Park's of Hamilton (Holdings) Limited - Limited company accounts 18.2

REGISTERED NUMBER: SC066568 (Scotland)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

PARK'S OF HAMILTON (HOLDINGS) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other 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:

D I Park

I B Mackay

W Cumming

R W Park

A S Bryce

G T Park

A G Noble

R B Hare

SECRETARY:

A G Noble

REGISTERED OFFICE:

Park House

14 Bothwell Road

Hamilton

ML3 0AY

REGISTERED NUMBER:

SC066568 (Scotland)

AUDITORS:

Thomas Barrie & Co LLP

Statutory Auditor

Chartered Accountants

Atlantic House

1a Cadogan Street

Glasgow

G2 6QE

BANKERS:

Bank of Scotland plc

110 St Vincent Street

Glasgow

G2 5ER

SOLICITORS:

Brodies LLP

110 Queen Street

Glasgow

G1 3BX

The directors present their strategic report of the company and the group for the year ended 31 March 2019.

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.

We consider that our key financial performance indicators are those that communicate the financial performance and

strength of the group as a whole, these being turnover and operating profit.

The turnover of the group by sector was as follows:

2019

2018

£

£

Motor Division

769,280,917

734,064,319

Coach Hiring Operations

27,900,951

26,945,355

797,181,868

761,009,674

Despite difficult trading conditions as a result of the general uncertainty in the economy, the company is in a good

financial position at the end of the year. Overall operating profit has decreased from £17,979,668 to £15,416,456. Profit

before tax has also decreased from £16,542,797 to £13,584,481.

After taxation and dividends £621,519 has been deducted from reserves.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks associated with the group's financial assets and liabilities are set out below.

Liquidity Risk

The objective of the group in managing liquidity risk is to ensure that it can meet its financial obligations as and when

they fall due. The group expects to meet its financial obligations through operating cash flows. In the event that the

operating cash flows would not cover all the financial obligations the group has credit facilities available.

Interest Rate Risk

The group borrows from its bankers using either overdrafts or term loans whose tenure depends on the nature of the

asset and management's view of the future direction of interest rate.

Credit Risk

The group has external debtors, however, the group undertakes assessments of its customers in order to ensure that

credit is not extended where there is a likelihood of default.

ON BEHALF OF THE BOARD:

A G Noble - Director

22 October 2019

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

31 March 2019.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of the operation of a fleet of luxury coaches;

the sale and service of private and commercial vehicles; the sale of motor fuels, oils and accessories; the operation of

vehicle body repair centres and the rental of properties.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2019 will be £ 12,500,000 .

FUTURE DEVELOPMENTS

The directors will continue to look for opportunities to expand the company's core business.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

D I Park

I B Mackay

W Cumming

R W Park

A S Bryce

G T Park

A G Noble

Other changes in directors holding office are as follows:

R B Hare was appointed as a director after 31 March 2019 but prior to the date of this report.

Qualifying third party indemnity provisions

The company has put in place qualifying third party indemnity provisions for all of the directors.

EMPLOYEES

Every effort is made to keep staff informed of and involved in the operations and progress of the Group.

The company is committed to providing a safe and pleasant environment for its employees and training and career

development opportunities are available. No discrimination is made on the grounds of age, colour, disability, marital

status, race, religion or sex. Employees are given the opportunity to develop and progress according to their ability.

Disabled people are given fair consideration for all job vacancies for which they offer themselves as suitable applicants,

having regard to their particular aptitudes and abilities.

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), 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 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 ought to have taken as

a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are

aware of that information.

AUDITORS

The auditors, Thomas Barrie & Co LLP, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

A G Noble - Director

22 October 2019

Opinion

We have audited the financial statements of Park's of Hamilton (Holdings) Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 March 2019 which comprise the Consolidated Income Statement,

Consolidated Other 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 31 March 2019 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.

Gordon Cruickshank C.A. (Senior Statutory Auditor)

for and on behalf of Thomas Barrie & Co LLP

Statutory Auditor

Chartered Accountants

Atlantic House

1a Cadogan Street

Glasgow

G2 6QE

23 October 2019

761,009,674

TURNOVER

3

797,181,868

9,972,124

Other operating income

10,494,860

770,981,798

807,676,728

674,201,750

Raw materials and consumables

707,656,970

96,780,048

100,019,758

54,370,434

Staff costs

4

58,624,429

5,012,505

Depreciation

5,317,452

19,417,441

Other operating expenses

20,661,421

78,800,380

84,603,302

17,979,668

OPERATING PROFIT

5

15,416,456

4,642

Interest receivable and similar income

9,534

17,984,310

15,425,990

1,441,513

Interest payable and similar expenses

6

1,841,509

16,542,797

PROFIT BEFORE TAXATION

13,584,481

3,012,383

Tax on profit

7

1,880,000

13,530,414

PROFIT FOR THE FINANCIAL YEAR

11,704,481

Profit attributable to:

13,530,414

Owners of the parent

11,704,481

13,530,414

PROFIT FOR THE YEAR

11,704,481

OTHER COMPREHENSIVE INCOME/(LOSS)

(88,000

)

Actuarial losses

(29,000

)

-

GMP Equalisation

203,000

-

Income tax relating to components of other comprehensive income/(loss)

-

(88,000

)

OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX

174,000

13,442,414

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

11,878,481

Total comprehensive income attributable to:

