Sinclair Motor Holdings Limited - Limited company accounts 23.2
Sinclair Motor Holdings Limited - Limited company accounts 23.2
REGISTERED NUMBER: 04395583 (England and Wales) |
Sinclair Motor Holdings Limited |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 December 2023 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 7 |
Report of the Independent Auditors | 10 |
Consolidated Income Statement | 13 |
Consolidated Other Comprehensive Income | 14 |
Consolidated Balance Sheet | 15 |
Company Balance Sheet | 16 |
Consolidated Statement of Changes in Equity | 17 |
Company Statement of Changes in Equity | 18 |
Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Financial Statements | 21 |
Sinclair Motor Holdings Limited |
Company Information |
for the Year Ended 31 December 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Bankers: | Barclays Bank PLC |
PO Box 10 |
Windsor Court |
Cardiff |
CF1 3WP |
Solicitors: |
3 Assembly Square |
Britannia Quay |
Cardiff Bay |
Cardiff |
CF10 4PL |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
Sinclair Motor Holdings Limited operates its core functions of retailing new cars, used cars, commercial vehicles, servicing (including repairs), bodyshop repairs, parts sales and fuel sales. |
Review of business |
31/12/2023 | 31/12/2022 | 31/12/2021 | 31/12/2020 |
Turnover | £637,850,910 | £559,515,180 | £544,378,686 | £450,912,088 |
Profit before tax | £8,476,308 | £12,657,423 | £12,626,360 | £2,001,418 |
Total equity | £63,535,357 | £57,452,587 | £47,712,555 | £37,896,746 |
The year of 2023 resulted in a mixed performance across the group. As a board we were increasingly concerned that our performance may be significantly impacted by the Macro economic and political events happening around the World. The ongoing War in the Ukraine and Middle East, continued to have build and price impacts on the industry. Closer to home, the constant increases in inflation and interest rates continued to affect consumer confidence, and always carried the threat of a reduction in customer spend on high ticket items such as vehicles. |
All these factors carried the real threat that 2023 would be a year where we witnessed a reduction in group volumes and performance. It is therefore really pleasing to see that our turnover as a group actually exceeded our performance in 2022. The focus and commitment of our staff teams ensured that our vehicle turnover, service and parts sales all increased on last year, which was a fantastic result. With all the challenges that the industry faced throughout the year, to see our group performance exceed the previous year was a result we are truly proud of. However, there were some additional challenges across the group that unfortunately resulted in our profitability being somewhat down on the previous year. |
Our new car departments witnessed most of our manufacturer partners begin to emerge from the build constraints they had previously been experiencing. This resulted in a return to a more normal supply chain for our customers, and our ability to supply more new cars. As a result, across the group our new car performance was ahead of the previous year. This return of new car volume did however have an impact on chassis profit retention, as we began to witness the reduction in the higher than usual profit retention in new car margins. It was really pleasing that as a whole, our group increased its turnover and gross profitability in the new car departments, even with a reduction in average chassis profits. |
However, the new car performance within our Mercedes-Benz franchise was significantly back on 2022, as 2023 saw Mercedes-Benz move to a new agency distribution process, and implement a new luxury vehicle strategy. The adoption of an agency system is a significant change within the industry, and Mercedes were our first manufacturer to adopt this. Whilst the transformation to the new system was seamless for the dealers and the customer, the reality was that it was going to take some months to settle into the market and volumes during this time would be reduced. In addition, the brands move towards a luxury vehicle strategy again had the result in reduced volumes across all markets. The consequent result of both these strategies was that our Mercedes-Benz sites delivered half of the volume of the previous year, and therefore half the profitability. |
Our Group's used car performance was really encouraging for most of the year. Across the majority of our sites, both our vehicle volumes and profitability were in line or ahead of the previous year and our budgeted expectations. The ongoing shortage of used vehicles, resulting from a lack of new car availability over the previous years, had continued to result in a very strong used car market across the UK. |
However, the final quarter of the year witnessed a very sharp realignment of the used car market, and a swift drop in used car values. Whilst this was always forecast to happen at some stage, nobody expected the fall to be so sudden and swift. This unfortunately resulted in a significant reduction in our used car stock values, with an immediate reduction in used car profitability. The unavoidable result was that our group's quarter 4 used car performance was decimated by this stock value drop. Whilst our volumes remained in line with budget, our profitability was way off where we had planned. |
