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Financial Statements
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CONTENTS
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PAGE
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Officers and Professional Advisers
|
1
|
Strategic Report
|
2
|
Director's Report
|
3
|
Independent Auditor's Report to the Members
|
5
|
Consolidated Statement of Comprehensive Income
|
8
|
Consolidated Statement of Financial Position
|
9
|
Company Statement of Financial Position
|
10
|
Consolidated Statement of Changes in Equity
|
11
|
Company Statement of Changes in Equity
|
13
|
Consolidated Statement of Cash Flows
|
14
|
Notes to the Financial Statements
|
15
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Officers and Professional Advisers
|
Director
|
|
Registered office
|
|
|
|
|
|
|
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Auditor
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|
Chartered Certified Accountants & statutory auditor
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|
Axis 15, Axis Court
|
|
Mallard Way
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|
Riverside Business Park
|
|
Swansea
|
|
SA7 0AJ
|
|
|
Strategic Report
|
2018 | 2017 | Variance | |||
£ | £ | ||||
Turnover | 76,833,070 | 73,814,099 | 3,018,971 | ||
Gross Profit | 4,996,043 | 4,664,869 | 331,174 | ||
Gross Profit % | 6.50% | 6.32% | 0.18% | ||
Profit before tax | 2,056,012 | 1,464,904 | 591,108 | ||
Profit before tax % | 2.68% | 1.98% | 0.7% | ||
Number of cars sold | 6,593 | 6,546 | 47 | ||
Used vehicle turnover | 28,436,960 | 24,175,390 | 4,261,570 | ||
New vehicle turnover | 38,969,968 | 40,777,000 | (1,807,032) | ||
|
Director's Report
|
|
|
|
Independent Auditor's Report to the Members of
|
|
(Senior Statutory Auditor)
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For and on behalf of
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Chartered Certified Accountants & statutory auditor
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Axis 15, Axis Court
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Mallard Way
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Riverside Business Park
|
Swansea
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SA7 0AJ
|
|
Consolidated Statement of Comprehensive Income
|
2018
|
2017
|
||
(restated)
|
|||
Note
|
£
|
£
|
|
TURNOVER
|
4
|
|
|
Cost of sales
|
|
|
-------------
|
-------------
|
|
GROSS PROFIT
|
|
|
Administrative expenses
|
|
|
|
Other operating income
|
5
|
|
|
------------
|
------------
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||
OPERATING PROFIT
|
6
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|
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Other interest receivable and similar income
|
10
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|
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Interest payable and similar expenses
|
11
|
|
|
------------
|
------------
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||
PROFIT BEFORE TAXATION
|
|
|
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Tax on profit
|
12
|
|
|
------------
|
------------
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||
PROFIT FOR THE FINANCIAL YEAR
|
|
|
|
------------
|
------------
|
||
Fair value movements on investment in subsidiaries
|
–
|
|
------------
|
------------
|
|
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|
|
|
------------
|
------------
|
|
|
Consolidated Statement of Financial Position
|
2018
|
2017
|
|
(restated)
|
||
Note
|
£
|
£
|
Negative goodwill
|
14
|
(
|
(
|
Tangible assets
|
15
|
|
|
Investments
|
16
|
|
|
------------
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------------
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||
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|
||
Stocks
|
17
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|
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Debtors
|
18
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|
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Cash at bank and in hand
|
|
|
|
-------------
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-------------
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||
|
|
||
CREDITORS: amounts falling due within one year
|
19
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|
|
-------------
|
-------------
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||
NET CURRENT ASSETS/(LIABILITIES)
|
|
(
|
|
------------
|
------------
|
||
TOTAL ASSETS LESS CURRENT LIABILITIES
|
|
|
|
CREDITORS: amounts falling due after more than one year
|
20
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|
|
Taxation including deferred tax
|
21
|
|
|
------------
|
------------
|
||
NET ASSETS
|
|
|
|
------------
|
------------
|
||
Called up share capital
|
25
|
|
|
Revaluation reserve
|
26
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|
|
Other reserves, including the fair value reserve
|
26
|
|
|
Profit and loss account
|
26
|
|
|
------------
|
------------
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||
SHAREHOLDERS FUNDS
|
|
|
|
------------
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------------
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||
|
Company Statement of Financial Position
|
2018
|
2017
|
|
Note
|
£
|
£
|
Investments
|
16
|
|
|
Debtors
|
18
|
|
|
CREDITORS: amounts falling due within one year
|
19
|
|
|
------------
|
------------
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||
