Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
COMPANY INFORMATION
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YORK WARD & ROWLATT LIMITED
CONTENTS
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YORK WARD & ROWLATT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors present their report and financial statements for the year ended 31 December 2022.
The principal activity of the Company during the year was that of motor vehicle distribution, parts distribution, and vehicle repair.
Like many of our counterparts, there was much hope that 2022 would see a return to ‘normal’ for the UK motor sector after two years of unprecedented challenges - the Covid-19 pandemic starting in 2020 and then the semi-conductor shortage from 2021. However, any hopes for a swift recovery received a significant setback when Russia launched a full-scale invasion of Ukraine, sending a massive shock to the global economy, especially to energy and food markets, squeezing supply and pushing up prices to unprecedented levels.
According to SMMT data, just over 1.6 million vehicles were registered in 2022, a 2% fall over 2021 and remaining 30% lower than the pre-pandemic year of 2019. However, it is not all doom and gloom – there were some green shoots of recovery visible as the year drew to a close and December recorded the fifth consecutive month of growth. The progression in electric vehicle sales continued to provide a silver lining for the industry throughout 2022, as full year registrations of pure battery vehicles increased by 40%. This resulted in a market share of over 16% and importantly, surpassed Diesel as the second most popular powertrain. This can partly be attributed to measures adopted by the Government to promote EVs, but there was a setback for the sector when the decision was made to scrap the plug-in grant. This is evidence of policy being out of sync with the UK’s ambition to achieve the target of zero pure combustion engine sales from 2030.
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YORK WARD & ROWLATT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
There was an 18% year-on-year increase in turnover of £10.4m, which is wholly attributable to an 11.2% rise in the sale of vehicles to the fleet sector. Net profit before tax is 1.1%, equating to £753,250, a fall of 0.7% compared to 2021 but exceeding our annual forecast by £182K.
Retail new vehicle sales increased by 16% to 308 units but remained 17% below pre-pandemic levels. Vehicle chassis margins rose 96% to £376 per vehicle. On the contrary we have seen used vehicle sales return to pre pandemic levels, (having enjoyed a significant boost during the lockdown periods of 2021 and 2020). Year-on year volumes have fallen 33% (407 units) resulting in a £291K reduction in gross profit. As referenced earlier, fleet sales turnover rose in the year by 11.2%, which is equivalent to 480 vehicles. (160 cars and 320 LCV’s) The shift to higher LCV volumes, due to requiring fewer semiconductors, sees vans account for 59% of our total volume. This shift in mix has seen average gross profit fall 47% to £580 per unit. Rising costs, notably delivery and preparation, have resulted in average direct costs increasing by 26% (£96 per unit). In summary, despite this rise in turnover, department profits have contracted 12% to £242K. The forward order bank at the end of the year accounted for 2,264 vehicles. Revenue from aftersales activities increased 19.7% in the year to £8.3M. Mechanical sales rose 4.7%, representing £104K, having been underpinned by a rise in repairs because of an aging vehicle parc. Significant growth was achieved in accident repair and parts sales which have risen by 19.6% and 30.1% respectively. Parts sales were boosted by the withdrawal of a competitor in the trade parts arena. The gross profit margin in aftersales has remained consistent at 33%. Indirect expenses were reduced by 0.3% in the year (£3K) to £1.1M. In 2021, expenses were compensated by COVID support payments of £46K but this has been offset in 2022 by a 51% year-on-year rise in utility costs.
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YORK WARD & ROWLATT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
York, Ward & Rowlatt’s vision is to significantly reduce our carbon output ahead of the UK’s climate change targets, by reducing consumption, waste, and emissions. This will be achieved by looking at all business operations to improve and minimise environmental impacts.
