Revival Solutions Group Ltd - Limited company accounts 23.2

REGISTERED NUMBER: 05362804 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2022

for

REVIVAL SOLUTIONS GROUP LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Miss M L Peterson

J A Sims

REGISTERED OFFICE:

Hanbury Grange

Wood Lane

Hanbury

Burton on Trent

Staffordshire

DE13 8TG

REGISTERED NUMBER:

05362804 (England and Wales)

AUDITORS:

Newby Castleman LLP

Chartered Accountants, Statutory Auditor

West Walk Building

110 Regent Road

Leicester

LE1 7LT

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

REVIEW OF BUSINESS

The directors are pleased to report a 14% increase in turnover from £35,340,541 to £40,593,965, which resulted in a 54% increase in profit before tax from £1,004,464 to £1,542,035. This was largely due to a strong performance from the commercial vehicle dealerships whilst the rental fleet had continued high utilisation.

The rental market remained buoyant during the majority of 2022 due to continuing vehicle shortages but with signs of a slowdown from Q4 2022 we believe 2023 could be challenging for the spot market. As the majority of the fleet is on long term contract hire this has very little impact on the business.

New vehicle sales growth continued through 2022 albeit timings of deliveries and vehicle registrations were impacted by production delays, largely due to ongoing component supply shortages. We go into 2023 with a very strong order pipeline and a level of vehicle stock to meet the expected demand next year.

Aftersales performed well during the year despite the challenging labour market, particularly within the HGV technician sector. Staff retention remains high but attracting additional staff across the business to support our growth has been the main difficulty. During the year we experienced significant overhead increases but to a large extent were able to pass on these costs to maintain our margins.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties that the company considers important relate to the loss of contracts and potential customer default, particularly in relation to vehicles held on the company's own balance sheet.

The company works hard to maintain a close working relationship with its customers, so that the highest levels of service can be maintained. Contract prices, both for existing and potential customers, are reviewed on a regular basis to maintain competitiveness.

Investments in tangible fixed assets are mainly financed through hire purchase and finance lease agreements, using both fixed and variable interest rates, which allows the management of interest rate risks whilst providing a flexible approach to fleet reduction without termination penalties, should the need arise.

The directors apply a rigorous approach to fleet depreciation to ensure that as far as possible book values of vehicles and trailers match their expected residual values at the end of their expected useful lives.

Constant monitoring of cash flow and business forecasts provides the information to ensure that sufficient liquidity is available to meet obligations as they fall due.

FUTURE DEVELOPMENTS

The company will continue to develop its local market to grow the dealership vehicle parc and in turn drive service and parts sales.

Our expectation is that new vehicle stock availability in the market will improve through 2023. Product availability and manufacturer pricing policies will be the key influencers of future vehicle sales volumes and margins.

However, our investment in the Iveco Natural Power product of CNG and LNG vehicles, together with stabilisation of global gas prices puts us in a great position to drive these sales through 2023 as fleets look to reduce emissions and decarbonise.

ON BEHALF OF THE BOARD:

Miss M L Peterson - Director

28 September 2023

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the leasing of commercial vehicles and the operation of a commercial vehicle dealership.

DIVIDENDS

An interim dividend of £1 per share was paid on 6 April 2022. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 30,000 .

DIRECTORS

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

Miss M L Peterson

J A Sims

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;

-	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, Newby Castleman LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Miss M L Peterson - Director

28 September 2023

Opinion

We have audited the financial statements of Revival Solutions Group Ltd (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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. 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.

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. However, responsibility for the prevention and detection of fraud ultimately rests with both those charged with governance and management of the company.

In identifying and assessing risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- obtaining an understanding of the legal and regulatory framework applicable to the company by

considering the nature of the industry in which the company operates and enquiring of management; and

- identifying the key laws and regulations considered to have a direct impact on the financial statements

including the UK Companies Act 2006, UK Generally Accepted Accounting Practice and UK tax

legislation. Other regulations identified which were not considered to have a direct impact on

the financial statements but which were considered central to the ability of the company to operate

were Road Traffic Act 1988 and the Road Transport Act 2001; and

- assessing how the company is complying with the applicable legal and regulatory framework by making

further enquiries of management and observing the company's control environment regarding

compliance with regulations and fraud prevention; and

- assessing the susceptibility of the company's financial statements to material misstatement, including

how fraud might occur, by considering the effectiveness of the company's accounting systems and

controls and how these were monitored by management. Performance related targets and bonuses

were also considered. Where the risk of material misstatement was considered to be higher in certain

areas, further audit procedures were designed to address this increased risk; and

- discussing amongst the engagement team how and where fraud might occur in the financial statements

and any potential indicators of fraud.

