Sinclair Motor Holdings Limited - Limited company accounts 20.1
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 2021 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
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 |
Sinclair Motor Holdings Limited |
Company Information |
for the Year Ended 31 December 2021 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Bankers: | Barclays Bank PLC |
PO Box 10 |
Windsor Court |
Cardiff |
CF1 3WP |
Solicitors: |
3 Assembly Square |
Britannia Quay |
Cardiff Bay |
Cardiff |
CF10 4PL |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2021 |
The directors present their strategic report of the company and the group for the year ended 31 December 2021. |
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 |
31/12/2021 | 31/12/2020 | 31/12/2019 | 31/12/2018 |
Turnover | £544,378,686 | £450,912,088 | £545,579,259 | £480,332,495 |
Profit before tax | £12,626,360 | £2,001,418 | £4,531,311 | £4,001,282 |
Total equity | £47,712,558 | £37,896,746 | £36,406,851 | £32,971,455 |
The year of 2021 was arguably the most unpredictable year our business has ever faced. Whist the year ended as the most profitable 12 months in the group's history, it was dominated by continued disruption from external uncontrollable events. |
The year started with the Government lockdown that continued throughout the entire first quarter. This presented the challenge of our service departments being open for business as usual, however our sales departments were closed to customer on site visits. The difference however for this lockdown was that we were permitted to perform remote handovers, which enabled our group to sell cars on a click and collect basis. This was a major benefit to the group compared to the lockdowns of 2020. |
The ongoing pandemic had seen our customers much happier to transact remotely with us, and use our online tools to satisfy the majority of their steps in their journey to purchasing their new car. Our sales teams guided them through this new process and helped them purchase vehicles and trade in their own vehicles, without the need to visit our showrooms. This new remote sales journey enabled our group to maintain our budgeted volumes and profitably navigate through this lockdown period. |
Coming out of the first quarter the government lifted the lockdown and our sites returned to normality, with sales customers now allowed to freely visit our businesses. Whilst the Covid pandemic was not behind us, consumer confidence had certainly returned and our onsite visits increased considerably. |
However, the motor industry was to encounter another external challenge. The pandemic had resulted in a shortage of supply in the semi-conductor industry. These semi-conductors are critical in the manufacture of all electronic instruments, and our manufacturer partners were experiencing significant delays in semi-conductor supply. The result of this was a worldwide reduction in new vehicle manufacturing and a consequent drop in new vehicle supply from all our brands. This drop in new vehicle supply did not only effect new vehicles. The supply of used vehicles is very much dependant on new car supply, and as a direct consequence the supply of used cars also became challenging. As a group we had to ensure that we maximised all channels open to us to keep our used stock levels as close to normal as possible. |
This new car supply issue continued throughout the rest of 2021. All our manufacturer partners were unable to produce the volumes they would typically achieve, resulting in vehicle shortages in all markets. Whilst this presented us with a short-term volume issue, the positive was that vehicle profitability was stronger than normal times due to the ongoing shortages of availability versus demand. Across the whole group our income per unit more than compensated for the drop in volumes, resulting in continued monthly profits ahead of budgeted expectations. Throughout this period our auction results also resulted in strong trade profits, as demand was exceptionally high for the vehicles our group looked to sell into the trade channels. |
2021 was a year unlike anything we have seen before. Lockdowns, online sales shifts, semi-conductor supply issues and vehicle demand outstripping supply. These were all issues we have not experienced previously, and all came with their own individual challenges. However, our loyal and dedicated staff teams worked incredibly hard to ensure that we not only managed our way through these months, but we recorded a financial result way in excess of anything we have previously achieved. Whilst almost every month presented a new hurdle for us, we worked together to achieve a result that as a board we are extremely proud of. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2021 |
