Fleetwheel Limited - Period Ending 2023-06-30
Fleetwheel Limited - Period Ending 2023-06-30
Registration number:
Fleetwheel Limited
for the Year Ended 30 June 2023
Fleetwheel Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Fleetwheel Limited
Company Information
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Directors |
Mr ID Farbrace Mrs A I Pick Mr C A Pick Mr S A Pick Mr CM Russell Mr D Thomas |
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Registered office |
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Auditors |
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Fleetwheel Limited
Strategic Report for the Year Ended 30 June 2023
The directors present their strategic report for the year ended 30 June 2023.
Principal activity
The principal activity of the company is the provision of wholesale trade of motor vehicle parts and accessories.
Fair review of the business
The company experienced a further upturn in trade upon the previous year and margins remain consistent with a slight increase in percentage.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2023 |
2022 |
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Turnover variance |
% |
13.61 |
6.03 |
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Gross profit margin |
% |
31.23 |
31.48 |
Principal risks and uncertainties
The primary risk of the business is the loss of the company's good reputation within the industry. This risk is managed by working closely with customers, continuously enhancing services and improving service levels, and by gaining business across a wider customer base.
Brexit
The changes surrounding free movement of goods and services and any potential changes to tariffs and regulations arising from Brexit are having a minimal impact on the company. Any rise or fall in the value of sterling has also been inconsequential due to the low level of international trade undertaken.
Covid-19
The Global pandemic represents a risk to the business as a consequence of the measures taken to combat the virus by the Government and devolved Administrations, and the economic uncertainty and disruption. However, management have managed any potential impact on the business assets through the internal review of processes which enabled the company to trade profitably.
Approved and authorised by the
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Fleetwheel Limited
Directors' Report for the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
Directors of the company
The directors who held office during the year were as follows:
The directors recommend a final dividend payment of £Nil be made in respect of the financial period ended 30 June 2023 (2022 - £Nil).
Financial instruments
Objectives and policies
The company is exposed to price risk, credit risk, liquidity risk and cash flow risk. The directors review risk management strategies regularly.
Price risk, credit risk, liquidity risk and cash flow risk
Price
The company has minimal exposure to price risk as all prices are pre-set by management.
Credit
The company is exposed to credit risk and management ensure credit checks are completed on all new customers and chase debts on a regular basis once they become overdue.
Liquidity
The company's exposure to liquidity risk is minimal as the company has adequate net current assets.
Cashflow
The company is exposed to cash flow risk as a result of the timing between paying suppliers and the receipt of money from customers and management manage this through the use of an invoice discounting facility.
Future developments
Management’s aim is to continue to consolidate the company's strong position in the market and focusing on maximising the potential from all areas of the business.
Going concern
The worldwide Covid-19 pandemic has had a minimal impact upon the company's trading activity during the year and with all restrictions lifted by the Government on 24 February 2022 the directors are confident that the business has adequate resources and accordingly the company has continued to prepare its financial statements on a going concern basis.
Fleetwheel Limited
Directors' Report for the Year Ended 30 June 2023
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Milsted Langdon LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
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Fleetwheel Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Fleetwheel Limited
Independent Auditor's Report to the Members of Fleetwheel Limited
Opinion
We have audited the financial statements of Fleetwheel Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 June 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 auditor 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 were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Fleetwheel Limited
Independent Auditor's Report to the Members of Fleetwheel Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 5, 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 is 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.
Auditor 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 an auditor’s report 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
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obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
Fleetwheel Limited
Independent Auditor's Report to the Members of Fleetwheel Limited
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inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
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discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s report 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.
For and on behalf of
Chartered Accountants and Statutory Auditors
Freshford House
Redcliffe Way
BS1 6NL
Fleetwheel Limited
Profit and Loss Account for the Year Ended 30 June 2023
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Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Other operating income |
- |
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Operating profit |
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Interest payable and similar expenses |
( |
( |
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(39,801) |
(23,941) |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above and accordingly a separate Statement of Other Comprehensive Income has not been presented.
