Cartwright Finance Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02059476 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2019

FOR

CARTWRIGHT FINANCE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Profit and loss account

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

Mr P S Cartwright

Mr M R Cartwright

Mrs L Lee

J Egerton

Mr R Ward

SECRETARY:

Mr P S Cartwright

REGISTERED OFFICE:

Atlantic Street

Broadheath

Altrincham

Cheshire

WA14 5EW

REGISTERED NUMBER:

02059476 (England and Wales)

AUDITORS:

Kay Johnson Gee Limited

Chartered Accountants and Statutory Auditors

1 City Road East

Manchester

M15 4PN

REVIEW OF BUSINESS

The business offers a range of rental packages to suit customers precise operational requirements.

As part of the Cartwright Company of companies we are supported by a vast range of technical, engineering and

manufacturing knowledge and experience.

FINANCIAL KEY PERFORMANCE INDICATORS

2019

2018

£   's

£   's

Turnover

11,937

14,165

Gross Profit

370

236

Gross Profit Margin %

3.10%

1.67%

Underlying operating profit before interest, depreciation, impairment

& amortisation (EBITDA)

403

230

Capital expenditure

945

1,520

OPERATIONAL REVIEW

The Company has produced another strong performance over the past 12 months consolidating its position within the

trailer rental and fleet market.

Turnover has reduced by 15% over the 12-month period. However as a result of focusing on improved margins Gross

Margin % has increased to 3.10% with overall Gross Profit increasing to £370,000 . EBITDA has increased to £403,000

Cartwright Finance Sales Limited will continue to focus on providing complete finance l solutions

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risks

The Group's operations expose it to a limited number of financial risks, primarily credit risk and liquidity risk.

Credit Risk - Appropriate credit checks are undertaken on all potential customers before liabilities are incurred.

Individual exposures are monitored on an ongoing basis to ensure bad debts are minimised.

Liquidity Risk - The Company regularly forecasts cash flow to ensure that sufficient funds are available for operational

requirements. This is supplemented with appropriate banking facilities.

Non-Financial Risks

Non-financial risks are monitored on a regular basis by the Board. The principal risks and how they are mitigated are

set out below;

Loss of business due to fall in demand or current economic climate - the Directors review prospects and sales forecast

on a regular basis. The Company puts considerable effort into maintaining customer focused activities

Loss of suppliers - The Company maintains strong relationships with its suppliers and actively manages its supplier

base.

POLICY ON PAYMENT TO SUPPLIERS

The Company`s payment policy is outlined and agreed in the supplier's SLA, this document outlines the Group's

payment terms. All transactions are managed to those terms.

OUR PEOPLE

The Company believes that its people are a real asset to the company and the key to long term success. We have

continued to invest in the development of talent within the business. We also continue to invest in our local

communities supporting schools and local charities.

The Company values the involvement of its employees, and keeps them informed on issues affecting them as

employees, and on the various factors affecting the Company. The Company's intranet site is being developed to keep

staff informed of all Group developments and news.

DISABLED EMPLOYEES

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the

applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their

employment with the Company continues and that appropriate & relevant training is arranged. It is the policy of the

Company that the training, career development and promotion of disabled persons should, as far as possible, be

identical to that of other employees

HUMAN TRAFFICKING AND ANTI-SLAVERY STATEMENT

The Company is committed to ensuring that it is free from acts of modern slavery from within its own business and

within its supply chain. The Company acknowledges responsibility for implementing the requirements of the Modern

Slavery Act 2015 and will ensure transparency within the organisation and with suppliers of goods and services to the

organisation.

As part of the Company's due diligence process into slavery and human trafficking, the supplier approval process will

require all suppliers to confirm that they are compliant with the requirements of the Act. The company will not support

or deal with any business knowingly involved in slavery or human trafficking.

The Company's Directors and Senior Management will take responsibility for enhancing this policy statement and its

objectives, and shall provide adequate training to ensure that, wherever possible, slavery and human trafficking is not

taking place within the organisation or within its supply chains.

The Company reserves the right to conduct audits of key suppliers to ensure compliance with the Company's Supplier

Code of Conduct. These audits can be done either by the Cartwright Rentals Limited employees or by contracted,

independent third parties or a combination. We expect our suppliers to respect human rights, including maintaining

policies and procedures to prevent the use of child or forced labour.

