REGISTERED NUMBER: 08197723 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
DRIVE FURTHER LIMITED |
REGISTERED NUMBER: 08197723 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
FOR |
DRIVE FURTHER LIMITED |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 4 |
Report of the Director | 5 | to | 6 |
Report of the Independent Auditors | 7 | to | 10 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 | to | 19 |
Notes to the Consolidated Financial Statements | 20 | to | 33 |
DRIVE FURTHER LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor and |
Chartered Accountants |
123 Wellington Road South |
Stockport |
Cheshire |
SK1 3TH |
BANKERS: | Barclays Bank plc |
1st Floor |
3 Hardman Street |
Spinningfields |
Manchester |
M3 3HF |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The director presents his strategic report of the company and the group for the year ended 31st December 2022. |
REVIEW OF BUSINESS |
The group has 3 main trading subsidiaries. MSL is a specialist provider of legal expenses and general insurance products along with associated claims handling services. Dualdrive provides vehicle solutions for niche markets including driving instructors. Supportis provides employment law and health and safety solutions for small and medium sized businesses. |
This is the first full year after pandemic continued which culminated in a increase of 44% in income to £9.2m (2021: £6.4m). |
Administrative expenses increased to £7.4m (2021: £5.9m), resulting in a profit before tax of £1.49m (2021: £381k), an increase of £1.11m. |
As anticipated, the implementation of the Civil Liability Act 2018 ("CLA") on 31 May 2021 (see Regulatory Risk section below for further information) resulted in a reduction in the volume and value of minor personal injury 'whiplash' claims with BTE legal expenses polices now including cover for these and the premiums being adjusted accordingly. |
The consolidated balance sheet shareholders' funds have increased to £2.59m (2021: £1.52m). |
Operating cash flow was fairly neutral at £33k (2021: £1.3m), due to increased working capital requirements to fund post pandemic growth. |
Colleague levels within the group are continually reviewed to ensure maximum efficiency whilst maintaining high levels of customer service. Average colleague numbers were 67 (2021: 73). |
The group continues to focus on key areas of income generation, cost control and management of working capital. |
The board would like to thank our customers and colleagues for their ongoing support of the business and their contribution towards its success. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Reserving risk |
The group's approach to reserving is based on regular evaluations of historical trends. |
Credit risk |
The risks considered are that a bank or other counterparty defaults on amounts held for or due to the group. The group's exposure to credit risk has been assessed in the context of the credit worthiness of the relevant counterparties and is controlled and managed accordingly. The group's debtor balances are analysed and reviewed on a monthly basis and the outstanding debt due has increased in line with management expectation. |
Liquidity risk |
Cash flow projections indicate an expectation that the group can continue to operate within its available banking facilities. |
Regulatory risk |
i) Risks in relation to the regulation of the group |
One set of risks considered relate to an exposure to regulatory intervention, censure or fines and any associated enforcement or legal action arising from a failure to abide by any relevant obligations. The group has processes in place to ensure that it meets its regulatory timelines and an efficient and robust risk and compliance function to enable continuous monitoring of its risks and compliance obligations. |
There is also a risk the interpretation or expectations of regulators evolves that actual or potential customer harm arises, or may arise, from the way the group or third parties conduct their business, or that changes in regulatory expectations affect the ongoing suitability of the group's products. There is a further risk of non compliance as regulations in financial services are continually changing as well as the interpretation and expectations on how companies comply with existing legislation. |
The board keeps abreast of regulatory developments and ensures information required by regulators is submitted in a timely fashion and with board approval where appropriate. |
The group does not receive many customer complaints but these are in any event reviewed on a monthly basis by senior members of the management team. |
ii) Regulatory risks affecting the group's markets |
