Company Registration No. 02276171 (England and Wales)
PARKARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PARKARE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 22
PARKARE LIMITED
COMPANY INFORMATION
Directors
J Bostock
A Menuzzo
C Wilson
R Berto
D Pagram
(Appointed 21 October 2016)
Secretary
C Wilson
Company number
02276171
Registered office
Unit 108
Longmead Road
Emersons Green
Bristol
Avon
S1 2AT
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Bankers
Barclays Bank PLC
18 - 22 Commercial Street
Sheffield
South Yorkshire
S1 2AT
Bankinter S.A.
Paseo de la Castellana, 29
28,046
Madrid
Spain
PARKARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 1 -
The directors present the strategic report for the year ended 31 December 2016.
Fair review of the business
The results for the year are shown in the Profit and Loss account for the year, which are set out on page 7. Total turnover for 2016 was up on the previous year and total expenditure down. Overall, the accounts for 2016 show an increase in operating and pre-tax profit increase on the previous year.
Principal risks and uncertainties
The success of the company depends upon its reputation as a supplier and servicing of top quality Car Park Access entry equipment. Our sales are quite sensitive to downturns in economy, although maintaining high levels of security is often a high priority in such times. As all our main purchases are from the EU, the downturn in the EURO/GBP exchange rate leaves us vulnerable to further changes in rate.
Business review and future developments
Turnover has increased 20% to £3,368,438 (2015 - £2,813,374) as a result of increased activity within the vehicle parking access and revenue control systems.
At 31 December 2016 the company had net assets of £1,347,080 (2015 - £1,249,794). All changes to fixed assets are shown in the notes to the accounts.
The directors have considered the forecast results for the forthcoming year and believe that the company will continue to trade in line with the anticipated financial results.
Key performance indicators
Key performance indicators are considered to be:
-Inventory Turnover
-Inventory Value
-Gross Profit Margin
-Net Profit Margin
-Total Sales
-Sales Growth
Position of the company at the year end
At the end of the year, the company had substantial net assets albeit a reduction from the end of 2015. All changes to fixed assets are shown in the notes to the accounts.
C Wilson
Secretary
30 June 2017
PARKARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2016.
Principal activities
Parkare Limited's principal activity is, and will continue to be, the design, supply, installation and maintenance of vehicle parking access and revenue control systems for both on-street and off-street applications within the UK market. The company supplies, and will continue to supply, directly and indirectly to both private and public organisations and uses a variety of methods to engage with prospective and current clients in order to enhance market share and competitive advantage.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Bostock
A Menuzzo
C Wilson
R Berto
D Pagram
(Appointed 21 October 2016)
Auditor
In accordance with the company's articles, a resolution proposing that UHY Hacker Young be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: • select suitable accounting policies 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.
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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PARKARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
C Wilson
Secretary
30 June 2017
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PARKARE LIMITED
- 4 -
We have audited the financial statements of Parkare Limited for the year ended 31 December 2016 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditor
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the FRC’s website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion the financial statements: • give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its 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.
-
give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit, the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
true
, and the Directors' Report has been prepared in accordance with applicable legal requirements.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PARKARE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Directors' Report . 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, or returns adequate for our audit have not been received from branches not visited by us; or • the 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; or • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
d
material misstatements in the Directors' Report
.
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, or returns adequate for our audit have not been received from branches not visited by us; or
-
the 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; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the Directors' Report and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.
Philip Oliver Bsc FCA (Senior Statutory Auditor)
for and on behalf of UHY Hacker Young
30 June 2017
Chartered Accountants
Statutory Auditor
PARKARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
2016
2015
Notes
£
£
Turnover
3
3,368,438
2,813,374
Cost of sales
(2,171,841)
(1,704,678)
Gross profit
1,196,597
1,108,696
Administrative expenses
(1,104,156)
(1,350,424)
Other operating (expenses)/income
(17,396)
25,785
Operating profit/(loss)
4
75,045
(215,943)
Interest receivable and similar income
7
22,424
28,737
Profit/(loss) before taxation
97,469
(187,206)
Taxation
8
2,100
-
Profit/(loss) for the financial year
99,569
(187,206)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PARKARE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 7 -
2016
2015
Notes
£
£
£
£
Fixed assets
Tangible assets
9
62,575
72,150
Current assets
Stocks
10
1,178,289
969,790
Debtors falling due after one year
11
124,285
172,000
Debtors falling due within one year
11
1,134,224
912,489
Cash at bank and in hand
280,033
147,081
2,716,831
2,201,360
Creditors: amounts falling due within one year
13
(1,432,326)
(1,003,716)
Net current assets
1,284,505
1,197,644
Total assets less current liabilities
1,347,080
1,269,794
Creditors: amounts falling due after more than one year
14
-
(20,000)
Net assets
1,347,080
1,249,794
Capital and reserves
Called up share capital
15
100,000
100,000
Capital redemption reserve
25,000
25,000
Profit and loss reserves
1,222,080
1,124,794
Total equity
1,347,080
1,249,794
The financial statements were approved by the board of directors and authorised for issue on 30 June 2017 and are signed on its behalf by:
C Wilson
Director
Company Registration No. 02276171
PARKARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2015
100,000
25,000
1,309,717
1,434,717
Period ended 31 December 2015:
Loss and total comprehensive income for the year
-
-
(187,206)
(187,206)
Balance at 31 December 2015
100,000
25,000
1,122,511
1,247,511
Period ended 31 December 2016:
Loss and total comprehensive income for the year
-
-
99,569
99,569
Balance at 31 December 2016
100,000
25,000
1,222,080
1,347,080
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 9 -
1
Accounting policies
Company information
Parkare Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 108, Longmead Road, Emersons Green, Bristol, Avon, S1 2AT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
The financial statements of the company are consolidated in the financial statements of
CAME Group s.P.A
. These consolidated financial statements are available from its registered office
.