ON BEHALF OF THE BOARD:

Mr R Ward - Director

24th December 2019

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

CHANGE OF NAME

The company passed a special resolution on 19th December 2019 changing its name from Cartwright Finance Sales Limited to Cartwright Finance Limited.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2019.

DIRECTORS

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

report.

Mr P S Cartwright

Mr M R Cartwright

Mrs L Lee

J Egerton

Mr R Ward

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 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

Kay Johnson Gee Limited acquired the audit practice of Kay Johnson Gee LLP and has been appointed as auditor in

succession. In accordance with section 485 of the Companies Act 2006, Kay Johnson Gee Limited will be proposed for

reappointment.

ON BEHALF OF THE BOARD:

Mr R Ward - Director

24th December 2019

Opinion

We have audited the financial statements of Cartwright Finance Limited (the 'company') for the year ended

31st March 2019 which comprise the Profit and loss account, Other Comprehensive Income, Statement of Financial

Position, Statement of Changes in Equity and 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 31st 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.

Julian Beressi (Senior Statutory Auditor)

for and on behalf of Kay Johnson Gee Limited

Chartered Accountants and Statutory Auditors

1 City Road East

Manchester

M15 4PN

24th December 2019

TURNOVER

4

11,937,276

14,165,040

Cost of sales

(11,566,878

)

(13,929,348

)

GROSS PROFIT

370,398

235,692

Administrative expenses

(139,412

)

(120,248

)

OPERATING PROFIT

6

230,986

115,444

Interest payable and similar expenses

7

(46,283

)

(15,168

)

PROFIT BEFORE TAXATION

184,703

100,276

Tax on profit

8

(29,003

)

(19,218

)

PROFIT FOR THE FINANCIAL YEAR

155,700

81,058

FIXED ASSETS

Tangible assets

10

1,844,581

1,449,597

CURRENT ASSETS

Debtors

11

11,168,151

6,919,754

Cash at bank

5,796

68,841

11,173,947

6,988,595

CREDITORS

Amounts falling due within one year

12

(11,251,828

)

(7,147,646

)

NET CURRENT LIABILITIES

(77,881

)

(159,051

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,766,700

1,290,546

CREDITORS

Amounts falling due after more than one year

13

(1,551,324

)

(1,249,489

)

PROVISIONS FOR LIABILITIES

16

(51,987

)

(33,368

)

NET ASSETS

163,389

7,689

CAPITAL AND RESERVES

Called up share capital

17

200

200

Retained earnings

163,189

7,489

SHAREHOLDERS' FUNDS

163,389

7,689

The financial statements were approved and authorised for issue by the Board of Directors on 24th December 2019 and were signed on its behalf by:

Mr M R Cartwright - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2017

2

226,431

226,433

Profit for the year

-

81,058

81,058

Total comprehensive income

-

81,058

81,058

Dividends

-

(300,000

)

(300,000

)

Issue of share capital

198

-

198

Balance at 31st March 2018

200

7,489

7,689

Profit for the year

-

155,700

155,700

Total comprehensive income

-

155,700

155,700

Balance at 31st March 2019

200

163,189

163,389

1.	STATUTORY INFORMATION

Cartwright Finance Sales Limited is a private company limited by share capital, incorporated in England and

Wales, registration number 02059476. The address of the registered office and principal place of business is

Atlantic Street, Broadheath, Altrincham, Cheshire, WA14 5EW.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

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 is measured at the fair value of the consideration received or receivable. Turnover is reduced for

estimated customer returns, rebates and other similar allowances.

Turnover from the sale of goods and services is recognised when all the following conditions are satisfied:

-

the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

-

the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-

the amount of turnover can be measured reliably;

-

it is probable that the economic benefits associated with the transaction will flow to the company; and

-

the costs incurred or too be incurred in respect of the transaction can be measured reliably.

Specifically, turnover from the sale of goods is recognised when goods are delivered and legal title is passed.