As noted above, the government implemented the CLA effective from 31 May 2021, which has increased the small claims limit and introduced a 'whiplash' tariff, both of which are designed to discourage minor, exaggerated and fraudulent RTA whiplash claims. |
The group has been aware of and recognised for some considerable time this risk and so has had time to respond appropriately. |
Cyber risk and data protection risk |
The group is Cyber Essentials certified and this was renewed in 2023. The group ensures that any IT partners are also at least Cyber Essentials certified and in most instances works with ISO27001 compliant partners. |
The group routinely checks the cyber risk metrics within the business on a quarterly basis to ensure that we stay ahead of any emerging trends in the cyber security sector. IT development within the business follows the guidelines of the NCSC best practices. |
The group operates appropriately rigorous data protection policies and procedures within its IT security framework and also in situations where data is being handled outside the IT systems. Colleagues are trained and updated regularly on these policies and procedures |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Climate Change Risk |
As the majority of business is still legal expenses insurance, the potential exposure to financial risk from climate change is believed to be relatively low. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The group income increased in the year by 44% to £9.2m (2021: £6.4m). |
The profit for the year after taxation but before dividends was £1.22m (2021: £322k). |
The shareholders' funds of the group were £2.59m at 31 December 2022 (2021: £1.5m). |
The reduction in cash in the year was £406k (2021: Increased £143k). |
OTHER KEY PERFORMANCE INDICATORS |
There were 744 vehicles on fleet at 31 December 2022 (2021: 587). |
FUTURE DEVELOPMENTS & GOING CONCERN |
The financial statements for the group are prepared on a going concern basis in accordance with UK Generally Accepted Accounting Standards. |
As noted above The Civil Liability Act has now been implemented effective 31 May 2021. The group will continue to develop new products and strategies in order to ensure that it is well placed to overcome the challenges posed by the CLA. The group's most recent financial forecasts (including the budget for 2023) account for the impact of the CLA. |
Other than the implementation of the CLA, which the Board believes does not constitute an adjusting event, the Board is not aware of any other material post-balance sheet events. |
ON BEHALF OF THE BOARD: |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31st December 2022. |
PRINCIPAL ACTIVITIES |
The principal activity of the group is the provision of legal expenses insurance, claims handling, including first notification of loss, personal injury, medical reporting, rehabilitation, credit hire, credit repair and uninsured loss recovery. The group also provides vehicle solutions for driving instructors and employment law solutions for small and medium sized enterprises. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2022 will be £150,000. |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the group'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 directors' report. It has done so in respect of future developments and financial risk management. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
AUDITORS |
The auditors, Allens Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE FURTHER LIMITED |
Opinion |
We have audited the financial statements of Drive Further Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE FURTHER LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE FURTHER LIMITED |
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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, key drivers for the directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management and the board of directors about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedure to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management and the board of directors concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE FURTHER LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 and |
Chartered Accountants |
123 Wellington Road South |
Stockport |
Cheshire |
SK1 3TH |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 | 9,223,497 | 6,369,566 |
Administrative expenses | 7,399,002 | 5,938,385 |
1,824,495 | 431,181 |
Other operating income | 4 | 999 | 127,740 |
OPERATING PROFIT | 6 | 1,825,494 | 558,921 |
Interest receivable and similar income | 7 | 163 | 24,706 |
1,825,657 | 583,627 |
Interest payable and similar expenses | 8 | 337,364 | 202,902 |
PROFIT BEFORE TAXATION | 1,488,293 | 380,725 |
Tax on profit | 9 | 269,545 | 58,893 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,218,748 | 321,832 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,218,748 | 321,832 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,218,748 |
