Racing Line Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 03664690 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

RACING LINE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P Guile

S J Roach

M T Walker

REGISTERED OFFICE:

4 Quatro Park

Tanners Drive

Blakelands

Milton Keynes

Buckinghamshire

MK14 5FJ

REGISTERED NUMBER:

03664690 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants &

Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

FIXED ASSETS

Intangible assets

4

173,297

193,487

Tangible assets

5

201,590

276,909

Investments

6

-

10,100

374,887

480,496

CURRENT ASSETS

Stocks

1,935,008

1,706,148

Debtors

7

1,107,188

779,982

Cash at bank and in hand

322,587

389,928

3,364,783

2,876,058

CREDITORS

Amounts falling due within one year

8

458,571

1,907,565

NET CURRENT ASSETS

2,906,212

968,493

TOTAL ASSETS LESS CURRENT LIABILITIES

3,281,099

1,448,989

PROVISIONS FOR LIABILITIES

36,094

35,456

NET ASSETS

3,245,005

1,413,533

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

3,244,005

1,412,533

SHAREHOLDERS' FUNDS

3,245,005

1,413,533

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 Board of Directors and authorised for issue on 28 July 2023 and were signed on its behalf by:

M T Walker - Director

1.	STATUTORY INFORMATION

Racing Line 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.

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.

Turnover

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

Revenue from the sale of goods and provision of services is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially measured at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Plant and machinery - 33% reducing balance

Motor vehicles - 33% reducing balance

Fixtures and fittings - 33% reducing balance

Computer equipment - 33% reducing balance

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Government grants

Grants are accounted under the accruals model as permitted by FRS 102.

Grants of a revenue nature are recognised in the statement of income in the same period as the related expenditure.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Going concern

The Directors believe that there are no material uncertainties that call into doubt the company's ability to continue as a going concern. The financial statements have therefore been prepared on the basis that the company is a going concern. In the short term cash holdings are sufficient to ensure adequate cashflow for the foreseeable future. In the medium to long term, plans for, and the structure of, Racing Line Limited are in place and continue to be reviewed regularly. The Directors confirm that the ultimate parent company, EMPI Holding Corporation, will continue to provide financial support to Racing Line Limited.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2021 - 15 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

201,899

AMORTISATION

At 1 January 2022

8,412

Charge for year

20,190

At 31 December 2022

28,602

NET BOOK VALUE

At 31 December 2022

173,297

At 31 December 2021

193,487

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2022

345,069

74,351

246,951

150,625

816,996

Additions

20,379

-

39,995

-

60,374

Disposals

-

-

(74,590

)

-

(74,590

)

At 31 December 2022

365,448

74,351

212,356

150,625

802,780

DEPRECIATION

At 1 January 2022

323,394

25,674

84,323

106,696

540,087

Charge for year

29,709

315

30,424

12,316

72,764

Eliminated on disposal

-

-

(11,661

)

-

(11,661

)

At 31 December 2022

353,103

25,989

103,086

119,012

601,190

NET BOOK VALUE

At 31 December 2022

12,345

48,362

109,270

31,613

201,590

At 31 December 2021

21,675

48,677

162,628

43,929

276,909

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2022

10,100

Impairments

(10,100

)

At 31 December 2022

-

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

10,100

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade debtors

805,274

671,980

Amounts owed by group undertakings

128,576

-

Other debtors

2,500

2,615

VAT

60,625

21,491

Prepayments

110,213

83,896

1,107,188

779,982

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.22

31.12.21

£

£

Trade creditors

364,049

348,826

Amounts owed to group undertakings

-

1,367,052

Tax

-

33,080

Social security and other taxes

23,374

21,186

Other creditors

13,025

6,876

Accruals and deferred income

58,123

130,545

458,571

1,907,565

9.	LEASING AGREEMENTS

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

31.12.22

31.12.21

£

£

Within one year

58,124

45,784

Between one and five years

123,288

153,250

181,412

199,034

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.22

31.12.21

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

12.	ULTIMATE CONTROLLING PARTY

The company's immediate parent undertaking is Euro Motorparts Group (UK) Limited, a company registered in England and Wales, which owns 100% of the share capital.

The ultimate controlling party of the company is EMPI Holding Corp Inc., the registered office is 301 E. Orangethorpe Avenue, Anaheim, CA 92801.