Specialist Cars Property (Stevenage) Lim - Limited company accounts 20.1

REGISTERED NUMBER: 06051799

Report of the Directors and

Financial Statements

for the Year Ended 31 December 2019

for

Specialist Cars Property (Stevenage)

Limited

Page

Company Information

1

Report of the Directors

2

Independent Auditors' Report

4

Statement of Income and Retained Earnings

6

Statement of Financial Position

7

Statement of Cash Flows

8

Notes to the Statement of Cash Flows

9

Notes to the Financial Statements

10

Directors:

C Fletcher

M J Donovan

Secretary:

C M James

Registered office:

C/o Specialist Cars Ltd

Arlington Business Park

Gunnels Wood Road

Stevenage

Hertfordshire

SG1 2BE

Registered number:

06051799

Auditors:

Benjamin Taylor Diner Limited

120 New Cavendish Street,

London

W1W 6XX

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

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this

report.

C Fletcher

M J Donovan

Post balance sheet events

During the course of this audit, the company, and the country, has entered into unprecedented territory with the

worldwide Pandemic "Coronavirus".

At the date of approving these financial statements, it is far too early to tell exactly what impact the coronavirus will have

on the company and in particular the value of it's investment property. However, it is very likely that property values will

fluctuate as a result of the Pandemic.

Statement of directors' responsibilities

The directors are responsible for preparing 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). 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 ought to have

taken as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

On behalf of the board:

C M James - Secretary

24 June 2020

Opinion

We have audited the financial statements of Specialist Cars Property (Stevenage) Limited (the 'company') for the year

ended 31 December 2019 which comprise the Statement of Income and Retained Earnings, Statement of Financial

Position, 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 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 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 Report of

the Directors, but does not include the financial statements and our Auditors' 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 an Auditors' 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 Auditors' Report.

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 an Auditors' 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.

Jeffrey Diner FCA (Senior Statutory Auditor)

for and on behalf of Benjamin Taylor Diner Limited

120 New Cavendish Street,

London

W1W 6XX

24 June 2020

Turnover

800,000

777,500

Administrative expenses

282,726

290,287

Operating profit

4

517,274

487,213

Income from fixed asset investments

1,064,253

(1,008,422

)

1,581,527

(521,209

)

Interest payable and similar expenses

6

207,885

172,868

Profit/(loss) before taxation

1,373,642

(694,077

)

Tax on profit/(loss)

7

-

-

Profit/(loss) for the financial year

1,373,642

(694,077

)

Retained earnings at beginning of year

3,908,972

3,594,627

Retained earnings at end of year

5,282,614

2,900,550

Fixed assets

Investment property

8

12,465,000

11,390,000

Current assets

Debtors

9

5,625

45,000

Cash at bank

451,310

224,589

456,935

269,589

Creditors: amounts falling due within one year

10

1,786,261

1,497,561

Net current liabilities

(1,329,326

)

(1,227,972

)

Total assets less current liabilities

11,135,674

10,162,028

Creditors: amounts falling due after more than one year

11

4,966,617

5,366,613

Net assets

6,169,057

4,795,415

Capital and reserves

Called up share capital

15

1

1

Non-distributable fair value

16

1,950,695

886,442

Retained earnings

16

4,218,361

3,908,972

Shareholders' funds

6,169,057

4,795,415

The financial statements were approved by the Board of Directors and authorised for issue on 24 June 2020 and were signed on its behalf by:

C Fletcher - Director

M J Donovan - Director

Cash flows from operating activities

Cash generated from operations

1

553,162

466,837

Interest paid

(207,885

)

(172,868

)

Tax paid

-

(70,617

)

Net cash from operating activities

345,277

223,352

Cash flows from investing activities

Investment property additions

(10,747

)

(528,422

)

Net cash from investing activities

(10,747

)

(528,422

)

Cash flows from financing activities

New loans in year

-

6,000,000

Loan repayments in year

(399,996

)

(2,049,706

)

Proceeds from loans to group undertaking

292,187

(3,409,781

)

Net cash from financing activities

(107,809

)

540,513

Increase in cash and cash equivalents

226,721

235,443

Cash and cash equivalents at beginning of year

2

224,589

(10,854

)

Cash and cash equivalents at end of year

2

451,310

224,589

1.	Reconciliation of profit/(loss) before taxation to cash generated from operations

31.12.19

31.12.18

£

£

Profit/(loss) before taxation

1,373,642

(694,077

)

Finance costs

207,885

172,868

Finance income

(1,064,253

)

1,008,422

517,274

487,213

Decrease/(increase) in trade and other debtors

39,375

(45,000

)

(Decrease)/increase in trade and other creditors

(3,487

)

24,624

Cash generated from operations

553,162

466,837

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 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

451,310

224,589

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

224,589

-

Bank overdrafts

-

(10,854

)

224,589

(10,854

)

3.	Analysis of changes in net debt

At 1.1.19

Cash flow

At 31.12.19

£

£

£

Net cash

Cash at bank

224,589

226,721

451,310

224,589

226,721

451,310

Debt

Debts falling due within 1 year

(399,996

)

-

(399,996

)

Debts falling due after 1 year

(5,366,613

)

399,996

(4,966,617

)

(5,766,609

)

399,996

(5,366,613

)

Total

(5,542,020

)

626,717

(4,915,303

)

1.	Statutory information

The Company is a private company limited by shares, incorporated in England and Wales. Its registered office is

Arlington Business Park, Gunnels Wood Road, Stevenage, Hertfordshire, SG1 2BE.

