Iverson Tyres Limited 31/03/2020 iXBRL

IVERSON TYRES LIMITED - Company Information

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Company registration number: 2681058

Iverson Tyres Limited

Financial statements

31 March 2020

Iverson Tyres Limited

Contents

Directors and other information

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Balance sheet

Statement of changes in equity

Cash Flow Statement

Notes to the financial statements

Iverson Tyres Limited

Directors and other information


	Directors	Mr D J Gardner
		Mr J P Powell


	Company number	2681058


	Registered office	First Floor, Shropshire House
		179 Tottenham Court Road
		London
		W1T 7NZ


	Business address	129 Power Road
		London
		Chiswick
		W4 5PY


	Auditor	Couch Bright King & Co
		First Floor, Shropshire House
		179 Tottenham Court Road
		London
		W1T 7NZ

Iverson Tyres Limited

Strategic report

Year ended 31st March 2020

Review of Business

This latest set of financial statements shows the Company's continued ability to compete in an increasingly competitive market and again has shown an excellent return on its efforts.

Turnover increased to £20,138.448 (£13,250.592 in 2019).

Profit before tax was £387,433 and although a decrease on the previous year, administrative expenses were also much reduced.

The Company thrives on its strong retail foundations.

Online Sales in all product/service categories have continued to grow as expected. It provides the Company with even greater efficiency with the ability to plan work in the centers' going forward.

Another year of zero bad debt shows the Company's strict adherence to its credit procedures has again been successful.

The Company's Corporate and Social Responsibility policy continually ensures active compliance within the spirit of the law, ethical standards and international norms, risk management and effective controls.

Principal Risks and Uncertainties

The Fast-fit industry is forever developing for the future and is subject to continual change.

The Company, essentially a small family run business for 28 years provides a level of service that we believe is second to none.

In this competitive World, service and the development of trust with our customers over a period of time is essential to compete and beat our competitors in this market.

Brexit

The continuing uncertainty surrounding Brexit continues to thrive. Many businesses will be profoundly affected by this. The motor trade although not immune to the negative impact, has however been relatively unaffected thus far.

The need for replacement parts for cars will continue. Much of our product is sourced from the UK and to safeguard any import tariffs in the unlikely event of a no deal, the Company has increased its stock of key component parts to the business. This will smooth over any immediate disruption to the supply chain.

Covid-19

The onset of Covid-19 towards the end of March last year marched us into the unknown.

The Company monitored it's footfall closely together with incoming telephone enquiries from its customers.

There was a distinct pattern developing and the downward trend prompted evasive action.

We elected to close our centers during April and early May. We received the business interruption grants for all of our centers, we furloughed the majority of our staff and accepted the rates incentives etc.

Our remaining staff were tasked with interior and exterior decoration of the centers.

Similarly, we ruthlessly cut costs to protect our liquidity. In particular we returned stock that fell outside of our payment terms. This exercise was a huge success and is now a regular discussion point with management.

The strength and resilience of the Company is ongoing. There was never a need for Government backed loans and trade recovered to 90% of its previous year's month on month comparison from June 2020.

Development and Performance

The significance of the impact of the Electric Car Era cannot be ignored.

The Company and in particular it's front line staff are well researched and trained in the future of electric cars and their component parts. The stock of tyres in particular has seen a dramatic change in its profile as has battery stocks to harness the `stop start' era.

Diagnostic equipment is constantly being upgraded to handle the ever-diversifying customer demands.

Financial Key Performance indicators

The performance of the Company is monitored and reported daily to our managers.

Key indicators include customer numbers, gross sales, profit margin on sales, and a breakdown of key product groups with a direct comparison to the previous year's performance.

Phone calls are continually monitored and in-house training is implemented as required to ensure our effectiveness in this very important role.

Going Concern

The Company`s management accounts to January 2021 have clearly shown that its ruthless cost cutting measures have worked well. Each month, in particular during lockdown, it has shown a profit and now in March 2021 business is close to the seasonal norm.

The directors are confident that the going concern basis of accounting in the preparation of its financial accounts is appropriate.

