All About The Buildings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11806378 (England and Wales)

Page

Company Information  

1

Group Strategic Report  

2

Report of the Directors  

4

Report of the Independent Auditors  

5

Consolidated Income Statement  

7

Consolidated Other Comprehensive Income  

8

Consolidated Balance Sheet  

9

Company Balance Sheet  

10

Consolidated Statement of Changes in Equity  

11

Company Statement of Changes in Equity  

12

Consolidated Cash Flow Statement  

13

Notes to the Consolidated Cash Flow Statement  

14

Notes to the Consolidated Financial Statements  

15

DIRECTORS:

S C Prebble

L Jones

B M Jellett

REGISTERED OFFICE:

10-16 Botley Road

Hedge End

Southampton

Hampshire

SO30 2HE

REGISTERED NUMBER:

11806378 (England and Wales)

AUDITORS:

Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

The directors present their strategic report of the company and the group for the period 5 February 2019 to 31 May 2020.

REVIEW OF BUSINESS

The company was incorporated on 5 February 2019, and its wholly owned subsidiary Sparshatts Group Limited was incorporated on 6 February 2019. On 31 July 2019 Sparshatts Group Limited purchased certain assets from Sparshatts of Botley Limited and Cars of Swanwick Limited, as detailed in note 25 of the financial statements. On the same day All About The Buildings Limited purchased the 5 properties that the group operate from.

A large proportion of the used vehicle stock acquired didn't match the profile that we were looking for, and after we started trading on the 1 August 2019, it took the remainder of the year to clear all the old stock.

A late change to the property acquisitions meant that the Group also had to purchase the property in North Baddesley from the old businesses which was not in the original plan. Having to stock another site put pressure on our cash reserves and forced us to sell cars quicker than we would normally have done, resulting in lower than normal margins. The accounts for the period showed a gross profit margin of only 1.3%.

Having changed our stock profile, we saw promising results in early 2020 but were unfortunately then hit with the Covid-19 issues, and the business was put into lockdown. Whilst there was a strong start to 2020 and promising signs of a decent year end position, the last few months meant that we made a loss in our first trading period.

A decision was made to close the North Baddesley branch and put this on the market. The sale of this site has been agreed post year end as detailed in note 23 of the financial statements.

Following the decision to close the North Baddesley site, stock levels were reduced accordingly and the cash reserves were much more comfortable. At the same time, we benefitted from the changed stock profile we instigated in late 2019 and our unit sales increased dramatically as did our retained profits.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group is subject to a number of risks and the directors constantly monitor market conditions and modify stocking and pricing policies to manage and reflect the prevailing economic conditions.

Stock value risk

The Group is exposed to the risk of the value of its stock falling due to general economic or industry specific factors, as are all businesses in this industry. The directors mitigate this risk by ensuring they only carry stock of a suitable profile and price range, and closely monitor the ageing of stock to ensure a suitable stock turn is maintained.

Interest rate risk

The Group is exposed to changes in rates of interest. The directors monitor the rates of interest on a regular basis to ensure there is not a material impact on the Group following a change in rates.

Liquidity risk

This is managed by ensuring that stock levels are carefully controlled and adequate financing arrangements are in place to meet the Group's needs. The Group maintains a strong relationship with its bankers.

COVID-19

The Covid-19 pandemic has impacted the business in the period to 31 May 2020, mainly due to the national lockdowns imposed. Whilst the further lockdowns later in 2020 and early 2021 have impacted the business, we were better placed to deal with them and have ensured we are set for when the lockdowns are lifted.

The directors continue to monitor the advice from the Government to ensure staff and customers remain safe, and that the Group complies with all aspects of the Governments guidance.

GOING CONCERN

Whilst the Group made a loss in its first trading period, the results since the year end have been promising. The directors have prepared forecasts for the following 12 months, taking into account the possible impact of Covid-19, and the closure of the North Baddesley site.

The Group's bankers have indicated their continued support and there are no material uncertainties that exist with regards to the Group's ability to continue as a going concern.

ON BEHALF OF THE BOARD:

L Jones - Director

12 February 2021

The directors present their report with the financial statements of the company and the group for the period 5 February 2019 to 31 May 2020.

INCORPORATION

The group was incorporated on 5 February 2019 and commenced trading on the same date.

DIVIDENDS

No dividends will be distributed for the period ended 31 May 2020.

