Chippenham Motor Company Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01962593 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2022

for

Chippenham Motor Company Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A J Bailey

J A Bailey

SECRETARY:

L S Bailey

REGISTERED OFFICE:

Chippenham Motor Company

Bumpers Way

Chippenham

Wiltshire

SN14 6LF

REGISTERED NUMBER:

01962593 (England and Wales)

The directors present their strategic report for the year ended 31 December 2022.

The Director presents his Strategic Report for Chippenham Motor Company Limited for the year ended 31 December 2022.

REVIEW OF BUSINESS

The Company's principal activity for the year ended 31 December 2022 is the sales and service of new and used motor vehicles together with the associated sale of parts and accessories.

Both new car supply and economic factors adversely affected the UK new car market during the year, with total registrations down by 2% to 1.61 million, around 700,000 units below pre-Covid levels. The market saw private vehicle demand increase by a moderate 2%, and the total market is now evenly split 50:50 between private and fleet and business sales.

In terms of how the franchises that we represent performed compared with the national market decline for the full year of 2%, Kia sales grew by 10.3%, whilst SEAT sales fell by -48.7%. We have retained Authorised Repairer status for Peugeot, Citroën, Volvo and Ford, enabling us to continue to serve our longstanding customers and retain their service and repair business in our Workshops.

Group turnover rose by over £3.4m to £33.6m, an increase of 11.3% over the previous year. The overall gross profit decreased by £507.4K (11.8%) with the margin falling from 9.3% last year to 7.5%, primarily due to the pressure on new and used vehicle margins. The Group has benefitted from only a minimal growth in administrative expenses over the period following an intense focus on costs across the business and a reduction in staffing levels. The Company has recorded a net profit before tax for the year of £1.019m (3.0%), compared to last year's £1.503m (5.0%), a decrease of 32%.

New car margins hardened throughout the early part of the year due to supply constraints, and whilst used car margins increased by over 2% in the early part of the year, they came under pressure as the second half year progressed due to the improvement in new car supply. Towards the end of the year there was evidence of consumer demand easing due to the increasing cost of living, partly driven by the steady growth of interest rates. There was also a dramatic fall in the values of used Electric Vehicles following Tesla's decision to reduce the price of their new cars, which inevitably led to a decline in used margins on the Group's existing stock.

It looks as though the challenging economic climate we are facing will remain with us for the foreseeable future, and with it comes the increasing pressures on the cost of living with the resultant pressure on retail demand in the automotive sector. This, together with the ongoing war in Ukraine and the forthcoming refurbishment of our Bumpers Farm customer-facing facilities will inevitably affect both the market and our business, but the Company approaches the year ahead with cautious optimism.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal challenges of the company continue due to the economy and competition from other dealerships and manufacturers.

Financial Instruments

The Company's principal financial instruments comprise of cash, borrowings, trade debtors and trade creditors. The main purpose of these financial instruments is to raise finance for the company's operations. The main risks arising from the company's financial instruments are:

Interest rate risk

Interest rate risks arise from the company's exposure to interest rate fluctuations and is managed by use of a mixture of fixed and floating facilities.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds and available for the ongoing and future development, the company uses a mixture of long term and short term debt finance.

Credit risk

Credit risk arises from the company's trade debtors and in order to minimise this, limits are set based on a combination of payment history and third party credit references. Outstanding amounts are monitored regular based upon debt ageing and collection history.

FINANCIAL KEY PERFORMANCE INDICATORS

The Director uses a number of key performance measures to monitor and manage performance within the business. The key performance indicators used are turnover, gross profit and operating profit and these disclosed in the financial statements. The director monitors these key performance indicators on a regular basis throughout the year to ensure the company's strategy is achieved.

FUTURE DEVELOPMENTS

The business is firmly established in two trading locations in Chippenham, and we continue to focus on methods by which we can grow volumes across all departments of the business, whilst seeking to improve margins and maintain a firm control on staffing levels and costs. As noted above, in January 2023 we commence the complete refurbishment of the showrooms, service reception areas and external signage to comply with the new corporate identity of Kia.

ON BEHALF OF THE BOARD:

A J Bailey - Director

18 September 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

A J Bailey

J A Bailey

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). 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;

-	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.

