David Brown Automotive Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 07173098 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

FOR

DAVID BROWN AUTOMOTIVE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

R A Westley

REGISTERED OFFICE:

Silverstone

Buckingham Road

Silverstone

Towcester

NN12 8FU

REGISTERED NUMBER:

07173098 (England and Wales)

AUDITORS:

TC Group

1 Rushmills

Bedford Road

Northampton

Northamptonshire

NN4 7YB

FIXED ASSETS

Intangible assets

4

-

56,671

Tangible assets

5

565,862

725,672

565,862

782,343

CURRENT ASSETS

Stocks

6

1,309,235

2,311,442

Debtors

7

514,987

357,962

Cash at bank

25,603

5,729

1,849,825

2,675,133

CREDITORS

Amounts falling due within one year

8

4,320,755

4,194,013

NET CURRENT LIABILITIES

(2,470,930

)

(1,518,880

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,905,068

)

(736,537

)

CREDITORS

Amounts falling due after more than one year

9

(208,116

)

(297,550

)

PROVISIONS FOR LIABILITIES

12

(50,000

)

(49,442

)

NET LIABILITIES

(2,163,184

)

(1,083,529

)

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Share premium

8,999,900

8,999,900

Retained earnings

(11,164,084

)

(10,084,429

)

SHAREHOLDERS' FUNDS

(2,163,184

)

(1,083,529

)

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 Income Statement has not been delivered.

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

R A Westley - Director

1.	STATUTORY INFORMATION

David Brown Automotive 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.

The Company's functional and presentational currency is GBP.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes, recognised on delivery of the vehicle.

Intangible assets

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

Development costs are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets

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

Short leasehold

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. Where necessary, provision is made for slow moving, obsolete and defective stocks. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 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

Development costs that are directly attributable to the design and testing of identifiable and unique vehicles and related technology controlled by the Company are recognised as intangible assets when the following criteria are met:

- it is technically feasible to complete the prototype so that it will be available for use;

- management intends to complete the prototype and use or sell it;

- there is an ability to use or sell the prototype;

- it can be demonstrated how the prototype will generate probable future economic benefits;

- adequate technical, financial and other resources to complete the development and to use or sell the prototype are available; and

- the expenditure attributable to the prototype during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as

incurred. Development costs previously recognised as an expense are not recognised as an asset in

a subsequent period.

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.

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 keep the company's trading and financial position under constant review. Forecasts have been prepared that incorporate funding that is expected to be made available. In addition, a significant shareholder has pledged his continued support of the company through other related businesses. On the basis of these forecasts, the directors believe that the company has the ability to fulfil its financial obligations for a period of at least twelve months from the date of these financial statements and therefore consider it appropriate to prepare the financial statements on a going concern basis.

The directors acknowledge that given the currently rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2021 - 20 ) .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 November 2021

and 31 October 2022

730,844

AMORTISATION

At 1 November 2021

674,173

Amortisation for year

56,671

At 31 October 2022

730,844

NET BOOK VALUE

At 31 October 2022

-

At 31 October 2021

56,671

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 November 2021

68,253

46,388

466,554

Additions

-

-

1,501

Disposals

-

-

-

At 31 October 2022

68,253

46,388

468,055

DEPRECIATION

At 1 November 2021

30,390

4,710

208,994

Charge for year

6,825

-

56,022

Eliminated on disposal

-

-

-

At 31 October 2022

37,215

4,710

265,016

NET BOOK VALUE

At 31 October 2022

31,038

41,678

203,039

At 31 October 2021

37,863

41,678

257,560

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 November 2021

1,275,850

46,667

1,903,712

Additions

306,012

-

307,513

Disposals

(192,507

)

-

(192,507

)

At 31 October 2022

1,389,355

46,667

2,018,718

DEPRECIATION

At 1 November 2021

905,994

27,952

1,178,040

Charge for year

286,835

11,667

361,349

Eliminated on disposal

(86,533

)

-

(86,533

)

At 31 October 2022

1,106,296

39,619

1,452,856

NET BOOK VALUE

At 31 October 2022

283,059

7,048

565,862

At 31 October 2021

369,856

18,715

725,672

6.

STOCKS

2022

2021

£

£

Raw materials

437,961

516,903

Work-in-progress

771,849

1,708,144

Finished goods

99,425

86,395

1,309,235

2,311,442

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

146,412

67,681

Other debtors

111,765

1,798

Tax

109,787

102,562

VAT

46,799

80,230

Prepayments

100,224

105,691

514,987

357,962

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other loans

1,731,050

708,000

Hire purchase contracts (see note 10)

89,433

78,398

Trade creditors

347,707

449,842

Social security and other taxes

162,799

287,006

Other creditors

1,227,217

2,140,689

Directors' current accounts

97,840

97,840

Accrued expenses

664,709

432,238

4,320,755

4,194,013

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Hire purchase contracts (see note 10)

208,116

297,550

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2022

2021

£

£

Net obligations repayable:

Within one year

89,433

78,398

Between one and five years

208,116

297,550

297,549

375,948

Non-cancellable

operating leases

2022

2021

£

£

Within one year

189,982

155,000

Between one and five years

759,928

620,000

In more than five years

459,123

529,583

1,409,033

1,304,583

11.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Other loans

1,731,050

708,000

Hire purchase contracts

297,549

375,948

2,028,599

1,083,948

Hire purchase contracts and other loans are secured against vehicles.

12.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Other provisions

50,000

49,442

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

1,000

Ordinary

£1

1,000

1,000

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

The Report of the Auditors was unqualified.

Emma Jones FCCA (Senior Statutory Auditor)

for and on behalf of TC Group

15.	RELATED PARTY DISCLOSURES

Loans of £1,731,050 (£708,000) are payable to related parties, these loans are interest free and repayable on demand.

Other creditors includes £77,474 (2021: £77,474) payable to a related party which is unsecured and interest free.

Accruals includes management charges of £240,000 (2021: £120,000) due to related party at the year end.

Trade creditors includes £376,176 (2021: £337,935) payable to a related party at the year end.

16.	ULTIMATE CONTROLLING PARTY

R A Westley is considered to be the ultimate controlling party by virtue of his shareholding in the immediate parent company, UK Advanced Industrials Ltd.