Fairfield Garage (L-o-S) Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 00916058 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 JANUARY 2022 TO 31 AUGUST 2022

FOR

FAIRFIELD GARAGE (LEIGH-ON-SEA) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

7

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

D Kenningham

D McHenry

G Hobson

SECRETARY:

G Hobson

REGISTERED OFFICE:

First Point

St. Leonards Road

Allington

Maidstone

Kent

ME16 0LS

REGISTERED NUMBER:

00916058 (England and Wales)

AUDITORS:

Goldwyns Limited

Statutory Auditors and Chartered Accountants

Rutland House

90-92 Baxter Avenue

Southend on Sea

Essex

SS2 6HZ

The directors present their strategic report for the period 1 January 2022 to 31 August 2022.

REVIEW OF BUSINESS

Although out of sequence from the remainder of the review, it should be noted that the entire issued share capital of the company was disposed of by the Styles family and acquired by Group 1 Automotive UK Limited on 1 September 2022.

The acquiring company is an American owned Fortune 300 listed major group in the United States of America and is renowned for its sound acquisition policy and rapid expansion both within America and the United Kingdom. Further information on the Group 1 Automotive Inc. group, its strategy and future plans are publicly available via the New York stock exchange and the group's investor relations website.

The year under review commenced on a much improved footing from the previous year in that the business was able to be fully open to staff and clients, despite some minor pandemic related restrictions remaining in place.

Partly as a consequence of previous trading and supply restrictions, Fairfield, in common with many other businesses within the sector was able to capitalise on lessons learned in terms of profit margin retention and again proved its resilience by continuing to build upon its expertise in all aspects of client care.

Profitable new and used vehicle sales continued to thrive, again only being limited by the lack of new car availability resultant from component shortages and supply chain logistics which in turn, had a consequent impact on the number of high quality used vehicles which could be purchased for stock. The supply situation gradually improved throughout the period but in a manageable fashion, allowing there to be no distress selling.

The increase in residual values throughout the industry is well documented and permitted exceptional margins to be retained.

The relatively new vehicle sales operation, specialising in all marque used vehicles, based in Billericay, became progressively more established and retailed in excess of 200 units in the 8 month period. Awareness of its service department improved and operational excellence was enhanced by recruitment of an industry expert to manage that element.

The net contribution to the overall business, however, was negative after accounting for its overheads. Post period trading, however, is producing phenomenal profits.

This was the second period for which the group property restructure had taken place, resulting in additional rent of £541,000 being charged, based upon market property valuations.

Trading conditions throughout the year and each element of the business, remained buoyant with demand exceeding supply in both the vehicle sales and labour sales arenas despite, as per the global economy, an ever increasing element of inflationary pressure upon salary levels and expenses.

This situation continues to intensify. It was characterised by a chronic shortage of skilled staff, particularly vehicle technicians, limiting Fairfield's ability to maximise labour sales to match the demand.

During the 8 months, the company also continued its property development interests.

Later property related opportunities were undertaken within an alternative company.

REVIEW OF BUSINESS

These various factors culminated in an exceptional operating profit for the 8 months, being another 34% over the corresponding period in the previous year.

In order to exclude accounting adjustments resulting from the ownership change on 1st September 2022, the relevant comparison with other retailers within the network is direct profit.

Fairfield's direct profitability exceeded the national average by £542,000 (18.1%) with the return on sales, also measured on the same basis, compared with other retailers being 39% higher. This indicates that the company is operating in a highly efficient manner.

Throughout the period under review and indeed, beyond, the war between Russia and Ukraine continues to rage with a resultant impact upon the economy, particularly inflation and interest rates and, of course, the supply of new vehicles due to component manufacturing within Ukraine. This is an industry wide issue but is gradually coming under control.

In summary, the core trading results have enabled the business to attract interest from a highly acclaimed potential purchaser, Group 1 Automotive UK Limited and the sale of the share capital was completed on 1 September 2022.

From this date onwards, the company has been gradually integrating its systems and working practices to those of the group and is benefiting from the enhanced levels of control which accompany those changes, whilst retaining the essence of the business which allowed it to build such a solid base from which to springboard future success.