1.2
Going concern
After making enquiries, the directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. The directors believe that the Company is well placed to manage its business risks successfully despite the current economic uncertainty. Accordingly, they continue to adopt the going concern basis in preparing the Report and Financial Statements.
Confirmation that financial support will be provided for a period of at least 12 months from the date of approval of the financial statements has been received from Parkare Group S.L., the immediate parent company. The directors believe that this support will allow the Company to continue its trading activities for the foreseeable future.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 10 -
1.3
Turnover
Turnover, which is stated net of value added tax, represents amounts derived from the provision of goods and services to third parties, except for long term agreements which are calculated as the proportion of total agreement value which costs incurred to date bear to total expected costs for that agreement. Revenues derived from variations on long term agreements are recognised only when they have been accepted by the customer. Full provision is made for losses on all agreements in the period in which they are first foreseen. Revenue from the supply of maintenance agreements is spread evenly over the term of the related agreement.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of
maintenance and service is recognised on a straight line basis over the life of the contract with reference to when scheduled maintenance visits have been completed.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
over the remaining period of the lease
Plant and machinery
25%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss
.
Recoverable amount is the higher of fair value less costs to sell and value in use.
1.6
Stocks
Stocks, including work-in-progress, are stated at the lower of cost and net realisable value. Costs include materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 11 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Trade debtors , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Classification of financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 13 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.
company’s
net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
company’s
net investment outstanding in respect of leases.
1.13
Foreign exchange
Transactions denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of the transaction. Balances denominated in a foreign currency are translated into sterling at the exchange rate ruling at the balance sheet date if appropriate. All exchange differences are taken to the profit and loss account as they arise.
All exchange differences are taken to the profit and loss account as they arise.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 14 -
1.14
Transactions as lessor (equipment rented by the Company to its customers)
Finance leases - Equipment leased under finance lease is deemed to be sold at normal end user selling prices, the value of which is included in turnover at the inception of the lease. Income from finance lease rentals (after deducting the proportion attributable to maintenance) is recognised over the contractual period of the lease so as to give a constant periodic rate of return on the net cash investment in the lease each period.
The net cash investment in the lease is amortised, within the contractual period, on a straight line basis so as to match the diminution in the economic value of the underlying assets. All leases are amortised over the contractual period to a nil residual value.
Provision is made for the expected level of unrecovered losses on early termination.
1.15
Research and development expenditure is charges to the profit and loss account in the period in which it is incurred. Expenditure made in connection with the development of new products is generally expensed as incurred.
An exception is made when significant and specifically identified software development costs are incurred from which it is expected that future profitable revenue streams will arise. In these instance, such expenditure us capitalised and amortised over a period no longer than five years commencing the period in which sales of the product are first made.
There was no capitalisation of research and development in the year ended 31 December 2016.
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Revenue recognition
The directors judge that contracts for providing support services should be recognised on a straight line basis over the life span of contracts to provide support, with reference to when scheduled maintenance visits are conducted.
Stock provisions
The directors judge that stock should be reviewed on a line by line basis with provision made in full for any items of stock, which in the opinion of the directors, may sell for less than its original cost.
3
Turnover and other revenue
2016
2015
£
£
Turnover
Sales of goods and services
3,368,438
2,813,374
Other significant revenue
Interest income
22,424
28,737
Turnover analysed by geographical market
2016
2015
£
£
United Kingdom
3,368,438
2,813,374
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 16 -
4
Operating profit/(loss)
2016
2015
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses/(gains)
17,372
(25,785)
Fees payable to the company's auditors for the audit of the company's financial statements
11,345
20,702
Depreciation of owned tangible fixed assets
35,204
35,632
Cost of stocks recognised as an expense
1,458,268
1,004,631
Operating lease charges
64,000
64,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2016
2015
Number
Number
Production, sales and service
33
33
Management and customer administration
5
5
38
38
Their aggregate remuneration comprised:
2016
2015
£
£
Wages and salaries
1,081,442
1,197,907
Social security costs
101,515
113,703
Pension costs
43,581
48,616
1,226,538
1,360,226
Redundancy payments in the year include £6,875 (2015 - £96,467)
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 17 -
6
Directors' remuneration
2016
2015
£
£
Remuneration for qualifying services
-
117,717
Company pension contributions to defined contribution schemes
-
6,967
-
124,684
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2015 - 2).