The Group's service and parts departments had another very strong year in 2023. Here, both turnovers and profitability were ahead of last year, and both departments were again key contributors to our overall profitability. This strong performance continues to assist in being the financial foundations to our group, and to its ongoing profitability. |
In addition to our site and departmental performance, 2023 witnessed the opening of our latest new business within the Sinclair group. This is the new Jaguar Land Rover site in Swansea, and represents the very latest in technological advancements within our industry. The new facility is something that we are extremely proud of and will set a new standard for our customers and help move our business to the next level in the years to come. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
Overall, whilst the year of 2023 ended being somewhat down on the previous year's profit, there are many reasons to be proud of the performance and optimistic for the coming year. The majority of our businesses experienced growth in most departments, and many had record profitability. The overall turnover of the group increased year on year, which clearly illustrates the strong health of the South Wales motor industry and our ever increasing achievements within it. Also, when we examine the real issues that drove our profitability down versus last year, they are in two key areas that will not be repeated this year. Firstly, the issues of the Mercedes-Benz volume reduction are mostly isolated to 2023, and we are planning a return to better volumes and profitability within that brand for 2024. Also, the financial impact from the used car realignment was significant, however this has now happened and whilst the impacts may be felt for the first few months of 2024, they will then be behind us and not repeated again. |
Overall, 2023 was definitely a much more challenging year than previous years. However, our group has coped exceedingly well with all the challenges it faced and has resulted in a performance and profitability that we are very proud of. This result again illustrates that even in difficult political and economic times, our team's commitment and professionalism ensures that the business continues to succeed. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
Principal risks and uncertainties |
Sinclair Motor Holdings Limited benefits from the close commercial relationships with a number of key suppliers and customers. the loss of any of these of key suppliers and customers or a significant worsening in commercial terms could have a material impact on the results. |
Sinclair Motor Holdings Limited devotes significant resources to supporting these relationships to ensure that they continue to operate as well in the future. From time to time the group undertakes surveys of customer satisfaction, which are reviewed by the board. The directors realise the importance of excellent customer service to remain ahead of the competition. |
Price Risk: |
The group operates in highly competitive markets. Significant product innovations, technical advances or the intensification of price competition could adversely affect the results for the company. The group invests in significant training of its staff to ensure that the group is well placed to provide a choice for customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. The group also continually works to streamline its cost base to ensure that it remains competitive. |
Credit Risk: |
The group has well established policies and procedures that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual customer is subject to a limit which is reassessed annually by the group. |
Liquidity Risk: |
Effective management of cash and working capital is a key ongoing priority. The Group has sufficient Net Current Assets to cover it's long-term borrowings and provisions for liabilities. Profits are being ploughed back into the business to re-invest in future opportunities as they become available. The Group is in a strong position from a liquidity point of view, with excess funds being invested in Green Deposits. The directors are confident that the Group accounts may be prepared on a going concern basis. |
Climate Legislation Risk |
The effects of climate change and associated future legislation may potentially have an impact on our business model. |
As detailed in the report of the directors under our streamlined energy and carbon report, the business is investing in the future and finding ways to embrace the changes and change the way in which we work to meet current guidelines and help future proof our business Model. |
Electric vehicle adoption risk |
The change to electric and hybrid vehicles is being pushed politically and is therefore likely to accelerate which could impact the traditional business model. |
