Wilfreda Luxury Coaches Limited - Limited company accounts 23.1

REGISTERED NUMBER: 00474455 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

WILFREDA LUXURY COACHES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

Mrs S M Scholey DL

P A Scholey

P G Haxby

N G Haxby

SECRETARY:

Mrs S M Scholey DL

REGISTERED OFFICE:

Apex House

Church Lane

Adwick le Street

Doncaster

South Yorkshire

DN6 7AY

REGISTERED NUMBER:

00474455 (England and Wales)

AUDITORS:

A Wigglesworth and Company Ltd

Chartered Accountants & Statutory Auditors

Armstrong House

First Avenue

Finningley

Doncaster

South Yorkshire

DN9 3GA

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS

The company has continued to progress well post pandemic, having rebalanced its portfolio of clients. It is now well positioned with multiple revenue streams, largely evenly distributed across the 3 main business sectors- fixed contracts, in house tour program and private charters. This ensures guaranteed revenues as well as the flexibility to maximise higher margin opportunities. Further growth is anticipated as demand currently is strong

PRINCIPAL RISKS AND UNCERTAINTIES

The predominant risks and uncertainties relating to the business relate to the availability of resources, energy costs and interest rates.

Fortunately, we invested early, before supply chain issues became industry wide issues, and we have taken a number of steps to minimise negative impacts moving forward. With regard to human resources a dedicated driving academy has been established and has already trained 24 drivers with more recruits 'in the pipeline'. We hold 'without obligation' options on new vehicle supply as far ahead as 2025 and have maintenance contracts in place to ensure our own engineering department is no longer critical to the business. Significant funding was secured prior to interest rate rises at fixed rates. Cash reserves are being maintained to ensure strong cashflows and to reduce asset finance gearing where appropriate. Steps are being taken to invest in renewable energy on the Adwick site, to reduce reliance on the grid and our fixed contract revenues are index linked.

ON BEHALF OF THE BOARD:

P G Haxby - Director

21 December 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

DIVIDENDS

The Company paid interim dividends during the year totalling £199,600.

The director recommends that no final dividends be paid.

DIRECTORS

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

Mrs S M Scholey DL

P A Scholey

P G Haxby

N G Haxby

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, A Wigglesworth and Company Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P G Haxby - Director

21 December 2023

Opinion

We have audited the financial statements of Wilfreda Luxury Coaches Limited (the 'company') for the year ended 31 March 2023 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 March 2023 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 three, 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:

The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. 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 the posting of inappropriate journal entries to improve the company's result for the period, and management bias in key accounting estimates.

Audit procedures performed by the engagement team included:

- Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

- Challenging assumptions and judgements made by management in their significant accounting estimates;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to 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.

A Wigglesworth FCA (Senior Statutory Auditor)

for and on behalf of A Wigglesworth and Company Ltd

Chartered Accountants & Statutory Auditors

Armstrong House

First Avenue

Finningley

Doncaster

South Yorkshire

DN9 3GA

21 December 2023

TURNOVER

6,359,220

4,766,024

Cost of sales

4,006,161

3,037,852

GROSS PROFIT

2,353,059

1,728,172

Administrative expenses

1,485,855

1,096,764

867,204

631,408

Other operating income

-

185,695

OPERATING PROFIT

4

867,204

817,103

Interest receivable and similar income

2,786

-

869,990

817,103

Interest payable and similar expenses

5

84,652

124,359

PROFIT BEFORE TAXATION

785,338

692,744

Tax on profit

6

302,049

66,570

PROFIT FOR THE FINANCIAL YEAR

483,289

626,174

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

483,289

626,174

FIXED ASSETS

Intangible assets

8

13,090

38,446

Tangible assets

9

3,556,480

3,064,475

Investments

10

61,735

61,735

3,631,305

3,164,656

CURRENT ASSETS

Stocks

11

23,990

54,030

Debtors

12

2,471,489

1,958,549

Cash at bank and in hand

1,079,756

917,743

3,575,235

2,930,322

CREDITORS

Amounts falling due within one year

13

1,942,294

1,609,136

NET CURRENT ASSETS

1,632,941

1,321,186

TOTAL ASSETS LESS CURRENT LIABILITIES

5,264,246

4,485,842

CREDITORS

Amounts falling due after more than one year

14

(2,605,685

)

(2,412,490

)

PROVISIONS FOR LIABILITIES

18

(822,000

)

(520,480

)

NET ASSETS

1,836,561

1,552,872

CAPITAL AND RESERVES

Called up share capital

19

100,003

100,003

Retained earnings

1,736,558

1,452,869

1,836,561

1,552,872

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2023 and were signed on its behalf by:

P G Haxby - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

100,000

1,022,445

1,122,445

Changes in equity

Issue of share capital

3

-

3

Dividends

-

(195,750

)

