Sinclair Motor Holdings Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04395583 (England and Wales)

Sinclair Motor Holdings Limited

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 December 2020

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

Directors:

Mr G S Sinclair

Mr A J Sinclair

Registered office:

Sinclair Group

Old Field Road

Bocam Park

Pencoed

CF35 5LJ

Registered number:

04395583 (England and Wales)

Auditors:

Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

Bankers:

Barclays Bank PLC

PO Box 10

Windsor Court

Cardiff

CF1 3WP

Solicitors:

Acuity Legal

3 Assembly Square

Britannia Quay

Cardiff Bay

Cardiff

CF10 4PL

The directors present their strategic report of the company and the group for the year ended 31 December 2020.

Sinclair Motor Holdings Limited operates its core functions of retailing new cars, used cars, commercial vehicles, servicing (including repairs), bodyshop repairs, parts sales and fuel sales.

Review of business

31/12/2020

31/12/2019

31/12/2018

31/12/2017

Turnover

£459,332,908

£545,579,259

£480,332,495

£464,793,894

Profit before tax

£2,001,419

£4,531,311

£4,001,282

£3,567,332

Total equity

£37,896,747

£36,406,851

£32,971,455

£29,937,034

The COVID-19 pandemic has had far-reaching consequences on the business in 2020 and beyond. The company was closed for 3 months from 25 March and then again for two brief periods in November and December. The suspension of our core business for such a long period would have had a catastrophic effect on our Group had it not been for the financial support made available to us from the Government.

Living with Covid-19 in the company led to major disruptions in our business during 2020. Staff and customers had to adhere to restricted movements in order to comply with social distancing, at great expense. During the initial 3 month lockdown all our departments were fully closed for the entire period, resulting in no customer visits into the business and a complete stop to all business activities. The consequence of this was a period of no turnover or profitability, resulting in significant losses across the group. In addition to this our manufacturer partners closed their factories, stopping the production of vehicles. This created a hole in supply resulting in fewer cars available to sell to customers once we reopened our business.

However, the positive from this period was that as a group we were able to spend this period working on the business, implementing strategies that we would not have had time to do if we were fully open. These new strategies enabled us to significantly modernise our business, streamline our process and deliver a state of the art online solution for our customers in their buying journey. The consequence of this work has resulted in a business with a significant cost reduction that is quicker and easier for customers to deal with.

In July 2020 as a reaction to the financial consequences from the Covid issues, and also as a result of our new approach to digital business, the group had to carry out a redundancy process. This unfortunate but required process has significantly reduced the employment cost base across the group, and has created a far more stable and profitable group, safeguarding the futures of all our staff for the years to come.

The second half of the year delivered a steady re-growth of our business performance. We asked a lot from our staff teams in still difficult times, and they did not disappoint. Month after month they worked tirelessly to ensure that every opportunity was capitalised upon. By December we had stabilised the business and were building a sustainable business in our new arena. It was evident that we were already beginning to see the positive financial results from all the business process and structural changes implemented during the summer months.

The first 3 months of 2021 have been spent in lockdown once again. However, this time we were well prepared. As a result, in the first quarter, we achieved an above budget performance on a budget that was written for a fully open business. It is really pleasing to see that for all the adversity of the past 12 months, the Group has become stronger than ever. With the rollout of the vaccines and the diminishing cases of COVID-19 reported each day, the whole country feels that a new normal is very close indeed. The directors are confident that the Sinclair Group has never been better placed for the future and whatever that may bring.

Principal risks and uncertainties

The group benefits from the close commercial relationships with a number of key suppliers and customers. The loss of any of these of key suppliers and customers or a significant worsening in commercial terms could have a material impact on the results.

The group devotes significant resources to supporting these relationships to ensure that they continue to operate as well in the future. From time to time the group undertakes surveys of customer satisfaction, which are reviewed by the board. The directors realise the importance of excellent customer service to remain ahead of competition.

Price Risk:

The group operates in highly competitive markets. Significant product innovations, technical advances or the intensification of price competition could adversely affect the results for the group. The group invests in significant training of its staff to ensure that it is well placed to provide a choice for customers, to ensure that they are aware of their options and are satisfied with the level of service we provide. The group also continually work to streamline its cost base to ensure that it remains competitive.