Audit response to risks of irregularities identified

Our procedures to respond to risks identified included the following:

- reviewing financial statement disclosures and testing to support documentation to assess compliance

with applicable laws and regulations; and

- enquiry of company staff responsible for compliance to identify any instances of non-compliance with

laws and regulations; and

- reviewing supporting documentation confirming compliance with specific laws and regulations considered

central to the ability of the company to operate; and

- enquiry of management, those charged with governance and other relevant parties around actual and

potential litigation claims; and

- reviewing supporting documentation regarding actual and potential litigation claims; and

- performing audit work over the risk of management override of controls, including testing of

journal entries and other adjustments for appropriateness, evaluating the business rationale of

significant transactions outside the normal course of business and reviewing accounting estimates

for bias; and

- performing audit work over revenue recognition including substantive tests of detail of a sample of revenue

transactions; and

- communicating identified laws and regulations and potential fraud risks to all engagement team members

and assessing whether there are any indications of fraud for non-compliance with laws and regulations

throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including

those leading to a material misstatement in the financial statements or non-compliance with regulation. This

risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of

non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as

fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

John Griffin FCCA (Senior Statutory Auditor)

for and on behalf of Newby Castleman LLP

Chartered Accountants, Statutory Auditor

West Walk Building

110 Regent Road

Leicester

LE1 7LT

28 September 2023

TURNOVER

4

40,593,965

35,340,541

Cost of sales

36,105,716

31,966,653

GROSS PROFIT

4,488,249

3,373,888

Administrative expenses

2,653,109

2,313,469

1,835,140

1,060,419

Other operating income

190,587

278,014

OPERATING PROFIT

6

2,025,727

1,338,433

Interest receivable and similar income

7

86

28

2,025,813

1,338,461

Gain on revaluation of investment property

9,000

26,000

2,034,813

1,364,461

Interest payable and similar expenses

8

492,778

359,997

PROFIT BEFORE TAXATION

1,542,035

1,004,464

Tax on profit

9

257,438

188,563

PROFIT FOR THE FINANCIAL YEAR

1,284,597

815,901

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,284,597

815,901

FIXED ASSETS

Tangible assets

11

7,020,818

6,079,651

Investments

12

24

-

Investment property

13

286,000

277,000

7,306,842

6,356,651

CURRENT ASSETS

Stocks

14

20,910,863

5,636,982

Debtors

15

7,317,428

4,433,967

Cash at bank and in hand

3,718,397

2,409,505

31,946,688

12,480,454

CREDITORS

Amounts falling due within one year

16

31,326,803

12,370,041

NET CURRENT ASSETS

619,885

110,413

TOTAL ASSETS LESS CURRENT LIABILITIES

7,926,727

6,467,064

CREDITORS

Amounts falling due after more than one year

17

(3,808,821

)

(3,759,192

)

PROVISIONS FOR LIABILITIES

21

(512,741

)

(357,304

)

NET ASSETS

3,605,165

2,350,568

CAPITAL AND RESERVES

Called up share capital

22

33,124

33,124

Non-distributable reserve

23

88,584

81,294

Retained earnings

23

3,483,457

2,236,150

SHAREHOLDERS' FUNDS

3,605,165

2,350,568

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

Miss M L Peterson - Director

Called up

share

Retained

Non-distributable

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2021

33,124

1,474,309

60,234

1,567,667

Changes in equity

Dividends

-

(33,000

)

-

(33,000

)

Total comprehensive income

-

815,901

-

815,901

Transfer gain on revaluation of investment property

-

(26,000

)

26,000

-

Deferred tax on revaluation of investment property

-

4,940

(4,940

)

-

Balance at 31 December 2021

33,124

2,236,150

81,294

2,350,568

Changes in equity

Dividends

-

(30,000

)

-

(30,000

)

Total comprehensive income

-

1,284,597

-

1,284,597

Transfer gain on revaluation of investment property

-

(9,000

)

9,000

-

Deferred tax on revaluation of investment property

-

1,710

(1,710

)