321,832 |
Total comprehensive income attributable to: |
Owners of the parent | 1,218,748 | 321,832 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 292,431 | 283,861 |
Tangible assets | 13 | 7,443,672 | 4,776,564 |
Investments | 14 | - | - |
7,736,103 | 5,060,425 |
CURRENT ASSETS |
Debtors | 15 | 7,590,585 | 4,752,160 |
Cash in hand | 500 | 500 |
7,591,085 | 4,752,660 |
CREDITORS |
Amounts falling due within one year | 16 | 9,035,186 | 5,805,619 |
NET CURRENT LIABILITIES | (1,444,101 | ) | (1,052,959 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,292,002 |
4,007,466 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(3,520,345 |
) |
(2,161,225 |
) |
PROVISIONS FOR LIABILITIES | 21 | (185,525 | ) | (328,857 | ) |
NET ASSETS | 2,586,132 | 1,517,384 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 827 | 827 |
Share premium | 23 | 100,000 | 100,000 |
Capital redemption reserve | 23 | 173 | 173 |
Retained earnings | 23 | 2,485,132 | 1,416,384 |
SHAREHOLDERS' FUNDS | 2,586,132 | 1,517,384 |
The financial statements were approved by the director and authorised for issue on 31st August 2023 and were signed by: |
N D Garner - Director |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 150,000 | 150,000 |
The financial statements were approved by the director and authorised for issue on |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2021 | 827 | 1,244,552 | 100,000 | 173 | 1,345,552 |
Changes in equity |
Dividends | - | (150,000 | ) | - | - | (150,000 | ) |
Total comprehensive income | - | 321,832 | - | - | 321,832 |
Balance at 31st December 2021 | 827 | 1,416,384 | 100,000 | 173 | 1,517,384 |
Changes in equity |
Dividends | - | (150,000 | ) | - | - | (150,000 | ) |
Total comprehensive income | - | 1,218,748 | - | - | 1,218,748 |
Balance at 31st December 2022 | 827 | 2,485,132 | 100,000 | 173 | 2,586,132 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st January 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31st December 2022 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 33,481 | 1,336,379 |
Interest paid | (119,913 | ) | (44,203 | ) |
Interest element of hire purchase payments paid |
(271,721 |
) |
(158,699 |
) |
Tax paid | (6,864 | ) | (24,691 | ) |
Net cash from operating activities | (365,017 | ) | 1,108,786 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (18,563 | ) | (61,936 | ) |
Purchase of tangible fixed assets | (1,367,370 | ) | (96,497 | ) |
Sale of tangible fixed assets | 1,020,403 | 1,231,082 |
Interest received | 163 | 24,706 |
Net cash from investing activities | (365,367 | ) | 1,097,355 |
Cash flows from financing activities |
Loan repayments in year | - | (46,183 | ) |
Capital repayments in year | (1,538,779 | ) | (2,527,582 | ) |
Amount introduced by directors | 100,411 | 110,863 |
Related party loans | 1,912,527 | 550,000 |
Equity dividends paid | (150,000 | ) | (150,000 | ) |
Net cash from financing activities | 324,159 | (2,062,902 | ) |
(Decrease)/increase in cash and cash equivalents | (406,225 | ) | 143,239 |
Cash and cash equivalents at beginning of year |
2 |
(1,078,293 |
) |
(1,221,532 |
) |
Cash and cash equivalents at end of year | 2 | (1,484,518 | ) | (1,078,293 | ) |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 1,488,293 | 380,725 |
Depreciation charges | 960,527 | 669,143 |
Profit on disposal of fixed assets | (260,365 | ) | (186,359 | ) |
Finance costs | 337,364 | 202,902 |
Finance income | (163 | ) | (24,706 | ) |
2,525,656 | 1,041,705 |
Increase in trade and other debtors | (2,838,425 | ) | (442,636 | ) |
Increase in trade and other creditors | 346,250 | 737,310 |
Cash generated from operations | 33,481 | 1,336,379 |
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 31st December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 500 | 500 |
Bank overdrafts | (1,485,018 | ) | (1,078,793 | ) |
(1,484,518 | ) | (1,078,293 | ) |
Year ended 31st December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 500 | 500 |
Bank overdrafts | (1,078,793 | ) | (1,222,032 | ) |
(1,078,293 | ) | (1,221,532 | ) |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1/1/22 | Cash flow | changes | At 31/12/22 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 500 | - | 500 |
Bank overdrafts | (1,078,793 | ) | (406,225 | ) | (1,485,018 | ) |
(1,078,293 | ) | (406,225 | ) | (1,484,518 | ) |
Debt |
Finance leases | (3,276,083 | ) | 1,538,779 | (3,010,310 | ) | (4,747,614 | ) |
Debts falling due |
within 1 year | (638,349 | ) | (2,012,938 | ) | - | (2,651,287 | ) |
(3,914,432 | ) | (474,159 | ) | (3,010,310 | ) | (7,398,901 | ) |
Total | (4,992,725 | ) | (880,384 | ) | (3,010,310 | ) | (8,883,419 | ) |
4. | MAJOR NON-CASH TRANSACTIONS |