PRINCIPAL RISKS AND UNCERTAINTIES

As with all businesses, there is an inherent level of risk and uncertainty associated with constantly evolving and fluctuating market conditions. This applies within the motor industry itself, to government economic policy and the economic climate both within the United Kingdom and, indeed, globally.

POST BALANCE SHEET EVENTS

On 1 September 2022 there was a change in controlling party to Group 1 Automotive UK Limited. Refer to note 24 for further details of this and other post balance sheet events.

SECTION 172(1) STATEMENT

Stakeholder engagement

The board of directors have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a board outwork this responsibility.

Decision making

Regular operational and strategic meetings are held by the directors and core management team. The attendance of appropriate individuals at each meeting ensures the board has access to the key factors affecting all areas of the business, shorter term or longer.

Furthermore, the company is in constant communication with BMW (UK) Limited, the wider franchise network and various industry specific news sources. This enables the directors to keep abreast of all longer-term shifts in the company's operating markets, ensuring the company's future is never compromised for the sake of its immediate needs.

Shareholder engagement

The company has a successful trading history and during the period, the Styles family continued to maintain an active interest in the business' activities and were personally represented on the board of directors. This shareholder engagement, including the regular sharing of strategy and performance with the US parent company, Group 1 Automotive Inc. continues under the new ownership.

ENGAGEMENT WITH EMPLOYEES

The company maintains an enviable workforce of local employees spanning all aspects of a busy dealership. Staff are rewarded in line with comparable local markets, provided with specific training relevant to their needs and given the constant opportunity for development. The board also fosters a positive, engaging, attitude across all staff levels, and employee consultation is a key part of any significant operational changes.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Business relationships

Over its many years of operations, the company has fostered very strong relationships with its key suppliers and local customer base.

The company's primary supplier remains BMW (UK) Limited, with whom the company keeps a close working relationship at all times. Other suppliers are not neglected, however, and the directors continue to deal with all suppliers openly, fairly and with integrity.

The company maintains a wide customer base, both personal and corporate. Regular mystery shopper visits and brand operational standards ensure Fairfield's customers receive the best service the company can offer, at all times. Furthermore, the company is pleased to repeatedly welcome back customers it has been serving for decades.

Community and environmental impact

The directors remain ever conscious of the impact their business has on the local community and environment. As well as being a significant local employer, the company also gives back to the surrounding community via a number of sponsorship and support schemes. It is also mindful of the disruption it causes its immediate neighbours (residential and commercial) and therefore remains considerate in its activities and operational hours.

Environmentally, the company is at the forefront of vehicular advancements - Fairfield was originally one of the flagship dealerships for the BMW electric range and incorporates various hybrid and low emission vehicles into its range. Operationally, the company processes all waste and hazardous material in accordance with prevailing legislation and guidance.

Business conduct

The directors continually assess the company's activities to ensure at all times the business is offering a high standard of business conduct, in accordance with the premium, high quality, marques of vehicle which forms its core business.

STREAMLINED ENERGY AND CARBON REPORTING

During the course of the period, the company consumed approximately 1,187 (2021 - 1,760) MWh of energy. This is made up of:

(a) electricity 470 (2021 - 690) MWh;

(b) gas 202 (2021 - 309) MWh; and

(c) road fuel 515 (2021 - 761) MWh.

Given the wide variety of vehicles (business owned and reimbursed personal) utilised by the company over the course of the year, it is inherently difficult to obtain precise consumption data particularly for road fuel. For the purposes of this reporting, the company has therefore extrapolated its total fuel costs against an average fuel price of £1.71 (2021 - £1.33) per litre and an average energy content of 10kWh (2021 - 10kWh) per litre of fuel (petrol and diesel).

Using Department for Business, Energy and Industrial Strategy published conversion factors, the company calculates its total greenhouse gas emissions amount to 260 (2021 - 397) tonnes of CO2. This is made up of:

(a) electricity 91 (2021 - 147) tonnes;

(b) gas 41 (2021 - 63) tonnes; and

(c) road fuel 128 (2021 - 188) tonnes.

This therefore equates to an approximate emission intensity of 5.3 (2021 - 5.9) tonnes of CO2 per £1m of sales revenue.

ON BEHALF OF THE BOARD:

D McHenry - Director

22 August 2023

The directors present their report with the financial statements of the company for the period 1 January 2022 to 31 August 2022.

