Edwards Coaches Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04045308 (England and Wales)

EDWARDS COACHES LIMITED

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2019

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other 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:

Mr M C Edwards

Mr J M Edwards

Mr S M Edwards

Miss K L Edwards

Mrs J R Thomas

SECRETARY:

Mr J M Edwards

REGISTERED OFFICE:

The Courtyard

Parc Busnes Edwards

Llantrisant

Pontyclun

CF72 8QZ

REGISTERED NUMBER:

04045308 (England and Wales)

AUDITORS:

O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

The directors present their strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

The company continues to make reasonable profits, although the past year continues to be one of investment. This investment has

been across a number of areas including new vehicles to support existing contracts, continuing investment into new depots in

Pembrokeshire and Bristol to support the expansion of the business and finally investment into a new site for the new head office in

Llantrisant. In the short term these will impact profitability but in the longer term will provide a solid, stable base for the business.

The company has several distinct income streams all however derived from the use of its bus and coach fleet.

Essential KPI's are summarised below:

2019

2018

Change

Turnover

£'000

46,714

45,396

1,318

Gross Profit

£'000

8,148

8,823

(675

)

Gross Profit %

17.4%

19.4%

(2.0%

)

Net profit

£'000

1,087

1,004

83

Net profit %

2.3%

2.2%

0.1%

PRINCIPAL RISKS AND UNCERTAINTIES

Most of the company's revenue is contractually based however the coach holiday business is subject to shorter term influences.

These include competitive pressures from other coach holiday operators, other holiday types and availability and pricing of hotel

accommodation. Customer demand for particular destinations has particularly been driven by exchange rate movements (influencing

the cost to the customer) and terrorist activity.

The company manages this risk by providing value for money services of a high quality to retain customer loyalty. The company

avoids wherever possible any significant non cancellable forward contracts for accommodation and transport services in order to

have continuous flexibility in its operations.

The company's principal operating costs are those of people, fuel and hotel accommodation. Competition within the transport sector,

particularly for drivers and engineers, is high, which has an impact on remuneration levels to attract and retain quality staff.

The cost of fuel is clearly driven by the global oil price. A large proportion of the company's fuel usage is hedged either through

customer contracts or directly through the purchase of forward fuel contracts.

The company purchases overseas hotel accommodation primarily in Euros and is therefore subject to foreign exchange movement

risks. The company places forward contracts to manage this risk.

Corporate responsibility

The company is proud of its record of achievement to date but looks to build upon this to further enhance its reputation as a company

that takes its corporate responsibility very seriously. Indeed the company considers that it will be judged by the success of not only

meeting but improving upon delivery of this obligation. The company has planned a number of new initiatives that it has

implemented to ensure continuous improvement in safety, health and environmental management. These initiatives will help

enhance the company's excellent reputation with clients, regulators, workers and the public.

ON BEHALF OF THE BOARD:

Mr M C Edwards - Director

15 October 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of tour operator and coach hire.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2019 will be £244,746.

FUTURE DEVELOPMENTS

The company has created a holiday hub at its Llantrisant depot and continues to explore the efficient centralisation of its holiday

facilities. These are continually under review with a view to maximizing potential efficiencies and the possible creation of a call

centre.

DIRECTORS

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

Mr M C Edwards

Mr J M Edwards

Mr S M Edwards

Miss K L Edwards

Mrs J R Thomas

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and hire

purchase. The main purpose of these instruments is to raise funds to finance the group's operations.

Due to the nature of the financial instruments used by the company there is minimal exposure to price risk. The company's approach

to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility

through the use of overdrafts at floating rates of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the

regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing

exposure to credit risk.

The company has no significant concentrations of credit risk. Amounts shown in the balance sheet represent the maximum credit risk

exposure in the event other parties fail to perform their obligations under financial instruments.

Currency risk

The company previously introduced a euro hedging facility which enables the purchasing of euros at a set rate if required. Use of this

facility and close monitoring of exchange rate trends and advance purchasing of euros help to minimise the risk of adverse exchange

rate fluctuations.

DONATIONS

During the year the company made general charitable donations totalling £1,768.

DIRECTORS' LIABILITY INSURANCE

A liability insurance was in force during the financial year for the benefit of the directors of the company.

EMPLOYMENT POLICIES

The company's employment policies are best suited to its operations and in compliance with UK legislation. Personnel policies are

designed to provide equal opportunities to all in accordance with the company policy.

Disabled employees

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be

adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy

wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career

development and promotion to disabled employees wherever appropriate.

Employee involvement

During the year, the policy of providing employees with information about the company has been continued through internal media

methods in which employees have also been encouraged to present their suggestions and views on the company's performance.

Regular meetings are held between local management and employees to allow a free flow of information and ideas.

DISCLOSURE IN THE STRATEGIC REPORT

Information relating to the company's exposure to key risks is included in the company's strategic report.

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;

-	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

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 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 company's auditors are aware of that

information.

AUDITORS

The auditors, O'Brien & Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M C Edwards - Director

15 October 2019

Opinion

We have audited the financial statements of Edwards Coaches Limited (the 'company') for the year ended 31 March 2019 which

comprise the Income Statement, Other 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 31 March 2019 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.

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 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.

