REGISTERED NUMBER: SC066568 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
REGISTERED NUMBER: SC066568 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 9 |
Consolidated Income Statement | 12 |
Consolidated Other Comprehensive Income | 13 |
Consolidated Statement of Financial Position | 14 |
Company Statement of Financial Position | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Statement of Cash Flows | 19 |
Notes to the Consolidated Financial Statements | 21 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
COMPANY INFORMATION |
for the year ended 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Atlantic House |
1a Cadogan Street |
Glasgow |
G2 6QE |
BANKERS: | HSBC |
1 Centenary Square |
Birmingham |
B1 1HQ |
SOLICITORS: |
110 Queen Street |
Glasgow |
G1 3BX |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
GROUP STRATEGIC REPORT |
for the year ended 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover and operating profit. |
The turnover of the group by sector was as follows: |
2023 | 2022 |
£ | £ |
Motor Division | 982,791,018 | 845,203,962 |
Coach Hiring Operations | 28,918,746 | 19,993,218 |
1,011,709,764 | 865,197,180 |
The turnover in the Motor division increased by 16.3%. |
Trading in the financial year was largely unaffected by Covid-19, and while most issues with product availability receded in the year there have continued to be challenges associated with the lead times on certain new vehicles and parts. |
The results include full year's trading of the newly acquired sites in Arbroath, Brechin, St Boswells, Dumfries and Carlisle. |
In total, 16,219 new vehicles (2022 - 14,057) and 16,843 used vehicles (2022 - 17,344) were sold in the year. While new sales continue to show a recovery, both new and used vehicle deliveries continue to be limited by supply chain issues. Increases in the Bank of England base rate and the associated rise in the cost to consumers of financing vehicles have impacted on customer demand, which required a keen focus on improved sales processes and profitability to protect against the impact of reduced sales volumes. |
Under similar trading conditions, the Company's aftersales operations (which encompass service, body repair and parts sales) saw related turnover increase by 20.6% year on year. |
The Coach Hiring division turnover rose by 44.6%, with trading having been largely unaffected by the impact of Covid-19 for much of the year. Private hire operations returned to normal trading patterns, with turnover from seasonal tour hires, including those involving overseas trips, increasing by 164% over the prior year while the turnover from the return of school contracts and trips as well as other short hires increased by 363%. Turnover from subcontract services increased by 24.7% as services returned to more normal operation. |
Gross profit for the Group increased significantly, and operating profit increased from £44,641,708 to £45,246,316. In the Motor division there continued to be improvement in profitability in both new and used vehicle sales in spite restrictions in trading volumes. However, the Group received reduced finance commissions related to the increase in Bank of England base rates which were not fully passed on to customers. |
Employment costs, heat and light, and the interest on funding the Motor division's vehicle stocks have all shown significant increases in the year while the relief from business rates also came to an end. |
The Coach Hiring division has experienced significant pressure on employment and fuel costs, which have inevitably seen these cost having to be passed on to customers by way of increased hire prices. Interest rate rises over the year also resulted in increased funding costs on the purchasing of new vehicles. |
The impact of increased interest rates has continued to impact on trading into the 2023-24 financial year. Management is monitoring the situation closely and continues to be keenly focused on profitability and cost control. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
GROUP STRATEGIC REPORT |
for the year ended 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The strategic direction of the Group is aligned to manage the principal risks identified by the Directors as follows: |
Operational risk |
The Group's Motor division is dependent on supply chains which are outside the influence of the Directors, the failure of which would risk the ability to meet customer demands and the Group's financial goals. Risk is managed through regular and proactive dialogue with suppliers to ensure customer demand is met through reliable delivery of vehicles and associated products. |
The Coach Hiring division relies on the ability of the Group to maintain an operational fleet of vehicles to reliably meet the requirements of customers. Risks are managed by the development of a rigorous maintenance and repair program which includes the support of key suppliers. |
Market and strategic risks |
The Group's profitability and cash flow are affected by changes in market conditions and the ability of the Directors to accurately predict these in advance. The Group places increasing emphasis on the careful management of the purchasing and maintaining of used vehicle inventory and sales profitability to provide the Group with protection against shortfalls in new vehicle demand. |
The emergence of Covid-19 restrictions has highlighted the importance of being able to adapt sales processes to meet changing customer demands and behaviours. The Directors recognise the emergence of online sales platforms from both manufacturers and internet consolidators which increase competition and threaten to reduce profitability of sales. The Group is focused on retaining customers by providing a high standard of service across all sales channels. |
Competitive risk |
The marketplace continues to be competitive but the Group benefits from a wide geographical presence, well diversified operations and brand portfolio, and a focus on maintaining a strong reputation for service and quality. |
