Company Registration No. 10011917 (England and Wales)
RARE METAL TRADING & RESTORATION PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
RARE METAL TRADING & RESTORATION PLC
COMPANY INFORMATION
Directors
C Villiers
(Resigned 1 April 2021)
R A McEwen
B Hallahane
(Appointed 1 April 2021)
Secretary
Edwin Coe Secretaries Limited
Company number
10011917
Registered office
80 Hammersmith Road
London
United Kingdom
W14 8UD
Auditor
Fisher, Sassoon & Marks
43 - 45 Dorset Street
London
W1U 7NA
RARE METAL TRADING & RESTORATION PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
RARE METAL TRADING & RESTORATION PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 1 -
The directors present the strategic report for the year ended 31 March 2021.
Fair review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors given the market's difficult trading conditions. At the end of the accounting period, two vehicles stock value were reduced by £205,241 given the current market conditions for classic cars.
The company continued to trade this year and consequently generated revenue in the sum of £972,500 (2020: £405,000).
The board of directors have formalised a strategy that is expected to improve the performance of the company for the subsequent periods.
Principal risks and uncertainties
The significant risks faced by the company are market risk and economic risk.
Rare Metal Trading & Restoration PLC operates in a highly specific market, selling and maintaining unique cars which can result in unpredictable sales and uncertain costs.
Development and performance
At the year end the company had net assets of
£3,710,915 (2020:
£
4,316,902)
, inclusive of bank balances of
£828,395 (2020: £5,728)
.
Key performance indicators
The board reviews and approves the annual budget and establishes KPIs, which are used to monitor performance on a regular basis.
The key performance indicator used was a gross profit ratio of -52.69% (2020: -35.98%).
The director's of the company are satisfied with the company performance for the year, considering a lack of disposable income for most people as a result of the ongoing Covid-19 Global Pandemic.
Rare Metal Trading & Restoration PLC has achieved most of its strategic objectives and is continuing to operate accordingly.
RARE METAL TRADING & RESTORATION PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
Directors' statement of compliance with duty to promote the success of the company
The directors of the Company have acted in the way they consider, in good faith, would most likely promote the
v
success of the company for the benefit of its shareholders, employees and customers as a whole. In doing so
the directors have regarded (amongst other matters):
· the likely consequences of any decision in the long term,
· the interests of the Company's employees,
· the need to foster the Company's business relationships with customers and others,
· the impact of the Company's operations on the community and the environment,
· the desirability of the Company maintaining a reputation for high standards of business conduct, and
· the need to act fairly among shareholders, employees and customers of the Company.
R A McEwen
Director
16 September 2021
RARE METAL TRADING & RESTORATION PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2021.
Principal activities
The principal activity of the company was the maintenance and restoration of classic cars.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C Villiers
(Resigned 1 April 2021)
R A McEwen
B Hallahane
(Appointed 1 April 2021)
Research and development
There are no events to report.
Post reporting date events
There are no events to report.
Auditor
The auditor, Fisher, Sassoon & Marks, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
RARE METAL TRADING & RESTORATION PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
R A McEwen
Director
16 September 2021
RARE METAL TRADING & RESTORATION PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RARE METAL TRADING & RESTORATION PLC
- 5 -
Opinion
We have audited the financial statements of Rare Metal Trading & Restoration PLC (the 'company') for the year ended 31 March 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2021 and of its loss 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters 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 directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RARE METAL TRADING & RESTORATION PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RARE METAL TRADING & RESTORATION PLC
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the
financial services sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Financial Conduct Authority (FCA), Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
RARE METAL TRADING & RESTORATION PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RARE METAL TRADING & RESTORATION PLC
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
-
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates as set out in note 2 were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators including the FCA and reviewing the company’s compliance monitoring procedures and findings.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Marks (Senior Statutory Auditor)
For and on behalf of Fisher, Sassoon & Marks
16 September 2021
Chartered Accountants
Statutory Auditor
43 - 45 Dorset Street
London
W1U 7NA
RARE METAL TRADING & RESTORATION PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
972,500
405,000
Cost of sales
(1,464,835)
(550,727)
Gross loss
(492,335)
(145,727)
Administrative expenses
(113,652)
(259,818)
Loss before taxation
(605,987)
(405,545)
Tax on loss
8
Loss for the financial year
(605,987)
(405,545)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RARE METAL TRADING & RESTORATION PLC
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 9 -
2021
2020
Notes
£
£
£
£
Current assets
Stocks
10
2,936,957
4,369,279
Debtors
11
10,442
119,970
Cash at bank and in hand
828,494
5,278
3,775,893
4,494,527
Creditors: amounts falling due within one year
12
(64,978)
(177,625)
Net current assets
3,710,915
4,316,902
Capital and reserves
Called up share capital
14
549,999
549,999
Share premium account
4,499,989
4,499,989
Profit and loss reserves
(1,339,073)
(733,086)
Total equity
3,710,915
4,316,902
The financial statements were approved by the board of directors and authorised for issue on 16 September 2021 and are signed on its behalf by:
R A McEwen
Director
Company Registration No. 10011917
RARE METAL TRADING & RESTORATION PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2019
549,999
4,499,989
(327,541)
4,722,447
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
-
(405,545)
(405,545)
Balance at 31 March 2020
549,999
4,499,989
(733,086)
4,316,902
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
(605,987)
(605,987)
Balance at 31 March 2021
549,999
4,499,989
(1,339,073)
3,710,915
RARE METAL TRADING & RESTORATION PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
18
823,336
(92,216)
Net increase/(decrease) in cash and cash equivalents
823,336
(92,216)
Cash and cash equivalents at beginning of year
5,158
97,374
Cash and cash equivalents at end of year
828,494
5,158
Relating to:
Cash at bank and in hand
828,494
5,278
Bank overdrafts included in creditors payable within one year
(120)
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 12 -
1
Accounting policies
Company information
Rare Metal and Trading Restoration PLC
is a
public limited company incorporated by shares
in England and Wales.
