Guildford Tyre Company Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01265969 (England and Wales)

Unaudited Financial Statements for the Year Ended 30 June 2020

for

Guildford Tyre Company Limited

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

C W L Sunderland

M C Sunderland

SECRETARY:

M C Sunderland

REGISTERED OFFICE:

13-14 Woodbridge Meadows

Guildford

Surrey

GU1 1BA

REGISTERED NUMBER:

01265969 (England and Wales)

ACCOUNTANTS:

Brewers Chartered Accountants

Bourne House

Queen Street

Gomshall

Surrey

GU5 9LY

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 Guildford Tyre Company Limited for the year ended 30 June 2020 which comprise the Profit and loss account, 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 the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Guildford Tyre Company 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 Guildford Tyre Company Limited and state those matters that we have agreed to state to the Board of Directors of Guildford Tyre Company Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Guildford Tyre Company Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Guildford Tyre Company 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 Guildford Tyre Company Limited. You consider that Guildford Tyre Company 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 Guildford Tyre Company 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.

Brewers Chartered Accountants

Bourne House

Queen Street

Gomshall

Surrey

GU5 9LY

19 March 2021

FIXED ASSETS

Tangible assets

4

2,000,001

1,972,252

Investments

5

2

2

2,000,003

1,972,254

CURRENT ASSETS

Stocks

320,740

448,835

Debtors

6

256,737

315,336

Cash at bank and in hand

59,058

18,873

636,535

783,044

CREDITORS

Amounts falling due within one year

7

679,321

873,132

NET CURRENT LIABILITIES

(42,786

)

(90,088

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,957,217

1,882,166

CREDITORS

Amounts falling due after more than one year

8

578,629

624,512

NET ASSETS

1,378,588

1,257,654

CAPITAL AND RESERVES

Called up share capital

1,560

1,560

Capital redemption reserve

940

940

Retained earnings

1,376,088

1,255,154

SHAREHOLDERS' FUNDS

1,378,588

1,257,654

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2021 and were signed on its behalf by:

C W L Sunderland - Director

M C Sunderland - Director

1.	STATUTORY INFORMATION

Guildford Tyre Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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 financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. The directors have reviewed the working capital requirements of the Company for a period of at least twelve months from the anticipated date of signing of the financial statements and are satisfied that the Company will be able to meet its liabilities as they fall due.

Turnover

Turnover represents the value of tyre and vehicle parts supplied together with repair and MOT services undertaken on vehicles during the period, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Long leasehold

-

in accordance with the property

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Assets are stated at cost and are capitalized where over £500.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company make employee pension contributions under an Auto-Enrolment group scheme. Contributions payable to the scheme are charged to the profit and loss account in the period to which they relate.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2019 - 41 ) .

4.	TANGIBLE FIXED ASSETS

Improvemen

Freehold

Long

to

property

leasehold

property

£

£

£

COST

At 1 July 2019

621,306

1,199,010

332,437

Additions

-

-

52,167

Disposals

-

-

-

At 30 June 2020

621,306

1,199,010

384,604

DEPRECIATION

At 1 July 2019

86,718

152,257

54,798

Charge for year

8,144

19,032

32,096

Eliminated on disposal

-

-

-

At 30 June 2020

94,862

171,289

86,894

NET BOOK VALUE

At 30 June 2020

526,444

1,027,721

297,710

At 30 June 2019

534,588

1,046,753

277,639

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 July 2019

574,883

104,798

165,888

2,998,322

Additions

73,313

1,905

-

127,385

Disposals

-

(1,070

)

(13,900

)

(14,970

)

At 30 June 2020

648,196

105,633

151,988

3,110,737

DEPRECIATION

At 1 July 2019

487,954

89,791

154,552

1,026,070

Charge for year

32,873

4,302

2,836

99,283

Eliminated on disposal

-

(717

)

(13,900

)

(14,617

)

At 30 June 2020

520,827

93,376

143,488

1,110,736

NET BOOK VALUE

At 30 June 2020

127,369

12,257

8,500

2,000,001

At 30 June 2019

86,929

15,007

11,336

1,972,252

Fixed assets, included in the above, which are held under finance leases are as follows:

Plant and

machinery

£

COST

At 1 July 2019

26,378

Transfer to ownership

(26,378

)

At 30 June 2020

-

DEPRECIATION

At 1 July 2019

15,945

Transfer to ownership

(15,945

)

At 30 June 2020

-

NET BOOK VALUE

At 30 June 2020

-

At 30 June 2019

10,433

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST

At 1 July 2019

and 30 June 2020

2

NET BOOK VALUE

At 30 June 2020

2

At 30 June 2019

2

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Trade debtors

223,119

275,123

Other debtors

33,618

40,213

256,737

315,336

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Finance leases (see note 9)

-

5,935

Trade creditors

360,806

595,874

Taxation and social security

230,222

184,492

Other creditors

88,293

86,831

679,321

873,132

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.20

30.6.19

£

£

Other creditors

578,629

624,512

Amounts falling due in more than five years:

Repayable by instalments

Loan in excess 5 years

193,984

235,185

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases

30.6.20

30.6.19

£

£

Gross obligations repayable:

Within one year

-

6,799

Finance charges repayable:

Within one year

-

864

Net obligations repayable:

Within one year

-

5,935

Non-cancellable

operating leases

30.6.20

30.6.19

£

£

Within one year

94,350

94,350

Between one and five years

377,400

377,400

In more than five years

1,312,975

1,383,325

1,784,725

1,855,075

10.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.20

30.6.19

£

£

Finance leases

-

5,935

Bank loans and mortgages

641,738

686,470

641,738

692,405

The bank overdraft and loans are secured by a fixed and floating charge over the assets of the company.

The finance lease agreements are secured over the assets to which the agreements relate.