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Tiger Trailers Limited
Registered number: 08937970
Annual report and
financial statements
For the year ended 31 December 2019
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TIGER TRAILERS LIMITED
COMPANY INFORMATION
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Winsford Industrial Estate
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Chartered Accountants & Statutory Auditor
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TIGER TRAILERS LIMITED
CONTENTS
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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TIGER TRAILERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their Strategic Report for the period ended 31 December 2019.
The principal activity of the Company is the manufacture of commercial vehicle bodies and trailers in addition to trailer rental.
The Company continued to make positive progress during the year to December 2019 and the directors are satisfied with the financial performance as reported in these financial statements.
The first quarter of the year, as reported in our prior year report, was impacted by the transition to the new factory from the original one, however importantly the dilapidation costs associated with the transition, plus other exceptional costs were in line with budget.
From April 2019 onwards the Company has operated solely from its new facility, this provided the increase in capacity expected, leading to an increase in turnover of 59% more than the prior year.
The Tiger brand is now firmly established in the UK, now being the 5th largest trailer builder and has one of the most efficient factories in the UK to carry out its operations.
The Company has continued to innovate during the year, which has enabled it to design and produce more efficient trailers and new products that have not been available in the market before, ultimately bringing cost savings to our customers and an increased interest from potential customers.
Looking ahead, 2020 will see increased activity in our trailer rental activities and refrigerated product range. We continue to attract new customers and our first quarter production is significantly higher than last year. This coupled with a strong order book and sales pipeline puts us in an extremely positive position for the year.
During this pivotal year in the Company’s growth, being the first year in the new factory, the directors have made a long-term investment in the Tiger brand, which delivers confidence to all our stakeholders including our employees, shareholders, customers, both current and future and suppliers.
Our practical, hands on method of engagement with different stakeholders, builds loyalty and growth, providing further opportunities in the future.
Tiger is a valued company in the local community with excellent relationships with both local and central government. We continue to build on our excellent reputation in everything we do from product development to staff development, by working in a fair way in accordance with good business conduct.
Financial key performance indicators
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The key financial performance indicators are:
2019 2018
£ £
Turnover 47,094,842 29,576,342
Gross profit 6,139,022 3,960,493
Operating profit 805,991 229,117
Total operating (loss)/profit 879,450 (642,140)
(Loss) / Profit before tax 510,232 (793,003)
Net assets 2,627,674 2,117,442
- 1 -
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TIGER TRAILERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
Principal risks and uncertainties
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The key inherent industry risks the Company faces are the economic environment, market demand, competition, and the raw material cost and supply.
The Company actively monitors such risks through regular business performance reviews, and manages the risks through a focus on production of high-quality innovative products, ongoing training and development of staff, an efficient modern factory, continual improvement, and proactive long-term relationships with both customers and suppliers.
The impact of Covid-19 is still unknown, but the company is taking every precaution possible to mitigate any potential impact to our staff, suppliers and customers.
This report was approved by the board on 7 April 2020 and signed on its behalf.
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TIGER TRAILERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;
∙make judgments 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 to 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.
The profit for the year, after taxation, amounted to £668,689 (2018 - loss £612,636).
There were no dividends declared and paid during the year (2018: £Nil).
The directors who served during the year were:
The directors plan to develop the activities of the Company, taking into account the general economic conditions that are likely to exist in the coming year, recognising quality and cost competitiveness are key.
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TIGER TRAILERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, therefore they continue to adopt the going concern basis for accounting in preparing the annual financial statements.
For further information regarding the directors' assessment of the going concern status for the Company, refer to note 2.2.
Research and development activities
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The Company is heavily committed to research and development activities. The Company has increased its investment in this area with a strong focus on innovative new product design and development, which it feels confident will lead to continued market share growth in future.
Engagement with employees
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The Company's policy is to consult and discuss with employees matters likely to affect employees' benefits. Information of matters of concern to employees is given through regular company communication meetings and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the Company's performance.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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Since the Statement of Financial Position date there has been a global pandemic from the outbreak of COVID-19, The potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the United Kingdom.
Effect of the withdrawal of the United Kingdom from the European Union and the impact of COVID-19
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The Directors continue to assess the potential implications if the United Kingdom withdraws from the European Union. Although there is an appreciation that there is a level of uncertainty associated, no significant direct implications are expected.