7
Interest receivable and similar income
2016
2015
£
£
Interest income
Other interest income
22,424
28,737
8
Taxation
2016
2015
£
£
Current tax
UK corporation tax on profits for the current period
1,782
-
Adjustments in respect of prior periods
(3,882)
-
Total current tax
(2,100)
-
Total tax charge
(2,100)
-
The tax charge for the ye
ar is the
standard rate of corporation tax in the UK of 2
0
.
00
% (201
5
: 2
0
.
25
%).
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
8
Taxation
(Continued)
- 18 -
The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2016
2015
£
£
Profit/(loss) before taxation
97,469
(187,206)
Expected tax charge based on a corporation tax rate of 20.00%
19,494
(37,909)
Tax effect of expenses that are not deductible in determining taxable profit
452
26
Tax effect of income not taxable in determining taxable profit
(2,222)
-
Change in unrecognised deferred tax assets
(16,062)
122
Adjustments in respect of prior years
(3,882)
-
Group relief
-
37,761
Depreciation in excess of capital allowances
120
-
Tax expense for the year
(2,100)
-
9
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Total
£
£
£
Cost
At 1 January 2016
153,908
364,252
518,160
Additions
11,404
14,225
25,629
At 31 December 2016
165,312
378,477
543,789
Depreciation and impairment
At 1 January 2016
151,892
294,118
446,010
Depreciation charged in the year
2,314
32,890
35,204
At 31 December 2016
154,206
327,008
481,214
Carrying amount
At 31 December 2016
11,106
51,469
62,575
At 31 December 2015
2,016
70,134
72,150
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 19 -
10
Stocks
2016
2015
£
£
Raw materials and consumables
969,966
755,945
Work in progress
89,177
86,305
Finished goods and goods for resale
119,146
127,540
1,178,289
969,790
Included within stock is a provision of £119,708 (2015 - £361,098).
11
Debtors
2016
2015
Amounts falling due within one year:
£
£
Trade debtors
897,384
526,958
Amount due from parent undertaking
-
125,343
Finance leases receivable
143,564
162,872
Other debtors
2,451
5,703
Prepayments and accrued income
90,825
91,613
1,134,224
912,489
2016
2015
Amounts falling due after more than one year:
£
£
Finance leases receivable
124,285
172,000
Total debtors
1,258,509
1,084,489
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 20 -
12
Finance lease receivables
2016
2015
£
£
Gross amounts receivable under finance leases:
Within one year
143,564
162,872
In two to five years
124,285
172,000
Present value of minimum lease payments receivable
267,849
334,872
The present value is receivable as follows:
Within one year
143,564
162,872
In two to five years
124,285
172,000
267,849
334,872
Analysis of finance leases
Finance lease receivables are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2016
2015
£
£
Current assets
143,564
162,872
Non-current assets
124,285
172,000
267,849
334,872
The company enters into financial leasing arrangements for its parking ticket machines. The average term of finance leases entered into is 3 years.
13
Creditors: amounts falling due within one year
2016
2015
£
£
Trade creditors
192,153
323,955
Amounts due to group undertakings
356,115
-
Corporation tax
1,782
3,882
Other taxation and social security
188,377
127,212
Accruals and deferred income
693,899
548,667
1,432,326
1,003,716
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 21 -
14
Creditors: amounts falling due after more than one year
2016
2015
£
£
Other creditors
-
20,000
15
Share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
100,000 ordinary shares of £1 each
100,000
100,000
16
Retirement benefit schemes
2016
2015
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,581
48,616
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2016
2015
£
£
Within one year
139,000
178,000
Between two and five years
321,000
211,000
In over five years
-
2,000
460,000
391,000
PARKARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 22 -
18
Controlling party
The ultimate parent company and controlling party at 31 December 201
5
is CAME GROUP s.P.A, which
owns
100% of the share capital of Parkare Group S.L, and is the smallest and largest group of which the Company is a member and for which group financial statements are prepared. CAME GROUP s.P.A. is a company registered in Italy. Financial statements are available upon request from CAME GROUP s.P.A. Viale delle Industie, 89/C 31030 Dosson di casier, Treviso, Italy
19
Related party transactions
No guarantees have been given or received.
The company has taken advantage of the exemption available
not
to disclose related party transactions with other group undertakings as it is a wholly owned subsidiary of CAME GROUP s.P.A.
2016-12-31
2016-01-01
false
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