Farmer and Carlisle Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01210153 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

FARMER AND CARLISLE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

J O Carlisle

Mrs D M Carlisle

J A Carlisle

I Hall

J D Carlisle

Mrs J E E Sankey

Mrs M J West

SECRETARY:

M J Tongue

REGISTERED OFFICE:

Belton Road

Loughborough

Leicestershire

LE11 1ND

REGISTERED NUMBER:

01210153 (England and Wales)

AUDITORS:

Lemans

Statutory Auditor

29 Arboretum Street

Nottingham

Nottinghamshire

NG1 4JA

The directors present their strategic report for the year ended 31 December 2019.

REVIEW OF BUSINESS

22019 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

company 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 company 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

Despite the reduction in sales levels, which is primarily due to the current economic environment and the factors

mentioned above, gross margin held up well at £954,045 (2018 - £900,000) Given the strengthening of the company's

order book the directors are confident that sales volumes will increase in the future, but this might take longer than

initially anticipated due to the Covid- 19 situation.

Analysis of sales for the year is shown below:-

Increase /

2019

2018

(decrease)

£

£

%

Sale of motor vehicles

11,900,721

13,347,959

(10.8

)

Sale of associated services

2,282,405

2,313,034

(1.3

)

Commissions and discounts

789,399

737,998

7.0

After taxation the profit for the year amounted to £71,744 (2018 - £62,268).

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, its sister company, Farmer and Carlisle

Leicester Limited, 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 business which could result in

losing sales to revival franchise dealerships and none franchised garages. To manage this risk, the company 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 company aims to provide an

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

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 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 sale and maintenance of new and used

motor vehicles.

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.

J O Carlisle

Mrs D M Carlisle

J A Carlisle

I Hall

J D Carlisle

Mrs J E E Sankey

Mrs M J West

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;

-	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 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

company'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 and Carlisle Limited (the 'company') for the year ended

31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the 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 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.

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.

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 four, 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.

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

14,972,525

16,398,991

Cost of sales

14,018,480

15,498,991

GROSS PROFIT

954,045

900,000

Administrative expenses

976,799

942,825

(22,754

)

(42,825

)

Other operating income

126,000

134,000

OPERATING PROFIT

5

103,246

91,175

Interest receivable and similar income

20

-

103,266

91,175

Interest payable and similar expenses

6

4,335

6,799

PROFIT BEFORE TAXATION

98,931

84,376

Tax on profit

7

27,187

22,108

PROFIT FOR THE FINANCIAL YEAR

71,744

62,268

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

71,744

62,268

FIXED ASSETS

Tangible assets

8

2,488,202

2,510,714

Investments

9

100

100

2,488,302

2,510,814

CURRENT ASSETS

Stocks

10

1,471,482

1,452,353

Debtors

11

2,386,153

2,455,137

Cash at bank and in hand

878

993

3,858,513

3,908,483

CREDITORS

Amounts falling due within one year

12

2,006,427

2,147,005

NET CURRENT ASSETS

1,852,086

1,761,478

TOTAL ASSETS LESS CURRENT LIABILITIES

4,340,388

4,272,292

CREDITORS

Amounts falling due after more than one year

13

(6,858

)

(14,338

)

PROVISIONS FOR LIABILITIES

17

(15,323

)

(11,491

)

NET ASSETS

4,318,207

4,246,463

CAPITAL AND RESERVES

Called up share capital

18

270,000

270,000

Revaluation reserve

19

1,545,018

1,533,737

Retained earnings

19

2,503,189

2,442,726

SHAREHOLDERS' FUNDS

4,318,207

4,246,463

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2020 and were signed on its behalf by:

J O Carlisle - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2018

270,000

2,369,261

1,544,934

4,184,195

Changes in equity

Total comprehensive income

-

73,465

(11,197

)

62,268

Balance at 31 December 2018

270,000

2,442,726

1,533,737

4,246,463

Changes in equity

Total comprehensive income

-

60,463

11,281

71,744

Balance at 31 December 2019

270,000

2,503,189

1,545,018

4,318,207

Cash flows from operating activities

Cash generated from operations

1

275,655

53,121

Interest paid

(3,792

)