Regulatory and legislative risk |
The Company operates in a highly regulated marketplace and is regulated by the FCA for general insurance broking and consumer credit purposes. The Company operates under the Senior Managers and Certification Regime (SMCR), with responsibilities appropriately allocated to Directors and senior Group managers. The Directors have taken appropriate steps to ensure the Company is compliant with the recent introduction of the Consumer Duty. |
The Directors are committed to ensuring the Company complies with all legislation and directives applicable to the Company's activity. |
The impact of Brexit and risks associated with changing legislation and regulation continue to be monitored by the Directors. |
Covid-19 emerged as significant risks to business continuity, and the Directors have ensured decisions and actions can be taken swiftly to minimise cost and disruption while maximising trading opportunities should similar disruption arise in the future. |
Financial Risk Management |
The main risks associated with the company's financial assets and liabilities are set out below. |
Liquidity Risk |
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows. In the event that the operating cash flows would not cover all the financial obligations the company has credit facilities available. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
GROUP STRATEGIC REPORT |
for the year ended 31 MARCH 2023 |
Interest Rate Risk |
The company borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the asset and management's view of the future direction of interest rate. |
Credit Risk |
The company has external debtors, however, the company undertakes assessments of its customers in order to ensure that credit is not extended where there is a likelihood of default |
SECTION 172(1) STATEMENT |
The Directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be the most likely to promote the success of the Group for the benefit of its members as a whole and, in doing so, to have regard amongst other matters) to: |
The interests of the Group's employees; |
The need to foster the Group's relationships with suppliers, customers and others; |
The impact of the Group's operations on the community and the environment; and |
The desirability of the Group maintaining a reputation for high standards of business conduct. |
Employees |
The Group's employees are key to delivering the overall strategy. Ensuring that the business has the right values and culture is of paramount importance to the continued success of the Group's business. |
The business engages on a regular basis with all of its employees, including regular team meetings, appraisals, apprenticeship programmes and various training and development courses. |
Customers |
The Group is committed to delivering a professional, industry leading customer experience across all activities. Customer feedback is collected from a number of sources. The Group regularly carries out mystery shopping exercises to assess the quality of the sales process and we aim to treat all customers fairly. |
Suppliers |
The Motor division works closely with a wide variety of motor manufacturers under a franchise business model. Successful operation is dependent on the continued maintenance of strong relationships with those manufacturers and their financing partners through regular engagement and participation in conferences and dealer councils. |
The Group is committed to developing strong relationships with suppliers across all activities to drive value, ensure continuity of service and improve customer outcomes. |
Community and Environment |
The Group values the importance of making a positive impact and maintaining its physical presence in each of its operating locations by engaging in the local community in which it operates. |
The Directors are committed to delivering a corporate social responsibility strategy that sets the aim to be environmentally responsible, a good neighbour and an excellent workplace. |
ON BEHALF OF THE BOARD: |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
REPORT OF THE DIRECTORS |
for the year ended 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of the operation of a fleet of luxury coaches; the sale and service of private and commercial vehicles; the sale of motor fuels, oils and accessories; the operation of vehicle body repair centres and the rental of properties. |
DIVIDENDS |
Interim dividends totalling 54.948p per share were paid during the year. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2023 will be £ 10,990,002 . |
FUTURE DEVELOPMENTS |
The directors will continue to look for opportunities to expand the company's core business. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Qualifying third party indemnity provisions |
The company has put in place qualifying third party indemnity provisions for all of the directors. |
GOING CONCERN |
The directors are of the opinion that the financial statements should be prepared on a going concern basis. In forming this opinion, the directors have considered forecasts prepared taking into account the information currently available as well as several severe downside scenarios. The group's balance sheet has strong reserves and trading since the year end has been good, there is no reason to believe that the group's current funding and liquidity position is not sufficient. |
EMPLOYEES |
Every effort is made to keep staff informed of and involved in the operations and progress of the Group. |
The company is committed to providing a safe and pleasant environment for its employees and training and career development opportunities are available. No discrimination is made on the grounds of age, colour, disability, marital status, race, religion or sex. Employees are given the opportunity to develop and progress according to their ability. Disabled people are given fair consideration for all job vacancies for which they offer themselves as suitable applicants, having regard to their particular aptitudes and abilities. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
