Farmer & Carlisle Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03957688 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

FARMER & CARLISLE HOLDINGS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

15

DIRECTOR:

J O Carlisle

SECRETARY:

M J Tongue

REGISTERED OFFICE:

Belton Road

Loughborough

Leicestershire

LE11 1ND

REGISTERED NUMBER:

03957688 (England and Wales)

AUDITORS:

Lemans

Statutory Auditor

29 Arboretum Street

Nottingham

Nottinghamshire

NG1 4JA

The director presents his strategic report of the company and the group for the year ended 31 December 2019.

REVIEW OF BUSINESS

2019 saw a continued growth in demand for hybrid vehicles, especially with the new RAV4, CHR and Corolla models

coming to the market. The popularity of these models has led to demand outstripping supply which has led to the Group

build up a strong order book. The used hybrid market has also continued to perform well during the year.

After sales continued to perform well and the Group is also continuing to expand its trade parts business. This has led to

increased revenue from this sector of the business, and we see this continuing in the future.

The Group's sales and gross margin held up well and for the year amounted to £31,604,177 and £2,098,962 respectively

(2018 - £33,336,433 and £1,973,096) and the directors are pleased with these results given the strengthening of the order

book.

Analysis of sales for the year is shown below:-

2019

2018

Increase / (decrease)

£

£

%

Sale of motor vehicles

24,144,875

26,008,471

(7.2

)

Sale of associated services

5,172,334

5,058,922

2.2

Commissions and discounts

2,286,968

2,269,040

0.8

Overheads remain under tight control of the director and senior management team who are always seeking to impose the

control and efficiency of the company.

After taxation the profit for the year amounted to £366,267 (2018 - £301,974)

COVID-19

Unfortunately in March 2020 the government was forced to impose a complete lock down in the UK as part of the

measures introduced to deal with the Covid- 19 pandemic.This meant that the company had to cease trading for a

number of weeks and although the company re opened for business in early June, Farmer and Carlisle Leicester was

forced into lock down again in July due to increased infections in the Leicester area.

This obviously had a significant impact on trade during that period. However with government assistance being received

by way of the furlough scheme,business rate relief as well as manufacturers support and the strong order book, the

company has come out of lock down in a strong position.

PRINCIPAL RISKS AND UNCERTAINTIES

Competitive pressure in the retail motor sector and after sales is a continuing risk to the group which could result in

losing sales to revival franchise dealerships and none franchised garages. To manage this risk, the group and Toyota

continue to strongly promote the vehicle range especially in the 'hybrid sector' where it is seen as a market leader. This

combined with the continuing subsidised interest free finance packages available should help retain sales volume, and

provide competitively priced economical vehicles to the private sector. At all times the group aims to provide an

excellent sales and after sales service to all its customers to maintain and promote customer loyalty.

The group has secured variable rate medium term loans which are susceptible to interest rate rises and where possible

the company seeks to mitigate this risk.

Whilst Covid -19 continues to be a risk to the general economic environment, the company has taken all necessary

measures to minimise the impact of a new Covid 19 spike.

ON BEHALF OF THE BOARD:

J O Carlisle - Director

11 September 2020

The director presents his report with the financial statements of the company and the group for the year ended

31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a holding company.

DIVIDENDS

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

DIRECTOR

J O Carlisle held office during the whole of the period from 1 January 2019 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not approve

the financial statements unless he is 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 director is

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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He

is 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 director is 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 he 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 group's auditors are aware of

that information.

AUDITORS

The auditors, Lemans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J O Carlisle - Director

11 September 2020

Opinion

We have audited the financial statements of Farmer & Carlisle Holdings Limited (the 'parent company') and its

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

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has 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 director is responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Director, 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 Director 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 Director 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

Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease

operations, or has 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.

Adrian Harby FCCA (Senior Statutory Auditor)

for and on behalf of Lemans

Statutory Auditor

29 Arboretum Street

Nottingham

Nottinghamshire

NG1 4JA

11 September 2020

TURNOVER

3

31,604,177

33,336,433

Cost of sales

29,505,215

31,363,337

GROSS PROFIT

2,098,962

1,973,096

Administrative expenses

1,611,580

1,577,832

OPERATING PROFIT

5

487,382

395,264

Interest receivable and similar income

38

3

487,420

395,267

Interest payable and similar expenses

6

22,115

28,784

PROFIT BEFORE TAXATION

465,305

366,483

Tax on profit

7

99,038

64,509

PROFIT FOR THE FINANCIAL YEAR

366,267

301,974

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

366,267

301,974

Profit attributable to:

Owners of the parent

366,267

301,974

Total comprehensive income attributable to:

Owners of the parent

366,267

301,974

FIXED ASSETS

Tangible assets

9

6,360,467

6,437,870

Investments

10

-

-

6,360,467

6,437,870

CURRENT ASSETS

Stocks

11

3,235,217

2,723,995

Debtors

12

1,475,865

1,573,516

Cash at bank and in hand

2,446

2,435

4,713,528

4,299,946

CREDITORS

Amounts falling due within one year

13

4,913,490

4,759,648

NET CURRENT LIABILITIES

(199,962

)

(459,702

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,160,505

5,978,168

CREDITORS

Amounts falling due after more than one year

14

(526,858

)

(707,672

)

PROVISIONS FOR LIABILITIES

18

(23,050

)

(26,166

)

