RatesFord Store Limited - Limited company accounts 20.1

RATESFORD STORE LIMITED - Company Information

IRIS Accounts Production v20.1.5.71 09645661 Board of Directors 31.12.19 1.1.19 31.12.19 31.12.19 a holding company for Ford main dealership, including new and used car sales, parts sales and servicing. true true false true true false false false true false Ordinary 1.00000 Non Voting Ordinary A 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure096456612018-12-31096456612019-12-31096456612019-01-012019-12-31096456612017-12-31096456612018-01-012018-12-31096456612018-12-3109645661ns16:EnglandWales2019-01-012019-12-3109645661ns15:PoundSterling2019-01-012019-12-3109645661ns11:Director12019-01-012019-12-3109645661ns11:Consolidated2019-12-3109645661ns11:ConsolidatedGroupCompanyAccounts2019-01-012019-12-3109645661ns11:PrivateLimitedCompanyLtd2019-01-012019-12-3109645661ns11:FRS102ns11:Consolidated2019-01-012019-12-3109645661ns11:Consolidatedns11:Audited2019-01-012019-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2019-01-012019-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForAccounts2019-01-012019-12-3109645661ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2019-01-012019-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2019-01-012019-12-3109645661ns11:FullAccounts2019-01-012019-12-3109645661ns6:Subsidiary12019-01-012019-12-3109645661ns11:OrdinaryShareClass12019-01-012019-12-3109645661ns11:OrdinaryShareClass22019-01-012019-12-3109645661ns11:Consolidated2019-01-012019-12-3109645661ns11:Director22019-01-012019-12-3109645661ns11:RegisteredOffice2019-01-012019-12-3109645661ns11:Consolidated2018-01-012018-12-3109645661ns6:ShareCapital2019-12-3109645661ns6:ShareCapital2018-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2019-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2018-12-3109645661ns6:OwnedOrFreeholdAssetsns6:LandBuildings2019-01-012019-12-3109645661ns6:PlantMachinery2019-01-012019-12-3109645661ns6:MotorVehicles2019-01-012019-12-310964566132019-01-012019-12-310964566132018-01-012018-12-3109645661ns6:OwnedAssets2019-01-012019-12-3109645661ns6:OwnedAssets2018-01-012018-12-3109645661112019-01-012019-12-3109645661112018-01-012018-12-3109645661ns11:OrdinaryShareClass12018-01-012018-12-3109645661ns11:OrdinaryShareClass22018-01-012018-12-3109645661ns6:LandBuildings2018-12-3109645661ns6:LandBuildingsns6:ShortLeaseholdAssets2018-12-3109645661ns6:PlantMachinery2018-12-3109645661ns6:MotorVehicles2018-12-3109645661ns6:LandBuildings2019-01-012019-12-3109645661ns6:LandBuildingsns6:ShortLeaseholdAssets2019-01-012019-12-3109645661ns6:LandBuildings2019-12-3109645661ns6:LandBuildingsns6:ShortLeaseholdAssets2019-12-3109645661ns6:PlantMachinery2019-12-3109645661ns6:MotorVehicles2019-12-3109645661ns6:CostValuation2018-12-31096456611ns6:Subsidiary12019-01-012019-12-3109645661ns6:CurrentFinancialInstruments2019-12-3109645661ns6:CurrentFinancialInstruments2018-12-3109645661ns6:CurrentFinancialInstrumentsns6:WithinOneYear2019-12-3109645661ns6:CurrentFinancialInstrumentsns6:WithinOneYear2018-12-3109645661ns11:OrdinaryShareClass12019-12-3109645661ns11:OrdinaryShareClass22019-12-3109645661ns6:RetainedEarningsAccumulatedLosses2018-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2018-12-3109645661ns6:RetainedEarningsAccumulatedLosses2019-01-012019-12-3109645661ns6:RetainedEarningsAccumulatedLosses2019-12-31

REGISTERED NUMBER: 09645661 (England and Wales)