REPORT OF THE DIRECTORS |
for the year ended 31 MARCH 2023 |
STREAMLINED ENERGY AND CARBON REPORTING |
As part of the Streamlined Energy and Carbon Reporting (SECR) regulations, the Group is reporting the annual greenhouse gas emissions from 1 April 2022 to 31 March 2023. This includes all emissions sources for scopes 1 and 2 plus scope 3 emissions we deem ourselves responsible for where information is practically available. The company has taken advantage of the exemption from making individual reports in subsidiary companies by reporting on a consolidated basis. |
The gross carbon emissions for Park's of Hamilton (Holdings) Limited were 17,119 (2022 - 15,834) tonnes of carbon dioxide and equivalent gases (TCO2e). Net carbon emissions were 15,570 (2022 - 13,534) tonnes of carbon dioxide and equivalent gases (TCO2e). |
TCO2e by Scope |
Year Ended | Year Ended |
31 March 2023 | 31 March 2022 |
(TCO2e) | (TCO2e) |
Gross Emissions |
Scope 1 (Direct emissions) | 15,276 | 13,973 |
Scope 2 (Indirect emissions) | 1,626 | 1,713 |
Scope 3 (Other indirect emissions) | 217 | 148 |
Total - Gross | 17,119 | 15,834 |
Net Emissions |
Scope 1 (Direct emissions) | 15,276 | 13,973 |
Scope 2 (Indirect emissions) | 77 | 13 |
Scope 3 (Other indirect emissions) | 217 | 148 |
Total - Net | 15,570 | 13,534 |
Intensity ratios |
Gross Emissions |
TCO2e per 1000 operated miles (coach fleet) | 1.30 | 1.51 |
TCO2e per m2 (motor trade property) | 0.06 | 0.06 |
Net Emissions |
TCO2e per 1000 operated miles (coach fleet) | 1.30 | 1.51 |
TCO2e per m2 (motor trade property) | 0.04 | 0.04 |
The increased emissions in the year are to be expected as coach operations return to normal trading patterns and a commensurate increase in mileage. The increased proportion of the mileage operated by our private hire vehicles has resulted in a fall in emissions per mile, the vehicles generally being smaller and younger on average than the city-to-city vehicles. Energy usage in the group's properties was broadly comparable, with increases attributable to the addition of new properties in the early part of 2022. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
REPORT OF THE DIRECTORS |
for the year ended 31 MARCH 2023 |
The diesel used to fuel the coach fleet is responsible for 72% of the Group's overall greenhouse gas emissions, up from 70% in 2022 on a gross basis. There continue to be few options presently available to decarbonise the coach operations and we are committed to replacing vehicles with zero emissions powertrains when such options are commercially viable. The vehicles operated by the group are usually less than five years old and purchased new from the manufacturer, complying with emissions regulations at the time of registration. Systems are in place to monitor fuel efficiency and vehicles are maintained to a high standard. |
The remaining emissions are derived from the heating and powering of the Group's properties and the running of vehicles including demonstrator and courtesy cars, and parts delivery vans. |
The Directors are committed to procuring our energy supplies from renewable sources wherever possible and to the ongoing improvement of the efficiency of heating systems and electrical fittings. Monitoring of the Group's electricity is well established and steps have been taken to adopt the same process for gas consumption for the 2024-2025 financial year. Monitoring of the group's usage of diesel and petrol for non-coach operations has been identified as an area which would benefit from improved monitoring, options for which will be investigated in the coming year. |
The energy efficiency policy introduced during the year has resulted in considerable reductions in consumption in a number of locations. The Group continues to invest in energy saving measures including the installation of solar panels for electricity generation with battery storage, timers and photocells for controlling more efficient outdoor lighting, and the replacement of older HVAC systems. Installation of electric vehicle chargers at all sites in accordance with manufacturer standards is ongoing. |
The Group is committed to working closely with our strategic partners to work towards the achievement of Net Zero in the longer term. |
Methodology |
The methodology used to calculate our emissions is based on financial control in accordance with the principles of ISO14064 and the WRI/WBCSD GHG Reporting Protocols (revised edition), utilising conversion factors for the period reported as issued by the UK Government. |
For clarity 'Gross tCO2e' has been developed using then national grid standard carbon emission factor whereas 'Net tCO2e' has been developed using market-based emission factor where a REGO/RGGO certificate is present. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
REPORT OF THE DIRECTORS |
for the year ended 31 MARCH 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Thomas Barrie & Co LLP, 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 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of Park's of Hamilton (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
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 risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the group and management. |
We considered the nature of the industry of the group and its control environment, and reviewed the documentation of the group policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. |
We obtained an understanding of the legal and regulatory frameworks that the group operates in, and identified the key laws and regulations that: |
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, tax legislation, pensions legislation, financial conduct authority regulation and data protection regulations; and |
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the ability of the group to operate or to avoid a material penalty. |
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARK'S OF HAMILTON (HOLDINGS) LIMITED |