The company has shown its ability to adapt to unprecedented market conditions and will continue in operational existence in the future.

This report was approved by the board of directors on 29th March 2021 and signed on behalf of the board by:

Mr D J Gardner

Director

Iverson Tyres Limited

Directors report

Year ended 31st March 2020

The directors present their report and the financial statements of the company for the year ended 31st March 2020.

Directors

The directors who served the company during the year were as follows:

Mr D J Gardner

Mr J P Powell

Dividends

Particulars of recommended dividends are detailed in note 11 to the financial statements.

Future developments

See Strategic Report.

Financial instruments

See Strategic Report.

Events after the end of the reporting period

Particulars of events after the reporting period are detailed in note 25 to the financial statements.

Disclosure of information in the strategic report.

See Strategic Report.

Directors responsibilities statement

The directors are responsible for preparing the strategic report, directors report 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 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 judgments and accounting estimates that are reasonable and prudent; and

- 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 29 March 2021 and signed on behalf of the board by:

Mr D J Gardner

Director

Iverson Tyres Limited

Independent auditor's report to the members of

Iverson Tyres Limited

Year ended 31st March 2020

Opinion

We have audited the financial statements of Iverson Tyres Limited (the 'company') for the year ended 31st March 2020 which comprise the statement of comprehensive income, Balance Sheet, statement of changes in equity, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31st March 2020 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 auditor’s 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report has 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 directors' report. 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 the 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 directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor’s report 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 auditor’s report.

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 an auditors report 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.

Andrew Shepherd (Senior Statutory Auditor)

For and on behalf of

Couch Bright King & Co

Chartered Accountants & Statutory Auditors

First Floor, Shropshire House

179 Tottenham Court Road

London

W1T 7NZ

29 March 2021

Iverson Tyres Limited

Statement of comprehensive income

Year ended 31st March 2020

		2020	2019
	Note	£	£


Turnover	4	20,138,448	13,250,592
Cost of sales		( 17,957,284)	( 10,827,190)
		_________	_________
Gross profit		2,181,164	2,423,402

Administrative expenses		( 1,791,189)	( 1,906,662)
Other operating income	5	14,400	14,700
		_________	_________
Operating profit	6	404,375	531,440

Interest payable and similar expenses	9	( 16,942)	( 11,089)
Profit before taxation		387,433	520,351

Tax on profit	10	( 93,919)	( 116,748)
		_________	_________
Profit for the financial year		293,514	403,603
		_________	_________
Revaluation of tangible assets		-	( 414,246)
Tax relating to components of other comprehensive income		( 3,573)	29,443
		_________	_________
Other comprehensive income for the year		( 3,573)	( 384,803)
		_________	_________
Total comprehensive income for the year		289,941	18,800
		_________	_________

All the activities of the company are from continuing operations.

Iverson Tyres Limited

Balance sheet

31st March 2020

		2020		2019
	Note	£	£	£	£

Fixed assets
Intangible assets	12	7,825		15,650
Tangible assets	13	3,369,982		3,472,078
		_________		_________
			3,377,807		3,487,728

Current assets
Stocks	14	399,242		377,276
Debtors	15	1,170,131		264,780
Cash at bank and in hand		250		250
		_________		_________
		1,569,623		642,306
Creditors: amounts falling due
within one year	16	( 1,989,861)		( 1,386,247)
		_________		_________
Net current liabilities			( 420,238)		( 743,941)
			_________		_________
Total assets less current liabilities			2,957,569		2,743,787


Provisions for liabilities	17		( 54,842)		( 56,281)

			_________		_________
Net assets			2,902,727		2,687,506
			_________		_________

Capital and reserves
Called up share capital	21		50,100		50,100
Revaluation reserve	22		1,247,490		1,262,681
Profit and loss account	22		1,605,137		1,374,725
			_________		_________
Shareholders funds			2,902,727		2,687,506
			_________		_________

These financial statements were approved by the board of directors and authorised for issue on 29 March 2021 , and are signed on behalf of the board by:

Mr D J Gardner

Director

Company registration number: 2681058

Iverson Tyres Limited

Statement of changes in equity

Year ended 31st March 2020

	Called up share capital	Revaluation reserve	Profit and loss account	Total
	£	£	£	£


At 1st April 2018	50,100	1,659,102	1,109,504	2,818,706

Profit for the year			403,603	403,603
Other comprehensive income for the year:
Revaluation of tangible assets		( 414,246)		( 414,246)
Reclassification from revaluation reserve to profit and loss account		( 11,618)	11,618	-
Tax relating to components of other comprehensive income		29,443	-	29,443
	_________	_________	_________	_________
Total comprehensive income for the year	-	( 396,421)	415,221	18,800

Dividends paid and payable			( 150,000)	( 150,000)
	_________	_________	_________	_________
Total investments by and distributions to owners	-	-	( 150,000)	( 150,000)

	_________	_________	_________	_________
At 31st March 2019 and 1st April 2019	50,100	1,262,681	1,374,725	2,687,506

Profit for the year			293,514	293,514
Other comprehensive income for the year:
Reclassification from revaluation reserve to profit and loss account		( 11,618)	11,618	-
Tax relating to components of other comprehensive income		( 3,573)	-	( 3,573)
	_________	_________	_________	_________
Total comprehensive income for the year	-	( 15,191)	305,132	289,941

Dividends paid and payable			( 74,720)	( 74,720)
	_________	_________	_________	_________
Total investments by and distributions to owners	-	-	( 74,720)	( 74,720)

	_________	_________	_________	_________
At 31st March 2020	50,100	1,247,490	1,605,137	2,902,727
	_________	_________	_________	_________

Iverson Tyres Limited

Cash Flow Statement

Year ended 31st March 2020

	2020	2019
	£	£

Cash flows from operating activities
Profit for the financial year	293,514	403,603

Adjustments for:
Depreciation of tangible assets	103,896	123,685
Amortisation of intangible assets	7,825	7,825
Interest payable and similar expenses	16,942	11,089
Tax on profit	93,919	116,748
Accrued expenses/(income)	( 54,648)	58,907

Changes in:
Stocks	( 21,966)	( 1,447)
Trade and other debtors	( 905,351)	799,816
Trade and other creditors	373,831	( 982,052)
	_________	_________
Cash generated from operations	( 92,038)	538,174

Interest paid	( 16,942)	( 11,089)
Tax paid	( 127,435)	( 101,240)
	_________	_________
Net cash (used in)/from operating activities	( 236,415)	425,845
	_________	_________

Cash flows from investing activities
Purchase of tangible assets	( 1,800)	( 9,321)
	_________	_________
Net cash used in investing activities	( 1,800)	( 9,321)
	_________	_________

Cash flows from financing activities
Payment of finance lease liabilities	-	( 3,385)
Equity dividends paid	( 74,720)	( 150,000)
	_________	_________
Net cash used in financing activities	( 74,720)	( 153,385)
	_________	_________

Net increase/(decrease) in cash and cash equivalents	( 312,935)	263,139
Cash and cash equivalents at beginning of year	(532,584)	(795,723)
	_________	_________
Cash and cash equivalents at end of year	( 845,519)	( 532,584)
	_________	_________

Iverson Tyres Limited

Notes to the financial statements

Year ended 31st March 2020

1. General information

The company is a private company limited by shares, registered in England & Wales. The address of the registered office is First Floor, Shropshire House, 179 Tottenham Court Road, London, W1T 7NZ.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. The Triennial review 2017 amendments to the standard have been early adopted.

3. Accounting policies

Basis of preparation

The Accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and in accordance with applicable Accounting Standards.

Turnover

Turnover represents goods and services provided during the year net of trade discounts and Value Added Tax.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Development costs	-	25 %	straight line
Other	-	25 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.

Tangible assets

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Freehold Buildings	-	2% on cost or re-valued amounts
Plant & Equipment	-	15% on the written down value
Computer Equipment	-	20%
Motor vehicles	-	25% on the written down value

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stock has been valued at the lower of average cost and net realisable value, after making due allowance for obsolete and slow-moving items.