13,442,414

Owners of the parent

11,878,481

FIXED ASSETS

-

Intangible assets

10

-

102,796,763

Tangible assets

11

108,769,487

1

Investments

12

1

11,986,648

Investment property

13

11,775,000

114,783,412

120,544,488

CURRENT ASSETS

135,742,509

Stocks

14

160,775,748

45,163,327

Debtors

15

40,626,834

172,722

Cash at bank and in hand

253,912

181,078,558

201,656,494

CREDITORS

207,517,430

Amounts falling due within one year

16

228,930,622

(26,438,872

)

NET CURRENT LIABILITIES

(27,274,128

)

88,344,540

TOTAL ASSETS LESS CURRENT LIABILITIES

93,270,360

CREDITORS

(19,361,888

)

Amounts falling due after more than one year

17

(25,396,553

)

(1,731,268

)

PROVISIONS FOR LIABILITIES

22

(1,243,942

)

67,251,384

NET ASSETS

66,629,865

CAPITAL AND RESERVES

20,000,004

Called up share capital

23

20,000,004

47,251,380

Retained earnings

24

46,629,861

67,251,384

SHAREHOLDERS' FUNDS

66,629,865

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

A G Noble - Director

FIXED ASSETS

-

Intangible assets

10

-

78,094,930

Tangible assets

11

85,347,017

17,698,968

Investments

12

17,698,968

11,986,648

Investment property

13

11,775,000

107,780,546

114,820,985

CURRENT ASSETS

17,271,834

Debtors

15

15,381,690

139,695

Cash at bank and in hand

139,695

17,411,529

15,521,385

CREDITORS

79,879,596

Amounts falling due within one year

16

79,688,682

(62,468,067

)

NET CURRENT LIABILITIES

(64,167,297

)

45,312,479

TOTAL ASSETS LESS CURRENT LIABILITIES

50,653,688

CREDITORS

(12,269,884

)

Amounts falling due after more than one year

17

(18,812,500

)

(376,935

)

PROVISIONS FOR LIABILITIES

22

-

32,665,660

NET ASSETS

31,841,188

CAPITAL AND RESERVES

20,000,004

Called up share capital

23

20,000,004

12,665,656

Retained earnings

24

11,841,184

32,665,660

SHAREHOLDERS' FUNDS

31,841,188

19,820,438

Company's profit for the financial year

11,501,528

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

A G Noble - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

20,000,004

41,758,966

61,758,970

Changes in equity

Dividends

-

(7,950,000

)

(7,950,000

)

Total comprehensive income

-

13,442,414

13,442,414

Balance at 31 March 2018

20,000,004

47,251,380

67,251,384

Changes in equity

Dividends

-

(12,500,000

)

(12,500,000

)

Total comprehensive income

-

11,878,481

11,878,481

Balance at 31 March 2019

20,000,004

46,629,861

66,629,865

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

20,000,004

883,218

20,883,222

Changes in equity

Dividends

-

(7,950,000

)

(7,950,000

)

Total comprehensive income

-

19,732,438

19,732,438

Balance at 31 March 2018

20,000,004

12,665,656

32,665,660

Changes in equity

Dividends

-

(12,500,000

)

(12,500,000

)

Total comprehensive income

-

11,675,528

11,675,528

Balance at 31 March 2019

20,000,004

11,841,184

31,841,188

Cash flows from operating activities

14,826,396

Cash generated from operations

1

25,867,993

(1,280,214

)

Interest paid

(1,635,612

)

(161,299

)

Interest element of hire purchase payments paid

(205,897

)

(4,189,743

)

Tax paid

(2,769,990

)

9,195,140

Net cash from operating activities

21,256,494

Cash flows from investing activities

(12,230,683

)

Purchase of tangible fixed assets

(11,295,856

)

(211,648

)

Purchase of investment property

-

3,613,508

Sale of tangible fixed assets

4,127,548

4,642

Interest received

9,534

(8,824,181

)

Net cash from investing activities

(7,158,774

)

Cash flows from financing activities

4,250,000

New loans in year

9,750,000

(2,062,500

)

Loan repayments in year

(4,937,500

)

(4,772,067

)

Capital repayments in year

(4,552,720

)

-

Amount introduced by directors

8,521,119

(7,827

)

Amount withdrawn by directors

-

(7,950,000

)

Equity dividends paid

(12,500,000

)

(10,542,394

)

Net cash from financing activities

(3,719,101

)

(10,171,435

)

Increase/(decrease) in cash and cash equivalents

10,378,619

(1,408,403

)

Cash and cash equivalents at beginning of year

2

(11,579,838

)

(11,579,838

)

Cash and cash equivalents at end of year

2

(1,201,219

)

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

2019

2018

£

£

Profit before taxation

13,584,481

16,542,797

Depreciation charges

5,686,540

5,301,855

Profit on disposal of fixed assets

(369,088

)

(289,350

)

Pension adjustments

174,000

(88,000

)

Finance costs

1,841,509

1,441,513

Finance income

(9,534

)

(4,642

)

20,907,908

22,904,173

Increase in stocks

(25,033,239

)

(5,470,480

)

Decrease/(increase) in trade and other debtors

4,483,998

(10,050,940

)

Increase in trade and other creditors

25,509,326

7,443,643

Cash generated from operations

25,867,993

14,826,396

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 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

253,912

172,722

Bank overdrafts

(1,455,131

)

(11,752,560

)

(1,201,219

)

(11,579,838

)

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

172,722

185,944

Bank overdrafts

(11,752,560

)

(1,594,347

)

(11,579,838

)

(1,408,403

)