In common with all audits under ISA's (UK), we are also required to perform specific procedures to respond to the risk of management override of controls and revenue recognition. |
In addressing the risk of fraud through management override of controls and revenue recognition, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addition to the above, our procedures to respond to the risks identified included the following: |
- reviewing financial statement disclosures to underlying supporting documentation, |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud, |
- enquiring of management and legal counsel concerning actual and potential litigation and claims, and instances of non-compliance of laws and regulations, and |
- reviewing minutes of those charges with governance. |
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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Atlantic House |
1a Cadogan Street |
Glasgow |
G2 6QE |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 1,011,709,764 | 865,197,180 |
Other operating income | 4 | 12,306,165 | 17,451,170 |
1,024,015,929 | 882,648,350 |
Raw materials and consumables | (875,235,782 | ) | (755,668,112 | ) |
148,780,147 | 126,980,238 |
Staff costs | 5 | (71,274,808 | ) | (59,731,501 | ) |
Depreciation | (6,865,901 | ) | (5,436,595 | ) |
Other operating expenses | (25,428,329 | ) | (17,170,430 | ) |
OPERATING PROFIT | 6 | 45,211,109 | 44,641,712 |
Interest receivable and similar income | 77,751 | 1,495 |
45,288,860 | 44,643,207 |
Interest payable and similar expenses | 7 | (3,398,145 | ) | (1,531,226 | ) |
PROFIT BEFORE TAXATION | 41,890,715 | 43,111,981 |
Tax on profit | 8 | (7,100,639 | ) | (8,142,993 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 34,790,076 | 34,968,988 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 34,790,076 | 34,968,988 |
OTHER COMPREHENSIVE LOSS |
Actuarial losses | (60,000 | ) | (60,000 | ) |
GMP Equalisation |
Income tax relating to other comprehensive loss |
- |
- |
OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX |
(60,000 |
) |
(60,000 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
34,730,076 |
34,908,988 |
Total comprehensive income attributable to: |
Owners of the parent | 34,730,076 | 34,908,988 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 2,018,163 | 1,729,887 |
Tangible assets | 13 | 122,561,064 | 124,724,864 |
Investments | 14 | 1 | 1 |
Investment property | 15 | 12,655,000 | 12,082,187 |
137,234,228 | 138,536,939 |
CURRENT ASSETS |
Stocks | 16 | 152,541,084 | 128,842,056 |
Debtors | 17 | 47,833,195 | 40,409,747 |
Cash at bank and in hand | 3,720,639 | 18,927,013 |
204,094,918 | 188,178,816 |
CREDITORS |
Amounts falling due within one year | 18 | (181,757,011 | ) | (186,454,951 | ) |
NET CURRENT ASSETS | 22,337,907 | 1,723,865 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
159,572,135 |
140,260,804 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(9,961,181 |
) |
(14,376,429 |
) |
PROVISIONS FOR LIABILITIES | 24 | (1,995,647 | ) | (2,009,142 | ) |
NET ASSETS | 147,615,307 | 123,875,233 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 20,000,004 | 20,000,004 |
Retained earnings | 26 | 127,615,303 | 103,875,229 |
SHAREHOLDERS' FUNDS | 147,615,307 | 123,875,233 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2023 and were signed on its behalf by: |
A G Noble - Director |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank and in hand | ( |
) |
CREDITORS |
Amounts falling due within one year | 18 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 32,544,600 | 24,875,238 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 20,000,004 | 78,466,243 | 98,466,247 |
Changes in equity |
Dividends | - | (9,500,002 | ) | (9,500,002 | ) |
Total comprehensive income | - | 34,908,988 | 34,908,988 |
Balance at 31 March 2022 | 20,000,004 | 103,875,229 | 123,875,233 |
Changes in equity |
Dividends | - | (10,990,002 | ) | (10,990,002 | ) |
Total comprehensive income | - | 34,730,076 | 34,730,076 |
Balance at 31 March 2023 | 20,000,004 | 127,615,303 | 147,615,307 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 47,608,852 | 21,753,694 |
Interest paid | (3,154,062 | ) | (1,328,549 | ) |
Interest element of hire purchase payments paid |
(244,083 |
) |
(202,677 |
) |
Tax paid | (7,287,777 | ) | (7,272,133 | ) |
Net cash from operating activities | 36,922,930 | 12,950,335 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (514,132 | ) | (1,744,424 | ) |
Purchase of tangible fixed assets | (5,522,542 | ) | (14,329,214 | ) |
Purchase of investment property | (45,012 | ) | (437,187 | ) |
Sale of tangible fixed assets | 3,083,767 | 1,608,029 |
Sale of investment property | 430,980 | - |
Interest received | 77,751 | 1,495 |
Net cash from investing activities | (2,489,188 | ) | (14,901,301 | ) |
Cash flows from financing activities |
New loans in year | - | 29,092,234 |
Loan repayments in year | (34,785,571 | ) | (3,600,000 | ) |
Capital repayments in year | (3,864,543 | ) | (4,007,072 | ) |
Amount introduced by directors | - | 187,475 |
Equity dividends paid | (10,990,002 | ) | (9,500,002 | ) |
Net cash from financing activities | (49,640,116 | ) | 12,172,635 |
(Decrease)/increase in cash and cash equivalents | (15,206,374 | ) | 10,221,669 |
Cash and cash equivalents at beginning of year |
2 |
18,927,013 |
8,705,344 |
Cash and cash equivalents at end of year | 2 | 3,720,639 | 18,927,013 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 41,890,715 | 43,111,981 |
Depreciation charges | 6,243,918 | 5,748,573 |
Profit on disposal of fixed assets | (463,236 | ) | (311,978 | ) |
Impairment of investment properties | 1,085,220 | - |
Pension adjustments | (60,000 | ) | (60,000 | ) |
Finance costs | 3,398,145 | 1,531,226 |
Finance income | (77,751 | ) | (1,495 | ) |
52,017,011 | 50,018,307 |
Increase in stocks | (23,699,028 | ) | (11,648,996 | ) |
Increase in trade and other debtors | (7,567,427 | ) | (5,792,120 | ) |
Increase/(decrease) in trade and other creditors | 26,858,296 | (10,823,497 | ) |