NET CURRENT ASSETS
|
|
|
|
------------
|
------------
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||
TOTAL ASSETS LESS CURRENT LIABILITIES
|
|
|
|
------------
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------------
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||
Called up share capital
|
25
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|
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Profit and loss account
|
26
|
|
|
------------
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------------
|
||
SHAREHOLDERS FUNDS
|
|
|
|
------------
|
------------
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||
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Consolidated Statement of Changes in Equity
|
Called up share capital
|
Revaluation reserve
|
Other reserves, including the fair value reserve
|
Profit and loss account
|
Total
|
|||
Note
|
£
|
£
|
£
|
£
|
£
|
||
AT 1 JANUARY 2017
|
|
|
–
|
|
|
||
Profit for the year
|
|
|
|||||
Other comprehensive income for the year:
|
|||||||
Fair value movements on investment in subsidiaries
|
–
|
–
|
|
–
|
|
||
Transfer from Revaluation Reserve
|
–
|
(4,074)
|
–
|
4,074
|
–
|
||
----
|
--------
|
---------
|
------------
|
------------
|
|||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|
–
|
(
|
|
|
|
||
Dividends paid and payable
|
13
|
–
|
–
|
–
|
(
|
(
|
|
----
|
--------
|
---------
|
------------
|
------------
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|||
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
|
–
|
–
|
–
|
(
|
(
|
||
AT 31 DECEMBER 2017 (AS PREVIOUSLY REPORTED)
|
20
|
188,566
|
538,025
|
6,130,219
|
6,856,830
|
||
Prior period adjustments
|
24
|
–
|
(97,000)
|
(288,025)
|
385,025
|
–
|
|
----
|
---------
|
---------
|
------------
|
------------
|
|||
AT 31 DECEMBER 2017 (RESTATED)
|
|
|
|
|
|
||
----
|
---------
|
---------
|
------------
|
------------
|
|||
Profit for the year
|
|
|
|||||
Other comprehensive income for the year:
|
|||||||
Transfer from Revaluation Reserve
|
–
|
(4,074)
|
–
|
4,074
|
–
|
||
----
|
---------
|
---------
|
------------
|
------------
|
|||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|
–
|
(
|
–
|
|
|
||
|
Consolidated Statement of Changes in Equity (continued)
|
Called up share capital
|
Revaluation reserve
|
Other reserves, including the fair value reserve
|
Profit and loss account
|
Total
|
||
Note
|
£
|
£
|
£
|
£
|
£
|
|
Dividends paid and payable
|
13
|
–
|
–
|
–
|
(
|
(
|
----
|
----
|
----
|
--------
|
--------
|
||
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
|
–
|
–
|
–
|
(
|
(
|
|
----
|
--------
|
---------
|
------------
|
------------
|
||
AT 31 DECEMBER 2018
|
|
|
|
|
|
|
----
|
--------
|
---------
|
------------
|
------------
|
||
|
Company Statement of Changes in Equity
|
Called up share capital
|
Profit and loss account
|
Total
|
||
£
|
£
|
£
|
||
AT 1 JANUARY 2017
|
|
|
|
|
Profit for the year
|
|
|
||
----
|
------------
|
------------
|
||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|
–
|
|
|
|
Dividends paid and payable
|
13
|
–
|
(
|
(
|
----
|
------------
|
------------
|
||
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
|
–
|
(
|
(
|
|
AT 31 DECEMBER 2017
|
|
|
|
|
Profit for the year
|
|
|
||
----
|
------------
|
------------
|
||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
|
–
|
|
|
|
Dividends paid and payable
|
13
|
–
|
(
|
(
|
----
|
--------
|
--------
|
||
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS
|
–
|
(
|
(
|
|
----
|
------------
|
------------
|
||
AT 31 DECEMBER 2018
|
|
|
|
|
----
|
------------
|
------------
|
||
|
Consolidated Statement of Cash Flows
|
2018
|
2017
|
||
(restated)
|
|||
Note
|
£
|
£
|
|
Cash generated from operations
|
29
|
|
|
Interest paid
|
(
|
(
|
Interest received
|
|
|
Tax paid
|
(
|
(
|
------------
|
------------
|
|
Net cash from operating activities
|
|
|
------------
|
------------
|
|
Purchase of tangible assets
|
(
|
(
|
Proceeds from sale of tangible assets
|
|
|
Purchases of other investments
|
(360,000)
|
(1,210,050)
|
------------
|
------------
|
|
Net cash used in investing activities
|
(
|
(
|
------------
|
------------
|
|
Proceeds from borrowings
|
(
|
(
|
Dividends paid
|
(
|
(
|
------------
|
------------
|
|
Net cash used in financing activities
|
(
|
(
|
------------
|
------------
|
|
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
1,073,983
|
2,758,266
|
------------
|
------------
|
|
CASH AND CASH EQUIVALENTS AT END OF YEAR
|
|
|
------------
|
------------
|
|
|
Notes to the Financial Statements
|
Goodwill
|
-
|
20 years
|
|
Land & buildings
|
-
|
2%
|
|
Plant & machinery
|
-
|
3 - 50 years
|
|
Motor vehciles
|
-
|
1 - 4 years
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Vehicle Sales
|
|
|
Parts and Service sales
|
|
|
Other sales
|
|
|
Rental income
|
|
|
-------------
|
-------------
|
|
|
|
|
-------------
|
-------------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Other operating income
|
|
|
---------
|
---------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Amortisation of intangible assets
|
(
|
(
|
Depreciation of tangible assets
|
|
|
Gains on disposal of tangible assets
|
(
|
(
|
Impairment of trade debtors
|
(843)
|
4,562
|
Operating lease rentals
|
|
|
Defined contribution plans expense
|
165,736
|
150,278
|
---------
|
---------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Fees payable for the audit of the financial statements
|
|
|
--------
|
--------
|
|
2018
|
2017
|
|
No.