Principal risks and uncertainties |
Sinclair Motor Holdings Limited 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. |
Sinclair Motor Holdings Limited 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 the competition. |
Coronavirus (Covid-19) Pandemic Risk: |
It is impossible to predict either the likely duration of the current Coronavirus pandemic or to be definitive about its financial impact on the business and the UK economy. However, with the improvements made to processes and structures within the company, we are confident that the group is better able to withstand these pressures and to service its existing and growing customer base. The strengthened financial position will also enable us to meet its environmental and social commitments for the foreseeable future. |
Price Risk: |
The company operates in highly competitive markets. Significant product innovations, technical advances or the intensification of price competition could adversely affect the results for the company. The company invests in significant training of its staff to ensure that the company 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 company also continually works 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. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2021 |
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 whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during for the Year Ended 31 December 2021. |
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. |
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. |
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. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Group Strategic Report |
for the Year Ended 31 December 2021 |
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: |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021. |
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. |
Dividends |
No dividends will be distributed for the year ended 31 December 2021. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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 - December) |
2021 | 2020 |
Total emissions generated through combustion of gas (tCO2e) | 815 | 656.54 |
Total emissions generated through use of purchased electricity (tCO2e) | 1,052 | 799.35 |
Total emissions generated through use of other fuels (tCO2e) | 57 | 37.32 |
Total emissions generated through business travel (tCO2e) | 1,679 | 1,132.99 |
Total gross emissions (tCO2e) | 3,603 | 2,626.20 |
Intensity ratio /total gross emissions (kgCO2 per sqft) | 6.91 | 5.11 |
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. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Report of the Directors |
for the Year Ended 31 December 2021 |
Statement of directors' responsibilities - continued |
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: |
Report of the Independent Auditors to the Members of |
Sinclair Motor Holdings Limited |
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 2021 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 2021 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. |
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. |
Report of the Independent Auditors to the Members of |
Sinclair Motor Holdings Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages six and seven, 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. |
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. |
-Discussing with Directors and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance. |
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. |
for and on behalf of |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Turnover | 3 | 544,378,686 | 447,362,760 |
Cost of sales | (494,634,271 | ) | (413,518,789 | ) |
Gross profit | 49,744,415 | 33,843,971 |
Administrative expenses | (37,338,937 | ) | (36,377,680 | ) |
12,405,478 | (2,533,709 | ) |
Other operating income | 1,739,790 | 6,334,636 |
Operating profit | 5 | 14,145,268 | 3,800,927 |
Interest payable and similar expenses | 6 | (1,518,908 | ) | (1,799,509 | ) |
Profit before taxation | 12,626,360 | 2,001,418 |
Tax on profit | 7 | (2,810,551 | ) | (511,523 | ) |
Profit for the financial year |
Profit attributable to: |
Owners of the parent | 9,581,553 | 1,464,359 |
Non-controlling interests | 234,256 | 25,536 |
9,815,809 | 1,489,895 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Profit for the year | 9,815,809 | 1,489,895 |
Other comprehensive income | - | - |
Total comprehensive income for the year | 9,815,809 | 1,489,895 |
Total comprehensive income attributable to: |
Owners of the parent | 9,581,553 | 1,464,359 |
