REGISTERED NUMBER: |
BRIDGEND GARAGE LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: |
BRIDGEND GARAGE LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Strategic Report | 1 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit and Loss Account | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. |
REVIEW OF BUSINESS |
Our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. They are turnover, gross margin and net assets. |
Vehicle sales and associated turnover has decreased to £39.8 million (2022: £44.5 million) this year and the gross profit margin has decreased from 17.88% to 17.52%. Net assets at 31 March 2023 have risen to £14.4 million from £13.6 million. |
We used the drop in business levels immediately after the first national lockdown to embark on a programme of refurbishment throughout our mechanical workshops, upgrading of equipment and improvement of our facilities. We used the downturn to invest in the future of the business that would have been, practically, very difficult in normal circumstances. Due to terrific efforts from management and staff all pulling together we saw the benefits of the improvements to our infrastructure that were made during a business downturn with a marked increase in turnover in 2022. It was not unexpected that results would stabilise in 2023. |
The business is nimble enough to make dynamic management decisions during the most turbulent times, ensuring we are always able to change direction quickly if and when needed to. This adaptability of the business to embrace a new way of selling vehicles using a more blended approach of a significantly improved website offering/functionality and handling physical appointments properly/well, gives the consumer confidence when considering the purchase. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the company are: competition from other suppliers - we feel that the service provided and scale of our operations mitigates this risk. Pressures through increasing costs and the volatility of the labour market bring new considerations as to how the future operation of the business will look and fresh challenges beyond those faced directly through the pandemic. Volatile economic and global pressures have a downward impact on results due to increased uncertainty. |
Margins and staff costs are controlled by careful planning and budgeting and continuing ongoing review, to ensure efficiency. Our overheads are held to a minimum to maximise the value offering to our customers and to maintain a strong customer base. The directors will continue to monitor costs and performance, seeking further efficiency gains wherever possible. |
We are however, continually reinvesting to strengthen the company and have sufficient resources to cope with any normal fluctuations in activity. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
SECTION 172(1) STATEMENT |
The Board of Directors consider, both individually and together, 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 a whole in the decisions taken during the year ended 31 March 2023. |
The following paragraphs summarise how the Directors fulfil their duties: |
Our People |
Our employees are fundamental to the delivery of our business strategy. We aim to be a responsible employer in our approach to pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business. Learning and development has also been vital to ensure each individual understands their contribution to enabling everyone to work safely. |
Customer Engagement |
As a local business, we work closely with customers both on a transactional basis and also to ensure that we are developing products to suit their needs. We constantly review industry averages for our cars to ensure we are offering a competitive but fair price to our customers. Additionally, we are in regular contact with our finance providers to ensure we are offering the best rates possible to our customers. |
The unique feel of our business which is family owned demonstrates our core values of quality, reliability and competent business practice which makes us stand out from the competition and allows us to develop long term partnering relationships with our customers. |
Supplier Engagement |
We pride ourselves in paying suppliers within our credit terms. |
Community and Environment |
We have a solid track record of delivering projects in such a way that maximises the benefit to local communities, we also create opportunities for local people to become involved in our business through the kickstarter programme and our training academy. |
We are committed to reducing our carbon footprint, running our business in a sustainable and responsible manner. |
Shareholders |
The shareholders of the company maintain an active role in the management of the business and sit on the board of directors. The shareholders and management are provided with reporting data at board meetings to enable them to actively manage the company and ensure the focus is on long term strategy. |
Future developments |
As methods of viewing and buying cars may have changed during recent years, we are content that our methods of promotion and delivery of service continue to be at the forefront of the market. |
Financial instruments |
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from funding activities which are conducted in sterling. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES |
The Company are exposed to the financial risks arising from their operations and the use of financial instruments. Key financial risks are interest rate risk, credit risk and liquidity risk. |
Interest rate risk |
Interest rate risk is the risk that the fair value of future cash flows will fluctuate because of change in the market interest rates. The Company's exposure to interest rate risk arises primarily from interest-bearing loans from other group companies and related companies. |
The direct risks of interest rate volatility, whilst experienced at subsidiary company level through recharge of group borrowing costs, are entirely contingent on the strength of the group. |
