McCarthy Cars (UK) Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 02226376 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2022

for

McCarthy Cars (UK) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

J F McCarthy

REGISTERED OFFICE:

72-74 Mitcham Road

Croydon

London

CR0 3RJ

REGISTERED NUMBER:

02226376 (England and Wales)

ACCOUNTANTS:

IN Accountancy Limited

6 Station View

Bramhall Moor Lane

Hazel Grove

Stockport

Cheshire

SK7 5ER

FIXED ASSETS

Tangible assets

4

986,405

990,588

Investment property

5

880,000

880,000

1,866,405

1,870,588

CURRENT ASSETS

Stocks

2,425,276

2,595,952

Debtors

6

768,170

504,542

Cash at bank and in hand

3,892

2,555

3,197,338

3,103,049

CREDITORS

Amounts falling due within one year

7

2,318,129

2,003,061

NET CURRENT ASSETS

879,209

1,099,988

TOTAL ASSETS LESS CURRENT LIABILITIES

2,745,614

2,970,576

CREDITORS

Amounts falling due after more than one year

8

(505,605

)

(710,602

)

PROVISIONS FOR LIABILITIES

(179,951

)

(180,720

)

NET ASSETS

2,060,058

2,079,254

CAPITAL AND RESERVES

Called up share capital

4

4

Revaluation reserve

10

421,556

421,556

Retained earnings

1,638,498

1,657,694

SHAREHOLDERS' FUNDS

2,060,058

2,079,254

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the director and authorised for issue on 30 March 2023 and were signed by:

J F McCarthy - Director

1.	STATUTORY INFORMATION

McCarthy Cars (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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 £.

Turnover

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

not provided

Plant and machinery etc

-

25% on cost

Freehold property is not depreciated. This represents a departure from the provisions of the Companies Act 2006. The company has had a policy and practice of regular maintenance and repair, the charges for which are recognised in the Income Statement as incurred. The company believes that such a policy ensures that the estimated residual values of properties at the reporting date are maintained at levels not materially different from the carrying amount of the assets. As such, no depreciation charge is made on the grounds that any such charge would be immaterial.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The directors maintain oversight of stock ageing profiles and a monthly review of any provision required is performed.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Borrowing costs

All borrowing costs are recognised in the Income Statement in the year in which they are incurred.

Pension costs and other post-retirement benefits

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.

Operating leases: lessee

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured at amortised cost.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2021 - 26 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 January 2022

975,000

157,435

1,132,435

Additions

-

7,503

7,503

Disposals

-

(6,566

)

(6,566

)

At 31 December 2022

975,000

158,372

1,133,372

DEPRECIATION

At 1 January 2022

-

141,847

141,847

Charge for year

-

11,686

11,686

Eliminated on disposal

-

(6,566

)

(6,566

)

At 31 December 2022

-

146,967

146,967

NET BOOK VALUE

At 31 December 2022

975,000

11,405

986,405

At 31 December 2021

975,000

15,588

990,588

Cost or valuation at 31 December 2022 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2021

975,000

157,435

1,132,435

Valuation in 2022

-

937

937

975,000

158,372

1,133,372

If freehold properties had not been revalued they would have been included at the following historical cost:

31.12.22

31.12.21

£

£

Cost

460,907

460,907

Freehold property was valued on an open market basis on 14 September 2016 by Hunter Property .

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2022

and 31 December 2022

880,000

NET BOOK VALUE

At 31 December 2022

880,000

At 31 December 2021

880,000

The property valuation for 2021 was made by the director.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

32,883

63,533

Other debtors

735,287

441,009

768,170

504,542

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans and overdrafts

1,542,014

1,053,731

Trade creditors

382,635

429,019

Taxation and social security

133,918

258,697

Other creditors

259,562

261,614

2,318,129

2,003,061

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.22

31.12.21

£

£

Bank loans

505,605

710,602

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.22

31.12.21

£

£

Bank overdrafts

1,378,954

888,489

Bank loans

668,665

875,844

2,047,619

1,764,333

10.

RESERVES

Revaluation Reserves

This reserve relates to revaluation gains/losses on freehold properties.

Retained earnings

This reserve includes all current and prior period retained profits less dividends, as well as all revalued gains/losses on investment properties.

11.	RELATED PARTY DISCLOSURES

As at 31 December 2022 three sons of the director owed balances of £158,625 (2021: £97,262), £87,051 (2021: £33,709) and £180,384 (2021: £106,738) to the company.

As at 31 December 2022 the director owed the company £174,165 (2022: £76,689 owed to the director).

The loans are non interest bearing and repayable on demand.

12.	PENSION COMMITMENTS

The company contributes into a pension plans for employees. The contributions payable by the company for the year totalled £20,587 (2021: £22,958). There were no outstanding contributions at either year end.

13.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases amounted to £224,333 (£319,333)