Non-controlling interests | 234,256 | 25,536 |
9,815,809 | 1,489,895 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Balance Sheet |
31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 | - | 1,528,835 |
Tangible assets | 11 | 36,473,144 | 37,580,421 |
Investments | 12 | 20,000 | 20,000 |
36,493,144 | 39,129,256 |
Current assets |
Stocks | 13 | 61,998,820 | 85,865,075 |
Debtors | 14 | 6,644,811 | 10,989,870 |
Cash at bank and in hand | 16,784,084 | 11,183,641 |
85,427,715 | 108,038,586 |
Creditors |
Amounts falling due within one year | 15 | (69,415,164 | ) | (102,216,944 | ) |
Net current assets | 16,012,551 | 5,821,642 |
Total assets less current liabilities | 52,505,695 | 44,950,898 |
Creditors |
Amounts falling due after more than one year |
16 |
(4,500,000 |
) |
(6,809,834 |
) |
Provisions for liabilities | 20 | (293,140 | ) | (244,318 | ) |
Net assets | 47,712,555 | 37,896,746 |
Capital and reserves |
Called up share capital | 21 | 30,030 | 30,030 |
Capital redemption reserve | 22 | 23,000 | 23,000 |
Retained earnings | 22 | 46,256,239 | 36,674,686 |
Shareholders' funds | 46,309,269 | 36,727,716 |
Non-controlling interests | 23 | 1,403,286 | 1,169,030 |
Total equity | 47,712,555 | 37,896,746 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 May 2022 and were signed on its behalf by: |
Mr A J Sinclair - Director |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Company Balance Sheet |
31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Current assets |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 21 |
Retained earnings |
Shareholders' funds |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2020 | 30,030 | 35,210,327 | 23,000 |
Changes in equity |
Total comprehensive income | - | 1,464,359 | - |
Balance at 31 December 2020 | 30,030 | 36,674,686 | 23,000 |
Changes in equity |
Total comprehensive income | - | 9,581,553 | - |
Balance at 31 December 2021 | 30,030 | 46,256,239 | 23,000 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2020 | 35,263,357 | 1,143,494 | 36,406,851 |
Changes in equity |
Total comprehensive income | 1,464,359 | 25,536 | 1,489,895 |
Balance at 31 December 2020 | 36,727,716 | 1,169,030 | 37,896,746 |
Changes in equity |
Total comprehensive income | 9,581,553 | 234,256 | 9,815,809 |
Balance at 31 December 2021 | 46,309,269 | 1,403,286 | 47,712,555 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Balance at 31 December 2020 |
Changes in equity |
Balance at 31 December 2021 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 14,823,064 | 13,033,331 |
Interest paid | (1,518,908 | ) | (1,799,509 | ) |
Tax paid | (2,056,386 | ) | (491,797 | ) |
Net cash from operating activities | 11,247,770 | 10,742,025 |
Cash flows from investing activities |
Purchase tangible fixed assets | (847,479 | ) | (953,102 | ) |
Sale of tangible fixed assets | 232,741 | 25,257 |
Goodwill Impairment | 1,503,835 | - |
Net cash from investing activities | 889,097 | (927,845 | ) |
Cash flows from financing activities |
Loan movements | (2,531,290 | ) | (3,182,405 | ) |
Capital repayments in year | (8,214 | ) | (4,629 | ) |
Amount introduced by directors | (153,797 | ) | - |
Amount withdrawn by directors | 257,840 | (77,650 | ) |
Net cash from financing activities | (2,435,461 | ) | (3,264,684 | ) |
Increase in cash and cash equivalents | 9,701,406 | 6,549,496 |
Cash and cash equivalents at beginning of year |
2 |
7,082,678 |
533,182 |
Cash and cash equivalents at end of year | 2 | 16,784,084 | 7,082,678 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2021 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2021 | 2020 |
as restated |
£ | £ |
Profit before taxation | 12,626,360 | 2,001,418 |
Depreciation charges | 1,737,938 | 1,883,440 |
Loss/(profit) on disposal of fixed assets | 9,085 | (4,090 | ) |
Finance costs | 1,518,908 | 1,799,509 |
15,892,291 | 5,680,277 |
Decrease in stocks | 23,866,255 | 12,922,016 |
Decrease in trade and other debtors | 4,268,028 | 10,522,229 |
Decrease in trade and other creditors | (29,203,510 | ) | (16,091,191 | ) |
Cash generated from operations | 14,823,064 | 13,033,331 |
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 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 16,784,084 | 11,183,641 |
Bank overdrafts | - | (4,100,963 | ) |
16,784,084 | 7,082,678 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
as restated |
£ | £ |
Cash and cash equivalents | 11,183,641 | 1,121,486 |
Bank overdrafts | (4,100,963 | ) | (588,304 | ) |
7,082,678 | 533,182 |
3. | Analysis of changes in net (debt)/funds |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 11,183,641 | 5,600,443 | 16,784,084 |
Bank overdrafts | (4,100,963 | ) | 4,100,963 | - |