We have a close relationship with our manufacturing partners which enables us to have access to these types of vehicles and to support our customer base who currently own or are looking to own electric or hybrid vehicles. We are committed to expanding our range of suppliers to ensure we offer our customer base a range of vehicles to meet their changing needs, as we are to investing in our staff in order to upskill them to meet the new requirements for assisting customers once their purchase has completed. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
Section 172(1) statement |
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006. |
The board of Directors of Sinclair Motor Holdings Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during for the Year Ended 31 December 2023. |
The Sinclair group was started by Bill Sinclair in 1945 and the company continues to be controlled and run by the Sinclair family. We're proud of the ways in which the company has provided employment, training and financial reward for its owners and employees for over 70 years. We are the largest and most successful motor group in Wales, representing some of the most prestigious automotive brands. In a highly competitive market, we aim to stand out from our competitors by virtue of quality, reliability and the great customer care that our reputation is built upon. |
We make strategic decisions based on long-term objectives. In particular, this has meant significant investment in premises and people in the business. This investment is to continue in the future to provide customers with state-of-the- art facilities and the very finest expertise. We acknowledge that, in order to progress to the next phase in the company's future, it is likely that we will continue to expand our existing businesses and add to the prestige brand portfolio that we have. We continue to explore possibilities along these lines. Our aim continues to be to maximise the company's ability to grow profits to fund continued investment for the future of the business and job security for the employees. |
Our Employees |
We rely on the hard work, commitment and enthusiasm of our staff which is fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. We provide comprehensive training and career development support. The health, safety and well-being of our employees is one of our primary considerations in the way we do business. |
The group is to continue investing in training all staff for the purpose of meeting its long term goal of growth through the provision of excellent customer service. |
Our suppliers and customers |
We meet with our manufacturing partners regularly throughout the year and take the appropriate action to prevent involvement in modern slavery, corruption, bribery and breaches of competition law. Our business model prioritises quality and customer satisfaction. We have built and will maintain a reputation for transparency and fair dealing with customers and suppliers. |
Our Community and the Environment |
We are a family-run company with roots in South Wales and have invested in our community through our charity donation scheme. From sponsoring sports kit of local childrens' clubs, to having employees play and arrange charitable football matches. Our plan takes into account the impact of the Group's operations on the community and environment and our wider social responsibilities, and in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local community concerns. |
Business conduct and Corporate Governance |
As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour. As the Board of Directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan. |
Employment of disabled persons |
It is the policy that disabled persons shall be considered for employment, career development and promotion on the |
basis of their aptitude and abilities in common with all employees. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
Employee involvement |
The Directors recognise the importance of good communications and relations with employees and management is |
encouraged to adopt employee consultations. |
On behalf of the board: |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
Principal activity |
The principal activity of the group in the year under review was that of retailing of motor vehicles and related activities in the motor trade. |
Dividends |
No dividends will be distributed for the year ended 31 December 2023. |
Future developments |
The Group's focus for the future is to organically grow the business, along with its franchise partners, and to progress acquisitions where opportunities arise. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Report of the Directors |
for the Year Ended 31 December 2023 |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Streamlined energy and carbon reporting |
The Sinclair Group recognises that its trading activities have an impact on the environment. Indeed, Environmental awareness is one of the Group's core values. We minimise the effects of motor retailing on the environment through adherence to our environment policy. We review and control key areas of our business that may have impact on the environment including asbestos, contamination, noise, recycled waste, tyre disposal, waste oil. In the last 12 months we have changed our waste oil partner - our waste oil is now re-refined into base oil, reducing the need to drill for crude oil. For every 1000 litres of used oil we re-refine, we save over 480kg of CO2 compared to using virgin crude oil. |
