracts

-

10,686

Other operating leases

906,405

908,671

Hire of plant and machinery

7,873

9,481

Auditors remuneration - audit of consolidated financial statements

28,615

26,184

Auditors remuneration - audit of subsidiary financial statements

13,788

4,725

Auditors remuneration - taxation compliance

4,130

8,285

Profit on disposal of fixed assets

(18,435

)

(9,851

)

Rental received from operating leases

-

(12,918

)

Rents receivable

(418,902

)

(332,500

)

Government grants received

(587,032

)

(1,589,364

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

Bank loan interest

119,370

144,950

Other interest

551,657

504,135

Hire purchase interest

-

1,979

671,027

651,064

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

Current tax:

UK corporation tax

1,280,097

666,392

Adjustment re previous years

5,422

-

Total current tax

1,285,519

666,392

Deferred tax

155,225

(7,633

)

Tax on profit

1,440,744

658,759

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

Profit before tax

7,295,815

3,493,374

Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 -
19 %)

1,386,205

663,741

Effects of:

Expenses not deductible for tax purposes

(29,044

)

(16,640

)

Capital allowances in excess of depreciation

(75,469

)

-

Depreciation in excess of capital allowances

-

18,131

Other adjustments

3,827

1,160

Deferred tax

155,225

(7,633

)

Total tax charge

1,440,744

658,759

8.	PROFIT OF PARENT COMPANY

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

9.

DIVIDENDS

2021

2020

£

Ordinary A shares of £1 each

Interim

2,000,000

-

Ordinary B shares of £1 each

Interim

-

20,000

2,000,000

20,000

10.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 December 2020

and 30 November 2021

777,373

AMORTISATION

At 1 December 2020

and 30 November 2021

777,373

NET BOOK VALUE

At 30 November 2021

-

At 30 November 2020

-

Company

Goodwill

£

COST

At 1 December 2020

and 30 November 2021

777,373

AMORTISATION

At 1 December 2020

and 30 November 2021

777,373

NET BOOK VALUE

At 30 November 2021

-

At 30 November 2020

-

11.	PROPERTY, PLANT AND EQUIPMENT

Group

Freehold

Short

Long

property

leasehold

£

COST

At 1 December 2020

11,711,037

53,074

525,865

Additions

89,129

-

Disposals

-

At 30 November 2021

11,800,166

53,074

525,865

DEPRECIATION

At 1 December 2020

165,659

27,146

277,911

Charge for year

33,931

6,148

34,333

Eliminated on disposal

-

At 30 November 2021

199,590

33,294

312,244

NET BOOK VALUE

At 30 November 2021

11,600,576

19,780

213,621

At 30 November 2020

11,545,378

25,928

247,954

Fixtures

Plant and

and

machinery

fittings

Totals

£

COST

At 1 December 2020

3,162,866

1,496,307

16,949,149

Additions

684,202

267,530

1,040,861

Disposals

(20,105

)

(115,559

)

(135,664

)

At 30 November 2021

3,826,963

1,648,278

17,854,346

DEPRECIATION

At 1 December 2020

1,917,753

1,143,194

3,531,663

Charge for year

387,773

173,140

635,325

Eliminated on disposal

(18,621

)

(114,033

)

(132,654

)

At 30 November 2021

2,286,905

1,202,301

4,034,334

NET BOOK VALUE

At 30 November 2021

1,540,058

445,977

13,820,012

At 30 November 2020

1,245,113

353,113

13,417,486

The group applied the transitional arrangements of section 35 of FRS 102 and used a valuation as the deemed cost for one of the freehold properties. The property is depreciated from the date of transition to FRS 102. As the property is depreciated, an appropriate transfer is made from the revaluation reserve to retained earnings. At 30 November 2021 the property had a net book value of £2,659,588.