Hire purchase and finance lease

Fixed assets held under lease purchase agreements are capitalised and depreciated over their economic useful lives, on a basis consistent with owned assets. The corresponding lease purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital repayments.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance Sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions in respect of the company's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

4. Turnover

The directors consider it to be seriously prejudicial to the interest of the company to disclose turnover by geographical markets.

5. Other operating income

	2020	2019
	£	£
Rental income	14,400	14,700
	_________	_________

6. Operating profit

Operating profit is stated after charging/(crediting):

	2020	2019
	£	£
Amortisation of intangible assets	7,825	7,825
Depreciation of tangible assets	103,896	123,685
Fees payable for the audit of the financial statements	14,500	13,500
	_________	_________

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2020	2019
Management and Administration	5	5
Sales and Engineers	28	28
	_________	_________
	33	33
	_________	_________

The aggregate payroll costs incurred during the year were:

	2020	2019
	£	£
Wages and salaries	1,041,050	1,080,364
Social security costs	117,307	113,528
Other pension costs	105,437	107,602
	_________	_________
	1,263,794	1,301,494
	_________	_________

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2020	2019
	£	£
Remuneration	259,285	310,002
Company contributions to pension schemes in respect of qualifying services	53,712	43,516
	_________	_________
	312,997	353,518
	_________	_________

The number of directors who accrued benefits under company pension plans was as follows:

	2020	2019
	Number	Number
Defined contribution plans	2	2
	_________	_________

Remuneration of the highest paid directors in respect of qualifying services:

	2020	2019
	£	£
Aggregate remuneration	189,650	216,723
Company contributions to pension plans in respect of qualifying services	40,572	40,239
	_________	_________
	230,222	256,962
	_________	_________

9. Interest payable and similar expenses

		2020	2019
		£	£
Bank loans and overdrafts		16,942	10,944
Other loans made to the company:
	Finance leases and hire purchase contracts	-	145
		_________	_________
		16,942	11,089
		_________	_________

10. Tax on profit

Major components of tax expense

	2020	2019
	£	£
Current tax:
UK current tax expense	98,931	127,444
	_________	_________

Deferred tax:
Origination and reversal of timing differences	( 5,012)	( 10,696)
	_________	_________
Tax on profit	93,919	116,748
	_________	_________

Tax recognised as other comprehensive income or equity

The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £ 3,573 (2019: £ 29,443 ).

Reconciliation of tax expense

The tax assessed on the profit for the year is higher than (2019: higher than) the standard rate of corporation tax in the UK of 19.00 % (2019: 19.00%).

	2020	2019
	£	£
Profit before taxation	387,433	520,351
	_________	_________

Profit multiplied by rate of tax	73,612	98,867
Effect of expenses not deductible for tax purposes	5,452	6,784
Effect of capital allowances and depreciation	19,867	21,793
	_________	_________
Tax on profit	98,931	127,444
	_________	_________

11. Dividends

Equity dividends

	2020	2019
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	74,720	150,000
	_________	_________

12. Intangible assets

	Development costs	Total
	£	£
Cost
At 1st April 2019 and 31st March 2020	31,300	31,300
	_________	_________
Amortisation
At 1st April 2019	15,650	15,650
Charge for the year	7,825	7,825
	_________	_________
At 31st March 2020	23,475	23,475
	_________	_________
Carrying amount
At 31st March 2020	7,825	7,825
	_________	_________
At 31st March 2019	15,650	15,650
	_________	_________

13. Tangible assets

	Freehold property	Plant and machinery	Motor vehicles	Total
	£	£	£	£
Cost
At 1st April 2019	3,265,000	705,956	163,108	4,134,064
Additions	-	1,800	-	1,800
	_________	_________	_________	_________
At 31st March 2020	3,265,000	707,756	163,108	4,135,864
	_________	_________	_________	_________
Depreciation
At 1st April 2019	-	546,325	115,661	661,986
Charge for the year	62,035	29,999	11,862	103,896
	_________	_________	_________	_________
At 31st March 2020	62,035	576,324	127,523	765,882
	_________	_________	_________	_________
Carrying amount
At 31st March 2020	3,202,965	131,432	35,585	3,369,982
	_________	_________	_________	_________
At 31st March 2019	3,265,000	159,631	47,447	3,472,078
	_________	_________	_________	_________

