Hawick Autocare Limited - Accounts to registrar (filleted) - small 18.2

HAWICK AUTOCARE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST OCTOBER 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

9

DIRECTORS:

A R Grief

Mrs J E Grief

SECRETARY:

Mrs J E Grief

REGISTERED OFFICE:

Victoria Buildings

Victoria Road

Hawick

Roxburghshire

TD9 7AH

REGISTERED NUMBER:

SC409027 (Scotland)

ACCOUNTANTS:

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

FIXED ASSETS

Intangible assets

4

24,000

28,000

Tangible assets

5

14,071

18,637

38,071

46,637

CURRENT ASSETS

Stocks

6,373

7,891

Debtors

6

67,925

24,661

Cash at bank and in hand

34,192

18,423

108,490

50,975

CREDITORS

Amounts falling due within one year

7

63,957

53,243

NET CURRENT ASSETS/(LIABILITIES)

44,533

(2,268

)

TOTAL ASSETS LESS CURRENT LIABILITIES

82,604

44,369

CREDITORS

Amounts falling due after more than one year

8

(66,761

)

(37,645

)

PROVISIONS FOR LIABILITIES

(1,800

)

(2,600

)

NET ASSETS

14,043

4,124

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

13,943

4,024

SHAREHOLDERS' FUNDS

14,043

4,124

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st October 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11th May 2021 and were signed on its behalf by:

A R Grief - Director

Mrs J E Grief - Director

1.	STATUTORY INFORMATION

Hawick Autocare Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors have considered the potential impact of the current Covid-19 pandemic on the business and are satisfied that the Company has sufficient cash reserves to meet all financial obligations for the foreseeable future. The directors have also indicated that they will provide the required support to allow the company to continue to trade for the foreseeable future. The Accounts have therefore been prepared on the going concern basis.

Turnover

The company provides the repair, MOT and servicing of motor vehicles . Turnover represents the value, net of value added tax and discounts, of work carried out in respect of goods and services provided to customers. Revenue is recognised in the accounting period in which the services are rendered when the outcome of the contract can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

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

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

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.

Financial assets

Basic financial assets, including trade and other debtors and bank balances, are initially recognised at transaction price.

At the end of each reporting period financial assets measured at cost are assessed for evidence of impairment. Any impairment loss is recognised in the Income Statement.

Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled.

Financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. These are classed as current liabilities as payment is due within one year or less. If not they are presented as non-current liabilities.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 8 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1st November 2019

and 31st October 2020

40,000

AMORTISATION

At 1st November 2019

12,000

Charge for year

4,000

At 31st October 2020

16,000

NET BOOK VALUE

At 31st October 2020

24,000

At 31st October 2019

28,000

5.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1st November 2019

55,224

13,885

3,686

72,795

Additions

-

600

-

600

Disposals

-

(2,000

)

-

(2,000

)

At 31st October 2020

55,224

12,485

3,686

71,395

DEPRECIATION

At 1st November 2019

42,182

10,687

1,289

54,158

Charge for year

3,261

830

600

4,691

Eliminated on disposal

-

(1,525

)

-

(1,525

)

At 31st October 2020

45,443

9,992

1,889

57,324

NET BOOK VALUE

At 31st October 2020

9,781

2,493

1,797

14,071

At 31st October 2019

13,042

3,198

2,397

18,637

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

24,376

23,736

Other debtors

43,549

925

67,925

24,661

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

7,700

5,700

Hire purchase contracts

863

863

Trade creditors

24,709

25,408

Taxation and social security

19,404

9,059

Other creditors

11,281

12,213

63,957

53,243

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

47,319

14,590

Hire purchase contracts

1,942

2,805

Other creditors

17,500

20,250

66,761

37,645

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

6,000

-

Other loans more than 5yrs

5,500

8,250

11,500

8,250

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31st October 2020 and 31st October 2019:

2020

2019

£

£

A R Grief and Mrs J E Grief

Balance outstanding at start of year

(4,444

)

(3,074

)

Amounts advanced

64,055

18,308

Amounts repaid

(17,222

)

(19,678

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

42,389

(4,444

)

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Hawick Autocare Limited for the year ended 31st October 2020 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of Hawick Autocare Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Hawick Autocare Limited and state those matters that we have agreed to state to the Board of Directors of Hawick Autocare Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Hawick Autocare Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Hawick Autocare Limited. You consider that Hawick Autocare Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Hawick Autocare Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

JRW

Chartered Accountants

19 Buccleuch Street

Hawick

Roxburghshire

TD9 0HL

11th May 2021