RatesFord Store Limited - Limited company accounts 20.1

RATESFORD STORE LIMITED - Company Information

IRIS Accounts Production v22.1.4.3 09645661 Board of Directors 31.12.21 1.1.21 31.12.21 31.12.21 a holding company for Ford main dealership, including new and used car sales, parts sales and servicing. true true true false true true false false false false true false Ordinary 1.00000 Non Voting Ordinary A 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure096456612020-12-31096456612021-12-31096456612021-01-012021-12-31096456612019-12-31096456612020-01-012020-12-31096456612020-12-3109645661ns16:EnglandWales2021-01-012021-12-3109645661ns15:PoundSterling2021-01-012021-12-3109645661ns11:Director12021-01-012021-12-3109645661ns11:Consolidated2021-12-3109645661ns11:ConsolidatedGroupCompanyAccounts2021-01-012021-12-3109645661ns11:PrivateLimitedCompanyLtd2021-01-012021-12-3109645661ns11:FRS102ns11:Consolidated2021-01-012021-12-3109645661ns11:Auditedns11:Consolidated2021-01-012021-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2021-01-012021-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForAccounts2021-01-012021-12-3109645661ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2021-01-012021-12-3109645661ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2021-01-012021-12-3109645661ns11:FullAccounts2021-01-012021-12-3109645661ns6:Subsidiary12021-01-012021-12-3109645661ns6:Subsidiary22021-01-012021-12-3109645661ns11:OrdinaryShareClass12021-01-012021-12-3109645661ns11:OrdinaryShareClass22021-01-012021-12-3109645661ns11:Consolidated2021-01-012021-12-3109645661ns11:Director22021-01-012021-12-3109645661ns11:RegisteredOffice2021-01-012021-12-3109645661ns11:Consolidated2020-01-012020-12-3109645661ns6:ShareCapital2021-12-3109645661ns6:ShareCapital2020-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2021-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2020-12-3109645661ns6:OwnedOrFreeholdAssetsns6:LandBuildings2021-01-012021-12-3109645661ns6:PlantMachinery2021-01-012021-12-3109645661ns6:MotorVehicles2021-01-012021-12-3109645661ns6:CostValuation2020-12-3109645661ns6:AdditionsToInvestments2021-12-3109645661ns6:CostValuation2021-12-31096456611ns6:Subsidiary12021-01-012021-12-3109645661ns6:Subsidiary232021-01-012021-12-3109645661ns6:CurrentFinancialInstruments2021-12-3109645661ns6:CurrentFinancialInstruments2020-12-3109645661ns6:WithinOneYearns6:CurrentFinancialInstruments2021-12-3109645661ns6:WithinOneYearns6:CurrentFinancialInstruments2020-12-3109645661ns11:OrdinaryShareClass12021-12-3109645661ns11:OrdinaryShareClass22021-12-3109645661ns6:RetainedEarningsAccumulatedLosses2020-12-3109645661ns6:FurtherSpecificReserve1ComponentTotalEquity2020-12-3109645661ns6:RetainedEarningsAccumulatedLosses2021-01-012021-12-3109645661ns6:RetainedEarningsAccumulatedLosses2021-12-31

REGISTERED NUMBER: 09645661 (England and Wales)

RATESFORD STORE LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

Chairman's Report

Group Strategic Report

Report of the Directors

Report of the Independent Auditors

Consolidated Statement of Income and Retained
Earnings

Consolidated Balance Sheet

Company Balance Sheet

Consolidated Cash Flow Statement

Notes to the Consolidated Cash Flow Statement

Notes to the Consolidated Financial Statements

DIRECTORS:

C.J. Rate

Mrs C.A.M. Rate

REGISTERED OFFICE:

21 Lodge Lane

Grays

Essex

RM17 5RY

REGISTERED NUMBER:

09645661 (England and Wales)

AUDITORS:

CR Bland Baker Limited

Chartered Accountants and

Registered Auditor

21 Lodge Lane

Grays

Essex

RM17 5RY

I must congratulate the whole team at RatesFord for an outstanding set of results.