Credit risk |
Credit risk relates to the risk that a counterparty would default on its contractual obligations resulting in a loss to the company. The Company's exposure to credit risk arises primarily from trade receivables in relation to customers buying cars through the Company's finance option. |
The Company adopts a policy of trading only with recognised and creditworthy third parties. It is the Company's policy that customers who wish to trade on credit terms are subject to credit verification procedures. |
The Company is exposed where counterparties are engaged in similar activities or activities in the same geographical region or have economic features the would affect their ability to meet their contractual obligations to be similarly affected by changes in economic, political or other conditions. |
Risk mitigation for the Company comes via the recovery of the asset if default occurs. |
Liquidity risk |
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortages of funds. As these risks typically manifest due to the mismatch of the maturity of obligations with the availability of funds, the company manages flexibility through the movement of cash between group and related companies. This factor is mitigated by the stringent and regular review of cash flow projections which are used to make business decisions. |
ON BEHALF OF THE BOARD: |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of car sales and after sales services. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the director's report. It has done so in respect of financial instruments, future development and financial risk management objectives and polices. Details on how the company has fostered relationships with suppliers, customers and others can be found within the company's section 172 (1) statement. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors, the Strategic Report and the financial statements in accordance with applicable laws 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, comprising FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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 the affairs of the company and of the profit and loss of the company for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- 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 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. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRIDGEND GARAGE LIMITED |
Opinion |
We have audited the financial statements of Bridgend Garage Limited (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRIDGEND GARAGE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience of the car sales industry. |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including, the Companies Act 2006, FRS 102, taxation legislation and FCA regulations. We also consider those laws and regulations having an indirect impact but nonetheless significant, including GDPR, anti-bribery, employment, environmental and health and safety legislation. |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRIDGEND GARAGE LIMITED |
Auditors' responsibilities for the audit of the financial statements - continued |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In assessing the risk of material misstatement due to fraud in relation to revenue recognition, we: |
- | performed analytical procedures to identify unusual or unexpected relationships; |
- | performed walkthrough tests and substantive sample testing; and |
- | carried out cut off testing to ensure revenue recognised in the correct period. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Caledonia House |
89 Seaward Street |
Glasgow |
G41 1HJ |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
(744,673 | ) | 1,193,677 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,251,317 | 3,012,331 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | ( |
) |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Profit and loss account | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Profit |
share | and loss | Revaluation | Total |
capital | account | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | - | (452,250 | ) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 270,329 | 757,105 |
Amount withdrawn by directors | (774,706 | ) | (14,471 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,554,676 |
Cash and cash equivalents at end of year | 2 | 1,123,883 | 1,050,827 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Increase in provisions | 40,159 | 32,831 |
Finance costs | 99,418 | 82,852 |
Finance income | (160,374 | ) | (161,790 | ) |
974,701 | 2,978,974 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,123,883 | 1,050,827 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 1,050,827 | 1,554,676 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,050,827 | 73,056 | 1,123,883 |
1,050,827 | 1,123,883 |
Debt |
Debts falling due within 1 year | (119,796 | ) | (155,918 | ) | (275,714 | ) |
(119,796 | ) | (155,918 | ) | (275,714 | ) |
Total | 931,031 | (82,862 | ) | 848,169 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Bridgend Garage Limited is a private company, limited by shares, incorporated in Scotland. The registered office is Riverside Complex, Glasgow Road, Kilwinning, Ayrshire, KA13 7JB. |
The financial statements are presented in Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. |
Going concern |
The financial statements have been prepared on a going concern basis. The validity of this is dependent on the financial performance of the company, during volatile and uncertain economic conditions, including the recoverability of debtors and the continued support of creditors. After reviewing the company's financial position and forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Preparation of consolidated financial statements |