7,082,678 | 9,701,406 | 16,784,084 |
Debt |
Finance leases | (8,214 | ) | 8,214 | - |
Debts falling due within 1 year | (825,000 | ) | 225,000 | (600,000 | ) |
Debts falling due after 1 year | (6,806,250 | ) | 2,306,250 | (4,500,000 | ) |
(7,639,464 | ) | 2,539,464 | (5,100,000 | ) |
Total | (556,786 | ) | 12,240,870 | 11,684,084 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2021 |
1. | Statutory information |
Sinclair Motor Holdings Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and |
considered relevant information, including the annual budget and future cash flows in making their assessment.In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Based on these assessments, the Directors recognise that there may be substantial uncertainties that cast |
significant doubt about the ability of the Company to continue as a going concern but believe that the actions that can be taken to mitigate the risks, means it is still appropriate to adopt the going concern basis in preparing its financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the parent company and its subsidiaries for the year ended 31 December 2021. No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Critical judgements in applying the Company's accounting policies |
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Stock valuation |
The value of used stocks are regularly reviewed by the Company. Such reviews will be performed on an |
individual vehicle basis taking into account external factors such as market trends as well as anticipated values as provided by the industry sources. Any provisions made as a result of this review are intended to reflect differences between cost and net realisable values. |
New stock tends to require less provision but similar procedures are also carried out in order to ensure values |
at milestone points are shown correctly. |
The Directors consider that there are no key sources of estimate uncertainty. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | Accounting policies - continued |
Turnover |
Turnover represents amounts chargeable, net of value added tax, in respect of the sale and repair of motor vehicles, associated bonuses and commissions and the sale of vehicle parts. |
Turnover from the sale of vehicles is recognised when the significant risks and rewards of ownership are transferred to the buyer. In most cases, the transfer of the risks and rewards of ownership coincides with the transfer of the legal title or the passing of possession to the buyer. |
Turnover from the sale of services is recognised by reference to the stage of completion of the transaction. |
Turnover from commissions and bonuses are recognised on an accrual basis in accordance with the substance of the relevant agreement. |
Goodwill |
Goodwill is the difference between the fair value of consideration paid for an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities. |
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other years if events or changes in circumstances indicate that the carrying value may not be recoverable. |
The company has reviewed the goodwill value being carried in the accounts and believes that there is no more residual purchased goodwill evident within it. In line with that review, the policy has been changed to write the purchased goodwill off over a shorter period and the balance brought forward from 2020 has been impaired and written off in full. |
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 |
All tangible fixed assets are initially recorded at cost. |
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 buildings | - | 2% on cost |
Long / short leasehold property | - | amortised over the term of the lease |
Improvements to property | - | 15 years on cost |
Plant and machinery | - | 10% to 33.3% on cost |
Motor vehicles | - | 20% on cost |
Computer equipment | - | 10% to 33.3% on cost |
Government grants |
Government grants represents income receivable in relation to the UK government COVID-19 job retention scheme. This is recognised in the period in which it becomes receivable. |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. |
The ownership of consignment stock passes from the manufacturer to the group when full payment for vehicles is made. |
The value of consignment stock is shown separately in the notes to the balance sheet as both current assets and as creditors due within one year. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | Accounting policies - continued |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Financial liabilities are derecognised when the company's contractual obligations expire or are discharged & cancelled. |
Trade Debtors |
Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve |
months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months |
after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost |
using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 |
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. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
as restated |
£ | £ |
Sales of new vehicles | 227,125,054 | 213,211,490 |
Sales of used vehicles | 263,347,051 | 189,971,859 |
Repairs and other sales | 53,906,581 | 44,179,411 |
544,378,686 | 447,362,760 |
4. | Employees and directors |
2021 | 2020 |
as restated |
£ | £ |
Wages and salaries | 28,755,780 | 28,099,772 |
Social security costs | 2,818,631 | 2,383,818 |
Other pension costs | 681,419 | 652,575 |
32,255,830 | 31,136,165 |
The average number of employees during the year was as follows: |
2021 | 2020 |
as restated |
Service | 303 | 349 |
Sales | 236 | 255 |
Admin | 59 | 75 |
Parts | 56 | 76 |
Body and paint | 46 | 38 |
Clerical | 48 | 53 |
Supervisors | 9 | 9 |
Directors | 3 | 3 |
Key management, a group which comprises 12 individuals, received emoluments totalling £1,500,984 for their services to the Sinclair Motor Holdings Group. |
2021 | 2020 |
as restated |
£ | £ |
Directors' remuneration | 1,800,587 | 486,856 |
Information regarding the highest paid director is as follows: |
2021 | 2020 |
as restated |
£ | £ |
Emoluments etc | 952,151 | 240,882 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
as restated |
£ | £ |
Hire of plant and machinery | 198,002 | 212,259 |
Other operating leases | 807,696 | 480,310 |
Depreciation - owned assets | 1,712,930 | 1,686,129 |
Depreciation - assets on hire purchase contracts | - | 1,429 |
Loss/(profit) on disposal of fixed assets | 9,085 | (4,090 | ) |
Goodwill amortisation | 25,000 | 187,979 |
Auditors' remuneration | 53,900 | 50,000 |
Auditors' remuneration for non audit work | 8,100 | 8,100 |
Other non- audit services | 4,000 | 4,000 |
Amortisation diminution in value of goodwill | 1,503,835 | - |
6. | Interest payable and similar expenses |
2021 | 2020 |
as restated |
£ | £ |
Bank interest | - | 13,995 |
Bank loan interest | 113,473 | 132,353 |
Stocking interest | 1,405,286 | 1,652,810 |
Loan | 149 | 351 |
1,518,908 | 1,799,509 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 2,761,729 | 479,752 |
Deferred tax | 48,822 | 31,771 |
Tax on profit | 2,810,551 | 511,523 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
7. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
as restated |
£ | £ |
Profit before tax | 12,626,360 | 2,001,418 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
2,399,008 |
380,269 |
Effects of: |
Expenses not deductible for tax purposes | 251,717 | 7,070 |
Income not taxable for tax purposes | - | (645 | ) |
Depreciation in excess of capital allowances | 142,264 | 93,058 |
Loss on disposal of assets | 1,726 | - |
Accelerated capital allowances | 15,836 | 31,771 |
Total tax charge | 2,810,551 | 511,523 |
8. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | Prior year adjustment |
The company has reviewed the way in which it has reported its activities in the past and has compared this against the market within which they operate. Although the total profit and net assets have not changed, the way in which their component parts are disclosed has. The change has been made to bring the financial information more in line with the motor trade market as a whole which will allow the business to better analyse and reflect on market trends and aid in more meaningful comparisons against competitors. |
10. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 January 2021 | 1,879,793 |
Impairments | (1,879,793 | ) |
At 31 December 2021 | - |
Amortisation |
At 1 January 2021 | 350,958 |
Amortisation for year | 25,000 |
Impairments | (375,958 | ) |
At 31 December 2021 | - |
Net book value |
At 31 December 2021 | - |
At 31 December 2020 | 1,528,835 |
The goodwill arises on consolidation and is in respect of the acquisition of Sinclair Garages (Swansea) Limited. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
11. | Tangible fixed assets |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Cost |
At 1 January 2021 | 38,500,119 | 5,200,232 | 4,363,418 |
Additions | 115,070 | 339,232 | 186,475 |
Disposals | - | (252,445 | ) | (358,720 | ) |
At 31 December 2021 | 38,615,189 | 5,287,019 | 4,191,173 |
Depreciation |
At 1 January 2021 | 4,882,736 | 3,378,181 | 2,727,718 |
Charge for year | 744,427 | 337,658 | 345,220 |
Eliminated on disposal | - | (68,127 | ) | (305,805 | ) |
At 31 December 2021 | 5,627,163 | 3,647,712 | 2,767,133 |
Net book value |
At 31 December 2021 | 32,988,026 | 1,639,307 | 1,424,040 |