(195,750

)

Total comprehensive income

-

626,174

626,174

Balance at 31 March 2022

100,003

1,452,869

1,552,872

Changes in equity

Dividends

-

(199,600

)

(199,600

)

Total comprehensive income

-

483,289

483,289

Balance at 31 March 2023

100,003

1,736,558

1,836,561

Cash flows from operating activities

Cash generated from operations

1

1,129,096

1,152,759

Interest paid

(34,601

)

(21,042

)

Interest element of hire purchase payments paid

(50,051

)

(103,317

)

Tax paid

16,174

-

Net cash from operating activities

1,060,618

1,028,400

Cash flows from investing activities

Purchase of tangible fixed assets

(868,100

)

(1,235,289

)

Sale of tangible fixed assets

-

270,000

Sale of fixed asset investments

-

770

Interest received

2,786

-

Net cash from investing activities

(865,314

)

(964,519

)

Cash flows from financing activities

Loan repayments in year

(129,644

)

(93,575

)

Capital repayments in year

436,038

696,664

Amount withdrawn by directors

5,573

(37,791

)

Share issue

-

3

Equity dividends paid

(199,600

)

(195,750

)

Net cash from financing activities

112,367

369,551

Increase in cash and cash equivalents

307,671

433,432

Cash and cash equivalents at beginning of year

2

772,085

338,653

Cash and cash equivalents at end of year

2

1,079,756

772,085

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

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Profit before taxation

785,338

692,744

Depreciation charges

400,229

465,630

Loss on disposal of fixed assets

1,223

2,975

Finance costs

84,652

124,359

Finance income

(2,786

)

-

1,268,656

1,285,708

Decrease/(increase) in stocks

30,040

(28,060

)

Increase in trade and other debtors

(530,427

)

(160,421

)

Increase in trade and other creditors

360,827

55,532

Cash generated from operations

1,129,096

1,152,759

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 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

1,079,756

917,743

Bank overdrafts

-

(145,658

)

1,079,756

772,085

Period ended 31 March 2022

31.3.22

1.1.21

£

£

Cash and cash equivalents

917,743

448,802

Bank overdrafts

(145,658

)

(110,149

)

772,085

338,653

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank and in hand

917,743

162,013

1,079,756

Bank overdrafts

(145,658

)

145,658

-

772,085

307,671

1,079,756

Debt

Finance leases

(2,155,907

)

(436,038

)

(2,591,945

)

Debts falling due within 1 year

(135,821

)

(34,000

)

(169,821

)

Debts falling due after 1 year

(613,863

)

129,644

(484,219

)

(2,905,591

)

(340,394

)

(3,245,985

)

Total

(2,133,506

)

(32,723

)

(2,166,229

)

1.	STATUTORY INFORMATION

Wilfreda Luxury Coaches 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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Critical judgments

Depreciation

The useful economic life of the company's assets is considered by the directors who then decide on an appropriate method of depreciation in order to write off the asset cost to an estimated realisable value.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2006, is being amortised evenly over its estimated useful life of twenty years.

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.

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.

Office equipment

-

50% on cost, 33% on cost and 20% on cost

Garage and depot equipment

-

50% on cost, 20% on cost, 15% on reducing balance, 10% on cost and 6.67% on cost

Motor vehicles

-

50% on cost, 33% on cost, 20% on cost, 20% on reducing balance, 15% on reducing balance, 12.5% on reducing balance, 10% on cost, 10% on reducing balance, 14.28% on cost and 8.33% on cost

Stocks

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

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

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.	EMPLOYEES AND DIRECTORS

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Wages and salaries

1,356,489

947,008

Social security costs

110,626

70,731

Other pension costs

420,278

28,078

1,887,393

1,045,817

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

Period

1.1.21

Year ended

to

31.3.23

31.3.22

Drivers

55

40

Administration

13

10

68

50

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Directors' remuneration

73,637

44,536

Directors' pension contributions to money purchase schemes

392,500

-

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

Money purchase schemes

4

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Hire of motor vehicles

147,378

102,031

Depreciation - owned assets

90,119

174,953

Depreciation - assets on hire purchase contracts

284,753

258,983

Loss on disposal of fixed assets

1,223

2,975

Goodwill amortisation

25,356

31,695

Auditors' remuneration

15,000

18,200

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Bank interest

20,659

10,095

Bank loan interest

12,364

10,022

Other Interest

1,578

925

Hire purchase

50,051

103,317

84,652

124,359

6.

TAXATION

Analysis of the tax charge

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

Period

1.1.21

Year ended

to

31.3.23

31.3.22

£

£

Current tax:

UK corporation tax

529

-

Deferred tax

301,520

66,570

Tax on profit

302,049

66,570

UK corporation tax has been charged at 19% .