Cash generated from operations | 47,608,852 | 21,753,694 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 3,720,639 | 18,927,013 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 18,927,013 | 19,386,660 |
Bank overdrafts | - | (10,681,316 | ) |
18,927,013 | 8,705,344 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the year ended 31 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.4.22 | Cash flow | changes | At 31.3.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 18,927,013 | (15,206,374 | ) | 3,720,639 |
18,927,013 | (15,206,374 | ) | 3,720,639 |
Debt |
Finance leases | (10,873,921 | ) | 3,864,543 | (2,996,250 | ) | (10,005,628 | ) |
Debts falling due |
within 1 year | (65,481,907 | ) | 31,185,571 | - | (34,296,336 | ) |
Debts falling due |
after 1 year | (7,200,000 | ) | 3,600,000 | - | (3,600,000 | ) |
(83,555,828 | ) | 38,650,114 | (2,996,250 | ) | (47,901,964 | ) |
Total | (64,628,815 | ) | 23,443,740 | (2,996,250 | ) | (44,181,325 | ) |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Park's of Hamilton (Holdings) Limited is a private company, limited by shares, registered in Scotland. The company's registered number is SC066568 and its registered office is Park House, 14 Bothwell Road, Hamilton ML3 0AY. |
The presentation currency of the financial statements is Pounds Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of accounts and changes in presentation during the year |
Going Concern |
The group meets its day to day working capital requirements through loans from finance houses and a group overdraft facility which is due for renewal within the next financial year. |
The group's forecasts and projections, taking into account of possible changes in trading performance, show that the they will be able to operate within the level of current facilities. The group will open renewal negotiations with the bank in due course, who have indicated that it is their intention to renew all group facilities. The group has held discussions with its bankers about its future borrowing needs and no matters have been drawn to its attention to suggest that finance may not be forthcoming on acceptable terms. |
Basis of consolidation |
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is written off in the year of acquisition |
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. |
Significant judgements and estimates |
In preparing these consolidated financial statements, the directors are required to make judgements, estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. |
The following areas provide estimation uncertainty: |
Fixed assets |
The estimates and assumptions made to determine asset lives require judgements to be made as regards useful lives and residual values. The useful lives and residual values of the company's financial assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on management experience with similar assets. |
Investment Properties |
Investment properties are included in the accounts at fair value based on the local market. |
Used Vehicle Stock |
Used vehicle stock valuations which are derived from expert vehicle valuation data and directors' judgements. |
Bad Debts |
Bad debts are provided for where objective evidence of the need for a provision exists. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of consideration received or receivable, taking into account the amount of any discounts and rebates allowed by the entity, but excluding value added tax and other sales taxes. |
Sale of Goods |
Revenue is recognised when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. Revenue is measured net of returns, trade discounts and volume rebates. |
Services |
The company recognises revenue from rendering of services in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed based on surveys of work performed. |
Commission |
If the Company acts in the capacity of an agent rather than as the principal in a transaction, then the revenue recognised is the net amount of commission made by the Company. |
Rental of investment properties |
Rental income from investment property is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. |
Goodwill |
Goodwill represents the excess of the fair value of the consideration given over the fair value of the separable net assets acquired. |
Goodwill arising on acquisition has been charged to the profit and loss account in the year in which it arose in earlier years. |
From 2022 onwards, amortisation is calculated in order to write down the cost to the estimated residual values over the period of the estimated useful economic lives. In the absence of a readily ascertainable useful life, this has been set at 10 years in line with the requirements of FRS102. |
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. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost each asset less its estimated residual value over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Freehold property | - 2% on cost |
Improvements to property | - 10% on cost |
Plant & machinery | - 10% to 25% on cost |
Fixtures and fittings | - 10% to 25% on cost |
Motor Vehicles : |
Other company vehicles | - 25% or 50% on cost |
Coaches | - from 10% on cost |
Cherished plates | - not provided |
Computer equipment | - 25% on cost |
No depreciation has been charged in the year on freehold property as none is required under FRS 102 as the market value is in excess of the accounts value. |
The carrying value of tangible fixed assets are reviewed annually for impairment if events or changes in circumstances indicate the carrying value may not be reasonable. |
Investment property |
Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including related transaction costs. Subsequently, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit and loss in the period in which they arise. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Vehicle stock held on a consignment basis are not recorded in the balance sheet. Amounts paid for these vehicles are reflected within debtors as deposits. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in nonconvertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised 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 method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents comprises cash balances. Bank overdrafts that are payable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement. |