At 31 December 2020 | 33,617,383 | 1,822,051 | 1,635,700 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 January 2021 | 286,659 | 1,463,063 | 49,813,491 |
Additions | 24,068 | 182,634 | 847,479 |
Disposals | (34,290 | ) | (236,264 | ) | (881,719 | ) |
At 31 December 2021 | 276,437 | 1,409,433 | 49,779,251 |
Depreciation |
At 1 January 2021 | 216,030 | 1,028,405 | 12,233,070 |
Charge for year | 34,203 | 251,422 | 1,712,930 |
Eliminated on disposal | (29,697 | ) | (236,264 | ) | (639,893 | ) |
At 31 December 2021 | 220,536 | 1,043,563 | 13,306,107 |
Net book value |
At 31 December 2021 | 55,901 | 365,870 | 36,473,144 |
At 31 December 2020 | 70,629 | 434,658 | 37,580,421 |
12. | Fixed asset investments |
Group |
Unlisted |
investments |
£ |
Cost |
At 1 January 2021 |
and 31 December 2021 | 20,000 |
Net book value |
At 31 December 2021 | 20,000 |
At 31 December 2020 | 20,000 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
12. | Fixed asset investments - continued |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 January 2021 |
and 31 December 2021 |
Net book value |
At 31 December 2021 |
At 31 December 2020 |
The company's investments at the balance sheet date in the share capital of its subsidiaries are as follows: |
Ordinary shares of |
% Holding |
Sinclair Garages (Port Talbot) Limited | £1 each | 100 |
Sinclair Garages (Newport) Limited | £1 each | 100 |
Sinclair Garages (Cardiff) Limited | £1 each | 100 |
Swansea TPS Limited | £1 each | 100 |
Sinclair Garages (Swansea) Limited | £1 each | 100 |
Sinclair Garages (Port Talbot) Limited has investments in the share capital of its subsidiaries as follows: |
Sinclair Garages Limited | £1 each | 100 |
Sinclair Garages (Bridgend) Limited | £1 each | 75 |
All of the subsidiaries above were incorporated in England and Wales. |
The principal activities of these was the retailing of motor vehicles and related activities in the motor trade. |
13. | Stocks |
Group |
2021 | 2020 |
as restated |
£ | £ |
Fully paid new vehicles | 937,944 | 3,637,279 |
New vehicles on consignment | 11,530,158 | 47,112,091 |
Used vehicles | 47,130,272 | 32,746,457 |
Oil, fuel and spares | 2,400,446 | 2,369,248 |
61,998,820 | 85,865,075 |
14. | Debtors: amounts falling due within one year |
Group | Company |
2021 | 2020 | 2021 | 2020 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 3,257,001 | 5,905,745 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 2,079 | 6,901 | - | - |
Other debtors | 2,624,383 | 4,272,325 |
Directors' current accounts | - | 61,288 | - | - |
Prepayments | 761,348 | 743,611 |
6,644,811 | 10,989,870 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | Creditors: amounts falling due within one year |
Group | Company |
2021 | 2020 | 2021 | 2020 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 600,000 | 4,925,963 |
Hire purchase contracts (see note 18) | - | 4,630 |
Trade creditors | 49,392,112 | 45,238,632 |
Due in respect of new vehicles | 11,559,133 | 47,083,309 | - | - |
Amounts owed to group undertakings | - | - |
Amounts owed to participating interests | - | 50 | - | - |
Tax | 1,009,196 | 303,853 |
Social security and other taxes | 893,321 | 797,367 |
VAT | 741,496 | 2,062,443 | - | - |
Other creditors | 565,883 | 694,172 |
Directors' current accounts | 42,716 | - | - | - |
Accruals and deferred income | 4,611,307 | 1,106,525 |
69,415,164 | 102,216,944 |
16. | Creditors: amounts falling due after more than one year |
Group |
2021 | 2020 |
as restated |
£ | £ |
Bank loans (see note 17) | 4,500,000 | 6,806,250 |
Hire purchase contracts (see note 18) | - | 3,584 |
4,500,000 | 6,809,834 |
17. | Loans |
An analysis of the maturity of loans is given below: |
Group |
2021 | 2020 |
as restated |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | 4,100,963 |
Bank loans | 600,000 | 825,000 |
600,000 | 4,925,963 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 4,500,000 | 825,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 5,981,250 |
Interest has been charged in the year at a rate of 1.5% above the Barclays base rate of 0.5%. |
Interest has been charged on vehicle financing arrangements at an average rate of 2.2% during the year. |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
18. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2021 | 2020 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | - | 4,630 |
Between one and five years | - | 3,584 |
- | 8,214 |
Group |
Non-cancellable operating | leases |
2021 | 2020 |
as restated |
£ | £ |
Within one year | 537,703 | 513,503 |
Between one and five years | 592,703 | 1,054,506 |
In more than five years | 110,000 | 137,500 |
1,240,406 | 1,705,509 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
