Company registration number 6558014 (England and Wales)
Activate Parts Limited
Financial Statements
for the year ended 30 September 2022
PAGES FOR FILING WITH REGISTRAR
Activate Parts Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
Activate Parts Limited
Statement of financial position
as at 30 September 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
5,251
733
Tangible assets
5
160,735
18,106
165,986
18,839
Current assets
Stocks
157,622
92,481
Debtors
3,785,918
1,310,234
Cash at bank and in hand
8,632
10,724
3,952,172
1,413,439
Creditors: amounts falling due within one year
(3,489,031)
(910,875)
Net current assets
463,141
502,564
Total assets less current liabilities
629,127
521,403
Provisions for liabilities
6
(29,251)
(1,643)
Net assets
599,876
519,760
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
599,776
519,660
Total equity
599,876
519,760
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 12 April 2023 and are signed on its behalf by:
L Hill
Director
Company Registration No. 6558014
Activate Parts Limited
Notes to the Financial Statements
for the year ended 30 September 2022
- 2 -
1
Accounting policies
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Going concern
At the time of approving the financial statements the directors have assessed the future trading position of the company and consider that there is a reasonable expectation that adequate financial resources are available to enable operating activities to be continued for a period of at least twelve months due to the financial support which the directors and companies within the group are committed to provide. As a consequence the directors believe that it continues to be appropriate for the financial statements to be prepared on a going concern basis.
Turnover
Turnover represents the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised on the performance of contractual service obligations where a right to consideration is due.
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
25% - 50% straight line basis
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost less depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% straight line basis
Fixtures and fittings
20% - 50% straight line basis
Motor vehicles
25% straight line basis
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Activate Parts Limited
Notes to the Financial Statements (continued)
for the year ended 30 September 2022
1
Accounting policies
(continued)
- 3 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end 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 represent accumulated differences between the company's taxable profit and its financial profit and arise primarily from the difference between accelerated capital allowances and depreciation.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Government grants
Government grants relate to Coronavirus Job Retention Scheme (CJRS) funding of staff who have been furloughed due to Covid-19. These revenue-based grants are recognised over the same period in which the related costs are incurred.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
14
8
Activate Parts Limited
Notes to the Financial Statements (continued)
for the year ended 30 September 2022
- 4 -
4
Intangible fixed assets
Development costs
£
Cost
At 1 October 2021
38,481
Additions
6,000
At 30 September 2022
44,481
Amortisation and impairment
At 1 October 2021
37,748
Amortisation charged for the year
1,482
At 30 September 2022
39,230
Carrying amount
At 30 September 2022
5,251
At 30 September 2021
733
5
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2021
3,875
49,150
20,100
73,125
Additions
169,121
169,121
At 30 September 2022
3,875
218,271
20,100
242,246
Depreciation and impairment
At 1 October 2021
3,875
31,044
20,100
55,019
Depreciation charged in the year
26,492
26,492
At 30 September 2022
3,875
57,536
20,100
81,511
Carrying amount
At 30 September 2022
160,735
160,735
At 30 September 2021
18,106
18,106
6
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
29,251
1,643
Activate Parts Limited
Notes to the Financial Statements (continued)
for the year ended 30 September 2022
- 5 -
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
James Bell
Statutory Auditor:
B M Howarth Ltd
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
307,498
3,456
10
Related party transactions
In accordance with the exemptions available to the company, related party disclosures in respect of group transactions are not disclosed on the basis that the details of the subsidiary are included in the group financial statements of the parent company.
During the year the company made sales under normal commercial terms to Activate Accident Repair Group Limited (AARG Limited) amounting to £1,682,885 (2021: £547,298).
At 30 September 2022, the trade debt due from AARG Limited was £64,099 (2021: £229,689).
During the year Activate Parts loaned cash to Activate Accident Repair Group (AARG) which resulted in the intercompany debtor increasing to £2,474,645 (2021: £19,435).
H Wilcox and L Hill are directors of Activate Accident Repair Group Limited.
11
Parent company
The parent company of Activate Parts Limited is Activate Group Limited and its registered office is West House, King Cross Road, Halifax, HX1 1EB. Group accounts are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.
12
Company information
Activate Parts Limited is a private company limited by shares incorporated in England and Wales. The registered office is West House, King Cross Road, Halifax, West Yorkshire, HX1 1EB.