RATESFORD STORE LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Page

Company Information

Chairman's Report

Group Strategic Report

Report of the Directors

Report of the Independent Auditors

Consolidated Statement of Income and Retained
Earnings

Consolidated Balance Sheet

Company Balance Sheet

Consolidated Cash Flow Statement

Notes to the Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

DIRECTORS:

C.J. Rate

Mrs C.A.M. Rate

REGISTERED OFFICE:

21 Lodge Lane

Grays

Essex

RM17 5RY

BUSINESS ADDRESS:

Equus

Herga Hyll

Orsett

Grays

Essex

RM16 3JA

REGISTERED NUMBER:

09645661 (England and Wales)

AUDITORS:

Bland Baker

Chartered Accountants and

Registered Auditor

21 Lodge Lane

Grays

Essex

RM17 5RY

2019 was another interesting year with yet more change.

Turnover increased by a very respectable £6.25 million in what proved to be a competitive and aggressive

market.

The new vehicle department turned in a very strong performance but margin reductions throughout the year

had an adverse effect on overall company profitability.

The used car sales department also enjoyed success throughout the year achieving numbers similar to that of

the previous year with margins remaining stable.

The Parts, Service and Quicklane departments turnover and margins increased over the previous year despite

operational changes to the business implemented by Ford.

Our Customer Viewpoint (CVP), which measures customer satisfaction, continued to achieve the high scores

it has over the last 10 years.

Expense levels were within budget but are always under scrutiny.

In the forthcoming years I anticipate that dealer margins will continue to reduce and there to be less

dependence upon incentives. Naturally this may change the way future trading is structured. Also,

electrification is making further traction in the industry and customer awareness and demands continue to

increase in this respect too. It is apparent that the cost to own and run such vehicles is featuring more in our

customers buying process.

Overall, I am pleased to report that the company's financial position is strong, with substantial cash reserves,

yet we always strive to improve profitability and will continue to adapt to an ever changing market place.

Whilst the recent global pandemic has created some economic uncertainties, both at home and abroad, I

believe that the company is well positioned to react to any future challenges.

Finally, I would like to thank all of the staff for the hard work and dedication to the company.

C.J. Rate - Chairman

15 July 2020

The directors present their strategic report of the company and the group for the year ended

31 December 2019.

REVIEW OF BUSINESS

A review of the business is contained within the Chairman's Report which forms part of this Strategic

Report.

The company has strong cash reserves with minimal short term borrowings.

The directors consider that whilst the company has identified certain specific business risks below, they are

of the opinion that suitable measures are in place to address them to ensure that ongoing operations do not

affect the company's day to day obligations.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces the following principal risks:

Liquidity risk:

The company has strong cash reserves and primarily self funds its operations although periodically it utilises

short term borrowing to funds any short term liquidity issues. The company's general expansion naturally

creates increased pressure on its cash reserves.

Economic risk:

The uncertainties and challenges surrounding Brexit and the inherent implications on job security affects

consumer confidence. Notwithstanding, the directors continue to review opportunities to increase revenue

streams to mitigate any associated risks. The global pandemic of Covid-19 presented other uncertainties

albeit the relaxation of the lockdown rules have shown a good return to new and used car sales and so too

with the service department which is operating to capacity with a partially reduced workforce.

Environmental risk:

Concerns regarding CO2 emissions and the corresponding pressure on manufacturers to develop and

improve alternate engine profiles and, in particular, the uncertainty surrounding the Government's official

policy towards diesel vehicles.

Competition risk:

Competition is strong in the new and used car sector with ever increasing pressure on margins and after

market sales and servicing.

GOING CONCERN

Since the balance sheet date, the company has continued to generate significant profits and positive

operating cashflows and has been able to meet its financial obligations as they become due.

The directors have reasonable grounds to assume that this will not change in the future and as such the

directors continue to adopt the going concern basis of preparation of the financial statements.

ON BEHALF OF THE BOARD:

C.J. Rate - Director

15 July 2020

The directors present their report with the financial statements of the company and the group for the year

ended 31 December 2019.

DIVIDENDS

Total dividends voted in the year ended 31 December 2019 was £65,000 (2018 - £187,700).