Land and buildings were re-valued as at the 15th August 2019 by White Druce & Brown Limited RICS on the basis of open market value. The historical cost of freehold land and buildings included above at a valuation of £3,265,000 was £2,654,737 (2019: £2,654,737) and the aggregate depreciation thereon would have been £732,277 (2019: £681,860).

14. Stocks

	2020	2019
	£	£
Finished goods	399,242	377,276
	_________	_________

Stock has been valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow-moving items.

15. Debtors

	2020	2019
	£	£
Trade debtors	530,146	264,780
Other debtors	639,985	-
	_________	_________
	1,170,131	264,780
	_________	_________

16. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	845,769	532,834
Trade creditors	964,434	589,496
Accruals and deferred income	30,703	85,351
Corporation tax	98,931	127,435
Social security and other taxes	48,624	49,731
Other creditors	1,400	1,400
	_________	_________
	1,989,861	1,386,247
	_________	_________

17. Provisions

	Deferred tax (note 18)	Total
	£	£
At 1st April 2019	56,281	56,281
Unused amounts reversed	( 1,439)	( 1,439)
	_________	_________
At 31st March 2020	54,842	54,842
	_________	_________

18. Deferred tax

The deferred tax included in the Balance Sheet is as follows:

	2020	2019
	£	£
Included in provisions (note 17)	54,842	56,281
	_________	_________

The deferred tax account consists of the tax effect of timing differences in respect of:

	2020	2019
	£	£
Accelerated capital allowances	20,897	25,909
Revaluation of tangible assets	33,945	30,372
	_________	_________
	54,842	56,281
	_________	_________

19. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 105,437 (2019: £ 107,602 ).

The company operates a defined contribution pension scheme. The assets of the schemes are held separately from those of the company in separate independently administered funds. The pension costs charges represent contributions payable by the company to the funds and amounted to £105,437 of which £53,712, (2019: £43,516) related to the Directors Pension Scheme and £51,725 (2019: £64,086) related to employees Pension Scheme.

20. Financial instruments

Freehold Land & Buildings are used as security on overdraft facility with an aggregate value of £845,780.

21. Called up share capital

Issued, called up and fully paid

	2020		2019
	No	£	No	£
Ordinary shares shares of £ 1.00 each	50,100	50,100	50,100	50,100
	_________	_________	_________	_________

22. Reserves

The Revaluation Reserve represents the cumulate effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted.

23. Analysis of changes in net debt

	At 1 April 2019	Cash flows	At 31 March 2020
	£	£	£
Cash and cash equivalents	250	-	250
Bank overdrafts	(532,834)	(312,935)	(845,769)
	_________	_________	_________
	( 532,584)	( 312,935)	( 845,519)
	_________	_________	_________

24. Contingent assets and liabilities

At 31st March 2020 there were no contingent liabilities.

25. Events after the end of the reporting period

On 29th October 2020, Iverson Group Holdings Ltd, a private company limited by shares and registered in England & Wales, acquired 100% of the share capital of Iverson Tyres Limited . The directors believe that this new business structure will put the enterprise in a position to acquire other similar entities to Iverson Tyres Limited . In the opinion of the directors, this new business structure is a non- adjusting event and an estimate of its financial effect cannot be made.

26. Related party transactions

During the year the company had Sales of £19,156 (2019: £14,430) and Purchases of £9,994 (2019: £8,709) with Broadway Tyre Company Ltd, a company under common control.As at the year end a net debtor balance of £8,792 (2019: £4,881) existed between the two entities.

27. Controlling party

David Gardner, a director, controls the company by virtue of a controlling interest of 100% of the issued ordinary share capital.