-

Balance at 31 December 2022

33,124

3,483,457

88,584

3,605,165

Cash flows from operating activities

Cash generated from operations

1

4,910,501

3,404,376

Interest paid

(138,982

)

(24,573

)

Interest element of hire purchase payments paid

(353,796

)

(335,424

)

Net cash from operating activities

4,417,723

3,044,379

Cash flows from investing activities

Purchase of tangible fixed assets

(1,284,914

)

(378,545

)

Purchase of fixed asset investments

(24

)

-

Sale of tangible fixed assets

431,142

482,249

Interest received

86

28

Net cash from investing activities

(853,710

)

103,732

Cash flows from financing activities

Loan repayments in year

(143,500

)

(83,708

)

Capital repayments in year

(2,119,604

)

(1,855,818

)

Amount introduced by directors

10,738

6,713

Equity dividends paid

(30,000

)

(33,000

)

Net cash from financing activities

(2,282,366

)

(1,965,813

)

Increase in cash and cash equivalents

1,281,647

1,182,298

Cash and cash equivalents at beginning of year

2

2,409,505

1,227,207

Cash and cash equivalents at end of year

2

3,691,152

2,409,505

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.22

31.12.21

£

£

Profit before taxation

1,542,035

1,004,464

Depreciation charges

1,877,399

1,670,179

Profit on disposal of fixed assets

(45,629

)

(133,941

)

Gain on revaluation of fixed assets

(9,000

)

(26,000

)

Finance costs

492,778

359,997

Finance income

(86

)

(28

)

3,857,497

2,874,671

(Increase)/decrease in stocks

(15,273,881

)

156,335

Increase in trade and other debtors

(2,942,115

)

(1,334,480

)

Increase in trade and other creditors

19,269,000

1,707,850

Cash generated from operations

4,910,501

3,404,376

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

3,718,397

2,409,505

Bank overdrafts

(27,245

)

-

3,691,152

2,409,505

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

2,409,505

1,227,207

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.22

Cash flow

changes

At 31.12.22

£

£

£

£

Net cash

Cash at bank

and in hand

2,409,505

1,308,892

3,718,397

Bank overdrafts

-

(27,245

)

(27,245

)

2,409,505

1,281,647

3,691,152

Debt

Finance leases

(5,634,918

)

2,119,604

(1,919,165

)

(5,434,479

)

Debts falling due

within 1 year

(143,500

)

-

-

(143,500

)

Debts falling due

after 1 year

(346,792

)

143,500

-

(203,292

)

(6,125,210

)

2,263,104

(1,919,165

)

(5,781,271

)

Total

(3,715,705

)

3,544,751

(1,919,165

)

(2,090,119

)

1.	STATUTORY INFORMATION

Revival Solutions Group Ltd 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 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.

Income from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer.

Income from services supplied to customers is recognised in line with the terms in place in the rental agreement between the company and its customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on reducing balance

Office equipment

-

33% on cost

Motor vehicles & trailers

-

see below

Computer equipment

-

33% on cost

The company writes down motor vehicles either on a straight line basis over 3 years or at 25% on reducing balance. Trailers are written down at 15% on reducing balance.

Investments in associates

Investments in associate undertakings are recognised at cost.

Investment property

Investment property is measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in the profit and loss account.

Taxation

Taxation for the year 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 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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.

3.	ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for income and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Operating lease commitments

The company has entered into commercial leases to obtain the use of motor vehicles and trailers. The classification of such leases as operating or finance leases requires the company to determine, base on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires the recognition of an asset and liability in the balance sheet.

The following are the company's key sources of estimation uncertainty:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are re-assessed annually and are amended when necessary to reflect current estimates. See note 11 for the carrying amount of tangible fixed assets, and note 2 for the useful economic lives for each class of assets.

The selling price of a number of vehicles includes packages for future maintenance such as tyres, and road tax. The estimated future cost of these packages has been included as an accrual in the balance sheet and charged as part of cost of sales in the profit and loss account. These estimates are re-assessed annually. The total of such accruals at the balance sheet date was £569,423.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.22

31.12.21

£

£

Sale of goods

36,431,981

32,315,320

Rendering of services

4,161,984

3,025,221

40,593,965

35,340,541

5.	EMPLOYEES AND DIRECTORS

31.12.22

31.12.21

£

£

Wages and salaries

2,487,130

2,168,156

Social security costs

280,745

221,629

Other pension costs

45,850

39,214

2,813,725

2,428,999