Newport Caravans Limited - Limited company accounts 18.2

REGISTERED NUMBER: 06651531 (England and Wales)

Newport Caravans Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2018

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

R W Lynch

M K Massey

REGISTERED OFFICE:

4 King Square

Bridgwater

Somerset

TA6 3YF

REGISTERED NUMBER:

06651531 (England and Wales)

AUDITORS:

Maxwells

Chartered Accountants

and Statutory Auditor

4 King Square

Bridgwater

Somerset

TA6 3YF

BANKERS:

National Westminster Bank plc

89 High Street

Weston-super-Mare

Somerset

BS23 1JW

The directors present their strategic report for the year ended 30 November 2018.

REVIEW OF BUSINESS

The results reflect the controlled expansion of the company despite the uncertain economic and political climate during

the year. The directors remain convinced that we are continuing to build a company that has a firm base from which we

can deliver future expansion and profits. All employees and management have worked hard during the year to generate a

reasonable profit, and a great deal of credit is due to them all for their continuing support.

Financial Performance

2018 £'000

2017 £'000

Change £'000

%

Turnover

19,086

18,450

636

3%

Gross Profit

2,559

2,468

91

4%

Profit/(loss) before tax

295

356

(61)

(17%)

Strategy

Going forward we will continue with our plans to increase the number of customers for all of our departments.

The directors are confident that the company has an excellent range of caravans, motor-homes and associated products,

although we are always looking to review and strengthen the product base.

Turnover

The increase in turnover reflects increasing demand for motor-homes principally.

The level of activity in our service and warranty department increased during the year, while the turnover in our shop

showed a small decline.

Gross profit

The increase in gross profit reflects higher trade volumes and turnover. The overall margin during the year was slightly

up on the previous year.

Operating costs

Our operating costs increased during the year reflecting the higher level of activity and the directors are continually

reviewing the overheads and monitoring the current economic climate.

Capital expenditure

We continue to invest to improve the company. Our main expenditure during the year was on the acquisition of vehicles

and workshop plant.

Performance indicators

The directors monitor key performance indicators in addition to the more traditional financial statements and sales

pipeline information that is provided to the board each month.

Our underlying sales performance shows an increase in both new and second hand motor-homes while caravan sales

declined. The service and warranty department saw an increase in turnover while the turnover of our shop decreased

slightly.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks

We recognise that stock valuation and stock turnover are the key to our profitability and management monitors these

areas on a regular basis. Our fixed overheads and staffing levels are under constant review to enable us to respond to any

downturn or upturn in the market that may require an overhead adjustment. All areas of our business review stock values

on a regular basis, and adjustments are and will be made for slow moving and obsolete items.

PRINCIPAL RISKS AND UNCERTAINTIES

The company uses various financial instruments. These include loans, cash and various items, such as trade debtors and

trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance

for the company's operations.

The existence of these financial instruments exposes the company to a number of financial risks, which are described

below in more detail.

The main risks arising are cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree

policies for managing each of these risks and they are summarised below. These policies have remained unchanged from

previous years.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to

invest cash assets safely and profitably. The maturity of any borrowings is set out in the notes to the financial statements.

Interest rate risk

The company finances its operations through a mixture of retained profits and asset finance. The exposure to interest

rate fluctuations on borrowings is managed by the use of fixed facilities.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited. The

principal credit risk arises therefore from its trade debtors which are widely spread and again the risk is limited.

At 30 November 2018 and 2017 there was no concentration of credit risk with exposure being spread over a large

number of customers.

ON BEHALF OF THE BOARD:

R W Lynch - Director

26 April 2019

The directors present their report with the financial statements of the company for the year ended 30 November 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale of caravans, motor-homes and

accessories.

DIVIDENDS

During the year dividends of £24/share were paid on the 'A' Ordinary shares, and £30/share on the 'B' Ordinary shares.

The total distribution of dividends for the year end 30 November 2018 will be £240,000.

DIRECTORS

The directors during the year under review were:

R W Lynch

M K Massey

The beneficial interests of the directors holding office on 30 November 2018 in the issued share capital of the company

were as follows:

30.11.18

1.12.17

'A' Ordinary £1 shares

R W Lynch

-

-

M K Massey

5,000

5,000

'B' Ordinary £1 shares

R W Lynch

4,000

4,000

M K Massey

-

-

'C ' Ordinary £1 shares

R W Lynch

1,000

1,000

M K Massey

-

-

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.

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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	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 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 ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Maxwells, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R W Lynch - Director

26 April 2019

Opinion

We have audited the financial statements of Newport Caravans Limited (the 'company') for the year ended

30 November 2018 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement

of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial

Statements, including a summary of significant accounting policies. The financial reporting framework that has been

applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting

Standard 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 30 November 2018 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.

Basis for opinion

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 Auditors' 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the 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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Directors.

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 Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our 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 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.