DIVIDENDS

During the course of the year the company declared a distribution in specie of £1,054,005 of intragroup loan balances, the benefits of which were transferred to the company's parent. No other distributions for the year arose.

EVENTS SINCE THE END OF THE PERIOD

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

DIRECTORS

D Kenningham , D McHenry and G Hobson were appointed as directors after 31 August 2022 but prior to the date of this report.

S N Goldring and M A K Styles ceased to be directors after 31 August 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D McHenry - Director

22 August 2023

Opinion

We have audited the financial statements of Fairfield Garage (Leigh-on-Sea) Limited (the 'company') for the period ended 31 August 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 2022 and of its profit for the period 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of 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 six, 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 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 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.

In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

-

obtained an understanding of the key laws and regulations applicable to the company, including the Companies Act 2006, its BMW franchise agreement and applicable taxation legislation;

-

assessed the company's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;

-

determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;

-

considered our own involvement in the preparation of the company's statutory financial statements and taxation returns;

-

conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and

-

reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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.

S T Blundell FCA (Senior Statutory Auditor)

for and on behalf of Goldwyns Limited

Statutory Auditors and Chartered Accountants

Rutland House

90-92 Baxter Avenue

Southend on Sea

Essex

SS2 6HZ

29 August 2023

TURNOVER

49,086,568

67,230,639

Cost of sales

45,557,993

62,947,115

GROSS PROFIT

3,528,575

4,283,524

Administrative expenses

2,243,752

2,773,836

1,284,823

1,509,688

Other operating income

206,323

730,989

OPERATING PROFIT

4

1,491,146

2,240,677

Interest receivable and similar income

5

46,072

57,145

1,537,218

2,297,822

Interest payable and similar expenses

6

75,124

120,487

PROFIT BEFORE TAXATION

1,462,094

2,177,335

Tax on profit

7

334,756

398,270

PROFIT FOR THE FINANCIAL PERIOD

1,127,338

1,779,065

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,127,338

1,779,065

FIXED ASSETS

Tangible assets

9

13,767,622

2,033,201

Investment property

10

-

276,705

13,767,622

2,309,906

CURRENT ASSETS

Stocks

11

8,604,421

7,329,709

Debtors

12

2,572,532

15,223,694

Cash at bank and in hand

1,321,026

610

12,497,979

22,554,013

CREDITORS

Amounts falling due within one year

13

10,248,686

8,972,230

NET CURRENT ASSETS

2,249,293

13,581,783

TOTAL ASSETS LESS CURRENT LIABILITIES

16,016,915

15,891,689

PROVISIONS FOR LIABILITIES

17

152,291

100,398

NET ASSETS

15,864,624

15,791,291

CAPITAL AND RESERVES

Called up share capital

18

39,304

39,304

Share premium

19

44,889

44,889

Capital redemption reserve

19

38,828

38,828

Retained earnings

19

15,741,603

15,668,270

SHAREHOLDERS' FUNDS

15,864,624

15,791,291

The financial statements were approved by the Board of Directors and authorised for issue on 22 August 2023 and were signed on its behalf by:

D McHenry - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2021

39,304

13,893,650

44,889

38,828

14,016,671

Changes in equity

Dividends

-

(4,445

)

-

-

(4,445

)

Total comprehensive income

-

1,779,065

-

-

1,779,065

Balance at 31 December 2021

39,304

15,668,270

44,889

38,828

15,791,291

Changes in equity

Dividends

-

(1,054,005

)

-

-

(1,054,005

)

Total comprehensive income

-

1,127,338

-

-

1,127,338

Balance at 31 August 2022

39,304

15,741,603

44,889

38,828

15,864,624

1.	STATUTORY INFORMATION

Fairfield Garage (Leigh-on-Sea) 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company was sold on the 1 September 2022 and hence the financial statements are drawn up for the 8 months to the transfer of ownership. As the comparatives report a full year, for this reason, the figures are not entirely comparable.

Financial Reporting Standard 102 - reduced disclosure exemptions

Exemption has been taken from preparing a cash flow statement on the grounds that the parent company includes the subsidiary in its published financial statements.

