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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2016 |
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FOR |
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STARTIN TRACTORS LIMITED |
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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2016 |
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FOR |
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STARTIN TRACTORS LIMITED |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 |
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Income Statement | 5 |
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Other Comprehensive Income | 6 |
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Balance Sheet | 7 |
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Statement of Changes in Equity | 8 |
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Cash Flow Statement | 9 |
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Notes to the Cash Flow Statement | 10 |
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Notes to the Financial Statements | 11 |
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STARTIN TRACTORS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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BUSINESS ADDRESS: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
The Old Council Chambers |
Halford Street |
Tamworth |
Staffordshire |
B79 7RB |
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BANKERS: |
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17 George Street |
Tamworth |
Staffordshire |
B79 7LW |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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The directors present their strategic report for the year ended 31 December 2016. |
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REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the |
year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and |
is written in the context of the risks and uncertainties we face. |
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As a main tractor dealer, the company continues to deal in new and used agricultural machinery, provide servicing, |
repairs and spares. The company's activities can be classified into the following divisions:- |
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Sales of new and used tractors and machinery |
Sales of spare parts |
Servicing and repairs |
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We consider that our key financial performance indicators are those that communicate the financial performance and |
strength of the company as a whole, these being turnover and gross margin. |
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The directors are satisfied with the results for the year in all divisions. |
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The profit and loss account on page 5 shows the profit before tax has increased from £402,175 to £783,569. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses in our industry, the business environment in which we operate continues to be challenging. |
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ON BEHALF OF THE BOARD: |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2016. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2016. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2016 to the date of this |
report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements |
in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue in business. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have |
taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
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AUDITORS |
The auditors, Philip Barnes & Co Limited, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STARTIN TRACTORS LIMITED |
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We have audited the financial statements of Startin Tractors Limited for the year ended 31 December 2016 on pages five |
to sixteen. 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 Financial |
Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. |
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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 a Report of the Auditors 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. |
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Respective responsibilities of directors and auditors |
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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/apb/scope/private.cfm. |
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Opinion on financial statements |
In our opinion the financial statements: |
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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. |
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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 Strategic Report |
and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with |
the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the |
knowledge and understanding of the company and its environment, we have not identified any material misstatements in |
the Strategic Report or the Report of the Directors. |
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Matters on which we are required to report by exception |
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: |
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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. |
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for and on behalf of
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Chartered Accountants |
Statutory Auditors |
The Old Council Chambers |
Halford Street |
Tamworth |
Staffordshire |
B79 7RB |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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2016 | 2015 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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PROFIT FOR THE FINANCIAL YEAR |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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2016 | 2015 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
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Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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BALANCE SHEET |
31 DECEMBER 2016 |
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2016 | 2015 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
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CURRENT ASSETS |
Stocks | 8 |
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Debtors | 9 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 10 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 11 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 12 |
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Share premium | 13 |
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Capital redemption reserve | 13 |
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Retained earnings | 13 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1 January 2015 |
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Changes in equity |
Issue of share capital | ( |
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- | ( |
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Total comprehensive income | - |
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Balance at 31 December 2015 |
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Changes in equity |
Total comprehensive income | - |
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- |
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Balance at 31 December 2016 |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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2016 | 2015 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities |
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Cash flows from financing activities |
Capital repayments in year |
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( |
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Amount introduced by directors | - | 14,702 |
Amount withdrawn by directors | (9,890 | ) | - |
Net cash from financing activities | ( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
year |
2 |
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1,701,787 |
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Cash and cash equivalents at end of year | 2 | 3,715,251 | 2,849,520 |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2016 | 2015 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance income | (1,821 | ) | (3,049 | ) |
787,267 | 431,872 |
Decrease in stocks |
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Increase in trade and other debtors | ( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these |
Balance Sheet amounts: |
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Year ended 31 December 2016 |
31.12.16 | 1.1.16 |
£ | £ |
Cash and cash equivalents | 3,715,251 | 2,849,520 |
Year ended 31 December 2015 |
31.12.15 | 1.1.15 |
£ | £ |
Cash and cash equivalents | 2,849,520 | 1,701,787 |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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1. | STATUTORY INFORMATION |
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Startin Tractors Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The significant accounting policies applied in the preparation of the financial statements are set out below. |
These policies have been consistently applied to all periods presented unless otherwise stated. |