Nigel Blannin (Senior Statutory Auditor)

for and on behalf of Maxwells

Chartered Accountants

and Statutory Auditor

4 King Square

Bridgwater

Somerset

TA6 3YF

26 April 2019

TURNOVER

19,086,075

18,450,397

Cost of sales

16,526,962

15,982,726

GROSS PROFIT

2,559,113

2,467,671

Administrative expenses

2,258,324

2,104,305

OPERATING PROFIT

5

300,789

363,366

Interest payable and similar expenses

6

5,805

7,728

PROFIT BEFORE TAXATION

294,984

355,638

Tax on profit

7

56,561

65,554

PROFIT FOR THE FINANCIAL YEAR

238,423

290,084

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

238,423

290,084

FIXED ASSETS

Tangible assets

9

264,201

283,293

CURRENT ASSETS

Stocks

10

4,288,727

3,439,170

Debtors

11

400,804

218,753

Cash at bank

356,089

263,641

5,045,620

3,921,564

CREDITORS

Amounts falling due within one year

12

4,390,604

3,252,364

NET CURRENT ASSETS

655,016

669,200

TOTAL ASSETS LESS CURRENT LIABILITIES

919,217

952,493

CREDITORS

Amounts falling due after more than one year

13

(43,332

)

(72,031

)

PROVISIONS FOR LIABILITIES

17

(46,500

)

(49,500

)

NET ASSETS

829,385

830,962

CAPITAL AND RESERVES

Called up share capital

18

10,000

10,000

Capital redemption reserve

19

90,000

90,000

Retained earnings

19

729,385

730,962

SHAREHOLDERS' FUNDS

829,385

830,962

The financial statements were approved by the Board of Directors on 26 April 2019 and were signed on its behalf by:

R W Lynch - Director

M K Massey - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 December 2016

10,000

740,878

90,000

840,878

Changes in equity

Dividends

-

(300,000

)

-

(300,000

)

Total comprehensive income

-

290,084

-

290,084

Balance at 30 November 2017

10,000

730,962

90,000

830,962

Changes in equity

Dividends

-

(240,000

)

-

(240,000

)

Total comprehensive income

-

238,423

-

238,423

Balance at 30 November 2018

10,000

729,385

90,000

829,385

Cash flows from operating activities

Cash generated from operations

1

493,187

351,443

Interest paid

(2,174

)

(3,035

)

Interest element of hire purchase payments paid

(3,631

)

(4,693

)

Tax paid

(63,054

)

(85,127

)

Net cash from operating activities

424,328

258,588

Cash flows from investing activities

Purchase of tangible fixed assets

(59,273

)

(111,813

)

Net cash from investing activities

(59,273

)

(111,813

)

Cash flows from financing activities

New loans in year

20,885

24,795

Capital repayments in year

(7,470

)

(20,389

)

Amount introduced by directors

108,000

4,000

Amount withdrawn by directors

(151,759

)

39,737

Equity dividends paid

(240,000

)

(300,000

)

Net cash from financing activities

(270,344

)

(251,857

)

Increase/(decrease) in cash and cash equivalents

94,711

(105,082

)

Cash and cash equivalents at beginning of year

2

256,558

361,640

Cash and cash equivalents at end of year

2

351,269

256,558

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.11.18

30.11.17

£

£

Profit before taxation

294,984

355,638

Depreciation charges

78,365

84,389

Finance costs

5,805

7,728

379,154

447,755

(Increase)/decrease in stocks

(849,557

)

512,536

(Increase)/decrease in trade and other debtors

(138,292

)

136,043

Increase/(decrease) in trade and other creditors

1,101,882

(744,891

)

Cash generated from operations

493,187

351,443

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of

these Statement of Financial Position amounts:

Year ended 30 November 2018

30.11.18

1.12.17

£

£

Cash and cash equivalents

356,089

263,641

Bank overdrafts

(4,820

)

(7,083

)

351,269

256,558

Year ended 30 November 2017

30.11.17

1.12.16

£

£

Cash and cash equivalents

263,641

369,608

Bank overdrafts

(7,083

)

(7,968

)

256,558

361,640

1.	STATUTORY INFORMATION

Newport Caravans Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared in accordance with applicable Accounting Standards and estimation

techniques.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

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.

Current or deferred taxation assets and liabilities are not discounted.

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.

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.

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.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

4.	EMPLOYEES AND DIRECTORS

30.11.18

30.11.17

£

£

Wages and salaries

1,167,770

1,072,253

Social security costs

104,692

98,131

Other pension costs

13,893

77,791

1,286,355

1,248,175

The average number of employees during the year was as follows:

30.11.18

30.11.17

Management and administration

14

14

Other staff

43

40

57

54

30.11.18

30.11.17

£

£

Directors' remuneration

40,000

39,000

Directors' pension contributions to money purchase schemes

-

70,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

5.	OPERATING PROFIT

The operating profit is stated after charging:

30.11.18

30.11.17

£

£

Other operating leases

155,496

151,606

Depreciation - owned assets

72,988

62,215

Depreciation - assets on hire purchase contracts

5,377

19,425

Auditors' remuneration

7,500

7,000

Auditors' remuneration for non audit work

4,888

9,071

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.18

30.11.17

£

£

Bank loan interest

2,174

3,035

Hire purchase

3,631

4,693

5,805

7,728

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.11.18

30.11.17

£

£

Current tax:

UK corporation tax

59,561

63,054

Deferred tax

(3,000

)

2,500

Tax on profit

56,561

65,554

UK corporation tax has been charged at 19% (2017 - 20%).

8.

DIVIDENDS

30.11.18

30.11.17

£

£

'A' Ordinary shares of £1 each

Interim

120,000

150,000

'B' Ordinary shares of £1 each

Interim

120,000

150,000

240,000

300,000