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.J. Rate

Mrs C.A.M. Rate

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial

position of the company and the group 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 the group

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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Bland Baker, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

C.J. Rate - Director

15 July 2020

Opinion

We have audited the financial statements of RatesFord Store Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 December 2019 which comprise the Consolidated Statement

of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash

Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2019 and of the group's 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

group 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 group'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 Annual Report, 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 Group 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 Group 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 group and the parent company and its environment

obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent

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 group or

the parent 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.

D.M. Baker (Senior Statutory Auditor)

for and on behalf of Bland Baker

Chartered Accountants and

Registered Auditor

21 Lodge Lane

Grays

Essex

RM17 5RY

16 July 2020

TURNOVER

81,987,983

75,739,918

Cost of sales

79,449,707

73,008,993

GROSS PROFIT

2,538,276

2,730,925

Administrative expenses

2,062,720

2,028,070

475,556

702,855

Other operating income

17,821

21,340

OPERATING PROFIT

493,377

724,195

Income from fixed asset investments

2,176

2,328

Interest receivable and similar income

2,055

1,333

4,231

3,661

497,608

727,856

Gain/loss on revaluation of investments

(20,397

)

(9,212

)

PROFIT BEFORE TAXATION

477,211

718,644

Tax on profit

93,237

139,457

PROFIT FOR THE FINANCIAL
YEAR

383,974

579,187

Retained earnings at beginning of year

5,062,208

4,670,721

Dividends on equity shares

(65,000

)

(187,700

)

RETAINED EARNINGS FOR THE
GROUP AT END OF YEAR

5,381,182

5,062,208

Profit attributable to:

Owners of the parent

383,974

579,187

FIXED ASSETS

Tangible assets

1,973,236

1,955,672

Investments

1,348

1,974,584

1,957,020

CURRENT ASSETS

Stocks

11,050,473

9,427,231

Debtors

2,205,584

1,507,786

Investments

44,583

64,980

Cash in hand

696,823

810,329

13,997,463

11,810,326

CREDITORS

Amounts falling due within one year

10,331,465

8,436,138

NET CURRENT ASSETS

3,665,998

3,374,188

TOTAL ASSETS LESS CURRENT
LIABILITIES

5,640,582

5,331,208

PROVISIONS FOR LIABILITIES

31,500

41,100

NET ASSETS

5,609,082

5,290,108

CAPITAL AND RESERVES

Called up share capital

2,200

Share premium

290

Revaluation reserve

215,511

Capital redemption reserve

3,333

Merger reserve

6,566

Retained earnings

5,381,182

5,062,208

SHAREHOLDERS' FUNDS

5,609,082

5,290,108

The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2020

and were signed on its behalf by:

C.J. Rate - Director

FIXED ASSETS

Tangible assets

Investments

4,576,219

CURRENT ASSETS

Debtors

2,000

Cash in hand

100

2,100

NET CURRENT ASSETS

2,100

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,578,319

CAPITAL AND RESERVES

Called up share capital

2,200

Merger reserve

4,576,119

SHAREHOLDERS' FUNDS

4,578,319

Company's profit for the financial year

65,000

190,700

The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2020
and were signed on its behalf by:

C.J. Rate - Director

Cash flows from operating activities

Cash generated from operations

719,404

620,742

Tax paid

(141,687

)

(90,857

)

Net cash from operating activities

577,717

529,885

Cash flows from investing activities

Purchase of tangible fixed assets

(251,633

)

(320,759

)

Sale of tangible fixed assets

41,427

107,162

Sale of fixed asset investments

(49

)

5,000

Interest received

2,055

1,333

Dividends received

2,176

2,328

Net cash from investing activities

(206,024

)

(204,936

)

Cash flows from financing activities

New loans in year

260,214

368,223

Loan repayments in year

(609,040

)

Amount introduced by directors

26,497

Amount withdrawn by directors

(71,373

)

Share issue

2,000

Equity dividends paid

(36,000

)

(160,000

)

Ordinary A share dividends paid

(29,000

)

(27,700

)

Net cash from financing activities

(485,199

)

