Sinclair Garages (Cardiff) Limited - Limited company accounts 20.1
Sinclair Garages (Cardiff) Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
Sinclair Garages (Cardiff) Limited |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 December 2019 |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Contents of the Financial Statements |
for the Year Ended 31 December 2019 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
Sinclair Garages (Cardiff) Limited |
Company Information |
for the Year Ended 31 December 2019 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Solicitors: |
3 Assembly Square |
Britannia Quay |
Cardiff Bay |
Cardiff |
CF10 4PL |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Strategic Report |
for the Year Ended 31 December 2019 |
The directors present their strategic report for the year ended 31 December 2019. |
Sinclair Garages (Cardiff) Limited has core functions of retailing new cars, used cars, commercial vehicles, servicing |
(including repairs), bodyshop repairs, parts sales and fuel sales. |
Review of business |
31/12/2019 | 31/12/2018 | 31/12/2017 | 31/12/2016 |
Turnover | £96,380,754 | £81,391,600 | £77,285,061 | £76,872,047 |
Profit/(Loss) before tax |
£20,208 |
(£403,180) |
(£567,324) |
(£536,168) |
Shareholders funds | (£2,596,557) | (£2,616,765) | (£2,213,585) | (£1,647,229) |
Turnover for the 12 months to 31 December 2019 was up on last period's performance due to the increase in |
performance across all segments of the business. The business has bucked the market trends, outperforming |
expectations due to the steady growth of sustainable business. |
Profit before tax for the 12 months was £423,388 higher than last year's performance despite the continued pressure |
on margins in the ever- competitive customer driven environment. We recognise that to be competitive in the market |
today we need to differentiate ourselves from the competition. We believe that by maintaining a high level of customer |
satisfaction, the focus on customer care will put the Sinclair name above its competitors and retain the local market |
share. |
Shareholders' deficits have decreased to (£2,596,557) which reflects the profits reported during the period. |
Principal risks and uncertainties |
Sinclair Garages (Cardiff) Ltd benefits from the close commercial relationships with a number of key suppliers and |
customers. The loss of any of these of key suppliers and customers or a significant worsening in commercial terms |
could have a material impact on the results. |
Sinclair Garages (Cardiff) Ltd devotes significant resources to supporting these relationships to ensure that they |
continue to operate as well in the future. From time to time the group undertakes surveys of customer satisfaction, |
which are reviewed by the board. The directors realise the importance of excellent customer service to remain ahead |
of competition. |
Coronavirus (Covid-19) Pandemic Risk: |
It is impossible to predict either the likely duration of the current Coronavirus pandemic or to be definitive about its |
financial impact on the business and the UK economy. However, with the improvements made to processes and |
structures within the company, we are confident that the group is better able to withstand these pressures and to |
service its existing and growing customer base. The strengthened financial position will also enable us to meet its |
environmental and social commitments for the foreseeable future. |
Price Risk: |
The company operates in highly competitive markets. Significant product innovations, technical advances or the |
intensification of price competition could adversely affect the results for the company. Sinclair Garages (Cardiff) |
Limited invests in significant training of its staff to ensure that the company is well placed to provide a choice for |
customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. The |
company also continually works to streamline its cost base to ensure that it remains competitive. |
Credit Risk: |
The company has well established policies and procedures that require appropriate credit checks on potential |
customers before sales are made. The amount of exposure to any individual customer is subject to a limit which is |
reassessed annually by the company. |
Liquidity Risk: |
Effective management of cash and working capital is a key ongoing priority. The company has an intercompany facility |
in place that is sufficient to ensure available funds for its operations. |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Strategic Report |
for the Year Ended 31 December 2019 |
Section 172(1) statement |
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006 |
The board of directors of Sinclair Garages (Cardiff) Limited consider that they have acted in the way they consider, in |
good faith, would be most likely to promote the success of the company for the benefit of its members as a whole |
(having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during the |
year ended 31 December 2019. |
The Sinclair group was started by Bill Sinclair in 1945 and the company continues to be controlled and run by the |
Sinclair family. We're proud of the ways in which the company has provided employment, training and financial reward |
for its owners and employees for over 70 years. We are the largest and most successful motor group in Wales, |
representing some of the most prestigious automotive brands. In a highly competitive market, we aim to stand out |
from our competitors by virtue of quality, reliability and the great customer care that our reputation is built upon. |