Since the lockdown and various disruptions caused by Covid-19 the company has continued to outperform previous years. Since we first encountered Covid-19 the company has navigated its way and still returned exceptional profitability due to a dedicated team of people who put the customer to the forefront and deliver a high Customer Satisfaction Performance. Last year RatesFord achieved the prestigious Ford Chairman's award for the 20th year in a row.

The company sets its standards high in every respect and takes pride in looking after all of its employees who in turn look after our customers.

New Vehicle Sales continue to exceed manufacturers targets despite challenges from supply shortages mainly caused by a shortage of Semi-Conductors and other factors. Used Vehicles has achieved not only the volume targets but profit targets in line with the budgets set. Our parts and service division continues to give a service our customers expect and lives by our standard "Right First Time". We continue to train in line with the manufacturer's expectations.

Having acquired the adjacent premises we previously leased we have been able to move the used vehicle department and this has allowed the newly acquired Ford Commercial Franchise department to be formed, achieving a better quality of service for our customers and Ford Motor Company.

Our used car and service outlet at Galleywood has proved to be a valuable asset in terms of taking care of our customers who live in and around the Galleywood and Chelmsford district and maintain our trusted reputation.

Galleywood has made a significant contribution to the company's profitability, and showed the same work ethic as our Grays dealership and shared systems.

We are entering a period of mixed opinions regarding electrification and what that brings. As a company we are prepared for what is developed and required for any changes and continue to make plans for the future.

Whilst 2021 was an unusual year in many ways it has transpired into one where we have learned to adapt and change with the circumstances and will continue to work and strive to give the best Customer and Employee experience.

Our policy of substantial reinvestment out of profits will continue to ensure a successful future.

Again I reiterate my congratulations and thanks to my fellow directors and our excellent staff.

C.J. Rate - Chairman

Date: 7 July 2022

The directors present their strategic report of the company and the group for the year ended 31 December 2021.

REVIEW OF BUSINESS

A review of the business is contained within the Chairman's Report which forms part of this Strategic Report.

The company has strong cash reserves with minimal short term borrowings.

The directors consider that whilst the company has identified certain specific business risks below, they are of the opinion that suitable measures are in place to address them to ensure that ongoing operations do not affect the company's day to day obligations.

PRINCIPAL RISKS AND UNCERTAINTIES

The company faces the following principal risks:

Liquidity risk:

The company has strong cash reserves and primarily self funds its operations although periodically it utilises short term borrowing to fund any short term liquidity issues. The company's general expansion naturally creates increased pressure on its cash reserves but it has substantial support from its bankers.

Economic risk:

The challenges surrounding Brexit and the inherent implications on job security affects consumer confidence. Notwithstanding, the directors continue to review opportunities to increase revenue streams to mitigate any associated risks. The global pandemic of Covid-19 presented other uncertainties albeit the relaxation of the lockdown rules have shown a good return to new and used car sales and so too with the service department which is operating to capacity.

Environmental risk:

Concerns regarding CO2 emissions and the corresponding pressure on manufacturers to develop and improve alternate engine profiles and, in particular, the Government's official policy towards diesel vehicles.

Competition risk:

As always competition is strong in the new and used car sector with ever increasing pressure on margins and after market sales and servicing.

GOING CONCERN

Since the balance sheet date, the company has continued to generate significant profits and positive operating cashflows and has been able to meet its financial obligations as they become due.

The directors have reasonable grounds to assume that this will not change in the future and as such the directors continue to adopt the going concern basis of preparation of the financial statements.

ON BEHALF OF THE BOARD:

C.J. Rate - Director

7 July 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021.

DIVIDENDS

Dividends voted in the year ended 31 December 2021 were £159,140 (2020 - £65,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

C.J. Rate

Mrs C.A.M. Rate

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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;

-	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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, CR Bland Baker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C.J. Rate - Director

7 July 2022

Opinion

We have audited the financial statements of RatesFord Store Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, 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 Annual Report, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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:

- We have reviewed whether there were areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by auditing standards).

- We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the officers.