(6,754

)

Interest element of hire purchase payments paid

(543

)

(45

)

Tax paid

(19,496

)

(635

)

Net cash from operating activities

251,824

45,687

Cash flows from investing activities

Purchase of tangible fixed assets

(34,571

)

(39,615

)

Interest received

20

-

Net cash from investing activities

(34,551

)

(39,615

)

Cash flows from financing activities

Loan repayments in year

(125,000

)

(75,000

)

Capital repayments in year

91,934

70,933

Net cash from financing activities

(33,066

)

(4,067

)

Increase in cash and cash equivalents

184,207

2,005

Cash and cash equivalents at beginning of year

2

(455,605

)

(457,610

)

Cash and cash equivalents at end of year

2

(271,398

)

(455,605

)

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

31.12.19

31.12.18

£

£

Profit before taxation

98,931

84,376

Depreciation charges

57,083

54,373

Loss on disposal of fixed assets

-

5,466

Finance costs

4,335

6,799

Finance income

(20

)

-

160,329

151,014

Increase in stocks

(19,129

)

(155,180

)

Decrease in trade and other debtors

68,985

87,594

Increase/(decrease) in trade and other creditors

65,470

(30,307

)

Cash generated from operations

275,655

53,121

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

878

993

Bank overdrafts

(272,276

)

(456,598

)

(271,398

)

(455,605

)

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

993

755

Bank overdrafts

(456,598

)

(458,365

)

(455,605

)

(457,610

)

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

993

(115

)

878

Bank overdrafts

(456,598

)

184,322

(272,276

)

(455,605

)

184,207

(271,398

)

Debt

Finance leases

(79,455

)

(91,934

)

(171,389

)

Debts falling due within 1 year

(175,000

)

125,000

(50,000

)

(254,455

)

33,066

(221,389

)

Total

(710,060

)

217,273

(492,787

)

1.	STATUTORY INFORMATION

Farmer and Carlisle 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 Company 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.

Preparation of consolidated financial statements

The financial statements contain information about Farmer and Carlisle Limited as an individual company and do

not contain consolidated financial information as the parent of a group. The company is exempt under Section

400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its

subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent,

Farmer & Carlisle Holdings Limited, .

Related party exemption

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.

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.

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.

Stock

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.

Taxation

Taxation for the year comprises current and 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.

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 company operates defined contribution schemes. Premiums accrued due during the year are charged to the

Profit and Loss Account. Any unpaid premiums at the year end are included in creditors.

Debtors and creditors receivable / payable

Debtors and creditors with no stated interest rate and receivable or payable with in one year are recorded at the

transaction price.

Any losses arising from impairment are recognised in the profit and loss account in other administrative

expenses.

3.

TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.19

31.12.18

£

£

Sale of motor vehicles

11,900,721

13,347,959

Sale of associated services

2,282,405

2,313,034

Commissions and discounts

789,399

737,998

14,972,525

16,398,991

4.	EMPLOYEES AND DIRECTORS

31.12.19

31.12.18

£

£

Wages and salaries

1,405,266

1,326,338

Social security costs

124,152

129,385

Other pension costs

30,127

24,712

1,559,545

1,480,435

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

31.12.19

31.12.18

Sales

21

21

Workshop and stores

22

22

Clerical

12

13

Bodyshop

7

7

62

63

31.12.19

31.12.18

£

£

Directors' remuneration

316,030

268,156

Directors' pension contributions to money purchase schemes

1,976

2,129

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

31.12.19

31.12.18

£

£

Emoluments etc

115,451

94,330

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.19

31.12.18

£

£

Depreciation - owned assets

57,083

54,373

Loss on disposal of fixed assets

-

5,466

Auditors' remuneration

12,500

12,500

Operating lease rentals - other

-

6,055

Operating lease rentals - plant and machinery

11,347

23,360

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.19

31.12.18

£

£

Bank interest

3,792

6,754

Hire purchase interest

543

45

4,335

6,799