During 2022 we have taken the following energy efficiency actions: • All offices and corridors have been fitted with motion sensors for lighting. • 4 new EV charging points have been installed during the year to total 10. • Increased utilisation of video for virtual test drives, thus avoiding unnecessary customer journeys. • Plug-in hybrid and battery electric vehicles now account for 65% of all company cars and the courtesy car fleet. • Improved waste segregation and recycling. • Removed single use cups for all staff drinks machines. The table below sets out our usage for the period 01/01/2022 to 31/12/2022. The carbon figures have been calculated using the BEIS 2022 conversion factors and cover total emission data for scope 1,2 and 3. FUEL CONSUMPTION KG of Co2e Electricity 316,364 Kwh 61,178 Gas 726,211 Kwh 132,563 Vehicle Fuel 560,799 miles 159,155 TOTAL 352,896 Annual Turnover £68,658,052 Intensity ratio per £000 of turnover 5.1Kg of Co2e
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YORK WARD & ROWLATT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors and senior managers continue their policy of managing and implementing mitigation steps to reduce risks. The business focuses on margin retention and gaining cost efficiencies in their supply chains. Headcount is monitored and aligned to customer demand. The company has a positive cash flow position with minimal financial risks.
We have identified the key business risks that may affect the continued growth and success of the business. These are detailed below: Vehicle and semi-conductor supply: A global shortage of semiconductor chips was the automotive industry’s nemesis for most of 2021 and 2022. The crisis is starting to fade as manufacturers have been able to adapt meaning production is much less likely to be hit by significant disruption. The industry is not completely out of the woods yet but is in a far better position than it has been at any other point in the last two years. Manufacturers may be accused of hiding behind the semiconductor issue as they are enjoying the benefits of full order books, rising prices and reduced discounts. As a consequence, the SMMT (Society of Manufacturers and Traders) are reporting a 3rd consecutive year of suppressed sales, with an average yearly reduction of 1 million new cars. This also impacts the supply of used vehicles and continues to push-up values to unprecedented levels. Inflation: Like many other countries around the world, the UK has struggled with dramatically rising energy prices due to Russia's war in Ukraine. Two UK-specific issues are exacerbating the country's inflation woes: the adverse economic shock of Brexit, and the UK's reliance on its financial services sector. Consequently, inflation has reached a 40-year high, necessitating intervention in interest rates. Consumer spending has been squeezed and ‘big-ticket’ items such as house and vehicle purchases will undoubtedly be impacted. Retail Agency Model: All Stellantis brands, including Vauxhall, will shift to an agency distribution model progressively from July 2024. The agency model means specific roles and responsibilities are shifted from the dealer to the manufacturer. The traditional channels for sales will evolve to a more integrated online / offline sales model with manufacturers controlling pricing and retailers earning a handling fee / commission. The full financial and operational impacts are, as yet, unknown. Car, LCV and Authorised repairer Franchises: The Company operates franchises for the sale of new Vauxhall car and LCV’s as well as being an authorised repairer for Vauxhall and Peugeot vehicles. The loss of these franchises would have a significant impact on the business. The Board maintains close relationships with the manufacturer and is focused on the KPI’s by which we are monitored. The ongoing reorganisation of all the brands represented by Stellantis raises concerns and a level of uncertainty. Conversely there may be opportunities for representation as a multi-brand facility in the future. Financial risks: The Company uses various financial instruments including treasury loans from the parent Company, stocking loans and consignment stock. These instruments are used, primarily, to fund the Company’s sales operations. The main risk is the volatility of interest rates. The Company manages risk by ensuring adequate liquidity to meet foreseeable needs.