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

D.M. Baker (Senior Statutory Auditor)

for and on behalf of CR Bland Baker Limited

Chartered Accountants and

Registered Auditor

21 Lodge Lane

Grays

Essex

RM17 5RY

8 July 2022

RATESFORD STORE LIMITED (REGISTERED NUMBER: 09645661)

CONSOLIDATED

STATEMENT OF INCOME AND

RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2021

2021

2020

Notes

TURNOVER

76,885,521

71,924,263

Cost of sales

73,495,555

69,675,058

GROSS PROFIT

3,389,966

2,249,205

Administrative expenses

2,234,758

1,964,022

1,155,208

285,183

Other operating income

189,461

515,227

OPERATING PROFIT

1,344,669

800,410

Income from fixed asset investments

766

629

Interest receivable and similar income

168

1,756

934

2,385

1,345,603

802,795

Gain/loss on revaluation of investments

6,358

(18,917

)

1,351,961

783,878

Interest payable and similar expenses

13,437

PROFIT BEFORE TAXATION

1,338,524

783,878

Tax on profit

258,912

153,534

PROFIT FOR THE FINANCIAL
YEAR

1,079,612

630,344

Retained earnings at beginning of year

5,946,526

5,381,182

Dividends on equity shares

(159,140

)

(65,000

)

RETAINED EARNINGS FOR THE
GROUP AT END OF YEAR

6,866,998

5,946,526

Profit attributable to:

Owners of the parent

1,079,612

630,344

FIXED ASSETS

Tangible assets

3,914,052

1,971,715

Investments

1,348

3,915,400

1,973,063

CURRENT ASSETS

Stocks

7,913,779

13,158,231

Debtors

1,229,715

3,731,707

Investments

32,468

26,111

Cash in hand

637,748

239,677

9,813,710

17,155,726

CREDITORS

Amounts falling due within one year

4,962,249

12,927,363

NET CURRENT ASSETS

4,851,461

4,228,363

TOTAL ASSETS LESS CURRENT
LIABILITIES

8,766,861

6,201,426

CREDITORS

Amounts falling due after more than one
year

(1,641,163

)

PROVISIONS FOR LIABILITIES

(30,800

)

(27,000

)

NET ASSETS

7,094,898

6,174,426

CAPITAL AND RESERVES

Called up share capital

2,200

Share premium

290

Revaluation reserve

215,511

Capital redemption reserve

3,333

Merger reserve

6,566

Retained earnings

6,866,998

5,946,526

SHAREHOLDERS' FUNDS

7,094,898

6,174,426

The financial statements were approved by the Board of Directors and authorised for issue on 7 July 2022 and were signed on its behalf by:

C.J. Rate - Director

FIXED ASSETS

Tangible assets

Investments

4,576,319

4,576,219

4,576,319

4,576,219

CURRENT ASSETS

Debtors

1,900

2,000

Cash in hand

100

2,000

2,100

NET CURRENT ASSETS

2,000

2,100

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,578,319

CAPITAL AND RESERVES

Called up share capital

2,200

Merger reserve

4,576,119

SHAREHOLDERS' FUNDS

4,578,319

Company's profit for the financial year

159,140

65,000

The financial statements were approved by the Board of Directors and authorised for issue on 7 July 2022 and were signed on its behalf by:

C.J. Rate - Director

Cash flows from operating activities

Cash generated from operations

1,217,772

(640,817

)

Interest paid

(13,437

)

Tax paid

(158,237

)

(104,184

)

Net cash from operating activities

1,046,098

(745,001

)

Cash flows from investing activities

Purchase of tangible fixed assets

(2,143,282

)

(235,831

)

Purchase of current asset investments

(445

)

Sale of tangible fixed assets

18,802

74,752

Interest received

168

1,756

Dividends received

766

629

Net cash from investing activities

(2,123,546

)

(159,139

)

Cash flows from financing activities

New loans in year

1,711,980

746,390

Loan repayments in year

(167,879

)

(260,214

)

Amount introduced by directors

90,558

25,818

Equity dividends paid

(130,000

)

(36,000

)

Ordinary A share dividends paid

(29,140

)

(29,000

)

Net cash from financing activities

1,475,519

446,994

Increase/(decrease) in cash and cash equivalents

398,071

(457,146

)