During the period the group entered into hire purchase arrangements in respect of assets totalling £3,010,310 (2021: £2,193,728). |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Drive Further Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
After reviewing the group's forecasts and projections, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its consolidated financial statements. |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 31 December 2022. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Acquisitions of subsidiaries and businesses are accounted for using the acquisition method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination. |
Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated balance sheet immediately below goodwill. |
All inter-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses for the year. However, the nature of estimation means that actual outcomes could differ from those 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 revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements. |
Claims |
The group uses variety of techniques, both statistical and actuarial, to assess the likely run off of the policies on risk. Monthly management statistics include average claim costs, loss ratios and expected contribution to profit and expenses as well as a number of other parameters. |
Bad and doubtful debts |
A key area involving management judgement and estimate is in determining the provision for bad and doubtful debts for medical, rehabilitation and completed hire debts due. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Income recognition |
Turnover is measured at fair value of the consideration receivable and represents the total amount receivable for services provided in the normal course of business, excluding Value Added Tax and trade discounts. |
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. |
Goodwill |
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable net assets acquired, is capitalised and written off on a straight line basis over its estimated useful life of 5 years. Provision is made for any impairment. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Intangible assets - software & licences |
Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met: |
- it is technically feasible to complete the software so that it will be available for use; |
- management intends to complete the software and use it; |
- there is an ability to use the software; |
- it can be demonstrated how the software will generate future economic benefits; |
- adequate technical, financial and other resources to complete the development and to use the software are available; and |
- the expenditure attributable to the software during its development can be reliably measured. |
Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant & machinery | - |
Fixtures & fittings | - |
Motor vehicles | - |
Computer hardware & software | - |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Interest bearing borrowings |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. |
The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, together with loans to and from related parties. |
Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable in one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration, expected to be paid or received. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence if impairment is found, an impairment loss is recognised in the statement of comprehensive income. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Claims |
Claims consist of claims paid to policyholders, changes in the valuation of liabilities arising on policyholder contracts, net of subrogation recoveries. |
Provision is made for outstanding claims and settlement expenses incurred at the balance sheet date including an estimate for the cost of claims incurred but not reported (IBNR) at that date. Included in the provision is an estimate of the internal and external costs of handling the claims. Reinsurance recoveries are presented as assets. The methods used and estimates made are continually reviewed and any resulting adjustments are reported in the statement of income in the year in which claims are settled or re-appraised. |
Although provisions for claims are based upon the information currently available, subsequent information and events may show the ultimate liability to be greater, or less, than the amount provided. The methods used and estimates made are continually reviewed and any resulting adjustments will be reported in the year of settlement or re-appraisal. |
Dividends |
Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
Claims handling & vehicle hire | 8,202,577 | 5,213,757 |
Employment law solutions | 1,020,920 | 1,155,809 |
9,223,497 | 6,369,566 |
