Company Registration No. 03189127 (England and Wales)
CASTLE MOTORS (TREBROWN) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
PAGES FOR FILING WITH REGISTRAR
CASTLE MOTORS (TREBROWN) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
CASTLE MOTORS (TREBROWN) LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2019
30 November 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
811,410
838,009
Current assets
Stocks
2,473,554
2,748,340
Debtors
4
679,984
537,684
Cash at bank and in hand
1,078,218
622,975
4,231,756
3,908,999
Creditors: amounts falling due within one year
5
(1,061,233)
(1,213,414)
Net current assets
3,170,523
2,695,585
Total assets less current liabilities
3,981,933
3,533,594
Creditors: amounts falling due after more than one year
6
(88,385)
-
Provisions for liabilities
(29,136)
(31,637)
Net assets
3,864,412
3,501,957
Capital and reserves
Called up share capital
7
10,000
10,000
Share premium account
9,900
9,900
Revaluation reserve
137,280
156,000
Profit and loss reserves
3,707,232
3,326,057
Total equity
3,864,412
3,501,957
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 July 2020 and are signed on its behalf by:
R S Flood
Director
Company Registration No. 03189127
CASTLE MOTORS (TREBROWN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 2 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2017
10,000
9,900
156,000
4,801,183
4,977,083
Year ended 30 November 2018:
Loss and total comprehensive income for the year
-
-
-
(1,386,998)
(1,386,998)
Dividends
-
-
-
(88,128)
(88,128)
Balance at 30 November 2018
10,000
9,900
156,000
3,326,057
3,501,957
Year ended 30 November 2019:
Profit and total comprehensive income for the year
-
-
-
489,751
489,751
Dividends
-
-
-
(127,296)
(127,296)
Transfers
-
-
(18,720)
18,720
-
Balance at 30 November 2019
10,000
9,900
137,280
3,707,232
3,864,412
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 3 -
1
Accounting policies
Company information
Castle Motors (Trebrown) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Castle Garage, Trebrown, Cornwall, PL14 3PX. The company continues to operate as a motor vehicle trader.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements have been prepared with early application of
the
FRS 102 Triennial Review 2017 amendments in full.
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.
The company has elected to use the previous UK GAAP valuation of certain items of land and buildings as
the deemed cost on transition to FRS 102. The items are being depreciated from the date of transition (1
December 2014) in accordance with the company's accounting policies.
1.2
Going concern
The directors have carefully considered the going concern position of the company and also the impact on the company of the Covid-19 pandemic, as outlined in the post balance sheet events note. This event casts uncertainty and has caused disruption to the future operations of the company. The directors will look to use the support offered and implement as many of the measures the government has outlined to minimise the impact and to ensure that they have adequate financial resources to continue in existence for the foreseeable future. In making this assessment, the directors have considered a period of 12 months from the date when the financial statements are authorised for issue.
1.3
Turnover
Revenue - described as turnover - is the value of goods (net of VAT) provided to customers during the year. Vehicle sales are included in turnover when the sale becomes unconditional.
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 collection of the vehicles)
, 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.
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.
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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:
Freehold land and buildings
2% straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
10-20% reducing balance
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
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
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
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 6 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Total
45
45
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 December 2018
1,067,886
415,955
1,483,841
Additions
-
18,910
18,910
At 30 November 2019
1,067,886
434,865
1,502,751
Depreciation and impairment
At 1 December 2018
386,747
259,085
645,832
Depreciation charged in the year
13,695
25,408
39,103
Impairment losses
-
6,406
6,406
At 30 November 2019
400,442
290,899
691,341
Carrying amount
At 30 November 2019
667,444
143,966
811,410
At 30 November 2018
681,139
156,870
838,009
The company applied the transitional arrangements of section 35 of FRS 102 and used a previous valuation as the deemed cost for certain freehold land. The freehold land at transition was valued at £156,000 at the date of transition using deemed cost exemption. The freehold land was last revalued on
3 June 2013
w
ith a
n original cost
value of £Nil by independent
external valuer S Nicholls of Ideal Homes Estate Agents Ltd. This valuation was carried out on an open
market basis.
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
277,772
155,149
Corporation tax recoverable
21,696
21,696
Amounts owed by group undertakings and undertakings in which the company has a participating interest
325,037
284,234
Other debtors
55,479
76,605
679,984
537,684
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 8 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
329,375
181,378
Corporation tax
114,510
83,857
Other taxation and social security
135,255
79,742
Other creditors
482,093
868,437
1,061,233
1,213,414
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
88,385
-
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,000,000 Ordinary shares of 1p each
10,000
10,000
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Valerie Doyle.
The auditor was Riley.
9
Financial commitments, guarantees and contingent liabilities
The company has agreed to cross guarantee the bank facilities of Castle Air Limited, a company under the common control of the directors. The maximum full potential liability at the year end was
£9,807,656
(201
8
-
£7,866,457
).
CASTLE MOTORS (TREBROWN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 9 -
10
Events after the reporting date
The Covid-19 pandemic is an unprecedented situation but it is important to recognise that, while the reduction in activity associated with Covid-19 could be sharp and large, it is likely to rebound quickly when social distancing measures are lifted. In addition, during the intervening period while activity is disrupted, substantial and substantive government and central bank measures have been put in place in the UK and internationally to support businesses and households. These measures, which have been evolving rapidly and could evolve further, are expected to remain in place throughout the period of disruption.
As these conditions did not exist at the year end, the measurement of assets
and liabilities in the accounts have not been adjusted for its potential impact.
11
Related party transactions
At the year end, Castle Air Limited, a company owned and controlled by R S Flood and S J Flood, directors, owed £17,048 (were owed 2018 - £375,945). This amount is included within amounts owed by participating interests in note 4.
At the year end the company was owed by Castle Marine and Aviation Services Limited, a company under the common control of R S Flood, director, £650 (2018 - £650) in respect of financing transactions. This balance is included within other debtors in note 4.
At the year end the company owed directors £150,108 (2018 - £10,429).
During the year the company also entered into;
Sales to directors and close family £135,165 (2018 - £33,500)
Purchases/trade ins from directors and close family £335,450 (2018 - £29,800)
Sales to Castle Air Limited of £145,824 (2018 - £136,706) and purchases of £20,480 (2018 - £38,663).
The company is exempt from disclosing other related party transactions as they are with the parent company.
12
Parent company
The ultimate parent company is Castle Motor Company Limited, a company incorporated in England and
Wales
with the registered office located at Castle Garage, Trebrown, Liskeard, Cornwall, PL14 3PX.
The ultimate controlling party is Mr R S Flood.
2019-11-30
2018-12-01
false
24 July 2020
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
This audit opinion is unqualified
R S Flood
S J Flood
R A K Manning
D R Flood
D Flood
Mr L A Flood
2020-07-24
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