Fleetwheel Limited
(Registration number: 01206635)
Balance Sheet as at 30 June 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Other reserves |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
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Fleetwheel Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
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Share capital |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
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At 1 July 2022 |
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Profit for the year |
- |
- |
- |
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Other comprehensive income |
- |
( |
- |
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- |
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Total comprehensive income |
- |
( |
- |
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Dividends |
- |
- |
- |
( |
( |
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At 30 June 2023 |
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Share capital |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
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At 1 July 2021 |
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Profit for the year |
- |
- |
- |
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Dividends |
- |
- |
- |
( |
( |
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At 30 June 2022 |
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Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
England
The principal place of business is:
Whittle Road
Leckwith Industrial Estate
Cardiff
CF11 8AT
These financial statements were authorised for issue by the
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
In accordance with Section 1.8 of FRS 102 the company is considered to be a qualifying entity and has taken advantage of the disclosure exemption as set out in paragraph 1.12(b) in relation to the preparation of the cash flow statement and related notes.
Name of parent of group
These financial statements are consolidated in the financial statements of Picksons Plc.
The financial statements of Picksons Plc may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
Going concern
The directors are confident that the business has adequate resources and accordingly the company has continued to prepare its financial statements on a going concern basis.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
During the year management have made an estimate for provision of stock. This estimation is considered to have a significant risk of causing a material adjustment to the carrying amount of stock valuation. The carrying amount is £3,246,592 (2022 - £3,040,437).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The Company recognises revenue when:
- the amount of revenue can be reliably measured;
- all of the significant risks and rewards of ownership have been transferred to the customer;
- the entity retains neither continuing managerial involvement to the degree usually associated with ownership not effective control over the goods sold;
- the costs incurred or to be incurred can be measured reliably;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the Company's activities.
Government grants
Government grants are recognised using the accrual model. Where the costs have already been incurred then the grant is credited to the profit and loss account.
Finance income and costs policy
Interest income and expenses are recognised using the effective interest rate method.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by FRS 102.
Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.
Tangible assets
Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold land |
Nil |
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Freehold buildings |
2% per annum |
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Leasehold property |
Period of lease |
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Plant and machinery |
Assets acquired prior to 1 July 2017 at 25% reducing balance and assets acquired after 1 July 2017 at 25% straight line |
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Motor vehicles |
Assets acquired prior to 1 July 2017 at 25% reducing balance and assets acquired after 1 July 2017 at 25% straight line |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the Average Costing (AVCO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, 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.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company 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.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised when
a) the contractual rights to the cash flows from the asset expire or are settled, or
b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or
c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Basic financial liabilities, including trade and other payables and loans from fellow Group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of estimated cash flows discounted at the liability's original effective interest rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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Turnover |
The analysis of the company's revenue for the year from continuing operations in the UK is as follows:
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2023 |
2022 |
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Sale of goods |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2023 |
2022 |
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Government grants |
- |
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Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
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2023 |
2022 |
|
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Gain on disposal of property, plant and equipment |
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Operating profit |
Arrived at after charging/(crediting)
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2023 |
2022 |
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Depreciation expense |
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Operating lease expense - property |
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Operating lease expense - plant and machinery |
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(Profit) on disposal of property, plant and equipment |
( |
( |
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Government grants |
The furlough grant is accrued on a systematic basis over the period that the related costs have been recognised. Where the costs have already been incurred then Governrment grants are credited to the profit and loss account in full.
The amount of grants recognised in the financial statements was £Nil (2022 - £
There are no unfulfilled conditions attached to the grant income.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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Interest payable and similar expenses |
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2023 |
2022 |
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Interest on bank overdrafts and borrowings |
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Interest on obligations under finance leases and hire purchase contracts |
|
- |
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Interest expense on other finance liabilities |
- |
( |
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Other finance costs |
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2023 |
2022 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
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2023 |
2022 |
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Administration and support |
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Distribution |
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Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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Directors' remuneration |
The directors' remuneration for the year was as follows:
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2023 |
2022 |
|
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Remuneration |
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Contributions paid to money purchase schemes |
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182,111 |
181,350 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
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2023 |
2022 |
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Accruing benefits under money purchase pension scheme |
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Auditors' remuneration |
|
2023 |
2022 |
|
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Audit of the financial statements |
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Taxation |
Tax charged/(credited) in the income statement:
|
2023 |
2022 |
|
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Current taxation |
||
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UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
|
|
170,000 |
129,692 |
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
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2023 |
2022 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
|
Deferred tax credit not recognised |
( |
( |
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Tax decrease arising from group relief |
- |
( |
|
Total tax charge |
|
|
During the year the enacted tax rate increased to 25% from 19%.