The financial statements contain information about Bridgend Garage Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Bridgend Holdings Limited, Riverside Complex, Glasgow Road, Kilwinning, Ayrshire, KA13 7JB. |
Information and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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. |
The directors consider the key sources of estimation uncertainty to be as follows:- |
Tangible Fixed Assets |
- Tangible fixed assets (see note 11) are depreciated over their estimated useful lives. The actual lives of the assets are assessed at the end of each reporting period and may vary depending on a number of factors. In re-assessing asset lives, factors such as level of usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate. |
- To determine whether there are any indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset concerned. The directors have assessed there are no concerns in this regard. |
Warranty Provision |
The company offers its own warranty products on cars sold. The company has an obligation to carry out repairs for those warranties with a guarantee period remaining at the balance sheet date. The warranty provision reflects the estimated liability at the balance sheet date, based on experiential outcomes in prior years. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Judgements |
The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. |
The directors consider there are no such significant judgements. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Turnover |
Turnover represents the total invoice value, excluding value added tax, of goods and services rendered during the year including car sales, parts and services sales. The company's policy is to recognise a sale when substantively all the risks and rewards in connection with the goods and services have been passed to the buyer. |
Finance income |
The group acts as agent on behalf of various finance companies for the arrangement of finance for its customers to purchase its products. Fees earned are recognised when the customer draws down the finance. |
Goodwill |
Goodwill is the difference between the amount paid on the acquisition of a business and the aggregate fair value of its separate net assets. Negative goodwill arising is recognised in the profit and loss account over the periods in which the non-monetary assets acquired are depreciated or when these assets are sold. |
Tangible fixed assets |
Heritable property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Land included in heritable property is not depreciated. |
Fixed assets are included in the financial statements at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. In particular, included within land and buildings are properties stated at deemed cost, being the valuation at the date of transfer from investment property. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable. |
Grants related to the purchase of assets are recognised on a systematic basis over the useful economic life of the underlying assets that was acquired with the grant |
Investment property |
All of the company's properties are held for long term investment. Investment properties are accounted for as follows: |
(i) Investment properties are initially recorded at cost which includes purchase cost and any directly attributable expenditure. |
(ii) Thereafter, investment properties are revalued at each balance sheet date to their fair value, where this can be measured reliably. |
(iii) The surplus or deficit arising on revaluation in the financial year is recognised in the profit and loss account for that year. Revaluation gains and losses are accumulated in the profit and loss account reserve, unless the revaluation amount exceeds original cost in which case, a transfer is made of the surplus to a non-distributable reserve in the balance sheet. |
(iv) Deferred taxation is provided on any gains at the rate expected to apply when a property is sold. |
Stocks |
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. Replacement cost of stock would not be materially different. |
Work in progress which relates to vehicle repairs is incorporated at cost for labour and parts. |
Parts stock held on consignment from suppliers is included in stock where the principal terms of the agreement substantially transfer the risks and benefits of the stock to the company. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans to other third parties and loans to and from related parties. |
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense. |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Pension costs and other post-retirement benefits |
The company pays into the personal pensions of certain employees and the directors. Contributions payable for the year are charged to profit or loss in the period to which they relate. |
Operating leases |
Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the period of the lease. |
Rents receivable |
Rents receivable under operating leases are credited to the profit and loss account on a straight line basis over the period of the lease. |
Finance agreements |
The capital element of loans provided to customers to finance vehicle acquisitions are included as debtors in the balance sheet. The interest receivable in respect of these loan agreements is credited to the profit and loss account over the relevant period. The loans are secured over the vehicles concerned. |
Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Employee benefits |
Short term employee benefits are recognised as an expense in the period in which they are incurred. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
The turnover and profit before taxation are attributable to the one principal activity of the company and are stated net of Value Added Tax. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Finance commission |
Other income |
Government grants |
1,835,616 | 1,656,864 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales | 46 | 43 |
After sales | 125 | 112 |
Administration | 31 | 32 |
Directors | 4 | 2 |