If freehold property had not been revalued it would have been included at the following historic cost:

2021

2020

£

Cost

2,370,014

2,293,758

Aggregate depreciation

149,227

134,587

Freehold land and buildings were valued on an open market basis on 1 December 2014 by Colliers International, qualified independent valuers. The methods and assumptions used to ascertain the fair value are in accordance with RICS standards, and the valuation was prepared having regard to the market based evidence for similar properties sold in the local area.

Company

Fixtures

Freehold

Long

Plant and

and

property

leasehold

machinery

fittings

Totals

£

COST

At 1 December 2020

11,679,321

525,865

3,027,183

1,434,033

16,666,402

Additions

89,129

-

485,522

266,249

840,900

Disposals

-

(20,105

)

(115,559

)

(135,664

)

At 30 November 2021

11,768,450

525,865

3,492,600

1,584,723

17,371,638

DEPRECIATION

At 1 December 2020

133,943

277,911

1,815,876

1,093,937

3,321,667

Charge for year

33,931

34,333

354,240

169,029

591,533

Eliminated on disposal

-

(18,621

)

(114,033

)

(132,654

)

At 30 November 2021

167,874

312,244

2,151,495

1,148,933

3,780,546

NET BOOK VALUE

At 30 November 2021

11,600,576

213,621

1,341,105

435,790

13,591,092

At 30 November 2020

11,545,378

247,954

1,211,307

340,096

13,344,735

The company applied the transitional arrangements of section 35 of FRS 102 and used a valuation as the deemed cost for one of the freehold properties. The property is depreciated from the date of transition to FRS 102. As the property is depreciated, an appropriate transfer is made from the revaluation reserve to retained earnings. At 30 November 2021 the property had a net book value of £2,659,588.

If freehold property had not been revalued it would have been included at the following historic cost:

2021

2020

£

Cost

2,370,014

2,293,758

Aggregate depreciation

149,227

134,587

Freehold land and buildings were valued on an open market basis on 1 December 2014 by Colliers International, qualified independent valuers. The methods and assumptions used to ascertain the fair value are in accordance with RICS standards, and the valuation was prepared having regard to the market based evidence for similar properties sold in the local area.

12.	FIXED ASSET INVESTMENTS

Group

Company

2021

2020

2021

2020

£

Shares in group undertakings

-

2

3

Other investments not loans

472,609

452,042

472,609

452,042

472,609

452,042

472,611

452,045

Additional information is as follows:

Group

Investments (neither listed nor unlisted) were as follows:

2021

2020

£

Other investments

472,609

452,042

Company

Shares in

group

undertakings

£

COST

At 1 December 2020

3

Disposals

(1

)

At 30 November 2021

2

NET BOOK VALUE

At 30 November 2021

2

At 30 November 2020

3

Investments (neither listed nor unlisted) were as follows:

2021

2020

£

Other investments

472,609

452,042

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Assured Group (Derby) Ltd (formerly known as Parkway Autopoint Ltd)

Registered office: England and Wales

Nature of business: Freight transport and storage services

%

Class of shares:

holding

Ordinary

100.00

Central TPS LLP

Registered office: England and Wales

Nature of business: Agency supplying parts to motor trade

%

Class of shares:

holding

Capital

50.00

13.	INVENTORIES

Group

Company

2021

2020

2021

2020

£

Parts inventories

642,261

448,446

642,261

448,446

Consignment inventories

2,046,158

14,620,712

2,046,158

14,620,712

Vehicle inventories

29,135,940

18,766,310

29,135,940

18,766,310

31,824,359

33,835,468

31,824,359

33,835,468

Used and demonstrator vehicle inventories are funded by used vehicle funding facilities secured on the inventories and are included within creditors at the year end.

14.