Cash and cash equivalents at
beginning of year

239,677

696,823

Cash and cash equivalents at end of
year

637,748

239,677

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

Profit before taxation

1,338,524

783,878

Depreciation charges

183,668

177,519

Profit on disposal of fixed assets

(1,524

)

(14,919

)

(Gain)/loss on revaluation of fixed assets

(6,358

)

18,917

Finance costs

13,437

Finance income

(934

)

(2,385

)

1,526,813

963,010

Decrease/(increase) in stocks

5,244,452

(2,107,758

)

Decrease/(increase) in trade and other debtors

2,493,742

(1,551,941

)

(Decrease)/increase in trade and other creditors

(8,047,235

)

2,055,872

Cash generated from operations

1,217,772

(640,817

)

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

637,748

239,677

Year ended 31 December 2020

31.12.20

1.1.20

Cash and cash equivalents

239,677

696,823

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.21

Cash flow

At 31.12.21

Net cash

Cash at bank and in hand

239,677

398,071

637,748

239,677

398,071

637,748

Liquid resources

Current asset investments

26,111

6,357

32,468

26,111

6,357

32,468

Debt

Debts falling due within 1 year

(746,390

)

97,062

(649,328

)

Debts falling due after 1 year

(1,641,163

)

(1,641,163

)

(746,390

)

(1,544,101

)

(2,290,491

)

Total

(480,602

)

(1,139,673

)

(1,620,275

)

1.	STATUTORY INFORMATION

RatesFord Store 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 General 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 Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Parent company disclosure exemptions

Advantage has been taken of the following disclosure exemptions available under FRS 102:

(i) from preparing a separate statement of cashflow on the basis that the consolidated cash flow included in these financial statements includes the parent company's cash flows.

(ii) No disclosure has been given for the aggregate remuneration of the key management personnel of the parent as their remuneration is included in the totals for the group as a whole.

Basis of consolidation

The consolidated financial statements present the results of the group and its subsidiary as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

Turnover

Turnover represents net invoiced sale of goods and work done, excluding value added tax together with commissions receivable and rental income receivable in respect of operating leases.

Tangible fixed assets

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

Freehold property

2% on cost

Plant and machinery

at variable rates on reducing balance

Motor vehicles

25% on reducing balance

Motor vehicle depreciation is in respect of assets leased to customers.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

The directors consider that consignment stocks of new vehicles held by the company on behalf of the Ford Motor Company, meet the criteria of Financial Reporting Standard 102 to be recognised as assets. Accordingly, such new vehicles are shown as stock in the accounts with a corresponding liability being shown within creditors falling due within one year.

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.

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.

Current asset investments

Current asset investments are stated at their mid-price at the statement of financial position date. Surpluses or deficits are recognised in the statement of comprehensive income.

Vehicles leased to customers

Vehicles leased to customers are included in fixed assets and depreciated in accordance with the policy stated above. Operating lease income is accounted for on a straight line basis and is included within the statement of comprehensive income when receivable.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

Turnover includes operating lease income totalling £40,093 (2020 - £30,475).

4.	OTHER OPERATING INCOME

2021

2020

Rents received

9,190

9,750

Sundry receipts

26,333

Rebates and commissions

15,136

15,604

Management charge income

16,359

14,877

CJRS income

122,443

474,996

189,461

515,227

5.	EMPLOYEES AND DIRECTORS

2021

2020

Wages and salaries

3,242,585

2,985,870

Social security costs

392,983

349,058

Other pension costs

86,748

85,621

3,722,316

3,420,549

The average number of employees during the year was as follows:

2021

2020

Sales

Operatives

Administrative

Directors

2021

2020

Directors' remuneration

62,402

60,865

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

Operating lease income

(40,093

)

(30,475

)

Depreciation - owned assets

190,672

177,519

Profit on disposal of fixed assets

(1,524

)

(14,919

)

Auditors' remuneration

21,000

Other non- audit services

22,250

28,000

Operating leases - land and buildings

145,000

201,549

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

Bank loan interest

13,437

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

Current tax:

UK corporation tax

254,875

158,000

Adjustment to prior year corporation tax

237

Total current tax

255,112

158,034

Deferred tax

3,800

(4,500

)