We have implemented a pilot that separates our waste into recycling streams, this pilot has seen us now recycle 75% of the waste we produce. The Welsh Govt is introducing a similar scheme in April 2024 - we already exceed the minimum requirements of this scheme and as a result have been selected as a case study by Welsh Govt. Algal sites will be on our version of the scheme by April 2024. |
We continue to monitor our energy consumption with the aim of reducing our carbon footprint. The Group undertakes the energy assessments of each of our businesses under the Energy Savings Opportunity Scheme (ESOS) regulations. We use the results of this assessment to identify potential energy saving opportunities. We have carried out site analysis and assessments to ascertain areas of inefficiencies in the use of resources such as energy, water and fuel. We have incorporated many energy savings initiatives such as solar panels, LED lighting and movement activated interior lights. We have adopted energy saving practices in the business such as fast hand dryers in washrooms and end of day lighting and heating programmes and policies. |
We obtain our gas and electricity from green energy providers wherever possible.Any energy that we consume that is not green we are currently offsetting back to net zero. We will continue to pursue the march to 100% renewable energy as the economy strengthens out of the Covid years. We are currently working with our energy providers to create a daily dashboard that will allow each site to track daily consumption stats - taking action immediately when we identity spikes in usage. |
We have established an "Eco-Champion" at each site with responsibility for identifying improvement opportunities. Each Champion has successfully completed the CarbonTrust Literacy programme via Cynnal Cymru training provider, as have all Operational Board members. Our ambition is to see 50% of our staff through this programme in the next 2 years. We are currently investigating the Governments Flexible Skills Programme to identify areas of upskilling in the green arena that can be funded through this programme.. |
We are keen to work with our manufacturing partners in the move to green technologies such as electric vehicles and the infrastructure to charge battery powered vehicles. We look to advances in IT to move towards a paperless business and have invested in paperless communications and systems solutions. |
Current reporting year (January - December) |
2023 | 2022 |
Total emissions generated through combustion of gas (tCO2e) | 596 | 683 |
Total emissions generated through use of purchased electricity (tCO2e) | 674 | 1,071 |
Total emissions generated through use of other fuels (tCO2e) | 5.17 | 42 |
Total emissions generated through business travel (tCO2e) | 1,564 | 1,475 |
Total gross emissions (tCO2e) | 2,839 | 3,271 |
Intensity ratio /total gross emissions (kgCO2 per sqft) | 4.88 | 6.02 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Report of the Directors |
for the Year Ended 31 December 2023 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Sinclair Motor Holdings Limited |
Opinion |
We have audited the financial statements of Sinclair Motor Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Sinclair Motor Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 nine, 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 group's and the parent 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 group or the parent 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: |
Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP, FRS 102 and relevant tax legislation. |
Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include: |
-Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities; |
- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally; |
- Assessing the risk of management override and review and testing of journal entries made into the accounting system; |
- Challenging assumptions and judgements made by the company in relation to the significant accounting |
estimates employed in the preparation of the financial statements; |
- Discussing with Directors and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance. |
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls. |
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. |
Report of the Independent Auditors to the Members of |
Sinclair Motor Holdings Limited |
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. |
for and on behalf of |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 3 | 637,850,910 | 559,515,180 |
Cost of sales | (582,577,450 | ) | (506,444,346 | ) |
Gross profit | 55,273,460 | 53,070,834 |
Administrative expenses | (44,022,567 | ) | (39,305,188 | ) |
11,250,893 | 13,765,646 |
Other operating income | 838,501 | 556,413 |