AUDITORS

The auditors, Sumer Audit, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A J Bailey - Director

18 September 2023

Opinion

We have audited the financial statements of Chippenham Motor Company Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other 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 December 2022 and of its 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 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 four, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the We Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Understanding of management's internal controls designed to prevent and detect irregularities, and fraud;

- Reviewing the Company's legal costs to check for non-compliance with laws and regulations and fraud;

- Review of tax compliance with the involvement of our tax specialists in the audit;

- Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses;

- Testing transactions entered into outside of the normal course of the Group's business; and

- Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

David Iain Black (Senior Statutory Auditor)

for and on behalf of Sumer Audit

Statutory Auditors

Hermes House

Fire Fly Avenue

Swindon

Wiltshire

SN2 2GA

25 September 2023

TURNOVER

4

33,576,414

30,168,154

Cost of sales

31,257,032

27,341,374

GROSS PROFIT

2,319,382

2,826,780

Administrative expenses

1,352,734

1,338,709

966,648

1,488,071

Other operating income

-

137,777

OPERATING PROFIT

6

966,648

1,625,848

Interest receivable and similar income

11

-

966,659

1,625,848

Interest payable and similar expenses

7

15,811

2,550

PROFIT BEFORE TAXATION

950,848

1,623,298

Tax on profit

8

159,527

300,706

PROFIT FOR THE FINANCIAL YEAR

791,321

1,322,592

PROFIT FOR THE YEAR

791,321

1,322,592

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

791,321

1,322,592

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

499,996

644,719

Investments

11

-

-

499,996

644,719

CURRENT ASSETS

Stocks

12

4,175,148

4,955,496

Debtors

13

3,144,252

2,405,078

Cash at bank

1,372,203

840,632

8,691,603

8,201,206

CREDITORS

Amounts falling due within one year

14

5,629,528

5,938,686

NET CURRENT ASSETS

3,062,075

2,262,520

TOTAL ASSETS LESS CURRENT LIABILITIES

3,562,071

2,907,239

CREDITORS

Amounts falling due after more than one year

15

(262,295

)

(367,213

)

PROVISIONS FOR LIABILITIES

18

(33,817

)

(65,388

)

NET ASSETS

3,265,959

2,474,638

CAPITAL AND RESERVES

Called up share capital

19

200

200

Retained earnings

20

3,265,759

2,474,438

SHAREHOLDERS' FUNDS

3,265,959

2,474,638

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2023 and were signed on its behalf by:

A J Bailey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

200

1,151,846

1,152,046

Changes in equity

Profit for the year

-

1,322,592

1,322,592

Total comprehensive income

-

1,322,592

1,322,592

Balance at 31 December 2021

200

2,474,438

2,474,638

Changes in equity

Profit for the year

-

791,321

791,321

Total comprehensive income

-

791,321

791,321

Balance at 31 December 2022

200

3,265,759

3,265,959

1.	STATUTORY INFORMATION

Chippenham Motor Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The 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 requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirement of paragraph 33.7.

The information is included in the consolidated financial statements of Adam Bailey Limited as at 31 December 2022 and these financial statements may be obtained from the Registrar of Companies, Cardiff.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the Company will receive consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Sales of vehicles are recognised on delivery to the customer together with the associated manufacture bonus income. Any other manufacturer income in relation to achieving targets is recognised on an accruals basis.

Sale of parts are recognised at point of sale or delivery of goods to the customer. Service sales are recognised on completion of all work and handover to the customer.

Goodwill

Goodwill represents the difference between the amounts paid on the cost of a business combination and the acquirers 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 comprehensive income over its useful economic life.

Amoritisation is provided on the following bases:

Goodwill - 20%

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Leasehold property - 10% straight line

Plant and equipment - 20% straight line

Fixtures and fittings - 20% straight line

Website development costs - 20% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

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

The directors consider the substance of stocking arrangements with manufacturers and where the group has access to the benefits of the stock and exposure to the risk and costs, the stock is treated as an asset of the group.

Current and deferred 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.