|
No.
|
|
Production staff
|
|
|
Administrative staff
|
|
|
Number of sales staff
|
35
|
32
|
----
|
----
|
|
|
|
|
----
|
----
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Wages and salaries
|
|
|
Social security costs
|
|
|
Other pension costs
|
|
|
------------
|
------------
|
|
|
|
|
------------
|
------------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Remuneration
|
|
|
Company contributions to defined contribution pension plans
|
|
|
--------
|
--------
|
|
|
|
|
--------
|
--------
|
|
2018
|
2017
|
|
(restated)
|
||
No.
|
No.
|
|
Defined contribution plans
|
|
|
----
|
----
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Interest on cash and cash equivalents
|
|
|
Gain on fair value adjustment of financial assets at fair value through profit or loss
|
–
|
385,025
|
--------
|
---------
|
|
|
|
|
--------
|
---------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Interest on banks loans and overdrafts
|
|
|
Other interest payable and similar charges
|
|
|
--------
|
--------
|
|
|
|
|
--------
|
--------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
UK current tax income
|
|
|
Adjustments in respect of prior periods
|
–
|
(
|
---------
|
---------
|
|
Total current tax
|
|
|
---------
|
---------
|
|
Origination and reversal of timing differences
|
|
|
---------
|
---------
|
|
Tax on profit
|
|
|
---------
|
---------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Profit on ordinary activities before taxation
|
|
|
------------
|
------------
|
|
Profit on ordinary activities by rate of tax
|
|
|
Adjustment to tax charge in respect of prior periods
|
|
(
|
Effect of expenses not deductible for tax purposes
|
(
|
(
|
Effect of capital allowances and depreciation
|
(
|
(
|
Utilisation of tax losses
|
|
–
|
Rounding on tax charge
|
14,308
|
36,656
|
------------
|
------------
|
|
Tax on profit
|
|
|
------------
|
------------
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Dividends Paid
|
|
|
--------
|
--------
|
|
Group
|
Goodwill
|
£
|
|
Cost
|
|
At 1 January 2018 (as restated) and 31 December 2018
|
(
|
---------
|
|
Amortisation
|
|
At 1 January 2018
|
(
|
Charge for the year
|
(
|
---------
|
|
At 31 December 2018
|
(
|
---------
|
|
Carrying amount
|
|
At 31 December 2018
|
(
|
---------
|
|
At 31 December 2017
|
(
|
---------
|
|
Group
|
Land and buildings
|
Plant and machinery
|
Motor vehicles
|
Total
|
£
|
£
|
£
|
£
|
|
Cost
|
||||
At 1 January 2018 (as restated)
|
|
|
|
|
Additions
|
–
|
|
|
|
Disposals
|
–
|
(
|
(
|
(
|
------------
|
------------
|
------------
|
------------
|
|
At 31 December 2018
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
Depreciation
|
||||
At 1 January 2018
|
|
|
|
|
Charge for the year
|
–
|
|
|
|
Disposals
|
–
|
–
|
(
|
(
|
------------
|
------------
|
------------
|
------------
|
|
At 31 December 2018
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
Carrying amount
|
||||
At 31 December 2018
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
At 31 December 2017
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
2018 | 2017 | ||
£ | £ | ||
Leasehold investment property | 1,192,829 | 1,192,829 | |
Freehold land and buildings | 3,379,292 | 2,399,613 | |
------------ | ------------ | ||
4,572,121 | 3,592,442 | ||
------------ | ------------ | ||
2018 | ||
£ | ||
Cost | 4,772,642 | |
Valuations | 99,714 | |
------------ | ||
4,872,356 | ||
------------ | ||
2018 | ||
£ | ||
Cost | 4,772,642 | |
Accumulated depreciation | (219,906) | |
------------ | ||
As at 31.12.18 | 4,552,736 | |
------------ | ||
As at 31.12.17 | 3,451,001 | |
Group
|
Shares in group undertakings
|
Other investments other than loans
|
Total
|
£
|
£
|
£
|
|
Cost
|
|||
At 1 January 2018 as restated
|
|
|
|
Additions
|
–
|
|
|
----
|
------------
|
------------
|
|
At 31 December 2018
|
|
|
|
----
|
------------