Turnover from the hire of trailers is recognised in the period in which the services are provided and when the

following conditions are satisfied:

- the amount of revenue can be measured reliably; and

- it is probable that the company will receive the consideration due under the contract.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation on tangible fixed assets is charged to the profit or loss so as to write off their value, over their

estimated useful lives, using the following methods:

Plant and machinery

-

straight line to write down cost to 15% after 12 years then remaining amount written down to zero over next 8 years

At each reporting date, the Company reviews the carrying amounts of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists,

the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of

the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in

the statement of comprehensive income because of items of income or expense that are taxable or deductible

in other years and items that are never taxable or deductible. The Company's liability for current tax is

calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the

financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax

liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally

recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be

available against which those deductible timing differences can be utilised. The carrying amount of deferred tax

assets is reviewed at the end of each reporting period and reduced to the extent that is no longer probable that

insufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in

which the liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or

substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets

reflects the tax consequences that would follow from the manner in which the Company expects, at the end of

the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in the profit and loss, except where they relate to items that

are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax

is also recognised in other comprehensive income or directly in equity respectively.

Hire purchase

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the

inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding

liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease

payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a

constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately

in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in

accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as expenses in

the periods in which they are incurred.

Financial instruments

Financial assets and liabilities are recognised when the company becomes party to the contractual provisions of

the financial instrument. The company holds basic financial instruments, which comprise cash at bank and in

hand, trade and other debtors, borrowings, and trade and other creditors. The company has chosen to apply

the measurement and recognition provisions of Section 11 Basic Financial Instruments.

Trade and other debtors/creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade

and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent

to initial recognition they are measured at amortised cost using the effective interest method, less any

impairment losses in the case of trade debtors.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies above, 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.

Provisions

The company accounts for provisions in accordance with FRS 102.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2019

2018

£

£

Hire of trailer

11,760,360

13,922,153

Commission receivable

176,916

242,887

11,937,276

14,165,040

An analysis of turnover by geographical market is given below:

2019

2018

£

£

United Kingdom

11,937,276

14,165,040

11,937,276

14,165,040

5.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

106,429

99,769

Social security costs

12,406

12,361

Other pension costs

2,600

2,900

121,435

115,030

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

2019

2018

Administration

2

1

2019

2018

£

£

Directors' remuneration

48,000

91,000

6.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Depreciation - owned assets

172,486

114,956

Loss on disposal of fixed assets

35,114

63,552

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Hire purchase

45,490

15,168

Interest on overdue tax paid

793

-

46,283

15,168

8.

TAXATION

Analysis of the tax charge

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

2019

2018

£

£

Current tax:

UK corporation tax

10,384

-

Deferred tax

18,619

19,218

Tax on profit

29,003

19,218

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2019

2018

£

£

Profit before tax

184,703

100,276

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

35,094

19,052

Effects of:

Expenses not deductible for tax purposes

6,696

12,075

Capital allowances in excess of depreciation

(31,406

)

(31,293

)

Utilisation of tax losses

-

166

Deferred tax

18,619

19,218

Total tax charge

29,003

19,218

9.

DIVIDENDS

2019

2018

£

£

Ordinary shares of £1.00 each

Interim

-

300,000

10.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1st April 2018

1,622,585

Additions

944,910

Disposals

(466,360

)

At 31st March 2019

2,101,135

DEPRECIATION

At 1st April 2018

172,988

Charge for year

172,486

Eliminated on disposal

(88,920

)

At 31st March 2019

256,554

NET BOOK VALUE

At 31st March 2019

1,844,581

At 31st March 2018

1,449,597

The net book value of the assets held under finance leases or hire purchase contracts, included above, are as

follows:

2019

2018

£

£

Plant and machinery

1,844,580

1,412,482

1,844,580

1.412,482

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,243,177

946,135

Amounts owed by group undertakings

9,807,203

5,706,701

Other debtors

5

198

Prepayments and accrued income

117,766

266,720

11,168,151

6,919,754

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 14)

239,661

384,645

Trade creditors

400,101

522,885

Amounts owed to group undertakings

10,331,060

5,891,372

Tax

10,478

20,519

VAT

105,348

8,346

Accruals and deferred income

165,180

319,879

11,251,828

7,147,646

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 14)

1,551,324

1,249,489