The key management personnel of the company comprise the directors. During the year, the total employee benefits for the key management personnel were £213,504 (2021 - £54,131). |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation | ( |
) |
Auditors' remuneration |
Accountancy fees paid to auditors |
Auditors fees - tax |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest on loans from group |
undertakings |
8. | 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 |
Deferred tax |
Tax on profit |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
excess of capital allowances |
Deferred tax movement | 21,182 | 22,695 |
Total tax charge | 170,326 | 589,330 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final | 141,632 | 115,891 |
A - M Ordinary shares of £1 each |
Interim | 14,000 | 14,000 |
155,632 | 129,891 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2022 | ( |
) |
Impairments | 619,893 |
At 31 March 2023 |
AMORTISATION |
At 1 April 2022 | ( |
) |
Impairments |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 | ( |
) |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | INTANGIBLE FIXED ASSETS - continued |
Negative goodwill arose on the acquisition of a business in 1999 and was being released to the profit and loss account in line with the depreciation of the related assets. The goodwill figure arose as the separable value of the assets acquired exceeded the amount paid for the business. Negative goodwill has been written down to £nil in the current year to reflect the carrying value of the assets acquired. |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Heritable | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Included in cost of heritable property is land of £550,000 (2022 - £550,000) which is not depreciated. |
The directors have chosen to include property rented to another group company under the cost model as permitted by FRS102, as a result, in the current year, the asset is included within property, plant and equipment at deemed cost. There is no overall impact on the net assets of the company. |
The carrying amount of investment property rented to another group entity at 31 March 2023 is £227,605. |
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Investments in subsidiaries are valued at cost less provision for impairment. |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Caledonia House, Seaward Street, Glasgow, G41 1HJ |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year/period |
13. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2022 |
Reclassification/transfer | (232,250 | ) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
During the year, the investment properties were transferred to heritable property at the fair value being £232,250. Cumulative fair value gains are £150,000. The historical cost of the investment properties is £82,250. |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Finished goods |
Parts |
Stock recognised in cost of sales during the year as an expense was £32,788,659 (2022 - £36,589,797). |
15. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Prepayments |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | DEBTORS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 17) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Amounts owed to group undertakings | 2,666,452 | 3,315,953 |
Directors' current accounts | 496,362 | 1,000,739 |
Accruals and deferred income |
Amounts due to group undertakings are unsecured, have no fixed date of repayment and are repayable on demand. A market rate of interest is charged on these loans. |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
The bank overdraft is secured by a floating charge over the assets and undertakings of the company. |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 124,941 | 103,759 |
Other provisions | 238,338 | 198,179 |
Deferred | Warranty |
tax | provision |
£ | £ |
Balance at 1 April 2022 |
Accelerated capital allowances | 21,182 | - |
Movement in the year | - | 40,159 |
Balance at 31 March 2023 |
The warranty provision reflects the estimated liability at the balance sheet date for repairs under guarantee. |
There are no unused tax losses or unused tax credits. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
160,002 | Ordinary | £1 | 160,002 | 160,002 |
1 | A-M Ordinary | £1 | 13 | 13 |
160,015 | 160,015 |
Ordinary shares have equal rights with regards to voting, participation and dividends. |
A-M Ordinary shares are non-redeemable, non-voting, have rights to participate in all approved dividend distributions for that class of share and have no rights to participate in any capital distribution on winding up. |
21. | RESERVES |
Profit |
and loss | Revaluation |
account | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 13,416,606 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 March 2023 | 14,242,547 |
BRIDGEND GARAGE LIMITED (REGISTERED NUMBER: SC098499) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
22. | PENSION COMMITMENTS |
The company pays into the personal pensions of certain employees and the directors. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions this year amounted to £339,999 (2022 - £100,378). The contributions outstanding at the year-end totalled £20,799 (2022 - £nil). |
23. | ULTIMATE PARENT COMPANY |
The holding company is Bridgend Holdings Limited, a company registered in Scotland. |
Bridgend Holdings Limited is the parent undertaking of the only group of which the company is a member. Consolidated group accounts are available from Mrs Angela Logan, Bridgend Garage Limited, East Road, Irvine, Ayrshire. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The balance due by the company to the directors at 31 March 2023 is £496,362 (2022 - £1,000,739). The balance is interest free, unsecured and has no fixed repayment terms. |
At the year end, £17,541 (2022 - £809,429)) was owed to the company from a related company. The balance is interest free, unsecured and has no fixed repayment terms. |