Creditors |
Short term trade 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. |
Provisions |
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Interest is charged on a reducing balance basis. |
Pension costs and other post-retirement benefits |
The pension scheme liabilities are measured using a projected unit method and discounted at an AA corporate bond rate. The pension scheme assets are valued at market rate. The pension scheme surplus (to the extent that it can be recovered) is recognised in full on the balance sheet. |
The group also operates defined contribution pension schemes. Contributions payable are charged to the profit and loss account in the period to which they relate. |
Short-term employee benefits |
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
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: |
2023 | 2022 |
£ | £ |
Sale of goods | 955,507,734 | 822,325,871 |
Service income | 56,202,030 | 42,871,309 |
1,011,709,764 | 865,197,180 |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 1,297,527 | 1,292,355 |
Sundry receipts | 11,008,638 | 12,237,468 |
Government grants | - | 3,921,347 |
12,306,165 | 17,451,170 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 63,187,069 | 53,349,441 |
Social security costs | 6,547,373 | 5,182,762 |
Other pension costs | 1,540,366 | 1,199,298 |
71,274,808 | 59,731,501 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and Management | 584 | 557 |
Production | 1,530 | 1,350 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 2,212,879 | 1,635,189 |
Directors' pension contributions to money purchase schemes | 159,827 | 78,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 6 | 4 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 561,924 | 301,840 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 18,889 | 466 |
Depreciation - owned assets | 3,080,553 | 2,553,008 |
Depreciation - assets on hire purchase contracts | 2,937,508 | 3,181,031 |
Profit on disposal of fixed assets | (463,236 | ) | (311,978 | ) |
Goodwill amortisation | 225,856 | 14,537 |
Auditors' remuneration | 92,164 | 77,850 |
Auditors remuneration for non-audit services | 27,500 | 25,000 |
Auditors remuneration for tax services | 7,500 | 5,000 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 315,778 | 177,715 |
Stocking interest | 2,838,284 | 1,150,834 |
Hire purchase | 244,083 | 202,677 |
3,398,145 | 1,531,226 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 7,205,353 | 7,204,774 |
Underprovided in previous year | 456 | - |
Overprovided in previous year | (91,675 | ) | (5,521 | ) |
Total current tax | 7,114,134 | 7,199,253 |
Deferred tax | (13,495 | ) | 943,740 |
Tax on profit | 7,100,639 | 8,142,993 |
UK corporation tax has been charged at 19 % (2022 - 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: |
2023 | 2022 |
£ | £ |
Profit before tax | 41,890,715 | 43,111,981 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
7,959,236 |
8,191,276 |
Effects of: |
Expenses not deductible for tax purposes | 23,696 | 26,557 |
Income not taxable for tax purposes | 254,166 | - |
Capital allowances in excess of depreciation | (1,250,053 | ) | (1,062,937 | ) |
Adjustments to tax charge in respect of previous periods | (91,219 | ) | (5,521 | ) |
actuarial loss |
Movement in deferred taxation | (13,495 | ) | 943,740 |
Impairment of investment property | 206,192 | - |
Capital gains | 12,116 | 49,878 |
Total tax charge | 7,100,639 | 8,142,993 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial losses | (60,000 | ) | - | (60,000 | ) |
GMP Equalisation |
(60,000 | ) | - | (60,000 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial losses | (60,000 | ) | - | (60,000 | ) |
GMP Equalisation |
(60,000 | ) | - | (60,000 | ) |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim | 10,990,002 | 9,500,002 |
11. | OPERATING LEASES: LESSOR |
The Company rents out various properties to tenants. Lease agreements are drawn up over varying lengths. The resulting rental income is accounted for on the accruals basis. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 | 1,744,424 |
Additions | 514,132 |
At 31 March 2023 | 2,258,556 |
AMORTISATION |
At 1 April 2022 | 14,537 |
Amortisation for year | 225,856 |
At 31 March 2023 | 240,393 |
NET BOOK VALUE |
At 31 March 2023 | 2,018,163 |
At 31 March 2022 | 1,729,887 |
13. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 | 100,310,392 | 6,495,917 | 7,025,772 |
Additions | 131,450 | 654,485 | 734,451 |
Disposals | - | (931,287 | ) | (596,365 | ) |
Reclassification/transfer | (2,044,000 | ) | - | - |
At 31 March 2023 | 98,397,842 | 6,219,115 | 7,163,858 |
DEPRECIATION |
At 1 April 2022 | 6,114,219 | 2,908,750 | 5,355,640 |
Charge for year | - | 691,887 | 546,267 |
Eliminated on disposal | - | (547,536 | ) | (531,872 | ) |
At 31 March 2023 | 6,114,219 | 3,053,101 | 5,370,035 |
NET BOOK VALUE |
At 31 March 2023 | 92,283,623 | 3,166,014 | 1,793,823 |
At 31 March 2022 | 94,196,173 | 3,587,167 | 1,670,132 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2022 | 5,537,095 | 35,685,156 | 1,626,902 | 156,681,234 |
Additions | 478,587 | 6,237,079 | 282,740 | 8,518,792 |
Disposals | (354,047 | ) | (5,260,621 | ) | (693,451 | ) | (7,835,771 | ) |
Reclassification/transfer | - | - | - | (2,044,000 | ) |
At 31 March 2023 | 5,661,635 | 36,661,614 | 1,216,191 | 155,320,255 |
DEPRECIATION |
At 1 April 2022 | 4,374,803 | 11,965,397 | 1,237,561 | 31,956,370 |
Charge for year | 507,522 | 4,069,531 | 202,854 | 6,018,061 |
Eliminated on disposal | (318,645 | ) | (3,132,195 | ) | (684,992 | ) | (5,215,240 | ) |
At 31 March 2023 | 4,563,680 | 12,902,733 | 755,423 | 32,759,191 |
NET BOOK VALUE |
At 31 March 2023 | 1,097,955 | 23,758,881 | 460,768 | 122,561,064 |
At 31 March 2022 | 1,162,292 | 23,719,759 | 389,341 | 124,724,864 |