Operating profit | 5 | 12,089,394 | 14,322,059 |
Interest payable and similar expenses | 6 | (3,613,086 | ) | (1,664,636 | ) |
Profit before taxation | 8,476,308 | 12,657,423 |
Tax on profit | 7 | (2,393,538 | ) | (2,683,135 | ) |
Profit for the financial year |
Profit attributable to: |
Owners of the parent | 5,926,914 | 9,706,613 |
Non-controlling interests | 155,856 | 267,675 |
6,082,770 | 9,974,288 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Profit for the year | 6,082,770 | 9,974,288 |
Other comprehensive income | - | - |
Total comprehensive income for the year | 6,082,770 | 9,974,288 |
Total comprehensive income attributable to: |
Owners of the parent | 5,926,914 | 9,706,613 |
Non-controlling interests | 155,856 | 267,675 |
6,082,770 | 9,974,288 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 9 | 2,687,500 | 3,437,500 |
Tangible assets | 10 | 47,625,292 | 43,345,999 |
Investments | 11 | 20,000 | 20,000 |
50,332,792 | 46,803,499 |
Current assets |
Stocks | 12 | 95,274,331 | 77,859,941 |
Debtors | 13 | 17,107,827 | 12,710,006 |
Cash at bank | 6,777,743 | 10,838,283 |
119,159,901 | 101,408,230 |
Creditors |
Amounts falling due within one year | 14 | (105,129,823 | ) | (90,260,101 | ) |
Net current assets | 14,030,078 | 11,148,129 |
Total assets less current liabilities | 64,362,870 | 57,951,628 |
Provisions for liabilities | 18 | (827,513 | ) | (499,041 | ) |
Net assets | 63,535,357 | 57,452,587 |
Capital and reserves |
Called up share capital | 19 | 30,030 | 30,030 |
Capital redemption reserve | 20 | 23,000 | 23,000 |
Retained earnings | 20 | 61,889,766 | 55,962,852 |
Shareholders' funds | 61,942,796 | 56,015,882 |
Non-controlling interests | 21 | 1,592,561 | 1,436,705 |
Total equity | 63,535,357 | 57,452,587 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 April 2024 and were signed on its behalf by: |
Mr A J Sinclair - Director |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Current assets |
Debtors | 13 |
Cash at bank |
Creditors |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 19 |
Retained earnings |
Shareholders' funds |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2022 | 30,030 | 46,256,239 | 23,000 |
Changes in equity |
Total comprehensive income | - | 9,706,613 | - |
Balance at 31 December 2022 | 30,030 | 55,962,852 | 23,000 |
Changes in equity |
Total comprehensive income | - | 5,926,914 | - |
Balance at 31 December 2023 | 30,030 | 61,889,766 | 23,000 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2022 | 46,309,269 | 1,169,030 | 47,478,299 |
Changes in equity |
Total comprehensive income | 9,706,613 | 267,675 | 9,974,288 |
Balance at 31 December 2022 | 56,015,882 | 1,436,705 | 57,452,587 |
Changes in equity |
Total comprehensive income | 5,926,914 | 155,856 | 6,082,770 |
Balance at 31 December 2023 | 61,942,796 | 1,592,561 | 63,535,357 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Balance at 31 December 2022 |
Changes in equity |
Balance at 31 December 2023 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 9,753,860 | 10,243,892 |
Interest paid | (3,613,086 | ) | (1,664,636 | ) |
Tax paid | (2,005,568 | ) | (2,563,083 | ) |
Net cash from operating activities | 4,135,206 | 6,016,173 |
Cash flows from investing activities |
Purchase tangible fixed assets | (8,060,487 | ) | (4,333,820 | ) |
Sale of tangible fixed assets | 1,862,083 | 25,875 |
Investment in subsidiary | - | (12,379,219 | ) |
Cash on acquisition | - | 4,126,606 |
Net cash from investing activities | (6,198,404 | ) | (12,560,558 | ) |
Cash flows from financing activities |
Loan movements | - | (600,000 | ) |
Loan repayments in year | (4,500,000 | ) | - |
Amount introduced by directors | 9,763 | (191,843 | ) |
Amount withdrawn by directors | - | 244,322 |
Net cash from financing activities | (4,490,237 | ) | (547,521 | ) |
Decrease in cash and cash equivalents | (6,553,435 | ) | (7,091,906 | ) |
Cash and cash equivalents at beginning of year |
2 |
9,692,178 |
16,784,084 |
Cash and cash equivalents at end of year | 2 | 3,138,743 | 9,692,178 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation | 8,476,308 | 12,657,423 |
Depreciation charges | 1,949,864 | 2,402,710 |
Profit on disposal of fixed assets | (30,753 | ) | (2,591 | ) |
Amortisation | 1,062,500 | 312,500 |
Working capital movement on acquisition | - | (462,416 | ) |
Finance costs | 3,613,086 | 1,664,636 |
15,071,005 | 16,572,262 |
Increase in stocks | (17,414,390 | ) | (15,861,121 | ) |
Increase in trade and other debtors | (5,209,923 | ) | (6,080,766 | ) |
Increase in trade and other creditors | 17,307,168 | 15,613,517 |
Cash generated from operations | 9,753,860 | 10,243,892 |
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 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 6,777,743 | 10,838,283 |
Bank overdrafts | (3,639,000 | ) | (1,146,105 | ) |
3,138,743 | 9,692,178 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 10,838,283 | 16,784,084 |
Bank overdrafts | (1,146,105 | ) | - |
9,692,178 | 16,784,084 |
3. | Analysis of changes in net funds |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 10,838,283 | (4,060,540 | ) | 6,777,743 |
Bank overdrafts | (1,146,105 | ) | (2,492,895 | ) | (3,639,000 | ) |