209,020

(Decrease)/increase in cash and cash equivalents

(113,506

)

533,969

Cash and cash equivalents at
beginning of year

810,329

276,360

Cash and cash equivalents at end of
year

696,823

810,329

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

2019

2018

Profit before taxation

477,211

718,644

Depreciation charges

176,124

170,787

Loss/(profit) on disposal of fixed assets

16,565

(11,981

)

Loss on revaluation of fixed assets

20,397

9,212

Finance income

(4,231

)

(3,661

)

686,066

883,001

Increase in stocks

(1,623,242

)

(2,431,511

)

(Increase)/decrease in trade and other debtors

(663,728

)

333,372

Increase in trade and other creditors

2,320,308

1,835,880

Cash generated from operations

719,404

620,742

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 31 December 2019

31.12.19

1.1.19

Cash and cash equivalents

696,823

810,329

Year ended 31 December 2018

31.12.18

1.1.18

Cash and cash equivalents

810,329

276,360

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.19

Cash flow

At 31.12.19

Net cash

Cash at bank and in hand

810,329

(113,506

)

696,823

810,329

(113,506

)

696,823

Liquid resources

Current asset investments

64,980

(20,397

)

44,583

64,980

(20,397

)

44,583

Debt

Debts falling due within 1 year

(609,040

)

348,826

(260,214

)

(609,040

)

348,826

(260,214

)

Total

266,269

214,923

481,192

1.	STATUTORY INFORMATION

RatesFord Store Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the General

Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

"The Financial 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.

Parent company disclosure exemptions

Advantage has been taken of the following disclosure exemptions available under FRS 102:

(i) from preparing a separate statement of cashflow on the basis that the consolidated cash flow

included in these financial statements includes the parent company's cash flows.

(ii) No disclosure has been given for the aggregate remuneration of the key management personnel of

the parent as their remuneration is included in the totals for the group as a whole.

Basis of consolidation

The consolidated financial statements present the results of the group and its subsidiary as if they

formed a single entity. Intercompany transactions and balances between group companies are

therefore eliminated in full.

Turnover

Turnover represents net invoiced sale of goods and work done, excluding value added tax together

with commissions receivable and rental income receivable in respect of operating leases.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

2% on cost

Plant and machinery

at variable rates on reducing balance

Motor vehicles

25% on reducing balance

Motor vehicle depreciation is in respect of assets leased to customers.

Stocks

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

obsolete and slow moving items.

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

and slow moving items.

The directors consider that consignment stocks of new vehicles held by the company on behalf of the

Ford Motor Company, meet the criteria of Financial Reporting Standard 102 to be recognised as

assets. Accordingly, such new vehicles are shown as stock in the accounts with a corresponding

liability being shown within creditors falling due within one year.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated

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 balance sheet date.

Deferred tax

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

the balance sheet 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.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's

pension scheme are charged to profit or loss in the period to which they relate.

Current asset investments

Current asset investments are stated at their mid-price at the statement of financial position date.

Surpluses or deficits are recognised in the profit and loss account.

Vehicles leased to customers

Vehicles leased to customers are included in fixed assets and depreciated in accordance with the

policy stated above. Operating lease income is accounted for on a straight line basis and is included

within the statement of comprehensive income when receivable.

TURNOVER

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

Turnover includes operating lease income totalling £27,308 (2018 - £31,812).

4.	OTHER OPERATING INCOME

2019

2018

Rents received

11,000

Management charge income

6,821

10,340

17,821

21,340

5.	EMPLOYEES AND DIRECTORS

2019

2018

Wages and salaries

2,971,418

2,893,608

Social security costs

341,997

339,483

Other pension costs

84,899

78,410

3,398,314

3,311,501

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

2019

2018

Sales

Operatives

Administrative

Directors

2019

2018

Directors' remuneration

52,023

78,550

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

Operating lease income

(27,308

)

(31,812

)

Depreciation - owned assets

176,126

170,787

Loss/(profit) on disposal of fixed assets

16,565

(11,981

)