Pensions

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.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

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 the group does not have an

unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve

months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months

after the reporting date, they are presented as non-current liabilities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The items in the financial statements where these estimates and judgements have been made include:

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 the assets. The useful economic lives and residual values of all assets are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and note 2 for the useful economic lives for each class of assets.

Stock provisioning

Significant estimates are involved in the determination of stock provisions. Management exercise judgement in determining whether the costs of a particular item of stock are recoverable on an item by item basis. Management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability and future usage. A provision is made where a loss can be reliably estimated.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 13 for the net carrying amount of the debtors and associated impairment provision.

4.

TURNOVER

All turnover arose within the United Kingdom.

The whole of the turnover is attributable to the principle activity of the company being the sale and service of new and used motor vehicles together with the sale of parts and accessories.

5.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

1,609,882

1,556,322

Social security costs

153,050

147,199

Other pension costs

72,913

29,518

1,835,845

1,733,039

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

2022

2021

Sales Staff

11

14

Service and parts staff

35

36

Administration staff and management

15

11

61

61

2022

2021

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Depreciation - owned assets

166,531

188,563

Loss on disposal of fixed assets

421

6,789

Auditors remuneration

13,627

14,215

Auditors remuneration non-audit services

3,335

5,785

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank loan interest

15,811

2,550

8.

TAXATION

Analysis of the tax charge

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

2022

2021

£

£

Current tax:

UK corporation tax

191,097

280,435

Deferred tax

(31,570

)

20,271

Tax on profit

159,527

300,706

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

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

2022

2021

£

£

Profit before tax

950,848

1,623,298

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

180,661

308,427

Effects of:

Expenses not deductible for tax purposes

34,256

(22,096

)

Capital allowances in excess of depreciation

(8,837

)

(1,336

)

Utilisation of tax losses

(7,794

)

-

Adjustments to tax charge in respect of previous periods

9,500

-

Deferred Tax

(31,571

)

15,711

Over provision in prior year

(16,688

)

-

Total tax charge

159,527

300,706

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

3,507,856

AMORTISATION

At 1 January 2022

and 31 December 2022

3,507,856

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

10.	TANGIBLE FIXED ASSETS

Equipment,

Leasehold

fixtures

Website

land and

and

development

buildings

fittings

costs

Totals

£

£

£

£

COST

At 1 January 2022

825,810

757,656

28,400

1,611,866

Additions

-

22,229

-

22,229

Disposals

-

(7,971

)

-

(7,971

)

At 31 December 2022

825,810

771,914

28,400

1,626,124

DEPRECIATION

At 1 January 2022

344,920

593,827

28,400

967,147

Charge for year

84,393

82,138

-

166,531

Eliminated on disposal

-

(7,550

)

-

(7,550

)

At 31 December 2022

429,313

668,415

28,400

1,126,128

NET BOOK VALUE

At 31 December 2022

396,497

103,499

-

499,996

At 31 December 2021

480,890

163,829

-

644,719

11.	FIXED ASSET INVESTMENTS

Investment

in

subsidiary

£

COST

At 1 January 2022

and 31 December 2022

946,380

PROVISIONS

At 1 January 2022

and 31 December 2022

946,380

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

-

12.

STOCKS

2022

2021

£

£

Vehicle Stock

3,241,426

4,256,601

Parts Stock

211,026

179,346

Consignment Stock

722,696

519,549

4,175,148

4,955,496

The director's have considered the substance of the stocking arrangements with the manufacturers, and considers that the consignment stock held by the company is in substance an asset of the comany. The company has access to the benefits of the stock and exposure to the risk and costs of holding it. The company has therefore recognised the consignment stock in its balance sheet at 31 December 2022 and a corresponding liability to the manufacturers.

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

286,385

407,793

Amounts owed by group undertakings

2,520,282

1,870,282

Other debtors

184,811

40,859

Prepayments and accrued income

152,774

86,144

3,144,252

2,405,078

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 16)

98,361

100,000

Other loans (see note 16)

3,453,819

4,043,630

Trade creditors

1,096,573

726,195

Corporation Tax

198,274

280,435

Social security and other taxes

104,610

191,257

Other creditors

315,452

167,525

Accruals and deferred income

362,439

429,644

5,629,528

5,938,686

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans (see note 16)

262,295

367,213