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Unaudited Financial Statements for the Year Ended 30 June 2021 |
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W. Shirley & Sons Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements for the Year Ended 30 June 2021 |
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for |
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W. Shirley & Sons Limited |
W. Shirley & Sons Limited (Registered number: 01401803) |
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Contents of the Financial Statements |
for the Year Ended 30 June 2021 |
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Page |
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Company Information | 1 |
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Chartered Accountants' Report | 2 |
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Statement of Financial Position | 3 |
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Notes to the Financial Statements | 5 |
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W. Shirley & Sons Limited |
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Company Information |
for the Year Ended 30 June 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Suite 62, Pure Offices |
Cheadle, Royal Business Park |
Brooks Drive |
Manchester |
SK8 3TD |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
W. Shirley & Sons Limited |
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The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of Financial Position. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
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In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of W. Shirley & Sons Limited for the year ended 30 June 2021 which comprise the Statement of Comprehensive Income, Statement of Financial Position and the related notes from the company's accounting records and from information and explanations you have given us. |
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As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
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This report is made solely to the Board of Directors of W. Shirley & Sons Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of W. Shirley & Sons Limited and state those matters that we have agreed to state to the Board of Directors of W. Shirley & Sons Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than W. Shirley & Sons Limited and its Board of Directors, as a body, for our work or for this report. |
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It is your duty to ensure that W. Shirley & Sons Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of W. Shirley & Sons Limited. You consider that W. Shirley & Sons Limited is exempt from the statutory audit requirement for the year. |
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We have not been instructed to carry out an audit or a review of the financial statements of W. Shirley & Sons Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
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Suite 62, Pure Offices |
Cheadle, Royal Business Park |
Brooks Drive |
Manchester |
SK8 3TD |
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W. Shirley & Sons Limited (Registered number: 01401803) |
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Statement of Financial Position |
30 June 2021 |
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30.6.21 | 30.6.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks | 6 |
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Debtors | 7 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
9 |
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( |
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PROVISIONS FOR LIABILITIES | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
W. Shirley & Sons Limited (Registered number: 01401803) |
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Statement of Financial Position - continued |
30 June 2021 |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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W. Shirley & Sons Limited (Registered number: 01401803) |
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Notes to the Financial Statements |
for the Year Ended 30 June 2021 |
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1. | STATUTORY INFORMATION |
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W. Shirley & Sons Limited is a private company, limited by shares, registered in England and Wales. The company's registered office address and principal place of business is 17 Montague Road, Croydon, Surrey, CR9 3DU and its registered number is 01401803. |
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The presentation currency of the financial statements is Pound Sterling (£). |
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The principal activity of company is that of a used vehicle retailer involving the sale, maintenance and repair of motor vehicles and the supply of related accessories. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
Whilst the Company was affected by the Covid-19 restrictions, the Directors have carefully considered the current trading levels and the challenges of returning to normal trading. The Directors are confident with the facilities available that the Company will be able to meet its debts as they fall due for the period of 12 months after the approval of these financial statements. The financial statements are therefore prepared on a going concern basis. |
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Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
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The following judgements have been made by the directors in applying the company's accounting policies: |
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Stock valuation |
Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of any provision required is performed. |
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Property, plant and equipment |
At each reporting date property, plant and equipment is assessed for any indication of impairment. If such indication exists, the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flows. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
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Turnover |
Turnover from the sale of goods is recognised in the Statement of Comprehensive Income, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed. |
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Intangible assets |
The company's intangible assets consist of a customer database which has been fully amortised over its useful economic life of 6 years. |
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Tangible fixed assets |
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Short leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Statement of Comprehensive Income. |
W. Shirley & Sons Limited (Registered number: 01401803) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. |
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At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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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. |
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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. |
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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. |
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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. |
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Operating leases: lessee |
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution plan for its employees. A defined contribution plan is a plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
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The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds. |
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Debtors |
Short term debtors are measured at transaction price less any impairment. |
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Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at amortised cost. |
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Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders. |
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Borrowing costs |
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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W. Shirley & Sons Limited (Registered number: 01401803) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2021 |
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
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COST |
At 1 July 2020 |
and 30 June 2021 |
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AMORTISATION |
At 1 July 2020 |
and 30 June 2021 |
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NET BOOK VALUE |
At 30 June 2021 |
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At 30 June 2020 |
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5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 July 2020 |
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Additions |
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At 30 June 2021 |
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DEPRECIATION |
At 1 July 2020 |
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Charge for year |
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At 30 June 2021 |
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NET BOOK VALUE |
At 30 June 2021 |
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At 30 June 2020 |
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6. | STOCKS |
30.6.21 | 30.6.20 |
£ | £ |
Vehicle stocks | 136,481 | 114,577 |
Parts and accessories |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.21 | 30.6.20 |
£ | £ |
Trade debtors |
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Other debtors |
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W. Shirley & Sons Limited (Registered number: 01401803) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2021 |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.21 | 30.6.20 |
£ | £ |
Bank loan |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.21 | 30.6.20 |
£ | £ |
Bank loan |
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Other creditors |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loan | - | 7,333 |
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10. | LEASING AGREEMENTS |
Minimum lease payments under non-cancelling operating leases totalled £213,219 (2020: £273,219). |
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11. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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30.6.21 | 30.6.20 |
£ | £ |
Bank loan |
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The bank loan is secured by a fixed and floating charge over the assets of the company. |
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The vehicle funding was secured on the vehicles to which it relates. |
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12. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.21 | 30.6.20 |
value: | £ | £ |
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Ordinary | £1 | 180,000 | 180,000 |
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13. | PENSION COMMITMENTS |
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The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable to the fund and amounted to £8,196 (2020: £22,174). At the reporting date the outstanding contributions amounted to £1,213 (2020: £1,811). |
W. Shirley & Sons Limited (Registered number: 01401803) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2021 |
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14. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to directors subsisted during the years ended 30 June 2021 and 30 June 2020: |
2021 | 2020 |
£ | £ |
M Fennemore & R F Marsh |
Balance outstanding at start of year | 71,550 | 80,250 |
Amounts advanced | 78,950 | 45,300 |
Amounts repaid | (84,000 | ) | (54,000 | ) |
Balance outstanding at end of year | 66,500 | 71,550 |
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The advances were interest free, repayable on demand and the company held no security in their respect. |
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15. | RELATED PARTY DISCLOSURES |
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The directors have given personal guarantees in respect of the bank facility. The guarantees are limited to £8,000 each. |
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The directors have given personal guarantees in respect of a loan included within creditors. At the reporting date the outstanding loan amounted to £40,762 (2020: £66,741). |
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16. | POST BALANCE SHEET EVENTS |
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The company whilst impacted by the Covid-19 pandemic and its effect on our customers has successfully been able to carefully reestablish the business to pre pandemic levels, reintegrate furloughed staff and maintain cash resources and funding lines. This has ensured continued trading with sufficient reserves to protect against further lockdowns and allow the company to maintain the return to normal business. Payments to suppliers and Government agencies have continued to be paid on a timely basis to avoid arrears. |