Wilsons Automobiles & Coachworks Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00272743 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31st December 2018

for

WILSONS AUTOMOBILES AND COACHWORKS

LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

I A Wilson

Ms T Wilson

Ms M Fenwick

Mrs T Wilson

Mrs G Storr

J Butler

D M Wheatcroft

W Gumienny

SECRETARY:

Mrs T Wilson

REGISTERED OFFICE:

Nonsuch Business Park

Kiln Lane

Epsom

Surrey

KT17 1BH

REGISTERED NUMBER:

00272743 (England and Wales)

AUDITORS:

Simpson Wreford & Partners

Chartered Accountants

Registered Auditors

Suffolk House

George Street

Croydon CR0 0YN

The directors present their strategic report of the company and the group for the year ended 31st December 2018.

REVIEW OF BUSINESS

Turnover levels across the industry have been in decline for consecutive record years for new vehicles, however used

vehicles have remained stable. The company's performance was positive and reflected the industry trend, with

turnover of just over £119 million (2017: £108m), and gross profit margin fell to 17.0% (2017 - 17.6%). The group's

gross profit margin has reduced over the past 10 years from 23% in 2009 to 17.0% in 2018. Costs of parts and materials

have continued to rise in recent years and the internet has now opened up a wider market for customers, which has

ultimately increased competition, in both the new and used car market.

As a result of all of the above, the profit before tax has decreased from £1,111k to £860k, with the net profit margin

falling from 1.0% to 0.72%.

At the end of the financial year the business remains in a strong financial position. Net assets are now £26.3m (2017:

£25.7m) .

The average number of employees during the year was 221 (2017 - 223).

There were no environmental matters that need to be raised in this report.

No distributions were made in the period as the business continued to reinvest profits to fund future growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks and uncertainties associated with the group's operations are set out below:

Financial instrument risks

The group's financial instruments comprise cash, cash equivalents and bank borrowings, and risks here include interest

rate risk, credit risk and to a lesser extent liquidity risk.

General economic conditions

The group's performance is influenced by general economic conditions, consumer confidence and credit availability.

Restriction on the availability of retail credit could adversely affect the group's performance. Consumer confidence in

the UK remains fragile as a result of wider economic conditions and therefore discretionary expenditure may be

reduced by many customers, which would impact on the number and type of vehicles that will be sold in the year.

Uncertainty regarding the UK's trade with the European Union following Brexit will also impact on consumers decision

making.

Manufacturers

The group operates under a number of franchise agreements with automotive manufacturers and, to some extent,

manufacturers exercise a degree of control over the operations of the group's franchises. Our franchise agreements

could be terminated or not renewed for a variety of reasons. The success of individual franchises is also dependent on

the reputation of the various manufacturers, particularly in relation marketing, design and build quality of their

products. Significant deterioration in the reputation of any of the major manufacturers may have an impact on the

performance of the group. Brexit also causes uncertainty regarding the trading relationships on which the group

depends for the majority of the products it sells.

The directors believe the group is as well placed as any in the industry to deal with these risks and uncertainties.

ON BEHALF OF THE BOARD:

J Butler - Director

22nd July 2019

The directors present their report with the financial statements of the company and the group for the year ended

31st December 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of trading in the servicing, hiring and sales of

motor vehicles.

DIVIDENDS

The directors do not recommend payment of a final dividend.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2018 to the date of this

report.

I A Wilson

Ms T Wilson

Ms M Fenwick

Mrs T Wilson

Mrs G Storr

J Butler

D M Wheatcroft

W Gumienny

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Simpson Wreford & Partners, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

J Butler - Director

22nd July 2019

Opinion

We have audited the financial statements of Wilsons Automobiles and Coachworks Limited (the 'parent company') and

its subsidiaries (the 'group') for the year ended 31st December 2018 which comprise the Consolidated Statement of

Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position,

Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of

Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st December 2018 and of the group's 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 group 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 group'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 Group

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.

Opinions 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 Group 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 Group 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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.

Christopher Atkinson (Senior Statutory Auditor)

for and on behalf of Simpson Wreford & Partners

Chartered Accountants

Registered Auditors

Suffolk House

George Street

Croydon CR0 0YN

22nd July 2019

REVENUE

3

119,269,845

108,233,423

Cost of sales

99,509,599

89,204,449

GROSS PROFIT

19,760,246

19,028,974

Administrative expenses

19,171,815

18,053,082

588,431

975,892

Other operating income

323,156

142,916

OPERATING PROFIT

5

911,587

1,118,808

Interest payable and similar expenses

6

51,524

7,759

PROFIT BEFORE TAXATION

860,063

1,111,049

Tax on profit

7

232,730

236,651

PROFIT FOR THE FINANCIAL YEAR

627,333

874,398

OTHER COMPREHENSIVE INCOME

Excess depreciation on revalued amounts

38,642

38,642

Revaluation

Transfer to revaluation reserve

(38,642

)

(38,642

)

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

627,333

874,398

Profit attributable to:

Owners of the parent

627,333

874,398

Total comprehensive income attributable to:

Owners of the parent

627,333

874,398

FIXED ASSETS

Property, plant and equipment

9

14,927,527

12,585,546

Investments

10

58,848

58,848

Investment property

11

705,889

2,780,889

15,692,264

15,425,283

CURRENT ASSETS

Inventories

12

24,997,851

28,521,945

Debtors

13

2,435,228

3,539,794

Cash at bank and in hand

10,504

3,281

27,443,583

32,065,020

CREDITORS

Amounts falling due within one year

14

15,435,733

20,197,119

NET CURRENT ASSETS

12,007,850

11,867,901

TOTAL ASSETS LESS CURRENT LIABILITIES

27,700,114

27,293,184

CREDITORS

Amounts falling due after more than one year

15

(868,000

)