Auditors' remuneration

21,000

Other non- audit services

20,500

14,500

Operating leases - land and buildings

198,377

181,715

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

104,150

143,000

Adjustment to prior year corporation tax

(1,313

)

(143

)

Total current tax

102,837

142,857

Deferred tax

(9,600

)

(3,400

)

Tax on profit

93,237

139,457

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

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

difference is explained below:

2019

2018

Profit before tax

477,211

718,644

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

90,670

136,542

Effects of:

Adjustments to tax charge in respect of previous periods

(1,313

)

(143

)

(Income)/Expenses not deductible for tax purposes

40,162

31,467

Capital allowances

(26,682

)

(26,319

)

Adjustment to actual rate of tax paid

1,310

Movement in deferred taxation

(9,600

)

(3,400

)

Total tax charge

93,237

139,457

8.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent

company is not presented as part of these financial statements.

9.	DIVIDENDS ON EQUITY SHARES

2019

2018

Ordinary shares of £1 each

Interim

36,000

160,000

Non Voting Ordinary A shares of £1 each

Interim

29,000

27,700

65,000

187,700

10.	TANGIBLE FIXED ASSETS

Group

Freehold

Short

Plant and

Motor

property

leasehold

machinery

vehicles

Totals

COST

At 1 January 2019

966,167

599,937

2,016,308

136,660

3,719,072

Additions

62,276

126,347

63,010

251,633

Disposals

(851,716

)

(54,875

)

(906,591

)

At 31 December 2019

966,167

662,213

1,290,939

144,795

3,064,114

DEPRECIATION

At 1 January 2019

156,765

51,000

1,537,022

18,613

1,763,400

Charge for year

17,324

12,749

111,810

34,243

176,126

Eliminated on disposal

(832,393

)

(16,255

)

(848,648

)

At 31 December 2019

174,089

63,749

816,439

36,601

1,090,878

NET BOOK VALUE

At 31 December 2019

792,078

598,464

474,500

108,194

1,973,236

At 31 December 2018

809,402

548,937

479,286

118,047

1,955,672

Cost or valuation at 31 December 2019 is represented by:

Trading
premises

Plant and
machinery
etc

Totals

Stated at cost

1,278,380

1,435,734

2,714,114

Stated at valuation in 1999

350,000

1,628,380

1,435,734

3,064,114

If freehold land and buildings had not been revalued they would have been included at the following

historical cost:

2019

2018

Cost

1,746,727

1,684,931

Aggregate depreciation

577,300

551,231

Approximate cost of land in freehold land and buildings

120,000

Freehold land and buildings were valued, on an open market basis, on 1 April 1999 by Messrs

Lambert Smith Hampton.

11.	FIXED ASSET INVESTMENTS

Group

Company

2019

2018

2019

2018

Shares in group undertakings

4,576,219

Other investments not loans

1,348

4,576,219

Additional information is as follows:

Group

Unlisted

investments

COST

At 1 January 2019

and 31 December 2019

1,348

NET BOOK VALUE

At 31 December 2019

1,348

At 31 December 2018

1,348

Investments (neither listed nor unlisted) were as follows:

2019

2018

Art and antiquities brought forward

15,000

Art and antiquities disposals

(15,000

)

Company

Shares in

group

undertakings

COST

At 1 January 2019

and 31 December 2019

4,576,219

NET BOOK VALUE

At 31 December 2019

4,576,219

At 31 December 2018

4,576,219

The group or the company's investments at the Balance Sheet date in the share capital of companies

include the following:

Subsidiary

R.T. Rate Limited

Registered office: inside the United Kingdom

Nature of business: Ford dealership

Class of shares:

holding

Ordinary

100.00

12.

STOCKS

Group

2019

2018

Stocks

10,868,801

9,243,581

Parts, accessories and consumables

181,672

183,650

11,050,473

9,427,231

There is no material difference between the balance sheet value of stocks and their replacement cost.

Motor vehicles - new and used includes the stock of vehicles held on consignment from Ford Motor

Company. These stocks have been included in the balance sheet in accordance with Financial

Reporting Standard 102. The total value of consignment vehicles included within stocks is £5,882,212

(2018 - £4,608,218). A corresponding liability is shown within trade creditors, see note 15.