We make strategic decisions based on long-term objectives. In particular, this has meant significant investment in |
premises and people in the business. This investment is to continue in the future to provide customers with state-of- |
the-art facilities and the very finest expertise. We acknowledge that, in order to progress to the next phase in the |
company's future, it is likely that we will continue to expand our existing businesses and add to the prestige brand |
portfolio that we have. We continue to explore possibilities along these lines. Our aim continues to be to maximise the |
company's ability to grow profits to fund continued investment for the future of the business and job security for the |
employees. |
Our Employees: |
We rely on the hard work, commitment and enthusiasm of our staff which is fundamental to the delivery of our plan. |
We aim to be a responsible employer in our approach to the pay and benefits our team members receive. We provide |
comprehensive training and career development support. The health, safety and well-being of our employees is one of |
our primary considerations in the way we do business. |
Our suppliers and customers: |
We meet with our manufacturing partners regularly throughout the year and take the appropriate action to prevent |
involvement in modern slavery, corruption, bribery and breaches of competition law. Our business model prioritises |
quality and customer satisfaction. We have built and will maintain a reputation for transparency and fair dealing with |
customers and suppliers |
Our Community and the Environment: |
We are a family-run company with roots in South Wales and have invested in our community through our charity |
donation scheme. From sponsoring sports kit of local childrens' clubs, to having employees play and arrange |
charitable football matches. Our plan takes into account the impact of the Group's operations on the community and |
environment and our wider social responsibilities, and in particular how we comply with environmental legislation and |
pursue waste-saving opportunities and react promptly to local community concerns. |
Business conduct and Corporate Governance: |
As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the |
business in a responsible manner, operating within the high standards of business conduct and good governance |
expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to |
nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour. |
As the Board of Directors, our intention is to behave responsibly towards our shareholders and treat them fairly and |
equally, so they too may benefit from the successful delivery of our plan. |
Employment of disabled persons |
It is the policy that disabled persons shall be considered for employment, career development and promotion on the |
basis of their aptitude and abilities in common with all employees. |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Strategic Report |
for the Year Ended 31 December 2019 |
Employee involvement |
The Directors recognise the importance of good communications and relations with employees and management is |
encouraged to adopt employee consultations. |
On behalf of the board: |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Report of the Directors |
for the Year Ended 31 December 2019 |
The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
Principal activity |
The principal activity of the company in the year under review was that of the retailing of motor vehicles and related |
activities in the motor trade. |
The company is to continue investing in training all staff for the purpose of meeting its long term goal of growth |
through the provision of excellent customer service. |
Dividends |
No dividends will be distributed for the year ended 31 December 2019. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this |
report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted |
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors |
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of |
affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, |
the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible |
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of |
fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies |
Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Sinclair Garages (Cardiff) Limited |
Opinion |
We have audited the financial statements of Sinclair Garages (Cardiff) Limited (the 'company') for the year ended |
31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in |
Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial |
reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting |
Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and |
Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 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 |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the |
Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or |
apparent material misstatements, we are required to determine whether there is a material misstatement in the |
financial statements or a material misstatement of the other information. If, based on the work we have performed, we |
conclude that there is a material misstatement of this other information, we are required to report that fact. We have |
nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Sinclair Garages (Cardiff) Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
The impact of uncertainties on our audit owing to COVID -19 |
The Directors' view on the impact of COVID-19 is disclosed on accounting policies note 2. |