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Significant judgements and estimates |
The preparation of the financial statements requires judgements, estimations and assumptions to be made that |
affect the reported values of assets, liabilities, revenues and expenses. The nature of estimation and judgement |
means that actual outcomes could differ from those estimates. The estimates and associated assumptions are |
based on historical experience and other factors that are considered to be relevant.The company exercises |
judgement on the level of stock provisioning based on its knowledge of the trade and past experience. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding value added tax. |
The policies adopted for the recognition of turnover are: |
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Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have |
transferred to the buyer. This is usually the point at which the customer has signed for or taken delivery of the |
goods. |
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Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is |
recognised by reference to the stage of completion at the balance sheet date. |
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Tangible fixed assets |
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Freehold property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment |
losses. |
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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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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to |
the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 balance sheet date. |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet 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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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at |
the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
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Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured |
initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective |
interest method, less any impairment. |
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Creditors |
Short term trade creditors are measured at the transaction price. |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the principal activities of the company. |
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An analysis of turnover by geographical market is given below: |
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2016 | 2015 |
£ | £ |
United Kingdom |
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Europe |
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Other countries | 329,726 | 259,524 |
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4. | EMPLOYEES AND DIRECTORS |
2016 | 2015 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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The average monthly number of employees during the year was as follows: |
2016 | 2015 |
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Management and administration | 7 | 7 |
Sales and service | 20 | 20 |
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2016 | 2015 |
£ | £ |
Directors' remuneration |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2016 | 2015 |
£ | £ |
Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts or finance leases |
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Profit on disposal of fixed assets | ( |
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Audit |
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Foreign exchange differences | ( |
) | ( |
) |
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6. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2016 | 2015 |
£ | £ |
Current tax: |
UK corporation tax |
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Deferred tax |
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( |
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Tax on profit |
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UK corporation tax has been charged at 20% (2015 - 20.25%). |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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6. | TAXATION - continued |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
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2016 | 2015 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
(2015 - |
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Effects of: |
Expenses not deductible for tax purposes |
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Marginal relief | - | (113 | ) |
Other | 438 | 1,452 |
Total tax charge | 157,740 | 83,655 |
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Tax effects relating to effects of other comprehensive income |
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2015 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares |
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- | 525 |
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The standard rate of corporation tax is unchanged from the previous period. From 1 April 2017 the main rate of |
corporation tax has reduced to 19%. |
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7. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2016 |
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Additions |
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Disposals |
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( |
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At 31 December 2016 |
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DEPRECIATION |
At 1 January 2016 |
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Charge for year |
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Eliminated on disposal |
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( |
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) | ( |
) | ( |
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At 31 December 2016 |
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NET BOOK VALUE |
At 31 December 2016 |
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At 31 December 2015 |
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Included in freehold property is freehold land of approximately £135,000 (2015 - £135,000) which is not |
depreciated. |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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8. | STOCKS |
2016 | 2015 |
£ | £ |
Stocks |
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All stocks are expensed as cost of sales. |
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9. | DEBTORS |
2016 | 2015 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
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Other debtors |
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Other taxation receivable | 35,601 | 51,453 |
Prepayments |
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Amounts falling due after more than one year: |
Other debtors |
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Aggregate amounts |
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10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2016 | 2015 |
£ | £ |
Trade creditors |
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Corporation tax |
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Social security and other taxes |
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Other creditors | 4,615 | 10,418 |
Directors' current accounts | 12,222 | 22,112 |
Accruals |
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11. | PROVISIONS FOR LIABILITIES |
2016 | 2015 |
£ | £ |
Deferred tax | 31,000 | 19,000 |
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Deferred |
tax |
£ |
Balance at 1 January 2016 |
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Accelerated capital allowances | 12,000 |
Balance at 31 December 2016 |
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The amount of net reversal of deferred tax expected to occur next year is £1,000 relating to the reversal of |
existing timing differences on tangible fixed assets. |
STARTIN TRACTORS LIMITED (REGISTERED NUMBER: 01381670) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2016 |
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12. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2016 | 2015 |
value: | £ | £ |
|
Ordinary £1 | £1 | 8,925 | 8,925 |
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13. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
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At 1 January 2016 |
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7,817,731 |
Profit for the year |
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At 31 December 2016 |
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8,443,560 |
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14. | RELATED PARTY DISCLOSURES |
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|
2016 | 2015 |
£ | £ |
Amounts due to related parties | 12,222 | 22,112 |
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|
2016 | 2015 |
£ | £ |
Sales |
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Purchases |
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Transfers | 500,000 | - |
Amounts due from related parties | 1,141,542 | 687,309 |
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15. | ULTIMATE CONTROLLING PARTY |
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The ultimate controlling party is Mr J Startin by virtue of his majority shareholding. |