9,692,178 | (6,553,435 | ) | 3,138,743 |
Debt |
Debts falling due within 1 year | (4,500,000 | ) | 4,500,000 | - |
(4,500,000 | ) | 4,500,000 | - |
Total | 5,192,178 | (2,053,435 | ) | 3,138,743 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | Statutory information |
Sinclair Motor Holdings Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the parent company and its subsidiaries for the year ended 31 December 2022. No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006. |
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 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. |
Critical judgements in applying the Company's accounting policies |
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Stock valuation |
The directors on a periodic basis will review the valuation of stock. This is performed on an individual vehicle basis taking into account external factors such as market trends as well as anticipated values as provided by the industry sources. Any provisions made as a result of this review are intended to reflect differences between cost and estimated selling prices less costs to sell. |
New stock tends to require less provision but similar procedures are also carried out in order to ensure values |
at milestone points are shown correctly. |
The Directors consider that there are no key sources of estimate uncertainty. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Turnover |
Turnover represents amounts chargeable, net of value added tax, in respect of the sale and repair of motor vehicles, associated bonuses and commissions and the sale of vehicle parts. |
Turnover from the sale of vehicles is recognised when the significant risks and rewards of ownership are transferred to the buyer. In most cases, the transfer of the risks and rewards of ownership coincides with the transfer of the legal title or the passing of possession to the buyer. |
Turnover from the sale of services is recognised by reference to the stage of completion of the transaction. |
Turnover from commissions and bonuses are recognised on an accrual basis in accordance with the substance of the relevant agreement. |
Goodwill |
Goodwill is the difference between the fair value of consideration paid for an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities. |
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other years if events or changes in circumstances indicate that the carrying value may not be recoverable. |
The goodwill purchased in 2022 is being amortised over its useful economic life of 5 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 |
All tangible fixed assets are initially recorded at cost. |
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. |
Freehold buildings | - | 2% on cost |
Long / short leasehold property | - | amortised over the term of the lease |
Improvements to property | - | 15 years on cost |
Plant and machinery | - | 10% to 33.3% on cost |
Motor vehicles | - | 20% on cost |
Computer equipment | - | 10% to 33.3% on cost |
Fixtures and Fittings | - | 10% to 20% on cost |
Stocks |
Stock and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. |
The ownership of consignment stock passes from the manufacturer to the group when full payment for vehicles is made. |
The value of consignment stock is shown separately in the notes to the balance sheet as both current assets and as creditors due within one year. |
Parts stocks are stated at the lower of cost and estimated selling price. Cost is determined using the First in, First Out (FIFO) method. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Financial liabilities are derecognised when the company's contractual obligations expire or are discharged & cancelled. |
Trade Debtors |
Trade debtors are amounts due from customers for merchandise sold 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. |
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. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Accounts payable are classified as current liabilities if the 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Business combinations |
Business combinations are accounted for using the purchase method as at the acquisition date, which is the date on which control is transferred to the company. |
At acquisition date, the company recognises goodwill as; |
-the fair value of the consideration (excluding contingent consideration) transferred;plus |
-estimated amount of contingent consideration(see below):plus |
-the fair value of the equity instrument issued: plus |
-directly attributable transaction costs;less |
-the net recognised amount (generally fair value) of he identifiable assets acquired and liabilities and contingent liabilities assumed. |
When the excess is negative, this is recognised and separately disclosed on the face of the balance sheet as negative goodwill. Consideration which is contingent on future events is recognised based on the estimated amount if the contingent consideration is probable and can be measured reliably. Any subsequent changes to the amount are treated as an adjustment to the cost of the acquisition. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Sales of new vehicles | 267,854,300 | 196,684,131 |