We have considered the potential impact of Brexit and COVID-19 on the Company and whilst there may be significant effects for the wider economy which could in turn effect the Company's performance, we have not identified any specific risk that is material enough to require further disclosure here. The full impact following the recent emergence of the global coronavirus is still unknown.
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TIGER TRAILERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The auditor, Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 7 April 2020 and signed on its behalf.
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TIGER TRAILERS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TIGER TRAILERS LIMITED
Opinion
We have audited the financial statements of Tiger Trailers Limited (the ‘Company’) for the year ended 31 December 2019 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows 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 FRS 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 December 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 Auditor’s 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.
The impact of uncertainties due to the United Kingdom exiting the European Union on our audit
The Directors' view on the impacts of Brexit is disclosed on page 4.
The United Kingdom withdrew from the European Union on 31 January 2020 and entered into an Implementation Period which is scheduled to end on 31 December 2020. However the terms of the future trade and other relationships with the European Union are not yet clear, and it is therefore not currently possible to evaluate all the potential implications to the Company's trade, customers, suppliers and the wider economy.
We considered the impacts of Brexit on the Company as part of our audit procedures, applying a standard firm wide approach in response to the uncertainty associated with the Company's future prospects and performance.
However, no audit should be expected to predict the unknowable factors or all possible implications for the Company and this is particularly the case in relation to Brexit.
Impact of the outbreak of COVID-19 on the financial statements
In forming our opinion on the Company’s financial statements, which is not modified, we draw your attention to the directors’ view on the impact of the COVID-19 as disclosed on page 4, and the consideration in the going concern basis of preparation on page 14 and non-adjusting post balance sheet events on page 33.
Since the Statement of Financial Position date there has been a global pandemic from the outbreak of COVID-19, The potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the United Kingdom.
The full impact following the recent emergence of the COVID-19 is still unknown. It is therefore not currently possible to evaluate all the potential implications to the Company’s trade, customers, suppliers and the wider economy.
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TIGER TRAILERS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TIGER TRAILERS LIMITED
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 included in the Annual Report other than the financial statements and our auditor’s report 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 Directors’ Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 Directors’ Report.
We have nothing to report in respect of the following matters in relation to which 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.
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TIGER TRAILERS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TIGER TRAILERS LIMITED
Responsibilities of Directors
As explained more fully in the directors’ responsibilities statement set out on page 3, 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 is 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 intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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 auditor’s report.
Use of the audit 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 an auditor's report 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.
Neil Barton (Senior statutory auditor)
for and on behalf of
Mazars LLP
Chartered Accountants and Statutory Auditor
One St Peter’s Square
Manchester
M2 3DE
7 April 2020
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TIGER TRAILERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
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Share of profit of joint venture
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Total operating profit/(loss)
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Interest payable and expenses
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Profit/(loss) for the financial year
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All activities relate to continuing operations.
There were no recognised gains and losses for 2019 or 2018 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2019 (2018:£NIL).
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The notes on pages 14 to 33 form part of these financial statements.
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TIGER TRAILERS LIMITED
REGISTERED NUMBER: 08937970
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 April 2020.
The notes on pages 14 to 33 form part of these financial statements.
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TIGER TRAILERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
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Comprehensive income for the period
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Total comprehensive income for the period
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Comprehensive income for the year
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Total comprehensive income for the year
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The notes on pages 14 to 33 form part of these financial statements.
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TIGER TRAILERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
Cash flows from operating activities
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Profit/(loss) for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Decrease/(increase) in debtors
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(Decrease)/increase in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of share in joint ventures
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Net cash from investing activities
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Cash flows from financing activities
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Repayment of/new finance leases
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Net cash from financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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TIGER TRAILERS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2019
The notes on pages 14 to 33 form part of these financial statements.
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Tiger Trailers Limited (‘the Company’) is a private company limited by shares incorporated in England and Wales. The address of its registered office and principal place of business is Alan Cartwright House, Road One, Winsford Industrial Estate, Winsford, Cheshire, England, CW7 3RL.
The principal activity of the Company is the manufacture of commercial vehicle bodies and trailers.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The Company has adopted the triennial review of FRS102 effective for periods commencing 1 January 2019. Information in respect of the differences from the previous accounting framework are detailed within note 30.