Tax on profit

258,912

153,534

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

Profit before tax

1,338,524

783,878

Profit multiplied by the standard rate of corporation tax in the UK
of 19 % (2020 - 19 %)

254,320

148,937

Effects of:

Adjustments to tax charge in respect of previous periods

237

(Income)/Expenses not deductible for tax purposes

34,629

36,615

Capital allowances

(37,658

)

(31,594

)

Adjustment to actual amount of tax provided

(237

)

Movement in deferred taxation

3,800

(4,500

)

Balancing charge

3,552

4,279

Total tax charge

258,912

153,534

9.	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.

10.	DIVIDENDS ON EQUITY SHARES

2021

2020

Dividends in cash

159,140

65,000

159,140

65,000

11.	TANGIBLE FIXED ASSETS

Group

Freehold

Short

Plant and

Motor

property

leasehold

machinery

vehicles

Totals

COST

At 1 January 2021

966,167

694,924

1,378,298

156,940

3,196,329

Additions

1,902,809

53,071

152,219

42,188

2,150,287

Disposals

(21,220

)

(21,220

)

At 31 December 2021

2,868,976

747,995

1,509,297

199,128

5,325,396

DEPRECIATION

At 1 January 2021

191,412

77,136

924,426

31,640

1,224,614

Charge for year

33,206

14,203

108,422

34,841

190,672

Eliminated on disposal

(3,942

)

(3,942

)

At 31 December 2021

224,618

91,339

1,028,906

66,481

1,411,344

NET BOOK VALUE

At 31 December 2021

2,644,358

656,656

480,391

132,647

3,914,052

At 31 December 2020

774,755

617,788

453,872

125,300

1,971,715

Motor vehicle cost and depreciation above relates solely to assets leased to customers under operating leases.

Cost or valuation at 31 December 2021 is represented by:

Trading
premises

Plant and
machinery
etc

Totals

Stated at cost

3,266,971

1,708,426

4,975,397

Stated at valuation in 1999

350,000

3,616,971

1,708,426

5,325,397

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2021

2020

Cost

3,735,318

1,779,438

Aggregate depreciation

647,410

604,006

Approximate cost of land in freehold land and buildings

1,975,260

120,000

Freehold land and buildings were valued, on an open market basis, on 1 April 1999 by Messrs Lambert Smith Hampton.

12.	FIXED ASSET INVESTMENTS

Group

Unlisted

investments

COST

At 1 January 2021

and 31 December 2021

1,348

NET BOOK VALUE

At 31 December 2021

1,348

At 31 December 2020

1,348

Company

Shares in

group

undertakings

COST

At 1 January 2021

4,576,219

Additions

100

At 31 December 2021

4,576,319

NET BOOK VALUE

At 31 December 2021

4,576,319

At 31 December 2020

4,576,219

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

R.T. Rate Limited

Registered office: inside the United Kingdom

Nature of business: Ford dealership

Class of shares:

holding

Ordinary

100.00

Rates Fast Lane Limited

Registered office: inside the United Kingdom

Nature of business: Dormant

Class of shares:

holding

Ordinary

100.00

13.

STOCKS

Group

2021

2020

Stocks

7,770,758

13,016,497

Parts, accessories and consumables

143,021

141,734

7,913,779

13,158,231

There is no material difference between the balance sheet value of stocks and their replacement cost.

Motor vehicles - new and used includes the stock of vehicles held on consignment from Ford Motor Company. These stocks have been included in the balance sheet in accordance with Financial Reporting Standard 102. The total value of consignment vehicles included within stocks is £2,557,437 (2020 - £7,775,848). A corresponding liability is shown within trade creditors, see note 16.

14.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2021

2020

2021

2020

Trade debtors

1,145,292

2,436,192

Amounts owed by group undertakings

1,900

2,000

Other debtors

6,287

1,243,235

Directors' current accounts

8,250

Prepayments

78,136

44,030

1,229,715

3,731,707

1,900

2,000

15.	CURRENT ASSET INVESTMENTS

Group

2021

2020

Listed investments

32,468

26,111

Market value of listed investments held by the group at 31 December 2021 - £32,468 (2020 - £26,111).