Sales of used vehicles | 305,333,991 | 303,730,517 |
Repairs and other sales | 64,662,619 | 59,100,532 |
637,850,910 | 559,515,180 |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 33,257,227 | 30,278,317 |
Social security costs | 2,989,831 | 2,970,060 |
Other pension costs | 913,933 | 782,297 |
37,160,991 | 34,030,674 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Service | 313 | 322 |
Sales | 240 | 242 |
Admin | 99 | 101 |
Parts | 56 | 56 |
Body and paint | 41 | 43 |
Supervisors | 12 | 10 |
Directors | 3 | 3 |
Key management, a group which comprises 12 individuals, received emoluments totalling £3,039,970 (2022 : £1,623,648) for their services to the Sinclair Motor Holdings Group. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | Employees and directors - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 955,976 | 411,175 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 571,188 | 296,817 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 226,563 | 212,861 |
Depreciation - owned assets | 1,949,864 | 1,797,723 |
Profit on disposal of fixed assets | (30,753 | ) | (2,591 | ) |
Goodwill amortisation | 750,000 | 312,500 |
Auditors' remuneration | 56,500 | 56,500 |
Auditors' remuneration for non audit work | 16,000 | 16,000 |
Other operating leases | 608,253 | 585,353 |
6. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank loan interest | 131,656 | 125,206 |
Stocking interest | 3,481,430 | 1,538,100 |
Loan | - | 1,330 |
3,613,086 | 1,664,636 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 2,065,067 | 2,477,234 |
Deferred tax | 328,471 | 205,901 |
Tax on profit | 2,393,538 | 2,683,135 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 8,476,308 | 12,657,423 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
2,119,077 |
2,404,910 |
Effects of: |
Expenses not deductible for tax purposes | 19,181 | 37,853 |
Income not taxable for tax purposes | 7,947 | - |
Capital allowances in excess of depreciation | (122,816 | ) | - |
Depreciation in excess of capital allowances | - | 2,217 |
Loss on disposal of assets | - | (4,914 | ) |
On acquisition | - | 37,168 |
Group relief | (5,001 | ) | - |
Accelerated capital allowances | 328,471 | 205,901 |
Change in tax rate | (131,893 | ) | - |
Profit on disposal of asset | (7,689 | ) | - |
Amortisation | 187,500 | - |
charges paid | (1,239 | ) | - |
Total tax charge | 2,393,538 | 2,683,135 |
8. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 | 3,750,000 |
Amortisation |
At 1 January 2023 | 312,500 |
Amortisation for year | 750,000 |
At 31 December 2023 | 1,062,500 |
Net book value |
At 31 December 2023 | 2,687,500 |
At 31 December 2022 | 3,437,500 |
The goodwill arises is in respect of the acquisition of Shukers Limited. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | Tangible fixed assets |
Group |
Assets |
Freehold | under | Plant and |
property | construction | machinery |
£ | £ | £ |
Cost |
At 1 January 2023 | 42,941,771 | 2,922,634 | 5,543,834 |
Additions | 271,483 | 5,498,824 | 1,037,510 |
Disposals | (1,921,061 | ) | - | (99,696 | ) |
Additions on acquisition | 8,421,458 | (8,421,458 | ) | - |
At 31 December 2023 | 49,713,651 | - | 6,481,648 |
Depreciation |
At 1 January 2023 | 6,377,274 | - | 3,664,260 |
Charge for year | 858,239 | - | 482,052 |
Eliminated on disposal | (151,667 | ) | - | (74,763 | ) |
At 31 December 2023 | 7,083,846 | - | 4,071,549 |
Net book value |
At 31 December 2023 | 42,629,805 | - | 2,410,099 |
At 31 December 2022 | 36,564,497 | 2,922,634 | 1,879,574 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 | 4,870,603 | 244,246 | 1,678,393 | 58,201,481 |
Additions | 866,479 | 73,267 | 312,924 | 8,060,487 |
Disposals | (131,245 | ) | (71,774 | ) | (10,130 | ) | (2,233,906 | ) |
Additions on acquisition | - | - | - | - |
At 31 December 2023 | 5,605,837 | 245,739 | 1,981,187 | 64,028,062 |
Depreciation |
At 1 January 2023 | 3,282,076 | 150,102 | 1,381,770 | 14,855,482 |
Charge for year | 371,010 | 42,159 | 196,404 | 1,949,864 |
Eliminated on disposal | (94,821 | ) | (71,195 | ) | (10,130 | ) | (402,576 | ) |
At 31 December 2023 | 3,558,265 | 121,066 | 1,568,044 | 16,402,770 |
Net book value |
At 31 December 2023 | 2,047,572 | 124,673 | 413,143 | 47,625,292 |
At 31 December 2022 | 1,588,527 | 94,144 | 296,623 | 43,345,999 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | Fixed asset investments |
Group |
Unlisted |
investments |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 | 20,000 |
Net book value |
At 31 December 2023 | 20,000 |
At 31 December 2022 | 20,000 |
Company |
Shares in |
group |
undertaking |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
The company's investments at the balance sheet date in the share capital of its subsidiaries are as follows: |
Class of shares held |
% Holding |
Sinclair Garages (Port Talbot) Limited | Ordinary | 100 |
Sinclair Garages (Newport) Limited | Ordinary | 100 |
Sinclair Garages (Cardiff) Limited | Ordinary | 100 |
Swansea TPS Limited | Ordinary | 100 |
Sinclair Garages (Swansea) Limited | Ordinary | 100 |