These financial statements have been presented in pound sterling which is the functional currency of the Company.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
The directors have confirmed that they believe the transport industry is critical to the UK economy. Both market demands and the Company’s current enquiry level remain strong. The directors envisage the Company coming out of the current COVID-19 pandemic in a strong position that will enable the Company to continue its current success story. The lenders to the Company remain supportive and the Statement of Financial Position is strong. The order book also shows significant growth for 2020.
Based on this assessment, the directors consider that the Company maintains an appropriate level of liquidity sufficient to meet the demands of the business including any capital and servicing obligations of external debt liabilities.
In addition, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the Company's ability to continue as a going concern. Thus the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
These financial statements present only the position and results of the Company. The subsidiary companies disclosed in note 14 have not been consolidated on the grounds of materiality as all are dormant and have been since incorporation.
Joint Ventures are held at cost less impairment, and are subsequently adjusted for the share of profit/loss of the joint venture and for any dividends received.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rental income
Operating lease income from trailer hire is recognised in the Statement of Comprehensive Income on a straight-line basis over the lease term.
Repair and maintenance income
Repair and maintenance income is recognised in the Statement of Comprehensive Income on completion of provision of the service.
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income over its useful economic life and is included within administrative expenses.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The Company recognises an intangible asset in respect of development expenditure when it can demonstrate:
i) its technical feasibility of completing the intangible asset so that it will be available for use or sale;
ii) its intention to complete the intangible asset and use or sell it;
iii) its ability to use or sell the intangible asset;
iv) how the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset;
v) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
vi) its ability to measure reliably the expenditure attributable to the intangible asset during its development.
Amortisation on capitalised development expenditure does not commence until the asset is available for use. The amortisation charge is included within administrative expenses.
All expenditure not meeting the criteria set out above is considered to form part of the 'research' phase, and is expensed in the period in which it is incurred.
The periods amortised over are as follows:
Development expenditure - 10 years
Goodwill - 10 years
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows:
Depreciation is provided on the following bases:
Leasehold improvements - 10% straight line
Plant & machinery - 8.3% - 12.5% straight line
Motor vehicles - 20% straight line
Fixture & fittings - 20% straight line
Computer equipment - 20% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other operating income' in the Statement of Comprehensive Income.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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Operating leases: the Company as lessor
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Rentals income from operating leases is credited to the Statement of Comprehensive Income on a straight line basis over the term of the relevant lease.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
- 17 -
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|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
Short term debtors are measured at transaction price, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price. Other financial liabilities, including other loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.
- 18 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
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Leased assets: the Company as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payments obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
- 19 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.Accounting policies (continued)
Investments in subsidiary companies are recognised at cost less provision for impairment.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
- 20 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Judgments in applying accounting policies and key sources of estimation uncertainty
|
In preparing these financial statements, the directors have had to make the following judgments:
Development expenditure
Development expenditure is capitalised in accordance with the accounting policy given in note 2.6 to these financial statements. Initial capitalisation of costs is based on management’s judgemental that technical and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an establish project management model. In determining the amounts to be capitalised management makes assumptions regarding the expected future cash generation of the assets and the expected period of benefits.
Valuation of stock and work in progress
Raw materials held at the period-end are valued using the most recent purchase invoice.
Work in progress also includes an element of labour and overheads. An average labour and overhead rate per hour is calculated using trends throughout the period. Unusual trading activity is excluded from this average calculation.
Other key sources of estimation uncertainty
Tangible fixed assets (see note 13)
Tangible fixed assets, other than investments properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Intangible assets (see note 12)
Intangible assets are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions and the remaining life of the asset.
- 21 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Amortisation of intangible assets, including goodwill
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Defined contribution pension cost
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- 22 -
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|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
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Fees payable to the Company's auditor for the audit of the Company's annual accounts
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Fees payable to the Company's auditor in respect of:
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Accounts compilation and iXBRL tagging
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Administrative (including directors)
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- 23 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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The highest paid director received remuneration of £159,187 (2018 - £105,637).
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The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2018 - £NIL).
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Interest payable and similar expenses
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Current tax on profits for the year
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Origination and reversal of timing differences
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Taxation on loss on ordinary activities
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- 24 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
10.Taxation (continued)
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Factors affecting tax charge for the year/period
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The tax assessed for the year/period is lower than (2018 - higher than) the standard rate of corporation tax in the UK of 19% (2018 - 19%). The differences are explained below:
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Profit/(loss) on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Utilisation of tax losses
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Deferred tax not recognised in prior period
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Deferred tax asset not recognised
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Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
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Adjustment to deferred tax rate
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Other differences leading to an increase (decrease) in the tax charge
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Total tax charge for the year/period
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Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
- 25 -
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|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Buildings dilapidation costs
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Accelerated depreciation of buildings
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Office & warehouse relocation costs
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The exceptional costs relate to the Company's move to a new primary trading location during the previous financial period.