Credit Risk:

The group has well established policies and procedures that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual customer is subject to a limit which is reassessed annually by the company.

Liquidity Risk:

Effective management of cash and working capital is a key ongoing priority. The company has an intercompany facility in place that is sufficient to ensure available funds for its operations.

Section 172(1) statement

Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006

The board of directors of Sinclair Motor Holdings Limited consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during the year ended 31 December 2020.

The Sinclair group was started by Bill Sinclair in 1945 and the company continues to be controlled and run by the Sinclair family. We're proud of the ways in which the company has provided employment, training and financial reward for its owners and employees for over 70 years. We are the largest and most successful motor group in Wales, representing some of the most prestigious automotive brands. In a highly competitive market, we aim to stand out from our competitors by virtue of quality, reliability and the great customer care that our reputation is built upon.

We make strategic decisions based on long-term objectives. In particular, this has meant significant investment in premises and people in the business. This investment is to continue in the future to provide customers with state-of- the-art facilities and the very finest expertise. We acknowledge that, in order to progress to the next phase in the company's future, it is likely that we will continue to expand our existing businesses and add to the prestige brand portfolio that we have. We continue to explore possibilities along these lines. Our aim continues to be to maximise the company's ability to grow profits to fund continued investment for the future of the business and job security for the employees.

Our Employees

We rely on the hard work, commitment and enthusiasm of our staff which is fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. We provide comprehensive training and career development support. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.

Our suppliers and customers

We meet with our manufacturing partners regularly throughout the year and take the appropriate action to prevent involvement in modern slavery, corruption, bribery and breaches of competition law. Our business model prioritises quality and customer satisfaction. We have built and will maintain a reputation for transparency and fair dealing with customers and suppliers

Our Community and the Environment

We are a family-run company with roots in South Wales and have invested in our community through our charity donation scheme. From sponsoring sports kit of local childrens' clubs, to having employees play and arrange charitable football matches. Our plan takes into account the impact of the Group's operations on the community and environment and our wider social responsibilities, and in particular how we comply with environmental legislation and pursue waste-saving opportunities and react promptly to local community concerns.

Business conduct and Corporate Governance

As the Board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the construction and delivery of our plan, that reflects our responsible behaviour. As the Board of Directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.

Employment of disabled persons

It is the policy that disabled persons shall be considered for employment, career development and promotion on the

basis of their aptitude and abilities in common with all employees.

Employee involvement

The Directors recognise the importance of good communications and relations with employees and management is

encouraged to adopt employee consultations.

On behalf of the board:

Mr A J Sinclair - Director

4 May 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020.

Principal activity

The principal activity of the group in the year under review was that of retailing of motor vehicles and related activities in the motor trade.

The group is to continue investing in training all staff for the purpose of meeting its long term goal of growth through the provision of excellent customer service.

Dividends

No dividends will be distributed for the year ended 31 December 2020.

Directors

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

Mr G S Sinclair

Mr A J Sinclair

Streamlined energy and carbon reporting

The Sinclair Group recognises that its trading activities have an impact on the environment. Indeed, Environmental awareness is one of the Group's core values.

We minimise the effects of motor retailing on the environment through adherence to our environment policy. We review and control key areas of our business that may have impact on the environment including asbestos, contamination, noise, recycled waste, tyre disposal, waste oil.

We continue to monitor our energy consumption with the aim of reducing our carbon footprint. The Group undertakes the energy assessments of each of our businesses under the Energy Savings Opportunity Scheme (ESOS) regulations. We use the results of this assessment to identify potential energy saving opportunities. We have carried out site analysis and assessments to ascertain areas of inefficiencies in the use of resources such as energy, water and fuel.

We have incorporated many energy savings initiatives such as solar panels, LED lighting, movement activated interior lights. We have adopted energy saving practices in the business such as fast hand dryers in washrooms, closed external doors as much as we can, switched off equipment when not in use. We obtain our gas and electricity from green energy providers wherever possible.

We are keen to work with our manufacturing partners in the move to green technologies such as electric vehicles and the infrastructure to charge battery powered vehicles. We look to advances in IT to move towards a paperless business and have invested in paperless communications and systems solutions.

