Robinsons Caravans Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00760493 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

ROBINSONS CARAVANS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

D J Robinson

J G Hastie

N P Seabridge

J M Clay

REGISTERED OFFICE:

Ringwood Road

Brimington

CHESTERFIELD

Derbyshire

S43 1DG

REGISTERED NUMBER:

00760493 (England and Wales)

SENIOR STATUTORY AUDITOR:

John Sheather BSc FCA

AUDITORS:

McCabe Ford Williams

Chartered Accountants and Statutory Auditors

Charlton House

Dour Street

DOVER

Kent

CT16 1BL

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

The principal activity of the company in the year under review was that of retailing and repairing caravans.

The results for the year and financial position of the company are as shown in the annexed financial statements.

The directors would like to thank its loyal and hardworking staff who deliver value and service to our customers. All the key staff of the company have become partners in Robinsons Caravans Partnership LLP which was incorporated on 21 June 2019. This is a natural step to reinforce the culture of the company that considers its staff its most important asset and provides them all with a clear incentive in the sharing of its future profitability.

REVIEW OF BUSINESS

The company has experienced a small decrease in turnover (7%) this year due to the continuing competitive market forces in the current economic climate. During the year there was a change of ownership and exceptional costs were incurred as part of the acquisition which has resulted in a net loss. The directors are confident that without these exceptional costs and a concentrative on promoting the business, maintaining and improving margins [where possible minimising overheads] that the company will return to a profit in the next financial year.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial risk management objective and policies

The company uses various financial instruments in the financing of its operations. These include cash, trade debtors and external stocking finance. The main purpose of these financial instruments is to raise finance for the company's operations.

Existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.

The main risk arising from the company's financial instruments are liquidity risk, cashflow interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest in cash assets safely and profitability.

The company policy throughout the period has been to utilise its stocking finance facilities whenever possible and to utilise the credit terms provided.

Interest rate risk

The company finances its operations mainly through stocking finance facilities and exposure to interest rate fluctuations is restricted to finance terms agreed. These risks are managed by agreed interest levels set by the suppliers.

Credit risk

The company's principal current assets are cash, stock and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third-party credit reference agencies.

Covid-19

The global Corona virus pandemic is a risk to the company's ability to continue to trade. The directors are confident that this risk can be adequately mitigated as fully explained in the Post Balance Sheet Events note to the accounts.

Brexit

The uncertainty created around Brexit has seen the market depressed - the Directors believe this is because potential customers have wanted to see certainty in the economic situation past Brexit. In order to manage this risk, the directors manage and monitor overheads and margins closely and the event of any material fluctuation cost actions are taken accordingly.

DEVELOPMENT AND PERFORMANCE

The directors are anticipating modest reductions in turnover levels next year due mainly to the impact of the Corona virus pandemic. Continuing efforts to promote the business will be made and the directors will continue to monitor overheads closely and reduce these wherever possible.

The past profitability for the company should return and the balance sheet remains strong,

Overall, the directors are confident that with a strong management team the company will maintain and hopefully increase its market share.

KEY PERFORMANCE INDICATORS

The directors have monitored the progress of overall company strategy and individual strategic elements by reference to certain key performance indicators:

Turnover for the year amounted to £18,485,238 (2018-£19,915,598)

Gross profit margin was 16.05% (2018-15.97%)

Operating profit for the year was £718 (2018-£718,170)

Loss for the year was £112,633 (2018-profit £595,638)

ON BEHALF OF THE BOARD:

N P Seabridge - Director

16 May 2020

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

DIVIDENDS

The company has not paid any dividends in the year (2018-£600,000).

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

The directors who have held office during the period from 1 January 2019 to the date of this report are as follows:

J E Robinson - resigned 12 May 2019

Mrs M A Robinson - resigned 12 May 2019

Mrs R J Lee - resigned 13 May 2019

Mrs C A Kirkwood - resigned 13 May 2019

J G Hastie - appointed 13 May 2019

N P Seabridge - appointed 13 May 2019

J M Clay - appointed 7 September 2019

Directors' and officers' insurance cover has been established for all directors to provide appropriate cover for their reasonable actions on behalf of the company.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

N P Seabridge - Director

16 May 2020

Opinion

We have audited the financial statements of Robinsons Caravans Limited (the 'company') for the year ended 31 December 2019 which comprise the Income Statement, Other 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 loss 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.

John Sheather BSc FCA (Senior Statutory Auditor)

for and on behalf of McCabe Ford Williams

Chartered Accountants and Statutory Auditors

Charlton House

Dour Street

DOVER

Kent

CT16 1BL

26 May 2020

TURNOVER

18,485,238

19,915,598

Cost of sales

15,519,072

16,734,125

GROSS PROFIT

2,966,166

3,181,473

Administrative expenses

2,965,448

2,463,303

OPERATING PROFIT

4

718

718,170

Interest receivable and similar income

9,713

12,596

10,431

730,766

Interest payable and similar expenses

5

71,095

-

(LOSS)/PROFIT BEFORE TAXATION

(60,664

)

730,766

Tax on (loss)/profit

6

51,969

135,128

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(112,633

)

595,638

(LOSS)/PROFIT FOR THE YEAR

(112,633

)

595,638

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(112,633

)

595,638

FIXED ASSETS

Intangible assets

9

154,286

11,622

Tangible assets

10

2,504,791

2,122,854

2,659,077

2,134,476

CURRENT ASSETS

Stocks

11

3,951,021

5,684,238

Debtors

12

5,557,445

585,094

Cash at bank and in hand

332,846

1,929,369

9,841,312

8,198,701

CREDITORS

Amounts falling due within one year

13

4,985,319

4,120,377

NET CURRENT ASSETS

4,855,993

4,078,324

TOTAL ASSETS LESS CURRENT LIABILITIES

7,515,070

6,212,800

CREDITORS

Amounts falling due after more than one year

14

(1,410,150

)