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Charge for the year on owned assets
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Goodwill arose on the transfer of trade and assets from Tiger Trailers LLP in 2014. The Goodwill is being amortised evenly over the directors' estimate of its useful life of 10 years.
Development costs are amortised evenly over their useful lives of 10 years. Amortisation is included in administration expenses in the Statement of Comprehensive Income. In prior years development expenditure has been amortised over 5 years. The directors have reassessed the useful life and decided that from the year ended 31 December 2019, development expenditure will have a useful life of 10 years.
Staff costs of £960,000 (2018: £657,503) have been capitalised as development in the period.
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- 26 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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- 27 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
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Investments in subsidiary companies
|
Investment in joint ventures
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The following were subsidiary undertakings of the Company:
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Tiger 24/7 Limited (previously Tigerco 1 Limited)
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Tiger Finance 2014 Limited
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Tiger Finance Sales Limited
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These companies have not been consolidated with Tiger Trailers Limited due to their immaterial size and due to them being dormant.
The registered address of all three companies is Alan Cartwright House Road One, Winsford Industrial Estate, Winsford, Cheshire, England.
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The following is a joint venture of the Company:
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7 Hilliards Court, Chester Business Park, Chester, CH1 9QP, United Kingdom
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- 28 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
Raw materials and consumables
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Prepayments and accrued income
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Cash and cash equivalents
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- 29 -
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TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
Creditors: Amounts falling due within one year
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Other taxation and social security
|
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Secured loans
Hire purchase contracts totalling £762,317 (2018: £248,846) within creditors due within one year and £1,213,466 (2018: £516,605) included within creditors due in more than one year are secured upon the assets to which they relate.
The Company has a bank overdraft facility which is secured by way of a fixed and floating charge over all assets held. At the balance sheet date the overdraft balance was £1,517,798 (2018: £2,115,947).
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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- 30 -
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|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
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Financial assets measured at fair value through profit or loss
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.
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Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors.
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Financial liabilities measured at amortised cost comprise bank overdrafts, other loans, trade and other payables, other creditors and obligations under hire purchase and finance lease contracts.
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Charged to profit or loss
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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- 31 -
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|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Share premium account
This reserve records the amount above the nominal value received for shares issued.
Profit & loss account
The profit and loss accounts represents profits and losses retained in previous and the current period.
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Allotted, called up and fully paid
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1,000,000 (2018 - 1,000,000) ordinary A shares of £1.00 each
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200,000 (2018 - 200,000) ordinary B shares of £1.00 each
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All shares rank pari passu.
|
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £166,043 (2018 - £192,692). Contributions totalling £22,082 (2018 - £16,971) were payable to the fund at the balance sheet date.
|
|
Commitments under operating leases
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|
At 31 December 2019 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Operating lease commitments in the comparative period have been increased from £1,168,846 to £10,351,094 as a number of lease agreements were omitted in error. There is no impact on the result for the year or net assets.
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- 32 -
|
|
TIGER TRAILERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
|
|
Related party transactions
|
|
|
At the year end £2,450,876 was owed to directors of the Company (2018: £607,901).
At year end £10,412 was owed to the Company by Jungle Property Limited, a company which shares directorships with Tiger Trailers Limited. At the year ended 31 December 2018 the Company owed £136,058 to Jungle Property Limited.
At year end £492,075 (2018: £466,691) was owed by the Company to Baloo Property Partnership, a company which shares directorships with Tiger Trailers Limited.
Key management personnel are deemed to be the directors only. Directors remuneration is disclosed in note 8.
|
|
|
Post balance sheet events
|
Since the Statement of Financial Position date there has been a global pandemic from the outbreak of COVID-19, The potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the United Kingdom.
The Company is not deemed to have a controlling or ultimate controlling party.
|
|
Adoption of the triennial review of FRS 102
The policies applied under the entity's previous accounting framework are not materially different to the triennial review of FRS 102 and have not impacted on equity or profit or loss.
|
- 33 -
|