(1,058,298

)

PROVISIONS FOR LIABILITIES

20

(493,882

)

(523,987

)

NET ASSETS

26,338,232

25,710,899

CAPITAL AND RESERVES

Called up share capital

21

164,100

164,100

Share premium

22

1,787,974

1,787,974

Revaluation reserve

22

3,037,240

3,075,702

Capital redemption reserve

22

105,370

105,370

Retained earnings

22

21,243,548

20,577,753

SHAREHOLDERS' FUNDS

26,338,232

25,710,899

The financial statements were approved by the Board of Directors on 22nd July 2019 and were signed on its behalf by:

J Butler - Director

FIXED ASSETS

Property, plant and equipment

9

14,927,529

12,585,548

Investments

10

159,048

159,048

Investment property

11

-

2,075,000

15,086,577

14,819,596

CURRENT ASSETS

Inventories

12

24,997,851

28,521,945

Debtors

13

3,141,117

4,245,683

Cash at bank

10,404

3,181

28,149,372

32,770,809

CREDITORS

Amounts falling due within one year

14

15,535,832

20,297,218

NET CURRENT ASSETS

12,613,540

12,473,591

TOTAL ASSETS LESS CURRENT LIABILITIES

27,700,117

27,293,187

CREDITORS

Amounts falling due after more than one year

15

(868,000

)

(1,058,298

)

PROVISIONS FOR LIABILITIES

20

(493,882

)

(523,987

)

NET ASSETS

26,338,235

25,710,902

CAPITAL AND RESERVES

Called up share capital

21

164,100

164,100

Share premium

22

1,787,974

1,787,974

Revaluation reserve

22

3,037,240

3,075,702

Capital redemption reserve

22

105,370

105,370

Retained earnings

22

21,243,551

20,577,756

SHAREHOLDERS' FUNDS

26,338,235

25,710,902

Company's profit for the financial year

627,333

874,399

The financial statements were approved by the Board of Directors on 22nd July 2019 and were signed on its behalf by:

J Butler - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st January 2017

164,100

19,664,893

1,787,974

Changes in equity

Total comprehensive income

-

912,860

-

Balance at 31st December 2017

164,100

20,577,753

1,787,974

Changes in equity

Total comprehensive income

-

665,795

-

Balance at 31st December 2018

164,100

21,243,548

1,787,974

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1st January 2017

3,114,164

105,370

24,836,501

Changes in equity

Total comprehensive income

(38,462

)

-

874,398

Balance at 31st December 2017

3,075,702

105,370

25,710,899

Changes in equity

Total comprehensive income

(38,462

)

-

627,333

Balance at 31st December 2018

3,037,240

105,370

26,338,232

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1st January 2017

164,100

19,664,895

1,787,974

Changes in equity

Total comprehensive income

-

912,861

-

Balance at 31st December 2017

164,100

20,577,756

1,787,974

Changes in equity

Total comprehensive income

-

665,795

-

Balance at 31st December 2018

164,100

21,243,551

1,787,974

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1st January 2017

3,114,164

105,370

24,836,503

Changes in equity

Total comprehensive income

(38,462

)

-

874,399

Balance at 31st December 2017

3,075,702

105,370

25,710,902

Changes in equity

Total comprehensive income

(38,462

)

-

627,333

Balance at 31st December 2018

3,037,240

105,370

26,338,235

Cash flows from operating activities

Cash generated from operations

1

319,243

1,474,929

Interest paid

(51,524

)

(7,759

)

Tax paid

(310,829

)

(639,298

)

Net cash from operating activities

(43,110

)

827,872

Cash flows from investing activities

Purchase of tangible fixed assets

(829,772

)

(2,408,674

)

Net cash from investing activities

(829,772

)

(2,408,674

)

Cash flows from financing activities

New loans in year

-

1,092,000

Loan repayments in year

(112,000

)

-

Other Loan repayments in the year

(250,000

)

-

Amount introduced by directors

1,824,381

216,065

Amount withdrawn by directors

(936

)

(15,670

)

Net cash from financing activities

1,461,445

1,292,395

Increase/(decrease) in cash and cash equivalents

588,563

(288,407

)

Cash and cash equivalents at beginning of year

2

(1,328,173

)

(1,039,766

)

Cash and cash equivalents at end of year

2

(739,610

)

(1,328,173

)

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

31.12.18

31.12.17

£

£

Profit before taxation

860,063

1,111,049

Depreciation charges

562,791

524,740

Finance costs

51,524

7,759

1,474,378

1,643,548

Decrease/(increase) in inventories

3,524,094

(7,614,580

)

Decrease/(increase) in trade and other debtors

1,148,775

(576,740

)

(Decrease)/increase in trade and other creditors

(5,828,004

)

8,022,701

Cash generated from operations

319,243

1,474,929

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 31st December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

10,504

3,281

Bank overdrafts

(750,114

)

(1,331,454

)

(739,610

)

(1,328,173

)

Year ended 31st December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

3,281

3,276

Bank overdrafts

(1,331,454

)

(1,043,042

)

(1,328,173

)

(1,039,766

)