Uncertainties related to the effects of COVID-19 are relevant to understanding our audit of the financial statements. All |
audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability and |
valuation of assets, appropriateness of the going concern basis of preparation of the financial statements and |
associated disclosures. All of these depend on assessments of the future economic environment and the company's |
future prospects and performance. |
The COVID-19 viral pandemic is one of the most significant economic events for the UK, and at the date of this report, |
its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects |
unknown. We have applied a standardised approach in response to that uncertainty when assessing the company's |
future prospects and performance. However, no audit should be expected to predict the unknowable factors or all |
possible future implications for a company and this is particularly the case in relation to the COVID-19 pandemic. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to |
you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 company's ability to continue as a |
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of |
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic |
alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. |
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with |
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and |
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the |
economic decisions of users taken on the basis of these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Sinclair Garages (Cardiff) Limited |
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. |
for and on behalf of |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2019 |
2019 | 2018 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
Operating profit/(loss) | 5 | ( |
) |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Profit/(loss) before taxation | ( |
) |
Tax on profit/(loss) | 7 |
Profit/(loss) for the financial year | ( |
) |
Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
) |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Balance Sheet |
31 December 2019 |
2019 | 2018 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 8 |
Current assets |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities | ( |
) | ( |
) |
Capital and reserves |
Called up share capital | 15 |
Retained earnings | 16 | ( |
) | ( |
) |
Shareholders' funds | ( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on were signed on its behalf by: |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Statement of Changes in Equity |
for the Year Ended 31 December 2019 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2018 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2018 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2019 | ( |
) | ( |
) |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements |
for the Year Ended 31 December 2019 |
1. | Statutory information |
Sinclair Garages (Cardiff) Limited is a |
The company's registered number and registered office address can be found on the Company Information |
page. |
2. | Accounting policies |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced 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": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
Turnover |
Turnover represents amounts chargeable, net of value added tax, in respect of the sale and repair of motor |
vehicles, associated bonuses and commissions and the sale of vehicle parts. |
Turnover from the sale of vehicles is recognised when the significant risks and rewards of ownership are |
transferred to the buyer. In most cases, the transfer of the risks and rewards of ownership coincides with the |
transfer of the legal title or the passing of the possession to the buyer. |
Turnover from the sale of services is recognised by reference to the stage of completion of the transaction. |
Turnover from commissions and bonuses are recognised on an accrual basis in accordance with the substance |
of the relevant agreement. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for |
obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to |
completion and selling costs. |
The ownership of consignment stock passes from the manufacturer to the company when full payment for |
vehicles is made. |
The value of consignment stock is shown separately in the notes to the balance sheet as both current assets |
and as creditors due within one year. |
Taxation |
Taxation for the year comprises deferred tax. Tax is recognised in the Statement of Comprehensive Income, |
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. |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
2. | Accounting policies - continued |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those |
held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance |
leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital |
element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's |
pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
As at 31 December 2019 the company had net liabilities and overdrawn shareholders funds of £2,596,557 |
(2018: £2,616,765). |
Ongoing group support has been confirmed by the directors of the ultimate parent company of Sinclair Garages |
(Cardiff) Limited, Sinclair Motor Holdings Limited. |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and |
considered relevant information, including the annual budget and future cash flows in making their assessment. |
In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take |
into account the impact on their business of possible scenarios brought on by the impact of COVID-19, |