DEBTORS

Group

Company

2021

2020

2021

2020

£

Amounts falling due within one year:

Trade debtors

921,404

618,276

830,090

539,820

Amounts owed by group undertakings

-

667,606

322,290

Other debtors

125,147

146,190

120,000

Directors' current accounts

-

167,634

-

167,634

Prepayments

1,159,378

731,492

1,127,887

724,067

2,205,929

1,663,592

2,745,583

1,873,811

Amounts falling due after more than one year:

Other debtors

173,000

429,500

173,000

429,500

Aggregate amounts

2,378,929

2,093,092

2,918,583

2,303,311

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2021

2020

2021

2020

£

Bank loans and overdrafts (see note 17)

5,696,490

403,143

5,696,490

403,143

Trade creditors

6,622,136

6,183,488

6,602,622

6,178,545

Corporation tax

1,061,614

652,226

1,061,614

652,226

Other taxes and social security

1,441,709

1,812,281

1,417,063

1,803,932

Other creditors

17,850,771

11,818,646

17,841,597

11,746,103

Consignment creditor

2,046,158

14,620,712

2,046,158

14,620,712

Directors' current accounts

1,683,450

-

1,683,450

-

Accrued expenses

816,973

261,783

774,517

247,542

37,219,301

35,752,279

37,123,511

35,652,203

16.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group

Company

2021

2020

2021

2020

£

Bank loans (see note 17)

-

5,735,786

-

5,735,786

17.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2021

2020

2021

2020

£

Amounts falling due within one year or on

demand:

Bank overdrafts

-

198,539

-

198,539

Bank loans

5,696,490

204,604

5,696,490

204,604

5,696,490

403,143

5,696,490

403,143

Amounts falling due between one and two years:

Bank loans - 1-2 years

-

5,735,786

-

5,735,786

The bank loan is repayable by instalments and interest is charged at a market rate of 2%.

18.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

Within one year

921,533

892,783

Between one and five years

3,460,060

3,519,132

In more than five years

989,492

1,769,266

5,371,085

6,181,181

Payments under non-cancellable operating leases relate to rent on properties.

Total future minimum lease payments receivable under non-cancellable operating leases are as follows:

2021

2020

£

Within one year

348,750

332,500

Between one and five years

1,307,813

1,330,000

In more than five years

-

498,750

1,656,563

2,161,250

Company

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

Within one year

884,783

Between one and five years

3,414,123

3,519,132

In more than five years

989,492

1,769,266

5,288,398

6,173,181

Payments under non-cancellable operating leases relate to rent on properties.

Total future minimum lease payments receivable under non-cancellable operating leases are as follows:

2021

2020

£

Within one year

348,750

332,500

Between one and five years

1,307,813

1,330,000

In more than five years

-

498,750

1,656,563

2,161,250

19.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

2021

2020

2021

2020

£

Bank overdraft

-

198,539

-

198,539

Bank loans

5,696,490

5,940,390

5,696,490

5,940,390

Trade creditors

3,851,652

4,614,752

3,851,652

4,614,752

Other creditors

16,677,577

10,474,562

16,677,577

10,474,562

26,225,719

21,228,243

26,225,719

21,228,243

Included within trade creditors is demonstrator funding amounting to £3,851,652 (2020: £4,614,752) which is secured over certain vehicle stocks held by the company and the group.

Included within other creditors is used vehicle funding amounting to £16,677,577 (2020: £10,474,562) which is secured over certain vehicle stocks held by the group and £16,677,577 (2020: £10,474,562) for the company.

Volkswagen Bank gmbh have a personal guarantee of S Booth, limited to £50,000.

The bank overdraft is secured by a mortgage debenture dated 15 November 1999 over all freehold and leasehold properties and over the proceeds of sale thereof, fixed and floating charges and all property and assets present and future.

There is a charge dated 11 June 2010 over sub-hire agreements to Lombard North Central plc. The net obligations under these finance leases and hire purchase contracts are secured on the assets to which they relate.

The bank loan is secured by a legal charge dated 30 August 2016 and 31 August 2018 over the freehold properties at Leicester and Kettering.