Turnover is from fully within the United Kingdom and is wholly attributable to the rendering of services. |
4. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Government grant income | - | 127,740 |
Sundry income | 999 | - |
999 | 127,740 |
Government grant income is from claims made during the year under the Coronavirus Job Retention Scheme. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 2,275,585 | 2,155,768 |
Social security costs | 228,821 | 199,481 |
Other pension costs | 195,446 | 65,346 |
2,699,852 | 2,420,595 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Office and administration | 51 | 58 |
Sales and marketing | 14 | 11 |
Drivers | 2 | 4 |
2022 | 2021 |
£ | £ |
Director's remuneration | 5,076 | 33,583 |
Director's pension contributions to money purchase schemes | 54,000 | - |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 4 | 754 |
Depreciation - owned assets | 218,649 | 88,968 |
Depreciation - assets on hire purchase contracts | 731,885 | 580,174 |
Profit on disposal of fixed assets | (260,365 | ) | (186,359 | ) |
Software & licenses amortisation | 9,993 | - |
Auditors' remuneration | 34,675 | 38,158 |
Operating lease rentals | 1,350,240 | 598,610 |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2022 | 2021 |
£ | £ |
Deposit account interest | 163 | 24,682 |
Corporation tax interest | - | 24 |
163 | 24,706 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | 27,719 | 15,149 |
Other loan interest | 37,924 | 29,054 |
Hire purchase interest | 271,721 | 158,699 |
337,364 | 202,902 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 290,705 | 43,667 |
Adjustment in respect of prior years | (36,803 | ) | (20,374 | ) |
Total current tax | 253,902 | 23,293 |
Deferred tax | 15,643 | 35,600 |
Tax on profit | 269,545 | 58,893 |
UK corporation tax has been charged at 19 % (2021 - 19 %). |
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: |
2022 | 2021 |
£ | £ |
Profit before tax | 1,488,293 | 380,725 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
282,776 |
72,338 |
Effects of: |
Expenses not deductible for tax purposes | 18,989 | 11,712 |
Capital allowances in excess of depreciation | (2,918 | ) | (4,783 | ) |
Adjustments to tax charge in respect of previous periods | (36,803 | ) | (20,374 | ) |
Change in Corporation Tax rate | 7,501 | - |
Total tax charge | 269,545 | 58,893 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
11. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary 'B' shares of £0.01 each |
Interim | 150,000 | 150,000 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Software |
Goodwill | & licenses | Totals |
£ | £ | £ |
COST |
At 1st January 2022 | 1,436,200 | 283,861 | 1,720,061 |
Additions | - | 18,563 | 18,563 |
At 31st December 2022 | 1,436,200 | 302,424 | 1,738,624 |
AMORTISATION |
At 1st January 2022 | 1,436,200 | - | 1,436,200 |
Amortisation for year | - | 9,993 | 9,993 |
At 31st December 2022 | 1,436,200 | 9,993 | 1,446,193 |
NET BOOK VALUE |
At 31st December 2022 | - | 292,431 | 292,431 |
At 31st December 2021 | - | 283,861 | 283,861 |
13. | TANGIBLE FIXED ASSETS |
Group |
Computer |
Plant & | Fixtures | Motor | hardware |
machinery | & fittings | vehicles | & software | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2022 | 18,168 | 239,840 | 6,397,744 | 151,139 | 6,806,891 |
Additions | 3,750 | 34,637 | 4,326,279 | 13,014 | 4,377,680 |
Disposals | - | (27,805 | ) | (1,451,680 | ) | (112,865 | ) | (1,592,350 | ) |
At 31st December 2022 | 21,918 | 246,672 | 9,272,343 | 51,288 | 9,592,221 |
DEPRECIATION |
At 1st January 2022 | 13,664 | 109,156 | 1,774,839 | 132,668 | 2,030,327 |
Charge for year | 2,162 | 41,157 | 897,287 | 9,928 | 950,534 |
Eliminated on disposal | - | (27,805 | ) | (691,642 | ) | (112,865 | ) | (832,312 | ) |
At 31st December 2022 | 15,826 | 122,508 | 1,980,484 | 29,731 | 2,148,549 |
NET BOOK VALUE |
At 31st December 2022 | 6,092 | 124,164 | 7,291,859 | 21,557 | 7,443,672 |
At 31st December 2021 | 4,504 | 130,684 | 4,622,905 | 18,471 | 4,776,564 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1st January 2022 | 5,271,741 |
Additions | 2,664,402 |
Disposals | (1,257,615 | ) |
Transfer to ownership | (340,004 | ) |
At 31st December 2022 | 6,338,524 |
DEPRECIATION |
At 1st January 2022 | 1,556,590 |
Charge for year | 731,885 |
Eliminated on disposal | (584,221 | ) |
Transfer to ownership | (311,686 | ) |
At 31st December 2022 | 1,392,568 |
NET BOOK VALUE |
At 31st December 2022 | 4,945,956 |
At 31st December 2021 | 3,715,151 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
PROVISIONS |
At 1st January 2022 |
and 31st December 2022 | 9,987,665 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
14. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Direct shareholding. |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Direct shareholding. |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