NET ASSETS

5,610,597

5,244,330

CAPITAL AND RESERVES

Called up share capital

19

416,800

416,800

Revaluation reserve

20

3,239,572

3,181,092

Capital redemption reserve

20

4,500

4,500

Other reserves

20

12,780

12,780

Retained earnings

20

1,936,945

1,629,158

SHAREHOLDERS' FUNDS

5,610,597

5,244,330

The financial statements were approved by the director and authorised for issue on 11 September 2020 and were signed

by:

J O Carlisle - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

2,914,875

2,914,875

2,914,875

2,914,875

CURRENT ASSETS

Cash at bank

212

212

CREDITORS

Amounts falling due within one year

13

1,026,008

1,026,008

NET CURRENT LIABILITIES

(1,025,796

)

(1,025,796

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,889,079

1,889,079

CAPITAL AND RESERVES

Called up share capital

19

416,800

416,800

Share premium

20

1,430,000

1,430,000

Capital redemption reserve

20

4,500

4,500

Other reserves

20

12,780

12,780

Retained earnings

20

24,999

24,999

SHAREHOLDERS' FUNDS

1,889,079

1,889,079

Company's profit for the financial year

-

-

The financial statements were approved by the director and authorised for issue on 11 September 2020 and were signed by:

J O Carlisle - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2018

416,800

1,296,569

3,211,707

Changes in equity

Total comprehensive income

-

332,589

(30,615

)

Balance at 31 December 2018

416,800

1,629,158

3,181,092

Changes in equity

Total comprehensive income

-

307,787

58,480

Balance at 31 December 2019

416,800

1,936,945

3,239,572

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2018

4,500

12,780

4,942,356

Changes in equity

Total comprehensive income

-

-

301,974

Balance at 31 December 2018

4,500

12,780

5,244,330

Changes in equity

Total comprehensive income

-

-

366,267

Balance at 31 December 2019

4,500

12,780

5,610,597

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2018

416,800

24,999

1,430,000

Changes in equity

Balance at 31 December 2018

416,800

24,999

1,430,000

Changes in equity

Balance at 31 December 2019

416,800

24,999

1,430,000

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2018

4,500

12,780

1,889,079

Changes in equity

Balance at 31 December 2018

4,500

12,780

1,889,079

Changes in equity

Balance at 31 December 2019

4,500

12,780

1,889,079

Cash flows from operating activities

Cash generated from operations

1

700,263

373,297

Interest paid

(21,572

)

(28,739

)

Interest element of hire purchase payments paid

(543

)

(45

)

Tax paid

(83,012

)

(35,948

)

Net cash from operating activities

595,136

308,565

Cash flows from investing activities

Purchase of tangible fixed assets

(48,634

)

(48,641

)

Interest received

38

3

Net cash from investing activities

(48,596

)

(48,638

)

Cash flows from financing activities

Loan repayments in year

(423,332

)

(323,334

)

Capital repayments in year

72,233

81,393

Net cash from financing activities

(351,099

)

(241,941

)

Increase in cash and cash equivalents

195,441

17,986

Cash and cash equivalents at beginning of year

2

(670,608

)

(688,594

)

Cash and cash equivalents at end of year

2

(475,167

)

(670,608

)

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

31.12.19

31.12.18

£

£

Profit before taxation

465,305

366,483

Depreciation charges

126,036

122,785

Loss on disposal of fixed assets

-

9,195

Finance costs

22,115

28,784

Finance income

(38

)

(3

)

613,418

527,244

Increase in stocks

(511,222

)

(196,372

)

Decrease/(increase) in trade and other debtors

97,651

(83,895

)

Increase in trade and other creditors

500,416

126,320

Cash generated from operations

700,263

373,297

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

2,446

2,435

Bank overdrafts

(477,613

)

(673,043

)

(475,167

)

(670,608

)

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

2,435

2,518

Bank overdrafts

(673,043

)

(691,112

)

(670,608

)

(688,594

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.19

Cash flow

At 31.12.19

£

£

£

Net cash

Cash at bank and in hand

2,435

11

2,446

Bank overdrafts

(673,043

)

195,430

(477,613

)

(670,608

)

195,441

(475,167

)

Debt

Finance leases

(99,156

)

(72,233

)

(171,389

)

Debts falling due within 1 year

(523,333

)

250,000

(273,333

)

Debts falling due after 1 year

(693,334

)

173,334

(520,000

)

(1,315,823

)

351,101

(964,722

)

Total

(1,986,431

)

546,542

(1,439,889

)

1.	STATUTORY INFORMATION

Farmer & Carlisle Holdings 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 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.

Basis of consolidation

The consolidated financial statements include the financial statements of the company and its subsidiary

undertakings made up to the 31 December 2019. Under Section 408 of the Companies Act 2006 the company is

exempt from the requirement to present its own profit and loss account.

Turnover

Revenue is recognised to the extent that is probable that the economic benefits will flow to the company and the

revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or

receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also

be met before revenue is recognised:

Sales of goods

Revenue from the sale of motor vehicles and associated services is recognised when all of the following

conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer, usually on the

despatch of goods;

- the company retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction;

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

Tangible fixed assets

Fixed assets are stated at cost or valuation. Depreciation is being charged so as to write off cost or valuation less

any estimated residual value, over their expected useful lives. The rates and methods used are as follows:

Freehold property - 2% per annum on valuations plus additions at cost thereafter (excluding land).

Fixtures & fittings - 25%/20% per annum reducing balance & 5% straight line.

Motor vehicles - 20% per annum on cost.

Stocks

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

moving items.

Cost includes all costs incurred in bringing each product to its present location and condition which includes

invoice cost plus freight and duty. Stock is valued using a first in first out basis. Net realisable value is based on

estimated selling price less any further costs expected to be incurred to disposal.