Current reporting year (January 2020 - December 2020)

Total emissions generated through combustion of gas

656.54

tCO2e

Total emissions generated through use of purchased electricity

799.35

tCO2e

Total emissions generated through use of other fuels

37.32

tCO2e

Total emissions generated through business travel

1,132.99

tCO2e

Total gross emissions

2,626.20

tCO2e

Intensity ratio (total gross emissions)

5.11

kgCO2 per sqft

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

On behalf of the board:

Mr A J Sinclair - Director

4 May 2021

Opinion

We have audited the financial statements of Sinclair Motor Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2020 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

The impact of uncertainties on our audit owing to COVID -19

The Directors' view on the impact of COVID-19 is disclosed on accounting policies note 2.

Uncertainties related to the effects of COVID-19 are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability and valuation of assets, appropriateness of the going concern basis of preparation of the financial statements and associated disclosures. All of these depend on assessments of the future economic environment and the company's

future prospects and performance.

The COVID-19 viral pandemic is one of the most significant economic events for the UK, and at the date of this report, its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We have applied a standardised approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to the COVID-19 pandemic.

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 six, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.

Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:

- Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities

- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally

- Assessing the risk of management override and review and testing of journal entries made into the accounting system

- Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements

Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.

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.

Clive Edwards (Senior Statutory Auditor)

for and on behalf of Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

4 May 2021

Turnover

3

459,332,908

545,579,259

Cost of sales

(430,908,832

)

(504,979,265

)

Gross profit

28,424,076

40,599,994

Administrative expenses

(30,860,375

)

(34,308,788

)

(2,436,299

)

6,291,206

Other operating income

6,129,257

12,120

Operating profit

5

3,692,958

6,303,326

Interest receivable and similar income

-

4,436

3,692,958

6,307,762

Interest payable and similar expenses

6

(1,691,539

)

(1,776,451

)

Profit before taxation

2,001,419

4,531,311

Tax on profit

7

(511,523

)

(1,035,915

)

Profit for the financial year

1,489,896

3,495,396

Profit attributable to:

Owners of the parent

1,464,360

3,426,432

Non-controlling interests

25,536

68,964

1,489,896

3,495,396

Profit for the year

1,489,896

3,495,396

Other comprehensive income

-

-

Total comprehensive income for the year

1,489,896

3,495,396

Total comprehensive income attributable to:

Owners of the parent

1,464,360

3,426,432

Non-controlling interests

25,536

68,964

1,489,896

3,495,396

Fixed assets

Intangible assets

9

1,528,835

1,716,814

Tangible assets

10

37,745,742

38,509,263

Investments

11

20,000

20,000

39,294,577

40,246,077

Current assets

Stocks

12

86,223,675

98,787,091

Debtors

13

13,221,780

22,076,976

Cash at bank and in hand

10,381,699

1,121,486

109,827,154

121,985,553

Creditors

Amounts falling due within one year

14

(104,170,833

)

(115,583,017

)

Net current assets

5,656,321

6,402,536

Total assets less current liabilities

44,950,898

46,648,613

Creditors

Amounts falling due after more than one year

15

(6,809,833

)

(10,029,216

)

Provisions for liabilities

19

(244,318

)

(212,546

)

Net assets

37,896,747

36,406,851

Capital and reserves

Called up share capital

20

30,030

30,030

Capital redemption reserve

21

23,000

23,000

Retained earnings

21

36,674,687

35,210,327

Shareholders' funds

36,727,717

35,263,357

Non-controlling interests

22

1,169,030

1,143,494

Total equity

37,896,747

36,406,851

The financial statements were approved by the Board of Directors and authorised for issue on 4 May 2021 and were signed on its behalf by:

Mr A J Sinclair - Director

Fixed assets

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

7,795,875

7,795,875

7,795,875

7,795,875

Current assets

Debtors

13

2,474,146

2,474,146

Cash at bank

2,697

2,697

2,476,843

2,476,843

Creditors

Amounts falling due within one year

14

(8,908,424

)

(8,908,424

)

Net current liabilities

(6,431,581

)

(6,431,581

)