(Loss)/profit for the year | ( |
) |
Direct shareholding. |
The results of all subsidiary companies are included within these consolidated accounts. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Trade debtors | 7,112,629 | 4,345,408 |
Other debtors | 21,833 | 9,895 |
VAT | 40,434 | - |
Prepayments and accrued income | 415,689 | 396,857 |
7,590,585 | 4,752,160 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 1,485,018 | 1,078,793 |
Hire purchase contracts (see note 19) | 1,227,269 | 1,114,858 |
Trade creditors | 576,196 | 520,454 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 290,705 | 43,667 |
Social security and other taxes | 53,885 | 64,229 |
VAT | - | 49,217 | - | - |
Other creditors | 270,601 | 256,561 |
Amounts owed to related parties | 2,412,527 | 500,000 | - | - |
Directors' current accounts | 133,760 | 33,349 | - | - |
Accruals and deferred income | 2,585,225 | 2,144,491 |
9,035,186 | 5,805,619 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Hire purchase contracts (see note 19) | 3,520,345 | 2,161,225 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,485,018 | 1,078,793 |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | 1,227,269 | 1,114,858 |
Between one and five years | 3,520,345 | 2,161,225 |
4,747,614 | 3,276,083 |
Group |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year | 199,880 | 119,054 |
Between one and five years | 82,435 | 137,676 |
282,315 | 256,730 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank overdrafts | 1,485,018 | 1,078,793 |
Hire purchase contracts | 4,747,614 | 3,276,083 |
Related parties | 2,250,000 | 500,000 |
8,482,632 | 4,854,876 |
The bank overdraft and loan are secured by a cross guarantee and debenture given by Drive Further Limited and all subsidiaries. |
Hire purchase contracts are secured against the specific assets to which they relate. |
The loan received from Financial & Legal Insurance Company Ltd, a company under common control, is secured by a second charge on MSL Vehicle Solutions Ltd fixed assets, is repayable on 60 days notice and is charged interest of 5% per annum. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 39,393 | 23,750 |
Other provisions |
Insurance claims reserve | 146,132 | 305,107 |
Aggregate amounts | 185,525 | 328,857 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1st January 2022 | 23,750 | 305,107 |
Charge/(credit) to Income Statement during year | 15,643 | (65,618 | ) |
Balance at 31st December 2022 | 39,393 | 239,489 |
Please see note 2 for details given in respect of the accounting basis for other provisions. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number | Class | Nominal | 31/12/22 | 31/12/21 |
value: |
£0.01 | 27 | 27 |
£0.01 | 50 | 50 |
£0.01 | 750 | 750 |
827 | 827 |
The shares carry differential rights to dividends, but in all other respects rank pari passu. |
23. | RESERVES |
Retained earnings - includes all current and prior period retained profit and losses. |
Share premium account - this reserve includes any premiums received on issue of share capital. Any transactions costs associated with the issuing of shares are deducted from share premium. |
Capital redemption reserve - this reserve includes the nominal value of share capital re-purchased by the company and subsequently cancelled. |
24. | PENSION COMMITMENTS |
The group operates a defined contributions scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. During the year, the group contributed £195,446 (2021: £67,533) to the fund. |
DRIVE FURTHER LIMITED (REGISTERED NUMBER: 08197723) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2022 |
25. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31st December 2022 and 31st December 2021: |
2022 | 2021 |
£ | £ |
N D Garner |
Balance outstanding at start of year | - | 77,514 |
Amounts repaid | - | (77,514 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
26. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned subsidiaries within the group. |
Total key management compensation, including social security and pension contributions, was £409,098 |
Transactions with related parties to the group are as follows: |
31/12/22 | 31/12/21 |
£ | £ |
Transactions |
Turnover (1) | 194,584 | 515,911 |
Costs (1) | 202,667 | 7,112 |
Balances |
Loan due to/(from) director | 133,760 | 33,349 |
Loan due to/(from) related parties (1) | 2,412,527 | 500,000 |
Trade debtors (1) | 21,116 | 28,182 |
Trade creditors (1) | 31,000 | - |
(1) Companies under common control. The loan includes £2,250,000 which is repayable on 60 days notice and carries interest at 5% per annum. |
The loan with the director is interest free and repayable on demand. |
27. | ULTIMATE CONTROLLING PARTY |
Group and company |
The ultimate controlling party of the company is the director, N D Garner. |