The registered office is
80 Hammersmith Road, London, United Kingdom, W14 8UD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
the cost of the purchase
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.
1.5
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.
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 13 -
1.6
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 14 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.7
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.
1.8
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.
1.9
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sales
972,500
405,000
2021
2020
£
£
Turnover analysed by geographical market
E.C
972,500
405,000
4
Operating loss
2021
2020
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(62)
177
The operating loss includes a write down of £205,241 in respect of two vehicles held in stock at the year end.
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,500
7,000
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Director
1
1
Employees
1
1
Total
2
2
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
27,500
55,000
Social security costs
1,892
5,710
29,392
60,710
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
5,000
5,000
8
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Loss before taxation
(605,987)
(405,545)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(115,138)
(77,054)
Tax effect of expenses that are not deductible in determining taxable profit
126
242
Unutilised tax losses carried forward
115,012
76,812
Taxation charge for the year
-
-
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 17 -
9
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Measured at amortised cost
5
110,007
Carrying amount of financial liabilities
Measured at amortised cost
64,325
177,625
10
Stocks
2021
2020
£
£
Classic Cars for resale
2,936,957
4,369,279
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
5
110,007
Other debtors
10,437
9,963
10,442
119,970
12
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans and overdrafts
13
120
Trade creditors
9,575
140,929
Taxation and social security
653
Other creditors
47,500
25,080
Accruals and deferred income
7,250
11,496
64,978
177,625
13
Loans and overdrafts
2021
2020
£
£
Bank overdrafts
120
Payable within one year
120
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 18 -
14
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
5,000,000
5,000,000
50,000
50,000
Ordinary shares of 1p each
49,999,879
49,999,879
499,999
499,999
54,999,879
54,999,879
549,999
549,999
The company has two classes of ordinary shares.
The A ordinary shares entitle the holders: (a) to receive notice of, attend and vote at general meetings of the company and on a poll to one vote for each share held; (b) to receive rateably in accordance with the number of shares held by them, such dividends as the directors declare or recommend to be distributed by the company to that class; and (c) on a return of capital to receive 0.1% of remaining assets until ordinary shareholders have together received in aggregate a return equal to £1.25 per ordinary share and 40% thereafter. The A ordinary shares are not redeemable or liable to be redeemed.
The ordinary shares entitle the holders: (a) to receive notice of, attend and vote at general meetings of the company and on a poll to one vote for each share held; (b) to receive rateably in accordance with the number of shares held by them, such dividends as the directors declare or recommend to be distributed by the company to that class; and (c) on a return of capital to receive 99.9% of remaining assets until ordinary shareholders have together received in aggregate a return equal to £1.25 per ordinary share and 60% thereafter. The ordinary shares are not redeemable or liable to be redeemed.
15
Events after the reporting date
There are no significant events after the reporting date.
16
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021
2020
£
£
Aggregate compensation
27,500
55,500
Other information
During the year the company paid Rare Metal Limited £18,378 (£2020: £Nil) in respect of administrative services.
At the year end the company owed CF Partners Services (UK) Limited £47,500 (2020: £14,886) a company registered in England and Wales.
17
Ultimate controlling party
There is no ultimate controlling party.
RARE METAL TRADING & RESTORATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 19 -
18
Cash generated from/(absorbed by) operations
2021
2020
£
£
Loss for the year after tax
(605,987)
(405,545)
Movements in working capital:
Decrease in stocks
1,227,081
275,375
Decrease/(increase) in debtors
109,528
(104,611)
(Decrease)/increase in creditors
(112,527)
142,565
Cash generated from/(absorbed by) operations
618,095
(92,216)
Difference
205,241
-
Per cash flow statement page
823,336
(92,216)
19
Analysis of changes in net funds
1 April 2020
Cash flows
31 March 2021
£
£
£
Cash at bank and in hand
5,278
823,216
828,494
Bank overdrafts
(120)
120
5,158
823,336
828,494
2021-03-31
2020-04-01
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