Current asset investments have been valued at their closing price at the balance sheet date.

16.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

2021

2020

Bank loans and overdrafts (see note 18)

70,817

Other loans (see note 18)

578,511

746,390

Trade creditors - consignment

2,662,801

9,330,817

Trade creditors- other

573,999

2,267,751

Tax

254,875

158,000

Social security and other taxes

100,080

92,105

Other creditors

363,266

90,118

Directors' current accounts

82,308

Accrued expenses

275,592

242,182

4,962,249

12,927,363

Trade creditors include £2,662,802 (2020 - £9,330,817) in accordance with Financial Reporting Standard 102 as explained in note 13.

17.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR

Group

2021

2020

Bank loans (see note 18)

1,641,163

18.

LOANS

An analysis of the maturity of loans is given below:

Group

2021

2020

Amounts falling due within one year or

on demand:

Bank loans

70,817

Stocking loans

343,511

421,390

Other loans

235,000

325,000

649,328

746,390

Amounts falling due between one and

two years:

Bank loans - 1-2 years

72,354

Amounts falling due between two and

five years:

Bank loans - 2-5 years

226,627

Amounts falling due in more than five

years:

Repayable by instalments

Bank loans more 5 yr by instal

1,342,182

19.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Non-cancellable

operating leases

2021

2020

Within one year

157,000

212,500

Between one and five years

458,536

662,036

615,536

874,536

20.	SECURED DEBTS

The following secured debts are included within creditors:

Group

2021

2020

Bank loans

1,711,980

Stocking loans

343,511

421,390

Consignment stock

2,662,802

9,330,817

4,718,293

9,752,207

The stocking loan is secured against individual units of vehicle stock.

FCE Bank Plc has registered a debenture over all assets of the company, both fixed and floating charges, as security for any amounts owing from time to time thereon.

The bank loan is secured against the company's land and buildings.

21.	PROVISIONS FOR LIABILITIES

Group

2021

2020

Deferred tax

30,800

27,000

Group

Deferred

tax

Balance at 1 January 2021

27,000

Provided during year

3,800

Balance at 31 December 2021

30,800

22.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

200

Ordinary

£1

200

2,000

Non Voting Ordinary A

£1

2,000

2,200

23.

RESERVES

Group

Retained

Revaluation

earnings

premium

reserve

At 1 January 2021

5,946,526

290

215,511

Profit for the year

1,079,612

Dividends on equity shares

(159,140

)

At 31 December 2021

6,866,998

290

215,511

Group

Capital

redemption

Merger

reserve

Totals

At 1 January 2021

3,333

6,566

6,172,226

Profit for the year

1,079,612

Dividends on equity shares

(159,140

)

At 31 December 2021

3,333

6,566

7,092,698

Company

Retained

Merger

earnings

reserve

Totals

At 1 January 2021

4,576,119

Profit for the year

159,140

Dividends on equity shares

(159,140

)

(159,140

)

At 31 December 2021

4,576,119

The parent company did not trade during the current or previous year and only received dividend income from its subsidiary.

24.	PENSION COMMITMENTS

The company operates two separate defined contribution pension schemes for the directors and staff. The assets of each scheme are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the schemes and amounted to £86,748 (2020 - £85,621). At the balance sheet date there were £12,276 unpaid contributions (2020 - £8,259).

25.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2021 and 31 December 2020:

2021

2020

C.J. Rate and Mrs C.A.M. Rate

Balance outstanding at start of year

8,250

34,068

Amounts advanced

438,702

177,828

Amounts repaid

(529,260

)

(203,646

)

Amounts written off

Amounts waived

Balance outstanding at end of year

(82,308

)

8,250

The loan was unsecured, interest free and repayable on demand.

26.	RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

2021

2020

Rent paid to related party

90,000

Amount due from related party

8,250

Amount due to related party

82,308

Entities over which the entity has control, joint control or significant influence

2021

2020

Amount due from related party

1,900

2,000

Other related parties

2021

2020

Amount due to related party

8,423

The loans were unsecured, interest free and repayable on demand.

27.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is C.J. Rate.