20.	FINANCIAL INSTRUMENTS

Group

The group has the following financial instruments:

2021

2020

£

Financial assets measured at amortised cost

Trade debtors

921,404

618,276

Other debtors

298,147

575,690

Directors' current accounts

-

167,634

Financial liabilities measured at amortised cost

Bank loans and overdrafts

5,696,490

6,138,929

Trade creditors

6,622,136

6,183,488

Other creditors

17,850,771

11,818,646

Consignment creditor

2,046,158

14,620,712

Directors' current accounts

1,683,450

-

Accrued expenses

816,973

261,783

The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £nil (2020: £nil) and £671,027 (2020: £651,064) respectively.

21.	PROVISIONS FOR LIABILITIES

Group

Company

2021

2020

2021

2020

£

Deferred tax

Accelerated capital allowances

218,482

63,257

175,835

63,257

Group

Deferred

tax

£

Balance at 1 December 2020

63,257

Charge to Income statement during year

155,225

Balance at 30 November 2021

218,482

Company

Deferred

tax

£

Balance at 1 December 2020

63,257

Charge to Income Statement during year

112,578

Balance at 30 November 2021

175,835

The expected net reversal of deferred tax liabilities in 2022 is not expected to be significant based on planned capital expenditure for the company and the group.

22.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

90,000

Ordinary A

£1

90,000

10,000

Ordinary B

£1

10,000

100,000

The 'A' and 'B' shares rank pari passu in all respects with the exception of dividend rights. The directors are entitled to declare different dividends on the different classes of ordinary shares as they may in their exclusive discretion deem fit from time to time.

23.

RESERVES

Group

Retained

Revaluation

earnings

reserve

Totals

£

At 1 December 2020

10,789,739

440,909

11,230,648

Profit for the year

5,855,071

Dividends

(2,000,000

)

(2,000,000

)

Depreciation transfer

2,109

(2,109

)

-

At 30 November 2021

14,646,919

438,800

15,085,719

Company

Retained

Revaluation

earnings

reserve

Totals

£

At 1 December 2020

10,691,596

440,909

11,132,505

Profit for the year

5,804,769

Dividends

(2,000,000

)

(2,000,000

)

Depreciation transfer

2,109

(2,109

)

-

At 30 November 2021

14,498,474

438,800

14,937,274

The aggregate surplus on re-measurement of freehold property, net of associated deferred tax, is shown as a separate non-distributable revaluation reserve.

24.	PENSION COMMITMENTS

Defined Contribution scheme

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £177,182 (2020 - £184,944). Contributions totalling £51,049 (2020 - £42,060) were payable to the fund at the year end and are included in creditors.

25.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 November 2021 and 30 November 2020:

2021

2020

£

S R Booth and Mrs A Booth

Balance outstanding at start of year

167,634

(192,109

)

Amounts advanced

383,916

405,492

Amounts repaid

(2,235,000

)

(45,749

)

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

(1,683,450

)

167,634

The maximum balance overdrawn by S R Booth and A Booth during the year was £237,667.

No interest has been charged on the advances and credits to directors.

26.	RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)

The company paid dividends of £2,000,000 (2020: £20,000) to key management personnel.

At the year end £1,683,450 (2020: £nil) was owing to its directors. The loans are interest free and repayable on demand.

Key management personnel compensation amounted to £48,371 (2020: £54,339).

Other related parties

2021

2020

£

Sales

42,996

49,312

Purchases

116,816

76,559

Amount due from related party

22,853

2,351

The above transactions relate to trading with a company in which one of the directors has an interest.

Included in other debtors is a loan to a company in which one of the directors has an interest. The balance at year end was £293,000 (2020: £549,500). The loan is unsecured, repayable by instalments and interest is charged at a market rate of 5%.

27.	EVENTS AFTER THE REPORTING PERIOD

Since the year end, the company has paid dividends of £2,500,000 to key management personnel.

The bank loan disclosed as all due within one year was refinanced after the year end, repayable over a further five years.

28.	ULTIMATE CONTROLLING PARTY

The controlling party is S R Booth.