Turnover

Turnover represents the net accrued income of a motor group, including a BMW and MINI retailer, excluding value added tax. Income from the sale of cars, parts, associated goods and commissions are recognised in the period in which the customer takes legal responsibility for the goods. Income receivable for the provision of services, including bodyshop repair work, is recognised in the period to which entitlement is incurred.

Tangible fixed assets

Depreciation is provided on all tangible assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life as follows:

Freehold property

- fifty years

Leasehold property

- evenly over the lease term

Plant and machinery

- four to twenty years

Fixtures and fittings

- two to twenty years

Computer equipment

- three years

Where substantial dealership refurbishment works have been apportioned to other fixed asset categories, the depreciation has instead been charged over the remaining period of the building's life.

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.

Current asset investments

The company has a policy of investing surplus reserves into short term property development agreements which are anticipated to return a higher yield than fixed term cash deposits.

When undertaking property development the properties are recognised at cost, less any necessary provision for impairment. Once the development is complete and the property is available for sale, the current asset investment is then recognised at market value with any gains or losses accruing reflected in the profit and loss account. At the final disposal of the current asset, the total surplus or deficit is recognised in the profit and loss account.

Stocks

Stock is valued at the lower of cost and net realisable value, as follows:

Vehicles

- actual cost of purchase

Parts, oil and consumables

- actual cost of purchase

Work in progress

- cost of direct materials and labour

Due allowance has been made for obsolete and slow moving items.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 period 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.

3.	EMPLOYEES AND DIRECTORS

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Wages and salaries

2,963,330

4,152,928

Social security costs

306,653

403,796

Other pension costs

59,989

85,540

3,329,972

4,642,264

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

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

Sales

43

41

Service

40

39

Parts

14

13

Bodyshop

11

10

Accounts and administration

19

20

Directors

2

2

129

125

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Directors' remuneration

64,942

82,030

Directors' pension contributions to money purchase schemes

4,739

5,508

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

Money purchase schemes

2

2

4.	OPERATING PROFIT

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

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Depreciation - owned assets

124,294

192,153

Profit on disposal of fixed assets

-

(129,366

)

Auditors' remuneration

25,000

30,000

Auditors' remuneration - non-audit services

1,830

4,500

Operating leases - land and buildings

703,675

1,021,200

5.

INTEREST RECEIVABLE AND SIMILAR INCOME

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Other interest received

46,072

57,145

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Bank interest

88

1,212

Loan interest

75,036

119,275

75,124

120,487

7.

TAXATION

Analysis of the tax charge

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

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Current tax:

UK corporation tax

282,863

408,201

Deferred tax

51,893

(9,931

)

Tax on profit

334,756

398,270

Reconciliation of total tax charge included in profit and loss

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

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

Profit before tax

1,462,094

2,177,335

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

277,798

413,694

Effects of:

Income not taxable for tax purposes

-

(24,579

)

Capital allowances in excess of depreciation

51,893

-

Depreciation not deductible for tax purposes

5,065

9,155

Total tax charge

334,756

398,270

8.

DIVIDENDS

PERIOD

1/1/22

TO

YEAR ENDED

31/8/22

31/12/21

£

£

"A" Ordinary shares of £1 each

Interim

806,979

3,403

"B" Ordinary shares of £1 each

Interim

247,026

1,042

1,054,005

4,445

9.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 January 2022

-

1,314,597

1,708,651

Additions

11,800,000

-

42,588

At 31 August 2022

11,800,000

1,314,597

1,751,239

DEPRECIATION

At 1 January 2022

-

283,031

1,280,792

Charge for period

-

35,106

34,643

At 31 August 2022

-

318,137

1,315,435

NET BOOK VALUE

At 31 August 2022

11,800,000

996,460

435,804

At 31 December 2021

-

1,031,566

427,859

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2022

1,066,601

294,631

4,384,480

Additions

6,509

9,618

11,858,715

At 31 August 2022

1,073,110

304,249

16,243,195

DEPRECIATION

At 1 January 2022

525,680

261,776

2,351,279

Charge for period

38,146

16,399

124,294

At 31 August 2022

563,826

278,175

2,475,573

NET BOOK VALUE

At 31 August 2022

509,284

26,074

13,767,622

At 31 December 2021

540,921

32,855

2,033,201

Shortly before the period end, the company re-acquired its trading properties from a fellow subsidiary at the current market value.