Cost or valuation at 31 March 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 1990 | 11,675,000 | - | - |
Cost | 86,722,842 | 6,219,115 | 7,163,858 |
98,397,842 | 6,219,115 | 7,163,858 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 1990 | - | - | - | 11,675,000 |
Cost | 5,661,635 | 36,661,614 | 1,216,191 | 143,645,255 |
5,661,635 | 36,661,614 | 1,216,191 | 155,320,255 |
All of the property valuations were valued on an existing use basis on 21 November 1990. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
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 OR VALUATION |
At 1 April 2022 | 23,291,152 |
Additions | 3,587,099 |
Transfer to ownership | (3,633,608 | ) |
At 31 March 2023 | 23,244,643 |
DEPRECIATION |
At 1 April 2022 | 6,453,472 |
Charge for year | 2,937,508 |
Transfer to ownership | (2,174,338 | ) |
At 31 March 2023 | 7,216,642 |
NET BOOK VALUE |
At 31 March 2023 | 16,028,001 |
At 31 March 2022 | 16,837,680 |
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
Reclassification/transfer | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Cost or valuation at 31 March 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 1990 | 11,675,000 | - | - |
Cost | 86,722,841 | 6,751,883 | 124,632 |
98,397,841 | 6,751,883 | 124,632 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 1990 | - | - | - | 11,675,000 |
Cost | 359,917 | 3,337,086 | 335,456 | 97,631,815 |
359,917 | 3,337,086 | 335,456 | 109,306,815 |
All of the property valuations were valued on an existing use basis on 21 November 1990. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
14. | FIXED ASSET INVESTMENTS |
The following are the subsidiaries of Parks of Hamilton (Holdings) Ltd. All companies are incorporated in Scotland, unless otherwise stated, and wholly owned. All trading companies, with the exception of Park's of Hamilton (Coach Hirers) Ltd, which is involved in luxury coach hiring, are involved in the motor trade. All subsidiaries are 100% owned and the registered office for all is Park House, 14 Bothwell Road, Hamilton, ML3 0AY. All subsidiaries are included in the consolidated accounts. |
Park's of Hamilton (Townhead Garage) Ltd |
Park's of Hamilton (Coach Hirers) Ltd |
Douglas Park Ltd |
Park's (Ayr) Ltd |
Borders Automobile Company Ltd |
Thistle Contract Hire and Leasing Ltd (non-trading) |
Park's of Hamilton Ltd (non-trading) |
Trathens Travel Services Ltd (registered in England and non-trading) |
Mackay & Jardine Ltd (non-trading) |
Macrae & Dick Ltd (non-trading) |
Menzies Motors Ltd (non-trading) |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 April 2022 | 12,082,187 |
Additions | 45,012 |
Disposals | (430,980 | ) |
Impairments | (1,085,219 | ) |
Reclassification/transfer | 2,044,000 |
At 31 March 2023 | 12,655,000 |
NET BOOK VALUE |
At 31 March 2023 | 12,655,000 |
At 31 March 2022 | 12,082,187 |
The investment properties were valued at fair value by DM Hall, Chartered Surveyors at 5th April 2023, 11th May 2023 & 18th May 2023. An external inspection of the properties was carried out and the valuations were based on the continuation of any existing leases and their knowledge of the local area. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
15. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
Impairments | (1,085,219 | ) |
Reclassification/transfer | 2,044,000 |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
16. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 151,634,401 | 128,218,177 |
Work-in-progress | 906,683 | 623,879 |
152,541,084 | 128,842,056 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 24,709,680 | 17,944,568 |
Amounts owed by group undertakings | - | - |
Other debtors | 7,846,270 | 12,164,488 | 2,118,096 | 6,302,893 |
Stocking deposits | - | 62,000 | - | - |
Tax | 6,002,585 | 6,146,564 |
Deferred tax asset | - | - | 84,337 | 84,337 |
Prepayments and accrued income | 9,274,660 | 4,092,127 |
47,833,195 | 40,409,747 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 3,600,000 | 3,600,000 |
Other loans (see note 20) | 30,696,336 | 61,881,907 |
Hire purchase contracts (see note 21) | 3,644,447 | 3,697,492 |
Trade creditors | 118,820,503 | 90,498,813 |
Amounts owed to group undertakings | - | - |
Tax | 7,203,359 | 7,520,981 |
Social security and other taxes | 2,171,920 | 1,671,619 |
VAT | 4,364,428 | 4,321,975 | 320,402 | 112,783 |
Other creditors | 6,644,475 | 7,200,944 |
Accrued expenses | 4,611,543 | 6,061,220 |
181,757,011 | 186,454,951 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 20) | 3,600,000 | 7,200,000 |
Hire purchase contracts (see note 21) | 6,361,181 | 7,176,429 |
9,961,181 | 14,376,429 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | - |
Bank loans | 3,600,000 | 3,600,000 |
Other loans | 30,696,336 | 61,881,907 |
34,296,336 | 65,481,907 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 3,600,000 | 3,600,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 3,600,000 |
The other loans represent the vehicle stocking facility which is secured over the vehicle stocks and is repayable on demand. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 3,920,286 | 3,896,941 |
Between one and five years | 6,625,679 | 7,380,620 |
10,545,965 | 11,277,561 |
Finance charges repayable: |
Within one year | 275,839 | 199,449 |
Between one and five years | 264,498 | 204,191 |
540,337 | 403,640 |
Net obligations repayable: |
Within one year | 3,644,447 | 3,697,492 |
Between one and five years | 6,361,181 | 7,176,429 |
10,005,628 | 10,873,921 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 339,855 | 241,007 |
Between one and five years | 644,071 | 651,516 |
In more than five years | 4,448,760 | 4,495,920 |
5,432,686 | 5,388,443 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 7,200,000 | 10,800,000 |
Other loans | 30,696,336 | 61,881,907 |
Hire purchase contracts | 10,005,628 | 10,873,921 |
47,901,964 | 83,555,828 |
The parent company and all but the non trading subsidiaries have granted Bonds and Floating Charges in favour of HSBC plc. The parent company together with Douglas Park Limited, Park's of Hamilton (Townhead Garage) Ltd and Park's (Ayr) Limited have granted Bonds and Floating Charges in favour of Santander Consumer (UK) plc. |
