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Desb
Member Since: 04 Oct 2018
Location: Wiltshire
Posts: 50
  
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| On line tyre purchase from Tyre Shopper |
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Needed 4 new Pirelli Scorpion P Zero 255/50/R20 109Y which I had priced locally between £760 and £740 fully fitted.
Searched on line and used Tyre Shopper which has a fitting centre within 10 miles, their price all in was £670. Went back to locals who couldn't price match so checked feedback on Trustpilot for Tyre Shopper which gave an Excellent rating based on 28000 reviews so went ahead and ordered on line and selected a fitting date and time.
Tyre shopper system generates an order confirmation but the contract to supply does not commence until Tyre Shopper sources the tyres and ships to the fitting depot, at that point a confirmation email is sent.
My order went in on Tuesday afternoon and my selected fitting date was for the following Saturday afternoon.
The following day after I had placed the order I became concerned about the old adage if something seems too good to be true it's probably not going to end well. I then did a deeper search of on line feed back for Tyre Shopper and soon found a flood of negative feedback including, "do not use", "takes money and fails to deliver tyres" "none existent customer service" I was now convinced I had put myself in a dodgy situation and looked at the fine print to discover Tyre Shopper is registered in Scotland and owned by Constant Price Monitor Ltd. Their 2018 accounts registered with Companies house showed an operating loss for the year of over £900,000 with cash in bank of £16,000. Their total liabilities for 2018 was a shade over £17 million. Strangely they post administration costs in excess of £2 million and zero employees. At this point I convinced myself I had made a bad choice and regretted not going with a local.
On the Thursday I emailed Tyre Shopper customer services and asked for a order status update. I received a reply within 15 min informing me my tyres were being shipped from Pirelli depot and should be with the fitting centre by 17.00 hrs
At 17.01 I received a confirmation email that my tyres were at the depot and the fitting date and time was all booked.
Arriving at the National Tyre Depot in Warminster I was shown the tyres and confirmed the specifications and checked the date code which was 3219 so week 32 of 2019. The tyres were fitted, balanced and tracking was checked.
So in my due diligence I had convinced myself I had screwed up but from point of order to the fitting everything was spot on........my only question is how they continue to trade with £17 million liabilities unless they are a shell company to offset losses by their holding company Axle group. Any accountants care to explain.
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 10th Aug 2019 3:53 pm |
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knwatkins
Member Since: 19 Sep 2018
Location: Poole, Dorset
Posts: 716
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Good to know and glad you got the tyres. I can imagine it was a sickening feeling wondering if they were going to turn up or not!
Personally, I haven't found anywhere that beats F1 Autocentres prices on fitted tyres. Your tyres with them are £642.20 for a full set (£160.55 each) fully fitted. They don't have a branch in Warminster though.
https://www.f1autocentres.co.uk/car-tyres/...9Y-XL/8043 Kev
MY2014 L405 RR Vogue SE 4.4 SDV8 in Corris Grey
MY2010 L320 RRS HSE 3.0 TDV6 in Stornoway Grey
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| 10th Aug 2019 5:50 pm |
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kajtzu
Member Since: 10 Aug 2017
Location: Helsinki
Posts: 6753
  
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Disclaimer: I did not read any financial statements
Technically there is nothing preventing a company from operating with a large amount of liabilities - it doesn’t mean bankruptcy is imminent or anything like that. The larger the company, the larger are its assets and liabilities. If you have the statement somewhere look at the [long-term] loans line in non-current liabilities. Also, what is its accumulated deficit (retained earnings)? If you’re curious take a look at that assets of the balance sheet - whatever the numbers on the liabilities, they must also exist in one way or another on the assets side. 
Similarly, making a loss means the company spends more than they have revenue. Typically it means the company needs to either sell equity or get debt to fund itself. Look at all the venture capital funded startups on the planet - none of them are profitable. (See above)
Assuming the company is a subsidiary it is indeed possible that the G&A (General & admin) is contracted from somewhere else in the group. It is a common (and usually quite legal) way of moving money. There are a lot of rules and tests for transfer pricing, though. To complete my previous paragraph, a subsidiary can certainly borrow money from the parent company. There isn’t any corporation tax to be paid, as you correctly observe, either if one doesn’t turn profit.
Regarding the issue with only 16k in cash & equivalents - in this type of subsidiary it doesn’t matter what the end of year balance really is except from KPI (financial ratio) perspective. The parent can always transfer more money (= lend) there if necessary. With group bookkeeping the consolidated financial statements are more important anyway.
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| 10th Aug 2019 6:37 pm |
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