The company's principal business activity is that of a property investment company. The company's main asset,

the freehold property at Arlington Business Park, Stevenage, is being used by fellow subsidiary, Specialist Cars

Limited as a BMW / Mini franchise.

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 as modified by the revaluation of certain assets.

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

Turnover

Turnover is measured at the fair value of the consideration receivable and represents amounts receivable for the

rental of the property at Arlington Business Park, Stevenage by fellow subsidiary, Specialist Cars Limited, stated

net of discounts and of Value Added Tax.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised in profit or loss.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual

provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a

financing transaction, where it is recognised at the present value of the future payments discounted at a market

rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Where investments in non-convertible preference shares and non-puttable ordinary shares or preference

shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently

measured at fair value with changes in fair value recognised in profit or loss. All other such investments are

subsequently measured at cost less impairment.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an

asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in

which case the asset is measured at the present value of the future payments discounted at a market rate of

interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or

loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment

at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised

in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant,

these are assessed individually for impairment. Other financial assets are either assessed individually or

grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not

result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had

the impairment not previously been recognised.

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.

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources

to continue in operational existence for the foreseeable future. The company therefore continues to adopt the

going concern basis in preparing its financial statements.

Judgements and key sources of estimation uncertainty

In the application of the entities accounting policies, the directors are required to make judgements, estimates

and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other

sources. The financial statements do not included any significant judgements or estimates.

Disclosure exemptions

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

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

Ireland".

In the opinion of the directors, the ultimate and controlling party is Specialist Cars Holdings Limited, a company

incorporated in England. As Specialist Cars Holdings Limited prepares publically available consolidated

accounts which include the results of Specialist Cars Property (Stevenage) Limited, the company is taking

advantage of the exemptions granted by FRS 102 as stated above

Copies of the group financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14

3UZ.

3.	Employees and directors

31.12.19

31.12.18

£

£

Wages and salaries

241,197

241,098

Social security costs

27,693

27,753

268,890

268,851

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

31.12.19

31.12.18

Management staff

3

3

31.12.19

31.12.18

£

£

Directors' remuneration

240,000

240,000

Information regarding the highest paid director is as follows:

31.12.19

31.12.18

£

£

Emoluments etc

120,000

120,000

4.	Operating profit

The operating profit is stated after charging:

31.12.19

31.12.18

£

£

Auditors' remuneration

1,000

1,000

Taxation compliance services

2,950

-

5.	Fair value gains on investment properties

31.12.19

31.12.18

£

£

Fair value movement on investment property

1,064,253

(1,008,422

)

6.

Interest payable and similar expenses

31.12.19

31.12.18

£

£

Bank interest

-

12

Interest on late payment of tax

-

107

Loan interest payable

207,885

172,749

207,885

172,868

7.

Taxation

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 December 2019 nor for the year ended

31 December 2018.

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:

31.12.19

31.12.18

£

£

Profit/(loss) before tax

1,373,642

(694,077

)

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

260,992

(131,875

)

Effects of:

Expenses not deductible for tax purposes

(202,209

)

191,600

Capital allowances in excess of depreciation

(1,492

)

(38,593

)

Utilisation of tax losses

(57,291

)

(21,132

)

Total tax charge

-

-

8.	Investment property

Total

£

Fair value

At 1 January 2019

11,390,000

Additions

10,747

Revaluations

1,064,253

At 31 December 2019

12,465,000

Net book value

At 31 December 2019

12,465,000

At 31 December 2018

11,390,000

Fair value at 31 December 2019 is represented by:

£

Valuation in 2007

1,506,166

Valuation in 2010

(2,275,000

)

Valuation in 2015

2,475,000

Valuation in 2017

188,698

Valuation in 2018

(1,008,422

)

Valuation in 2019

1,064,253

Cost

10,514,305

12,465,000

Freehold land and buildings were valued at £12,465,000 on the 31st December 2019, on a fair value basis by

Tom Poynton MRICS and Adam Chapman MRICS.

The historical cost of the property is £10,514,305.

9.

Debtors: amounts falling due within one year

31.12.19

31.12.18

£

£

Trade debtors

5,625

45,000

10.

Creditors: amounts falling due within one year

31.12.19

31.12.18

£

£

Other loans (see note 12)

399,996

399,996

Amounts owed to group undertakings

1,347,177

1,054,990

Social security and other taxes

10,650

10,901

Other creditors

17,072

30,649

Accruals and deferred income

11,366

1,025

1,786,261

1,497,561

Amounts owed to group undertakings are unsecured, repayable on demand and interest free.

11.

Creditors: amounts falling due after more than one year

31.12.19

31.12.18

£

£

Other loans (see note 12)

4,966,617

5,366,613

The amount due as other loans is a loan from BMW Financial Services (GB) Limited which is secured by a legal

charge over the company's freehold property situated at Gunnels Wood Road, Stevenage.

12.

Loans

An analysis of the maturity of loans is given below:

31.12.19

31.12.18

£

£

Amounts falling due within one year or on demand:

Other loans

399,996

399,996

Amounts falling due between one and two years:

Other loans - 1-2 years

399,996

399,996

Amounts falling due between two and five years:

Other loans - 2-5 years

1,199,988

1,199,988