Total assets less current liabilities

1,364,294

1,364,294

Capital and reserves

Called up share capital

20

30,030

30,030

Retained earnings

1,334,264

1,334,264

Shareholders' funds

1,364,294

1,364,294

Company's profit for the financial year

-

-

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 4 May 2021 and were signed on its behalf by:

Mr A J Sinclair - Director

Called up

Capital

share

Retained

redemption

capital

earnings

reserve

£

£

£

Balance at 1 January 2019

30,030

31,783,895

23,000

Changes in equity

Total comprehensive income

-

3,426,432

-

Balance at 31 December 2019

30,030

35,210,327

23,000

Changes in equity

Total comprehensive income

-

1,464,360

-

Balance at 31 December 2020

30,030

36,674,687

23,000

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2019

31,836,925

1,134,530

32,971,455

Changes in equity

Dividends

-

(60,000

)

(60,000

)

Total comprehensive income

3,426,432

68,964

3,495,396

Balance at 31 December 2019

35,263,357

1,143,494

36,406,851

Changes in equity

Total comprehensive income

1,464,360

25,536

1,489,896

Balance at 31 December 2020

36,727,717

1,169,030

37,896,747

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

30,030

1,334,264

1,364,294

Changes in equity

Balance at 31 December 2019

30,030

1,334,264

1,364,294

Changes in equity

Balance at 31 December 2020

30,030

1,334,264

1,364,294

Cash flows from operating activities

Cash generated from operations

1

12,939,711

4,030,042

Interest paid

(1,691,539

)

(1,776,451

)

Tax paid

(491,798

)

(756,770

)

Net cash from operating activities

10,756,374

1,496,821

Cash flows from investing activities

Purchase intangible fixed assets

-

(250,000

)

Purchase tangible fixed assets

(953,103

)

(4,280,039

)

Purchase fixed asset investments

-

(20,000

)

Sale of tangible fixed assets

10,609

-

Interest received

-

4,436

Net cash from investing activities

(942,494

)

(4,545,603

)

Cash flows from financing activities

Loan movements

(3,182,405

)

214,800

Capital repayments in year

(4,630

)

-

Amount introduced by directors

-

(231,669

)

Amount withdrawn by directors

(77,650

)

-

HP repayments

-

(3,587

)

Dividends paid to minority interests

-

60,000

Net cash from financing activities

(3,264,685

)

39,544

Increase/(decrease) in cash and cash equivalents

6,549,195

(3,009,238

)

Cash and cash equivalents at beginning of year

2

533,182

3,542,420

Cash and cash equivalents at end of year

2

7,082,377

533,182

1.	Reconciliation of profit before taxation to cash generated from operations

2020

2019

£

£

Profit before taxation

2,001,419

4,531,311

Depreciation charges

1,883,434

1,729,768

Loss on disposal of fixed assets

10,558

28,150

NCI Profit

25,536

68,964

Dividends Paid

-

60,000

Finance costs

1,691,539

1,776,451

Finance income

-

(4,436

)

5,612,486

8,190,208

Decrease/(increase) in stocks

12,563,416

(16,216,753

)

Decrease/(increase) in trade and other debtors

8,444,462

(3,631,063

)

(Decrease)/increase in trade and other creditors

(13,680,653

)

15,687,650

Cash generated from operations

12,939,711

4,030,042

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 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

10,381,699

1,121,486

Bank overdrafts

(3,299,322

)

(588,304

)

7,082,377

533,182

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

1,121,486

7,995,745

Bank overdrafts

(588,304

)

(4,453,325

)

533,182

3,542,420

3.	Analysis of changes in net debt

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank and in hand

1,121,486

9,260,213

10,381,699

Bank overdrafts

(588,304

)

(2,711,018

)

(3,299,322

)

533,182

6,549,195

7,082,377

Debt

Finance leases

(12,843

)

4,630

(8,213

)

Debts falling due within 1 year

(792,651

)

(32,349

)

(825,000

)

Debts falling due after 1 year

(10,021,003

)

3,214,753

(6,806,250

)

(10,826,497

)

3,187,034

(7,639,463

)

Total

(10,293,315

)

9,736,229

(557,086

)