Rustler Yachts Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03938066 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 April 2019

for

RUSTLER YACHTS LIMITED

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

10

DIRECTORS:

A Jones

N J Offord

SECRETARY:

N J Offord

REGISTERED OFFICE:

Maritime Buildings

Falmouth Road

Falmouth

Cornwall

TR10 8AD

REGISTERED NUMBER:

03938066 (England and Wales)

ACCOUNTANTS:

Baldwins

Accountants

Unit A

Woodlands Court

Truro Business Park

Truro

Cornwall

TR4 9NH

FIXED ASSETS

Intangible assets

4

513,881

532,076

Tangible assets

5

527,466

376,887

1,041,347

908,963

CURRENT ASSETS

Stocks

6

151,739

16,950

Debtors

7

834,155

402,189

Cash at bank and in hand

89,069

318,263

1,074,963

737,402

CREDITORS

Amounts falling due within one year

8

(1,112,922

)

(806,315

)

NET CURRENT LIABILITIES

(37,959

)

(68,913

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,003,388

840,050

CREDITORS

Amounts falling due after more than one year

9

(823,624

)

(690,587

)

PROVISIONS FOR LIABILITIES

13

(67,406

)

(56,931

)

NET ASSETS

112,358

92,532

CAPITAL AND RESERVES

Called up share capital

60

60

Retained earnings

112,298

92,472

SHAREHOLDERS' FUNDS

112,358

92,532

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

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

N J Offord - Director

1.	STATUTORY INFORMATION

Rustler Yachts 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with Financial Reporting Standard 102

Section 1A "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the

Companies Act 2006. The financial statements have been prepared under the historical cost

convention.

The financial statements are prepared in sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound sterling.

The directors, after making enquiries and having considered the company's business, its financial

plans and the facilities available to finance the business, have a reasonable expectation that the

company has adequate resources to continue in operational existence for the foreseeable future.

Accordingly, the going concern basis is adopted in preparing the financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year.

In respect of long-term contracts for on-going services, turnover represents the value of work done in

the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and

contracts for on-going services is recognised by reference to the stage of completion.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs that are directly attributable to the design and prototypes of new yacht models are

recognised as intangible assets when the following criteria are met:

-

it is technically feasible to complete the yacht so that it will be available for use;

-

management intends to complete the yacht and use or sell it;

-

there is an ability to use or sell the yacht;

-

it can be demonstrated how the yacht will generate probable future economic benefits;

-

adequate technical, financial and other resources to complete the development and to use or sell the yacht are available; and

-

the expenditure attributable to the yacht during its development can be reliably measured.

Other development expenditures that do not meet these criteria are recognised as an expense as

incurred. Development costs previously recognised as an expense are not recognised as an asset in a

subsequent period.

Development costs are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Tangible assets are initially measured at cost. Such costs include costs directly attributable to making

the asset capable of operating as intended. Subsequent to initial recognition, tangible assets are stated

at cost less accumulated depreciation and accumulated impairment.

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any

estimated residual value, over their expected useful economic life as follows:

Plant and machinery

4 years straight line/ 20 years straight line / 20 production units

Fixtures, fittings & equipment

25% reducing balance

Office equipment

4 years straight line

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its intangible and tangible

assets to determine whether there is any indication that those assets have suffered an impairment

loss. If any such indication exists, the recoverable amount of the asset is estimated in order to

determine the extent of the impairment loss (if any). Where it is not possible to estimate the

recoverable amount of an individual asset, the company estimates the recoverable amount of the

cash-generating unit to which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks

specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset

(or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined had

no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of

an impairment loss is recognised immediately in profit or loss.

Stocks

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

obsolete and slow moving items.

Amounts recoverable on long term contracts

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on account.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax

assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items

charged or credited to other comprehensive income or equity, when the tax follows the transaction or

event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are

offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends

either to settle on the net basis or to realise the asset and settle the liability simultaneously.

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive

income because it excludes items of income or expense that are taxable or deductible in other periods.

Current tax assets and liabilities are measured using tax rates that have been enacted or substantively

enacted by the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date where transactions or events have occurred at that date that will result in an

obligation to pay more, or a right to pay less or to receive more, tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying timing

differences can be deducted.

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the

periods in which timing differences reverse, based on tax rates and laws enacted or substantively

enacted at the balance sheet date.

Research and development

Research expenditure is expensed in profit or loss in the year in which it is incurred. Development

expenditure is expensed in the same year unless the directors are satisfied as to the technical,

commercial and financial viability of individual projects. In this situation, the expenditure is deferred and

amortised over the period over which the company is expected to benefit.