alongside the measures that they can take to mitigate the impact. Based on these assessments, given the |
measures that could be undertaken to mitigate the current adverse conditions, and the current resources |
available, the Directors have concluded that they can continue to adopt the going concern basis in preparing |
the annual report and accounts |
3. | Turnover |
The turnover and profit (2018 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2019 | 2018 |
£ | £ |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
4. | Employees and directors |
2019 | 2018 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2019 | 2018 |
Service | 69 | 65 |
Administration | 15 | 17 |
Sales | 54 | 50 |
Parts | 7 | 7 |
Key management remuneration is disclosed in the consolidated financial statements of the parent entity, |
Sinclair Motor Holdings Limited (incorporated in England and Wales). |
2019 | 2018 |
£ | £ |
Directors' remuneration |
5. | Operating profit/(loss) |
The operating profit (2018 - operating loss) is stated after charging: |
2019 | 2018 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | Interest payable and similar expenses |
2019 | 2018 |
£ | £ |
Bank interest | ( |
) |
Stocking interest |
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. |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
7. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
2019 | 2018 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Losses surrendered to group | 14,862 | 75,796 |
Total tax charge | - | - |
8. | Tangible fixed assets |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2019 |
Additions |
At 31 December 2019 |
Depreciation |
At 1 January 2019 |
Charge for year |
At 31 December 2019 |
Net book value |
At 31 December 2019 |
At 31 December 2018 |
9. | Stocks |
2019 | 2018 |
£ | £ |
Fully paid new vehicles |
New vehicles on consignment | 8,592,781 | 6,447,677 |
Used vehicles |
Oil, fuel and spares | 369,008 | 371,306 |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
10. | Debtors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by participating interests | 1,099 | 4,266 |
Other debtors |
Prepayments |
11. | Creditors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Due in respect of new vehicles | 8,592,781 | 6,447,677 |
Amounts owed to group undertakings |
VAT | 105,016 | 182,401 |
Accruals and deferred income |
12. | Loans |
An analysis of the maturity of loans is given below: |
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
13. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
Between one and five years |
The operating lease payments recognised as an expense during the year totalled £566,232 (2018: £566,745). |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
14. | Secured debts |
The following secured debts are included within creditors: |
2019 | 2018 |
£ | £ |
Bank overdraft |
New vehicles on consignment | 8,592,781 | 6,447,677 |
The company has entered into a debenture and a cross guarantee with Barclays Bank PLC to secure the bank |
loans and overdraft and to guarantee the bank loans and overdrafts of group companies which at 31 December |
2019 amounted to £12,522,922 (2018: £12,144,484). |
Bank borrowings are secured by charges on the group's assets, subject to deeds of priority. |
The monies due to VWFS (UK) Limited in respect of new vehicles on consignment are secured by: |
(i) The guarantee of Sinclair Motor Holdings Limited; |
(ii) Guarantees of Sinclair Garages (Port Talbot) Limited and Sinclair Garages Limited; |
(iii) Charges on all monies due to Sinclair Garages (Cardiff) Limited, Sinclair Garages (Port Talbot) Limited and |
Sinclair Garages Limited by VAG (UK) Limited; |
(iv) General debentures over all the assets of Sinclair Garages (Cardiff) Limited, Sinclair Garages (Port Talbot) |
Limited and Sinclair Garages Limited, excluding the property at Bridgend and ranking after a priority to Barclays |
Bank plc; |
(v) Legal charge over property at Gorseinon owned by Sinclair Garages (Port Talbot) Limited. |
15. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
Ordinary | 1 | 1 | 1 |
16. | Reserves |
Retained |
earnings |
£ |
At 1 January 2019 | ( |
) |
Profit for the year |
At 31 December 2019 | ( |
) |
17. | Pension commitments |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents |
contributions payable by the company to the scheme and amounted to £81,095 (2018: £52,575). |
18. | Ultimate parent company |
Sinclair Motor Holdings Limited (incorporated in England & Wales ) is regarded by the directors as being the |
company's ultimate parent company. |
Sinclair Garages (Cardiff) Limited (Registered number: 06731125) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
19. | Contingent liabilities |
The company has guaranteed monies due to VWFS (UK) Limited by Sinclair Garages Limited and Sinclair |
Garages (Port Talbot) Ltd of £11,086,627 (2018: £11,457,821). |
20. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
2019 | 2018 |
£ | £ |
Sales |
Purchases |
Amount due from related party |
21. | Ultimate controlling party |
The immediate and ultimate parent company is Sinclair Motor Holdings Limited, whose registered office is Old |
Field Road, Bocam Park, Pencoed, Bridgend CF35 5LJ. Sinclair Motor Holdings Limited is the smallest and |
largest group for which consolidated financial statements are prepared. Copies of the financial statements of |
both companies are available from Companies house, Crown Way, Cardiff CF14 3UZ. |
The Ultimate controlling party is Mr G Sinclair, a director of the company and shareholder of Sinclair Motor |
Holdings Ltd. |