EVENTS SINCE THE END OF THE PERIOD

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

DIRECTORS

The directors who have held office during the period from 5 February 2019 to the date of this report are as follows:

S C Prebble - appointed 6 February 2019

L Jones - appointed 5 February 2019

B M Jellett - appointed 5 February 2019

R E Harvell - appointed 5 February 2019 - resigned 10 July 2019

All the directors who are eligible offer themselves for election at the forthcoming first Annual General Meeting.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period.  In preparing these financial statements, the directors are required to:

-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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,  Rothmans Audit LLP, were appointed during the period. They will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L Jones - Director

12 February 2021

Opinion

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-

the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-

the parent company financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kevin Richards (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

12 February 2021

TURNOVER

3

16,276,574

2,652,734

18,929,308

Cost of sales

(16,017,347

)

(2,667,857

)

(18,685,204

)

GROSS PROFIT/(LOSS)

259,227

(15,123

)

244,104

Administrative expenses

(806,587

)

(36,541

)

(843,128

)

(547,360

)

(51,664

)

(599,024

)

Other operating income

310,519

25,000

335,519

OPERATING LOSS

5

(236,841

)

(26,664

)

(263,505

)

Amounts written off investments

-

-

-

Interest payable and similar expenses

6

(58,044

)

(32,500

)

(90,544

)

LOSS BEFORE TAXATION

(294,885

)

(59,164

)

(354,049

)

Tax on loss

7

-

-

-

LOSS FOR THE FINANCIAL PERIOD

(294,885

)

(59,164

)

(354,049

)

Loss attributable to:

Owners of the parent

(354,049

)

LOSS FOR THE PERIOD

(354,049

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR

THE PERIOD

(354,049

)

Total comprehensive income attributable to:

Owners of the parent

(354,049

)

FIXED ASSETS

Tangible assets

10

5,268,590

Investments

11

-

5,268,590

CURRENT ASSETS

Stocks

12

5,500,361

Debtors

13

224,711

Cash at bank

292,144

6,017,216

CREDITORS

Amounts falling due within one year

14

5,273,105

NET CURRENT ASSETS

744,111

TOTAL ASSETS LESS CURRENT

LIABILITIES

6,012,701

CREDITORS

Amounts falling due after more than one

year

15

3,033,750

NET ASSETS

2,978,951

CAPITAL AND RESERVES

Called up share capital

19

3,333,000

Retained earnings

20

(354,049

)

SHAREHOLDERS' FUNDS

2,978,951

The financial statements were approved by the Board of Directors and authorised for issue on 12 February 2021 and were signed on its behalf by:

L Jones - Director

FIXED ASSETS

Tangible assets

10

5,146,822

Investments

11

100

5,146,922

CURRENT ASSETS

Debtors

13

847,612

Cash at bank

40,655

888,267

CREDITORS

Amounts falling due within one year

14

537,455

NET CURRENT ASSETS

350,812

TOTAL ASSETS LESS CURRENT

LIABILITIES

5,497,734

CREDITORS

Amounts falling due after more than one

year

15

1,933,750

NET ASSETS

3,563,984

CAPITAL AND RESERVES

Called up share capital

19

3,333,000

Retained earnings

20

230,984

SHAREHOLDERS' FUNDS

3,563,984

Company's profit for the financial year

230,984

The financial statements were approved by the Board of Directors and authorised for issue on 12 February 2021 and were signed on its behalf by:

L Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Changes in equity

Issue of share capital

3,333,000

-

3,333,000

Total comprehensive income

-

(354,049

)

(354,049

)

Balance at 31 May 2020

3,333,000

(354,049

)

2,978,951

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Changes in equity

Issue of share capital

3,333,000

-

3,333,000

Total comprehensive income

-

230,984

230,984

Balance at 31 May 2020

3,333,000

230,984

3,563,984

Cash flows from operating activities

Cash generated from operations

1

(1,506,774

)

Interest paid

(90,544

)

Tax paid

163,738

Net cash from operating activities

(1,433,580

)

Cash flows from investing activities

Purchase of tangible fixed assets

(5,245,239

)

Acquisition of subsidiary

(1,649,022

)

Cash acquired

55,861

Net cash from investing activities

(6,838,400

)

Cash flows from financing activities

New bank loans in year

2,275,000

Bank loan repayments in year

(144,191

)

Net amount introduced by directors

352,524

Share issue

3,333,000

Other loans in year

1,100,000

Stocking loan movement

785,291

Advanced commission

862,500

Net cash from financing activities

8,564,124

Increase in cash and cash equivalents

292,144

Cash and cash equivalents at beginning

of period

2

-

Cash and cash equivalents at end of

period

2

292,144

1.

RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

£   

Loss before taxation

(354,049

)

Depreciation charges

98,031

Loss on disposal of fixed assets

428

Finance costs

90,544