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.

Leasing commitments

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

period of the lease.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and

Section 12 "Other Financial Instruments" of FRS102 to all of its financial instruments.

Financial assets and liabilities are recognised in the company's statement of financial position when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are classified into specified categories. The classification depends on

the nature and purpose of the financial asset or liability and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables, including staff loans 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.

Basic financial liabilities, which include trade and other payables are initially measured at transaction

price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged,

cancelled, or they expire.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2018 - 43 ) .

4.	INTANGIBLE FIXED ASSETS

Developme

costs

£

COST

At 1 May 2018

609,151

Additions

167,757

Reclassification/transfer

(163,678

)

At 30 April 2019

613,230

AMORTISATION

At 1 May 2018

77,075

Amortisation for year

22,274

At 30 April 2019

99,349

NET BOOK VALUE

At 30 April 2019

513,881

At 30 April 2018

532,076

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Office

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 May 2018

837,583

53,424

20,052

911,059

Additions

36,537

240

3,008

39,785

Disposals

(497

)

-

(245

)

(742

)

Reclassification/transfer

163,678

-

-

163,678

At 30 April 2019

1,037,301

53,664

22,815

1,113,780

DEPRECIATION

At 1 May 2018

473,621

46,591

13,960

534,172

Charge for year

48,307

1,551

3,026

52,884

Eliminated on disposal

(497

)

-

(245

)

(742

)

At 30 April 2019

521,431

48,142

16,741

586,314

NET BOOK VALUE

At 30 April 2019

515,870

5,522

6,074

527,466

At 30 April 2018

363,962

6,833

6,092

376,887

6.

STOCKS

2019

2018

£

£

Raw materials and consumables

34,942

16,950

Finished goods

116,797

-

151,739

16,950

The amount of stock recognised as an expense in the profit and loss account during the year was

£1,216,857 (2018: £1,289,004).

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

24,884

69,245

Amounts owed by associates

17,502

19,689

Amounts recoverable on contract

542,341

238,529

Other debtors

249,428

74,726

834,155

402,189

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Payments on account

437,482

399,595

Trade creditors

335,242

265,621

Amounts owed to group undertakings

9,071

20,667

Taxation and social security

76,193

62,155

Other creditors

254,934

58,277

1,112,922

806,315

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Amounts owed to group undertakings

359,091

214,091

Other creditors

464,533

476,496

823,624

690,587

10.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due between one and two years:

Other loans - 1-2 years

440,000

-

Amounts falling due between two and five years:

Other loans - 2-5 years

-

440,000

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019

2018

£

£

Within one year

48,118

46,353

Between one and five years

135,000

180,000

183,118

226,353

12.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Amounts owed to group

359,091

214,091

Other loans

400,000

400,000

759,091

614,091

The company's bankers hold a fixed and floating charge over the assets and undertaking of the

company.

Falmouth Maritime Limited holds a debenture over the assets and undertaking of the company.

Other loans are secured by a fixed charge over certain equipment including a negative pledge.

13.	PROVISIONS FOR LIABILITIES

Accelerated capital allowances

Arising on tax losses

Deferred tax total

£

£

£

Balance as at 1 May 2018

61,505

(4,574

)

56,931

Movement in the year

28,860

(18,385

)

10,475

Balance as at 30 April 2019

90,365

(22,959

)

67,406

14.	RELATED PARTY DISCLOSURES

During the year the company received rental income of £4,000 (2018: £4,000) and management fees

of £8,345 (2018: £6,467) from an associated company, Falmouth Boatyard Limited. During the year

the company recharged other costs of £87,559 (2018: £102,675) to Falmouth Boatyard Limited. At the

balance sheet date the company was owed £17,502 (2018: £19,689) from Falmouth Boatyard Ltd, as

disclosed within Debtors: Amounts falling due within one year.

At the balance sheet date the company owed £4,440 (2018: £4,534) to the director, A Jones, as

disclosed in Creditors: Amounts falling due within one year. The amount is interest free and payable on

demand.

At the balance sheet date the company owed £4,678 (2018: £7,340) to the director, N J Offord, as

disclosed in Creditors: Amounts falling due within one year. The amount is interest free and payable on

demand.

During the year the company paid gross loan interest, at 10% per annum, of £20,000 (2018: £nil) to S

Groom, the wife of the director N Offord. At the balance sheet date the company owed £200,000

(2018: £200,000) to S Groom, as disclosed in Creditors: Amounts falling due after more than one year.

15.	ULTIMATE PARENT COMPANY

Falmouth Maritime Limited is the ultimate parent company.