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2019

2018

2019

2018

Trade debtors

1,929,172

1,255,271

Amounts owed by group undertakings

2,000

Other debtors

160,667

164,026

Directors' current accounts

34,068

Prepayments

81,677

88,489

2,205,584

1,507,786

2,000

14.	CURRENT ASSET INVESTMENTS

Group

2019

2018

Listed investments

44,583

64,980

Market value of listed investments held by the group at 31 December 2019 - £44,583 (2018 -

£64,980).

Current asset investments have been valued at their mid-price at the balance sheet date.

15.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

2019

2018

Other loans (see note 16)

260,214

609,040

Trade creditors - consignment

7,058,654

5,529,861

Trade creditors- other

2,500,334

1,656,948

Tax

104,150

143,000

Social security and other taxes

76,420

71,662

Other creditors

44,268

61,285

Directors' current accounts

37,305

Accrued expenses

287,425

327,037

10,331,465

8,436,138

Trade creditors include £5,882,212 net of VAT (2018 - £4,608,218) in accordance with Financial

Reporting Standard 102 as explained in note 12.

16.

LOANS

An analysis of the maturity of loans is given below:

Group

2019

2018

Amounts falling due within one year or

on demand:

Other loans

260,214

609,040

17.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Non-cancellable

operating leases

2019

2018

Within one year

202,500

165,000

Between one and five years

619,438

434,438

821,938

599,438

18.	SECURED DEBTS

The following secured debts are included within creditors:

Group

2019

2018

Other loans

260,214

609,040

Consignment stock

7,058,655

5,529,861

7,318,869

6,138,901

The stocking loan is secured against individual units of vehicle stock.

FCE Bank Plc has registered a debenture over all assets of the company, both fixed and floating

charges, as security for any amounts owing from time to time thereon.

19.	PROVISIONS FOR LIABILITIES

Group

2019

2018

Deferred tax

31,500

41,100

Group

Deferred

tax

Balance at 1 January 2019

41,100

Utilised during year

(9,600

)

Balance at 31 December 2019

31,500

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

200

Ordinary

£1

200

2,000

Non Voting Ordinary A

£1

2,000

2,200

21.

RESERVES

Group

Retained

Revaluation

earnings

premium

reserve

At 1 January 2019

5,062,208

290

215,511

Profit for the year

383,974

Dividends on equity shares

(65,000

)

At 31 December 2019

5,381,182

290

215,511

Group

Capital

redemption

Merger

reserve

Totals

At 1 January 2019

3,333

6,566

5,287,908

Profit for the year

383,974

Dividends on equity shares

(65,000

)

At 31 December 2019

3,333

6,566

5,606,882

Company

Retained

Merger

earnings

reserve

Totals

At 1 January 2019

4,576,119

Profit for the year

65,000

Dividends on equity shares

(65,000

)

(65,000

)

At 31 December 2019

4,576,119

The parent company did not trade during the current or previous year and only received dividend

income from its subsidiary.

22.	PENSION COMMITMENTS

The subsidiary company operates two separate defined contribution pension schemes for the directors

and staff. The assets of each scheme are held separately from those of the company in independently

administered funds. The pension cost charge represents contributions payable by the company to the

schemes and amounted to £84,899 (2018 - £78,410). At the balance sheet date there were £2,764

unpaid contributions (2018 - £2,306).

23.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2019

and 31 December 2018:

2019

2018

C.J. Rate and Mrs C.A.M. Rate

Balance outstanding at start of year

(37,305

)

(10,808

)

Amounts advanced

213,944

242,486

Amounts repaid

(142,571

)

(268,983

)

Amounts written off

Amounts waived

Balance outstanding at end of year

34,068

(37,305

)

The loan was unsecured, interest free and repayable on demand.

24.	RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

2019

2018

Rent paid to related party

90,000

Amount due from related party

34,068

Amount due to related party

37,305

Other related parties

2019

2018

Amount due to related party

8,803

8,042

25.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C.J. Rate.