In addition, the parent company has granted Standard Securities in favour of Bank of Scotland plc and has granted Standard Securities to HSBC plc in respect of group borrowings. |
23. | FINANCIAL INSTRUMENTS |
The carrying amount for each category of financial instrument is as follows |
Group |
2023 | 2022 |
£ | £ |
Financial assets |
Cash & cash equivalents | 3,720,639 | 18,927,013 |
Financial assets that are debt instruments measured at amortised cost | 32,555,950 | 30,171,056 |
36,276,589 | 49,098,069 |
Financial liabilities |
Financial liabilities measured at amortised cost | 173,366,942 | 181,255,585 |
Company |
The carrying amount for each category of financial instrument is as follows |
2023 | 2022 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost | 5,616,671 | 8,275,199 |
Financial liabilities |
Financial liabilities measured at amortised cost | 67,323,019 | 86,155,872 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
24. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 2,269,984 | 2,283,479 |
Other timing differences | (274,337 | ) | (274,337 | ) |
1,995,647 | 2,009,142 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 2,009,142 |
Provided during year | (13,495 | ) |
Balance at 31 March 2023 | 1,995,647 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 | ( |
) |
Balance at 31 March 2023 | ( |
) |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 20,000,004 | 20,000,004 |
26. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 April 2022 | 103,875,229 |
Profit for the year | 34,790,076 |
Dividends | (10,990,002 | ) |
Actuarial Gain (Loss) | (60,000 | ) |
At 31 March 2023 | 127,615,303 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
26. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
Actuarial Gain (Loss) | (60,000 | ) |
At 31 March 2023 |
Retained earnings - Includes all current and prior year retained profits and losses less dividends. |
27. | EMPLOYEE BENEFIT OBLIGATIONS |
As part of the acquisition of Macrae & Dick Limited the company became responsible for a hybrid defined benefits scheme. For service before 6 April 1997 the benefits paid must be at least equal to the member's Guaranteed Minimum Pension (GMP). |
A full actuarial valuation was carried out on 1 May 2019 and updated to 31 March 2023 by a qualified independent actuary. |
The employer pays additional contributions for death in service benefits, scheme expenses and PPF levies. |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Present value of funded obligations | (763,000 | ) | (1,073,000 | ) |
Fair value of plan assets | 763,000 | 1,073,000 |
- | - |
Present value of unfunded obligations | - | - |
Deficit | - | - |
Net liability | - | - |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
27. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
(12,000 |
) |
(6,000 |
) |
Past service cost | - | - |
(12,000 | ) | (6,000 | ) |
Actual return on plan assets | 42,000 | 31,000 |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening defined benefit obligation | 1,073,000 | 1,256,000 |
Interest cost | 30,000 | 25,000 |
Benefits paid | (98,000 | ) | (158,000 | ) |
Remeasurements: |
Actuarial (gains)/losses from changes in financial assumptions |
(295,000 |
) |
(106,000 |
) |
Oblig other remeasurement | 53,000 | 56,000 |
763,000 | 1,073,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening fair value of scheme assets | 1,073,000 | 1,256,000 |
Contributions by employer | 60,000 | 60,000 |
Expected return | 42,000 | 31,000 |
Benefits paid | (98,000 | ) | (158,000 | ) |
Unrecognised surplus | (205,000 | ) | (113,000 | ) |
Return on plan assets (excluding interest income) |
(109,000 |
) |
(3,000 |
) |
763,000 | 1,073,000 |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
27. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Actuarial (gains)/losses from changes in financial assumptions |
295,000 |
106,000 |
Oblig other remeasurement | (53,000 | ) | (56,000 | ) |
Return on plan assets (excluding interest income) |
(109,000 |
) |
(3,000 |
) |
Effects of unrecognised surplus/(loss) | - | (107,000 | ) |
133,000 | (60,000 | ) |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Equities | 676,500 | 656,100 |
Bonds and Gilts | 622,380 | 743,580 |
Property | 27,060 | 29,160 |
Cash | 27,060 | 29,160 |
Unrecognised surplus | (590,000 | ) | (385,000 | ) |
763,000 | 1,073,000 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2023 | 2022 |
Discount rate | 4.90% | 2.90% |
Future pension increases | 2.60% | 3.20% |
Defined contribution scheme |
During the year under review the Group operated two pension schemes. |
Contributions to the schemes are charged to the profit and loss account so as to spread the cost of the pensions over employees' working lives with the Group. |
The main scheme is a group personal pension plan. |
A senior management but non-shareholding directors scheme is also run on a money purchase basis. |
The pension scheme charge for the period was £1,380,539 (2022 - £1,121,298). |
28. | CONTINGENT LIABILITIES |
The parent company together with Douglas Park Limited, Park's of Hamilton (Townhead Garage) Ltd, Park's (Ayr) Limited and Park's of Hamilton (Coach Hirers) Limited have entered into cross guarantees in respect of each company's indebtedness to HSBC plc and Santander Consumer (UK) plc. |
PARK'S OF HAMILTON (HOLDINGS) LIMITED (REGISTERED NUMBER: SC066568) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 MARCH 2023 |
29. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 2,689,601 (2022 - £ 1,926,112 ) was paid. |
30. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D I Park. |
31. | CONSIGNMENT STOCKS |
At the year end the Group held £11,939,463 (2022 - £12,690,764) of vehicle consignment stock of which £- (2022 - £62,000) has been paid for by means of a stocking deposit, which is reflected in debtors as shown in note 14 to the accounts. |
During the year, the stocking deposit was fully repaid. |