Lewis Van Emden (Senior Statutory Auditor)

for and on behalf of O'Brien & Partners

Chartered Accountants

& Statutory Auditors

Highdale House

7 Centre Court

Treforest Industrial Estate

Pontypridd

Rhondda Cynon Taff

CF37 5YR

16 October 2019

TURNOVER

3

46,889,384

45,395,515

Cost of sales

38,756,550

36,572,795

GROSS PROFIT

8,132,834

8,822,720

Administrative expenses

7,464,635

7,690,992

668,199

1,131,728

Other operating income

511,605

92,109

OPERATING PROFIT

5

1,179,804

1,223,837

Interest receivable and similar income

22,861

28,171

1,202,665

1,252,008

Interest payable and similar expenses

6

129,681

248,401

PROFIT BEFORE TAXATION

1,072,984

1,003,607

Tax on profit

7

251,336

128,614

PROFIT FOR THE FINANCIAL YEAR

821,648

874,993

PROFIT FOR THE YEAR

821,648

874,993

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

821,648

874,993

FIXED ASSETS

Intangible assets

9

144,486

288,978

Tangible assets

10

12,449,267

13,927,722

12,593,753

14,216,700

CURRENT ASSETS

Stocks

11

638,186

481,917

Debtors

12

5,565,278

3,203,980

Cash at bank and in hand

2,420,953

4,335,201

8,624,417

8,021,098

CREDITORS

Amounts falling due within one year

13

7,298,096

7,969,745

NET CURRENT ASSETS

1,326,321

51,353

TOTAL ASSETS LESS CURRENT LIABILITIES

13,920,074

14,268,053

CREDITORS

Amounts falling due after more than one year

14

(1,869,875

)

(2,794,808

)

PROVISIONS FOR LIABILITIES

17

(937,289

)

(937,236

)

NET ASSETS

11,112,910

10,536,009

CAPITAL AND RESERVES

Called up share capital

18

41,602

41,602

Capital redemption reserve

19

1,400,000

1,400,000

Retained earnings

19

9,671,308

9,094,407

SHAREHOLDERS' FUNDS

23

11,112,910

10,536,009

The financial statements were approved by the Board of Directors on 15 October 2019 and were signed on its behalf by:

Mr M C Edwards - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

41,602

8,451,613

1,400,000

9,893,215

Changes in equity

Dividends

-

(232,199

)

-

(232,199

)

Total comprehensive income

-

874,993

-

874,993

Balance at 31 March 2018

41,602

9,094,407

1,400,000

10,536,009

Changes in equity

Dividends

-

(244,747

)

-

(244,747

)

Total comprehensive income

-

821,648

-

821,648

Balance at 31 March 2019

41,602

9,671,308

1,400,000

11,112,910

Cash flows from operating activities

Cash generated from operations

1

214,078

4,927,068

Interest paid

-

(1,114

)

Interest element of hire purchase payments paid

(129,681

)

(247,287

)

Tax paid

(181,487

)

(12,651

)

Net cash from operating activities

(97,090

)

4,666,016

Cash flows from investing activities

Purchase of tangible fixed assets

(589,919

)

(518,362

)

Sale of tangible fixed assets

513,769

124,251

Interest received

22,861

28,171

Net cash from investing activities

(53,289

)

(365,940

)

Cash flows from financing activities

Capital repayments in year

(1,512,396

)

(1,981,087

)

Amount introduced by directors

5,612

10,561

Amount withdrawn by directors

(12,338

)

(59,257

)

Equity dividends paid

(244,747

)

(232,199

)

Net cash from financing activities

(1,763,869

)

(2,261,982

)

(Decrease)/increase in cash and cash equivalents

(1,914,248

)

2,038,094

Cash and cash equivalents at beginning of year

2

4,335,201

2,297,107

Cash and cash equivalents at end of year

2

2,420,953

4,335,201

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

31.3.19

31.3.18

£

£

Profit before taxation

1,072,984

1,003,607

Depreciation charges

1,762,840

1,963,846

(Profit)/loss on disposal of fixed assets

(63,743

)

20,164

Finance costs

129,681

248,401

Finance income

(22,861

)

(28,171

)

2,878,901

3,207,847

Increase in stocks

(156,269

)

(280,907

)

(Increase)/decrease in trade and other debtors

(2,363,212

)

1,729,664

(Decrease)/increase in trade and other creditors

(145,342

)

270,464

Cash generated from operations

214,078

4,927,068

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

2,420,953

4,335,201

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

4,335,201

2,297,107

1.	STATUTORY INFORMATION

Edwards Coaches 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. 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 £.

Significant judgements and estimates

The application of the company's accounting policies, the management is required to make judgements, estimates and

assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates

and underlying 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 if the revision affects only that period, or in the period of the

revision and future periods if the revision affects both current and future periods.

Turnover

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

tax and other sales taxes.

The VAT exclusive turnover shown in the profit and loss account represents:

1. Holidays - amounts receivable at the completion of a tour or trip.

2. Coach hire, private hire contracts and school contracts - goods and services invoiced during the year.

3. Local bus services - cash received during the year.

Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by

reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the

costs incurred for the work performed to the total contract costs.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, was previously being amortised

over an estimated useful life of twenty years. During the year ended 31 March 2016 the directors revised their estimation of

the remaining useful life to 5 years, with the remaining book value being amortised evenly over this period.

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.

Tangible fixed assets

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

Leasehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance, 10% on cost and 10% on reducing balance

Equipment

-

25% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and

any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying

value of the asset, and is credited or charged to profit and loss.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered

an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated

and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its

estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. If an impairment loss

subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in

excess of the amount that would have been determined had no impairment loss been recognised for the asset 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.