-

PROVISIONS FOR LIABILITIES

18

(21,282

)

(16,529

)

NET ASSETS

6,083,638

6,196,271

CAPITAL AND RESERVES

Called up share capital

19

100

100

Fair value reserve

20

35,769

35,769

Retained earnings

20

6,047,769

6,160,402

SHAREHOLDERS' FUNDS

6,083,638

6,196,271

The financial statements were approved by the Board of Directors and authorised for issue on 16 May 2020 and were signed on its behalf by:

N P Seabridge - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2018

100

6,164,764

35,769

6,200,633

Changes in equity

Dividends

-

(600,000

)

-

(600,000

)

Total comprehensive income

-

595,638

-

595,638

Balance at 31 December 2018

100

6,160,402

35,769

6,196,271

Changes in equity

Total comprehensive income

-

(112,633

)

-

(112,633

)

Balance at 31 December 2019

100

6,047,769

35,769

6,083,638

Cash flows from operating activities

Cash generated from operations

1

1,596,181

147,652

Interest paid

(71,095

)

-

Tax paid

(138,573

)

(182,488

)

Net cash from operating activities

1,386,513

(34,836

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(12,239

)

Purchase of tangible fixed assets

(401,575

)

(34,557

)

Interest received

9,713

12,596

Net cash from investing activities

(391,862

)

(34,200

)

Cash flows from financing activities

New loans in year

(2,514,586

)

-

Amount withdrawn by directors

(601

)

-

Equity dividends paid

-

(600,000

)

Net cash from financing activities

(2,515,187

)

(600,000

)

Decrease in cash and cash equivalents

(1,520,536

)

(669,036

)

Cash and cash equivalents at beginning of year

2

1,853,382

2,522,418

Cash and cash equivalents at end of year

2

332,846

1,853,382

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

(Loss)/profit before taxation

(60,664

)

730,766

Depreciation charges

35,278

19,243

Finance costs

71,095

-

Finance income

(9,713

)

(12,596

)

35,996

737,413

Decrease/(increase) in stocks

1,733,217

(807,871

)

Increase in trade and other debtors

(21,459

)

(105,913

)

(Decrease)/increase in trade and other creditors

(151,573

)

324,023

Cash generated from operations

1,596,181

147,652

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

332,846

1,929,369

Bank overdrafts

-

(75,987

)

332,846

1,853,382

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

1,929,369

2,731,519

Bank overdrafts

(75,987

)

(209,101

)

1,853,382

2,522,418

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.19

Cash flow

At 31.12.19

£

£

£

Net cash

Cash at bank and in hand

1,929,369

(1,596,523

)

332,846

Bank overdrafts

(75,987

)

75,987

-

1,853,382

(1,520,536

)

332,846

Debt

Debts falling due within 1 year

-

(1,026,156

)

(1,026,156

)

Debts falling due after 1 year

-

(1,410,150

)

(1,410,150

)

-

(2,436,306

)

(2,436,306

)

Total

1,853,382

(3,956,842

)

(2,103,460

)

1.	STATUTORY INFORMATION

Robinsons Caravans 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.

Significant judgements and estimates

The preparation of the financial statements requires the directors to make estimates and assumptions that affect the amounts reported in the financial statements. The directors believe that the critical accounting policies where judgement or estimates are necessarily applied are summarised below.

Depreciation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that they are appropriate.

Freehold buildings

The directors consider the residual value of the company's freehold buildings to be greater than their carrying value.

Turnover

Turnover represents net invoiced sales of goods and services provided, excluding value added tax. Sales of caravans are recognised when the risk of ownership transfers to the customer.

Intangible assets

Intangible assets are initially measured at cost, after initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Intellectual Property is being amortised evenly over its estimated useful life of three years.

Website costs are being amortised evenly over their estimated useful lives of three years.

Tangible fixed assets

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

Freehold land and buildings

-

not provided (see note 10)

Equipment, fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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

Up until May 2019 the company operated two defined contribution pension schemes, from June 2019 only one scheme remained in place. Contributions payable for the year are charged to the profit and loss account.

Debtors and creditors receivable/payable within one year

Debtors and creditors that are receivable or payable on demand are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,526,458

1,744,881

Social security costs

119,739

139,156

Other pension costs

31,876

69,996

1,678,073

1,954,033

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

2019

2018

Directors

5

5

Others

70

82

75

87

2019

2018

£

£

Directors' remuneration

135,606

146,617

Directors' pension contributions to money purchase schemes

1,422

32,770

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

Money purchase schemes

1

3

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Depreciation - owned assets

19,638

18,626

Intellectual Property amortisation

13,192

-

Website amortisation

2,448

617

Auditor's remuneration

20,000

10,000

Rent

11,213

44,850

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Loan interest

5,370

-

Bank loan interest

65,725

-

71,095

-

6.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

47,216

138,637

Deferred tax

4,753

(3,509

)

Tax on (loss)/profit

51,969

135,128

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

£

£

(Loss)/profit before tax

(60,664

)

730,766

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

(11,526

)

138,846

Effects of:

Expenses not deductible for tax purposes

60,930

397

Capital allowances in excess of depreciation

(2,319

)

(606

)

Pension accrual

131

-

Deferred tax

4,753

(3,509

)

Total tax charge

51,969

135,128