Sinclair Garages (Port Talbot) Limited has investments in the share capital of its subsidiaries as follows: |
Sinclair Garages Limited | Ordinary | 100 |
Sinclair Garages (Bridgend) Limited | Ordinary | 75 |
Sinclair Garages (Swansea) Limited has investments in the share capital of its subsidiaries as follows: |
Shukers Limited | Ordinary | 100 |
Cambrian Garages Limited | Ordinary | 100 |
Cambrian Garages Limited | Preference | 100 |
All of the subsidiaries above were incorporated in England and Wales. |
The principal activities of these was the retailing of motor vehicles and related activities in the motor trade. |
The registered address of all subsidiaries is shared with Sinclair Motor Holdings and can be found on the General Information page. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | Stocks |
Group |
2023 | 2022 |
£ | £ |
Fully paid new vehicles | 1,904,713 | 739,851 |
New vehicles on consignment | 25,345,999 | 22,088,411 |
Used vehicles | 64,182,735 | 51,791,537 |
Oil, fuel and spares | 3,840,884 | 3,240,142 |
95,274,331 | 77,859,941 |
13. | Debtors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 9,562,661 | 7,447,890 |
Amounts owed by group undertakings | - | - |
Other debtors | 4,885,497 | 3,908,995 |
Directors' current accounts | - | 9,763 | - | - |
Tax | 1,386,527 | - |
VAT | - | 259,762 |
Prepayments | 1,273,142 | 1,083,596 |
17,107,827 | 12,710,006 |
14. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 3,639,000 | 5,646,105 |
Trade creditors | 70,655,952 | 58,170,284 |
Due in respect of new vehicles | 25,345,999 | 22,088,411 | - | - |
Amounts owed to group undertakings | - | - |
Tax | 1,446,026 | 923,347 |
Social security and other taxes | 990,442 | 931,805 |
VAT | 623,346 | - | - | - |
Accruals and deferred income | 2,429,058 | 2,500,149 |
105,129,823 | 90,260,101 |
15. | Loans |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 3,639,000 | 1,146,105 |
Bank loans | - | 4,500,000 |
3,639,000 | 5,646,105 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 487,500 | 537,703 |
Between one and five years | 1,950,000 | 592,703 |
In more than five years | 27,500 | 82,500 |
2,465,000 | 1,212,906 |
17. | Secured debts |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank overdrafts | 3,639,000 | 1,146,105 |
Bank loans | - | 4,500,000 |
Consignment stock creditors | 25,345,999 | 22,088,411 |
28,984,999 | 27,734,516 |
The company has entered into a debenture and a cross guarantee with Barclays Bank Plc to guarantee the group overdrafts which at 31 December 2023 amounted to £3,639,000 (2022: £5,646,105). |
The overdraft facility is secured by means of a first legal charge on the following properties: |
Mercedes Benz, Cardiff Gate Business Park, Mulberry Drive, Cardiff CF23 8RS |
Mercedes Benz, Old Field Road, Pencoed, Bridgend CF35 5LJ |
Mercedes Benz, Langdon Road, Swansea SA1 8QY |
18. | Provisions for liabilities |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 827,513 | 499,041 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 499,041 |
Charge to Income Statement during year | 328,472 |
Accelerated Capital allowances |
Balance at 31 December 2023 | 827,513 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal Value: | 2023 | 2022 |
£ | £ |
30,030 | Ordinary | 1 | 30.030 | 30.030 |
20. | Reserves |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 55,962,852 | 23,000 | 55,985,852 |
Profit for the year | 5,926,914 | 5,926,914 |
At 31 December 2023 | 61,889,766 | 23,000 | 61,912,766 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
21. | Non-controlling interests |
Profits relating to Minority Interests in Sinclair Garages (Bridgend) Limited during the year were £210,178 (2022: £267,675). |
During the year dividends of £nil were paid to the minority interest (2022 - £nil). |
As at 31 December 2023 net assets in relation to Minority Interests were £1,646,883 (2022: £1,436,705.) |
22. | Pension commitments |
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £895,171 (2022: £782,297). |
23. | Contingent liabilities |
There is a guarantee due to VWFS (UK) Limited by Sinclair Garages Limited, Sinclair Garages (Bridgend) Limited, Sinclair Garages (Cardiff) Limited and Sinclair Garages (Port Talbot) Limited in respect of new vehicles on consignment which at 31 December 2023 amounted to £10,164,746 (2022: £11,124.080). |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | Directors' advances, credits and guarantees |
The following advances and creditors to a director subsisted during the years ended 31st December 2023 and 31st December 2022: |
2023 | 2022 |
£ | £ |
G S Sinclair |
Balance outstanding at start of year | 9,763 | (42,716) |
Amounts advanced | - | 244,322 |
Amounts repaid | (9,763) | (191,843) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | 9,763 |
25. | Related party disclosures |
Entities over which the entity has control, joint control of significant influence |
2023 | 2022 |
£ | £ |
Sales | 6,253,565 | 6,774,129 |
Purchases | 651,072 | 876,508 |
Amounts due from related party | 30,275 | 1,031 |
Amounts due to related party | 216 | 210,547 |
26. | Ultimate controlling party |
The ultimate controlling party is G S Sinclair. |