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YORK WARD & ROWLATT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
Used Vehicle Stocks:
A rigid Day Age Policy is in force. Vehicles are reappraised after 60 days in stock. At this point they are either disposed of or re-priced to CAP (Industry guide) clean values. Any write-off costs are taken straight to the Profit and Loss account. The level of stock held is appropriate to stock-turn. Parts stocks: The parts management system operated by the business works on an average price model. This recalculates the average price each time a new purchase is made and therefore any price movements are passed on to the customer. Provisions are made in the Profit and Loss account on a monthly basis to account for obsolete stock. The level of stock held is appropriate to stock-turn. Credit Risk: Credit risk arises if the Company is unable to recover sums due from clients. This is alleviated by scrutiny of all credit levels and a detailed annual review of clients’ financial performance. In respect of vehicle purchases, cleared funds are taken before vehicles are released. The exception is approved fleet sales customers where the risk is continually monitored, and title is retained until receipt of full cleared funds. The Company makes a monthly accrual for bad debt provision. Interest Rate Risk: The Company has no outstanding loan facilities. All wholesale funding facilities for vehicles are tied to Bank of England Base rates. The utilisation of these lines is kept to a minimum by using our own cash reserves.
The directors use a number of key performance indicators to monitor business performance against budget but the principal measures are:
Turnover of £68,658,052 (2021 - £58,255,306) Pre-tax profit margin of 1.1% (2021 - 1.7%)
Staff turnover within the Company was 20.4% (2021 - 24.2%)
This report was approved by the board on 20 September 2023 and signed on its behalf.
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YORK WARD & ROWLATT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
The profit for the year, after taxation, amounted to £608,599 (2021 - £762,659).
There were no dividends paid during the year (2021: £Nil).
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
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YORK WARD & ROWLATT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The Directors intend for the Company to continue its strategy of organic growth.
The Directors recognise the need to develop the Company's business relationships with suppliers, customers, lenders and support services. One or more directors are in regular contact with key parties and work with interested parties to foster mutually beneficial and informed relationships.
There have been no significant events affecting the Company since the year end.
Following a rebranding exercise on 15 May 2023 the trading name of the Company's independent auditor
changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.
This report was approved by the board and signed on its behalf.
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YORK WARD & ROWLATT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF YORK WARD & ROWLATT LIMITED
We have audited the financial statements of York Ward & Rowlatt Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 United Kingdom, including the Financial Reporting Council'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.
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.
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YORK WARD & ROWLATT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF YORK WARD & ROWLATT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
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YORK WARD & ROWLATT LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF YORK WARD & ROWLATT LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Performing audit work over the risk of management override of controls, including testing of journal and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; • Reviewing minutes of meetings of those charged with governance; and • Reviewing financial statement disclosures and testing to supporting documentation to access compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Milton Keynes, United Kingdom
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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YORK WARD & ROWLATT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
REGISTERED NUMBER: 00125935
BALANCE SHEET
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 14 to 28 form part of these financial statements.
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YORK WARD & ROWLATT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
York Ward & Rowlatt Limited is a private company limited by shares, incorporated in England and Wales, registered number 00125935.
The registered office is Balmoral House, Kettering Venture Park, Kettering, NN15 6XU and the principal place of business is 10-16 St Johns Street, Wellingborough, NN8 4LG. The Company's functional and presentational currency is British Pound Sterling and the financial statements are prepared in round pounds.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Hardwater Holdings Limited as at 31 December 2022 and these financial statements may be obtained from Companies House.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income. Stock held on consignment is accounted for in the Balance sheet when the terms of the consignment agreement and commercial practice indicate that the principal benefit of owning the stock and principal risks of ownership rest with the Company.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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 key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is the valuation of stock. The risk exists that cost is in excess of the net realisable value, and provisions are not made, and vice versa. Management are involved in making these decisions on a line by line basis.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
12.Taxation (continued)
On 24 May 2021 the UK government substantively enacted the increase in the corporation tax rate from 19% to 25% with effect from 1 April 2023.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Revaluation reserve
Profit and loss account
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £71,100 (2021: £63,858). Contributions totalling £Nil (2021: £11,028) were payable to the fund at the balance sheet date and are included within creditors.
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YORK WARD & ROWLATT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The Company's ultimate parent undertaking at the balance sheet date was
Copies of the accounts of the group, including the consolidated financial statements, can be obtained from Balmoral House, Kettering Venture Park, Kettering, Northamptonshire, NN15 6XU. In the opinion of the directors the ultimate controlling parties of the parent company are
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