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
- |
|
|
2022 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
- |
|
The deferred tax provision is not expected to reverse significantly in the next twelve months, although this is subject to estimation uncertainty.
On 3 March 2021, the Chancellor of the Exchequer announced that the main rate of corporation tax in the United Kingdom will rise to 25% with effect from 1 April 2023 for companies earning annual taxable profits in excess of £250,000. Companies earning annual taxable profits of £50,000 or less will continue to pay corporation tax at 19% with a marginal rate adjustment for companies earning annual taxable profits between the two levels. As a result of this announcement deferred tax has been calculated at 25%.
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Tangible assets |
|
Freehold land and buildings |
Long leasehold land and buildings |
Other property, plant and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 July 2022 |
|
|
|
|
|
|
Additions |
- |
- |
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 30 June 2023 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 July 2022 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 30 June 2023 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 June 2023 |
|
|
|
|
|
|
At 30 June 2022 |
|
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2023 |
2022 |
|
|
Motor vehicles |
96,648 |
149,907 |
Restriction on title and pledged as security
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Stocks |
|
2023 |
2022 |
|
|
Finished goods and goods for resale |
|
|
Impairment of stocks
The amount of impairment loss included in profit or loss is £47,049 (2022 - £51,094). The impairment loss is included in purchases.
The carrying amount of stocks pledged as security for liabilities amounted to £
|
Debtors |
|
Note |
2023 |
2022 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2023 |
2022 |
|
|
Cash at bank |
|
|
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Creditors |
|
Note |
2023 |
2022 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
- |
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax liability |
90,021 |
128,452 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 July 2022 |
|
|
|
At 30 June 2023 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
50,000 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Reserves |
Revaluation reserve
The revaluation reserve has arisen due to the company uplifting the value of the land and buildings to deemed cost under the transitional rules of FRS 102 section 35.
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
|
Revaluation reserve |
Retained earnings |
|
|
Surplus/deficit on property, plant and equipment revaluation |
( |
|
|
|
||
|
Loans and borrowings |
|
2023 |
2022 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
2023 |
2022 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Hire purchase contracts |
|
|
|
Other borrowings |
|
|
|
|
|
|
Bank borrowings
|
Bank borrowings are secured over all freehold property and assets present and past of the company and are also guaranteed by Picksons Plc, CSD Frictions Limited and Farbex Refinish (UK) Limited. |
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Other borrowings
Finance lease and hire purchase liabilities is denominated in GBP with a nominal interest rate of between 2.45% and 3.78%, and the final instalment is due on 17 October 2025. The carrying amount at year end is £8,849 (2022 - £134,491).
The finance lease and hire purchase liability is secured over the assets under the finance lease and hire purchase agreement.
Invoice discounting facility is denominated in GBP with a nominal interest rate of 2.5%. The carrying amount at year end is £666,845 (2022 - £811,356).
The invoice discounting facility is secured against trade debtors and is repayable on demand.
|
Obligations under leases and hire purchase contracts |
Finance leases
Obligations under finance leases and hire purchases are secured on the assets to which they relate.
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Commitments |
Other financial commitments
The total amount of other financial commitments not provided in the financial statements was £
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Related party transactions |
Summary of transactions with parent and other group companies
The company has taken advantage of the exemptions in Financial Reporting Standard 102 Section 33 and has not disclosed transactions between wholly owned members of the same group.
Summary of transactions with other related parties
The company purchased goods from other related parties under commercial terms within the year.
Expenditure with and payables to related parties
|
2023 |
Other related parties |
|
Purchase of goods |
|
|
|
|
|
Amounts payable to related party |
|
|
2022 |
Other related parties |
|
Purchase of goods |
|
|
Amounts payable to related party |
|
|
|
|
|
Financial instruments |
Categorisation of financial instruments
|
2023 |
2022 |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
|
Financial liabilities measured at amortised cost |
|
|
Fleetwheel Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is