19. | Secured debts |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
as restated |
£ | £ |
Bank overdraft | - | 4,100,963 |
Bank loans | 5,100,000 | 7,631,250 |
Hire purchase contracts | - | 8,214 |
Consignment stock creditors | 11,559,133 | 47,054,334 |
16,659,133 | 58,794,761 |
The company has entered into a debenture and a cross guarantee with Barclays Bank PLC to secure the bank loans and overdraft and to guarantee the bank loans and overdrafts of group companies which at 31 December 2021 amounted to £5,100,000 (2020: £11,732,234). |
The Barclays Bank Loan facilities of £5,100,000 were further secured as follows; |
1. Second legal charge over land and buildings on the west and south side of Corporation Road, Newport, Gwent. |
2. First legal charge over the former AA relay station, Bridgend Industrial Estate, Bridgend. |
3. First legal charge over land at Bocam Park, Bridgend, Mid Glamorgan. |
4. First legal charge over land on the South Side of Fabian Way, Swansea. |
5. First legal charge over part of Plot 8, Cardiff Gate Business Park, Pontprennau, Cardiff. |
6. First legal charge over freehold property at Javel Industrial Estate, Brecon. |
7. A guarantee for £1,400,000 from Sinclair Motor Holdings Limited. |
8. An unlimited guarantee from Sinclair Garages Limited. |
9. An unlimited guarantee from Sinclair Garages (Port Talbot) Limited. |
10. An unlimited guarantee from Sinclair Garages (Bridgend) Limited. |
11. A debenture on the banks standard form dated 20 December 2002. |
12. A CAS2000 guarantee dated 26 April 2012. |
13. A 305U unlimited guarantee dated 04 April 2012. |
14. A 5559-cross guarantee and debenture date 29 April 2004. |
15. A CAS 1 agreement dated 28 December 2011. |
The monies due to VWFS (UK) Limited are secured by: |
(i) The guarantee of Sinclair Motor Holdings Limited |
(ii) Guarantees of Sinclair Garages (Port Talbot) Limited and Sinclair Garages Limited |
(iii) Charges on all monies due to Sinclair Garages (Bridgend) Limited, Sinclair Garages (Port Talbot) Limited and Sinclair Garages Limited by VAG (UK) Limited |
(iv) General debentures over all the assets of Sinclair Garages Limited, excluding the property at Bridgend and ranking after a priority to Barclays Bank Plc |
(v) Legal charge over property at Gorseinon owned by Sinclair Garages Limited |
20. | Provisions for liabilities |
Group |
2021 | 2020 |
as restated |
£ | £ |
Deferred tax | 293,140 | 244,318 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2021 | 244,318 |
Accelerated Capital allowances | 48,822 |
Balance at 31 December 2021 | 293,140 |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
21. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | as restated |
£ | £ |
Ordinary | 1 | 30,030 | 30,030 |
22. | Reserves |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2021 | 36,674,686 | 23,000 | 36,697,686 |
Profit for the year | 9,581,553 | 9,581,553 |
At 31 December 2021 | 46,256,239 | 23,000 | 46,279,239 |
23. | Non-controlling interests |
Profits relating to Minority Interests in Sinclair Garages (Bridgend) Limited during the year were £234,256 (2020: £25,536). |
During the year dividends of £nil were paid to the minority interest (2020 - £nil). |
As at 31 December 2021 net assets in relation to Minority Interests were £1,403,286 (2020: £1,169,030.) |
24. | Pension commitments |
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £681,419 (2020: £652,575). |
25. | Contingent liabilities |
There is a guarantee due to VWFS (UK) Limited by Sinclair Garages Limited, Sinclair Garages (Bridgend) Limited, Sinclair Garages (Cardiff) Limited and Sinclair Garages (Port Talbot) Limited in respect of new vehicles on consignment which at 31 December 2021 amounted to £4,334,579 (2020: £21,326,523). |
26. | Directors' advances, credits and guarantees |
The following advances and credits to a director subsisted during the years ended 31 December 2021 and 31 December 2020: |
2021 | 2020 |
as restated |
£ | £ |
G S Sinclair |
Balance outstanding at start of year | 61,288 | (16,362 | ) |
Amounts advanced | 153,836 | 77,650 |
Amounts repaid | (257,840 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (42,716 | ) | 61,288 |
27. | Related party disclosures |
Sinclair Motor Holdings Limited (Registered number: 04395583) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2021 |
27. | Related party disclosures - continued |
Entities over which the entity has control, joint control or significant influence |
2021 | 2020 |
as restated |
£ | £ |
Sales | 9,814,332 | 5,971,327 |
Purchases | 1,053,784 | 750,158 |
Amount due from related party | 11,566 | - |
Amount due to related party | 72 | - |
28. | Ultimate controlling party |
The ultimate controlling party is G S Sinclair. |