|
------------
|
|
Impairment
|
|||
At 1 January 2018 as restated and 31 December 2018
|
–
|
–
|
–
|
----
|
------------
|
------------
|
|
Carrying amount
|
|||
At 31 December 2018
|
|
|
|
----
|
------------
|
------------
|
|
At 31 December 2017
|
|
|
|
----
|
------------
|
------------
|
|
Company
|
Shares in group undertakings
|
£
|
|
Cost
|
|
At 1 January 2018 as restated and 31 December 2018
|
|
------------
|
|
Impairment
|
|
At 1 January 2018 as restated and 31 December 2018
|
–
|
------------
|
|
Carrying amount
|
|
At 1 January 2018 and 31 December 2018
|
|
------------
|
|
At 31 December 2017
|
|
------------
|
|
Class of share
|
Percentage of shares held
|
|
Subsidiary undertakings
|
||
|
ordinary
|
100
|
|
ordinary
|
100
|
Morgan Homes Developments Limited
|
ordinary
|
50
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Raw materials and consumables
|
|
|
–
|
–
|
Finished goods and goods for resale
|
|
|
–
|
–
|
------------
|
------------
|
----
|
----
|
|
|
|
–
|
–
|
|
------------
|
------------
|
----
|
----
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Trade debtors
|
|
|
–
|
–
|
Amounts owed by group undertakings
|
–
|
–
|
|
|
Other debtors
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Bank loans and overdrafts
|
|
|
–
|
–
|
Trade creditors
|
|
|
–
|
–
|
Amounts owed to group undertakings
|
–
|
–
|
|
|
Amounts owed to undertakings in which the company has a participating interest
|
|
–
|
|
–
|
Accruals and deferred income
|
|
|
–
|
–
|
Corporation tax
|
|
|
–
|
–
|
Social security and other taxes
|
|
|
–
|
–
|
Other creditors
|
|
|
|
|
-------------
|
-------------
|
---------
|
---------
|
|
|
|
|
|
|
-------------
|
-------------
|
---------
|
---------
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Bank loans and overdrafts
|
|
|
–
|
–
|
Other creditors
|
|
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
|
|
–
|
–
|
|
---------
|
---------
|
----
|
----
|
|
Group
|
Deferred tax (note 22)
|
£
|
|
At 1 January 2018 (as restated)
|
|
Additions
|
|
---------
|
|
At 31 December 2018
|
|
---------
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Included in provisions (note 21)
|
|
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Accelerated capital allowances
|
|
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
2018
|
2017
|
|||
(restated)
|
||||
No.
|
£
|
No.
|
£
|
|
|
|
20.00
|
|
20.00
|
----
|
------
|
----
|
------
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
At start of year (as previously reported)
|
538,025
|
–
|
–
|
–
|
Prior period adjustments
|
(288,025)
|
–
|
–
|
–
|
---------
|
----
|
----
|
----
|
|
At start of year (as restated)
|
250,000
|
–
|
–
|
–
|
Fair value movements on investment in subsidiaries
|
–
|
250,000
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
At end of year
|
250,000
|
250,000
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
2018
|
2017
|
|
(restated)
|
||
£
|
£
|
|
Profit for the financial year
|
|
|
Adjustments for:
|
||
Depreciation of tangible assets
|
271,376
|
251,054
|
Amortisation of intangible assets
|
(
|
(
|
Other interest receivable and similar income
|
(
|
(
|
Interest payable and similar expenses
|
|
|
Gains on disposal of tangible assets
|
(
|
(
|
Tax on profit
|
|
|
Accrued (income)/expenses
|
(
|
|
Changes in:
|
||
Stocks
|
|
(
|
Trade and other debtors
|
(
|
|
Trade and other creditors
|
|
|
------------
|
------------
|
|
|
|
|
------------
|
------------
|
|
Group
|
Company
|
|||
2018
|
2017
|
2018
|
2017
|
|
(restated)
|
(restated)
|
|||
£
|
£
|
£
|
£
|
|
Not later than 1 year
|
|
|
–
|
–
|
Later than 1 year and not later than 5 years
|
|
|
–
|
–
|
---------
|
---------
|
----
|
----
|
|
|
|
–
|
–
|
|
---------
|
---------
|
----
|
----
|
|
2018 | 2017 | ||
£ | £ | ||
Balance owing (to) from | 1,361,783 | 1,818,286 | |
Rent paid | 218,000 | 218,000 | |