Pinkstone Retail Limited - Limited company accounts 20.1
Pinkstone Retail Limited - Limited company accounts 20.1
REGISTERED NUMBER: 04129930 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
PINKSTONE RETAIL LIMITED |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 | to | 27 |
PINKSTONE RETAIL LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors have pleasure in submitting their Strategic Report for Pinkstone Retail Limited for the year ended 31 December 2021.The principal activity of the group is that of a car retailer. |
REVIEW OF BUSINESS |
The profit for the year before taxation was £1,413,395 (2020: £1,159,399). |
Interim dividends of £250,000 have been paid in 2021 (2020: £nil). |
The group's turnover increased in the financial year across the board with an unprecedented increase in Used Vehicle Sales. We were less affected by lockdown during the year than in 2020 and we benefited from unusually favourable market conditions with regard to Used Vehicle Sales. |
Overall turnover increased by £16.0m to £62.6m from £46.6m. |
We managed to take advantage of the favourable Used Vehicle trading conditions and as a result the group gross profit increased £1.25m to £6.53m from £5.28m. |
Selling and distribution costs were managed effectively along with other expenses and as a result of this and the increased Gross Profit, profit before taxation this year was £1.4m compared to £1.1m in the prior year. |
Net assets of the group increased due to the increase in profitability and focus has been maintained to |
ensure a continuing healthy trading position with all financial obligations met. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the group's strategy are subject to a number of risks. |
As with many businesses of our size and nature, the business environment in which we operate continues to be challenging. In particular the vehicle market in the UK is highly competitive and margins continue to be tight. Ultimately levels of business activity will be dependent on factors such as economic cycles, consumer confidence, consumer's overall level of disposable income, growth of the economy and product cycles with our Franchise partners. |
Manufacturers supply of new and improved products |
The group is reliant on new vehicle products from its Manufacturer partners. This exposes the group to risks in a number of areas as the company is dependent on its manufacturer/supplier in respect of: |
- Availability of new vehicle products |
- Quality of new vehicle products |
- Pricing of new vehicle products |
The directors are confident that future new products from its manufacturer/supplier will continue to be competitively priced and high quality and therefore consider that this "manufacturer risk" is minimal. |
Economic downturn |
The success of the business is reliant on consumer spending. An economic downturn, resulting in a reduction of consumer spending power, will have a direct impact on the income achieved by the group. In response to this risk, management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
KEY PERFORMANCE INDICATORS |
The group has established key performance indicators to measure the progress of the group in achieving both its business objectives and strategy. The management team reviews performance against these measures on a regular basis. |
The group's key financial indicators during the year are as follows: |
2021 | 2020 |
Turnover | £62,555,893 | £46,583,532 |
Operating profit | £1,431,336 | £1,156,275 |
Operating profit return on turnover | 2.29% | 2.48% |
Profit before taxation | £1,413,394 | £1,136,832 |
Net assets | £6,004,122 | £5,123,575 |
FINANCIAL INSTRUMENTS |
Financial risk management objectives and policies |
The group uses various financial instruments which include stocking loans, cash and various items, such as consignment stock, trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the group's operations. Their existence exposes the group to a number of financial risks. |
The main risks arising from the group's financial instruments are price risk, interest rate risk, liquidity risk and cash flow risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged. |
Price |
Toyota, Lexus, Subaru and MG continue to produce vehicles to be sold in a very competitive market,however prices and bonus structures are constantly reviewed and revised throughout the year to remain competitive. |
Interest rate risk |
The group finances its operations through a mixture of its own cash liquidity and other external borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed by the use of floating facilities. |
The group policy throughout the year has been to achieve its objective of managing interest rate risk through day to day involvement of management in business decisions rather than through setting maximum or minimum levels for the level of fixed interest rate borrowings. |
Liquidity and cashflows |
It is the policy of the group to minimise levels of funding and maximise liquidity. The group finances its longer-term activities with loans and finance leases from the funding departments of its manufacturers. The group uses its cash liquidity for day to day transactions and invests surpluses for higher rates of return. |
FUTURE DEVELOPMENTS |
The group will continue to benchmark itself against its peers to ensure achievement of its future goals. |
The group continues to trade profitably, is well funded and will continue to capitalise on new business |
opportunities as they arise. |
ON BEHALF OF THE BOARD: |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
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. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2021 will be £ 250,000 . |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The group has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the group's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and future developments and financial risk management. |
The strategic report can be found on pages 2-3 of these financial statements. |
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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
AUDITORS |
The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PINKSTONE RETAIL LIMITED |
Opinion |
We have audited the financial statements of Pinkstone Retail Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PINKSTONE RETAIL LIMITED |
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 four, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PINKSTONE RETAIL LIMITED |
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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach we were able to assess the group risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
During the planning stage of the audit, the susceptibility of the group to irregularities including fraud was considered and discussed with the audit team. |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
- in addressing the risk of fraud through management override of controls, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PINKSTONE RETAIL LIMITED |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to this, it is not possible to identify all occurrences of irregularities including fraud. Any irregularities identified from the samples tested were discussed with management. No unexplained irregularities arose from our sample testing. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
- | Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express and opinion on the consolidated financial statements. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
TURNOVER | 3 | 62,555,893 | 46,583,532 |
Cost of sales | (56,021,393 | ) | (41,307,126 | ) |
GROSS PROFIT | 6,534,500 | 5,276,406 |
Administrative expenses | (5,303,554 | ) | (4,599,334 | ) |
1,230,946 | 677,072 |
Other operating income | 200,390 | 479,203 |
OPERATING PROFIT | 5 | 1,431,336 | 1,156,275 |
Interest receivable and similar income | 186 | 932 |
1,431,522 | 1,157,207 |
Interest payable and similar expenses | 6 | (18,128 | ) | (20,375 | ) |
PROFIT BEFORE TAXATION | 1,413,394 | 1,136,832 |
Tax on profit | 7 | (282,847 | ) | (113,904 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,130,547 |
1,022,928 |
Profit attributable to: |
Owners of the parent | 1,130,547 | 1,022,928 |
Total comprehensive income attributable to: |
Owners of the parent | 1,130,547 | 1,022,928 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | 23,623 |
Tangible assets | 11 | 3,446,249 | 3,533,235 |
Investments | 12 | - | - |
3,446,249 | 3,556,858 |
CURRENT ASSETS |
Stocks | 13 | 5,969,924 | 4,768,877 |
Debtors | 14 | 1,457,023 | 1,435,438 |
Cash at bank | 289,505 | 18,774 |
7,716,452 | 6,223,089 |
CREDITORS |
Amounts falling due within one year | 15 | (5,108,128 | ) | (4,564,188 | ) |
NET CURRENT ASSETS | 2,608,324 | 1,658,901 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,054,573 |
5,215,759 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(48,216 |
) |
(87,391 |
) |
PROVISIONS FOR LIABILITIES | 19 | (2,235 | ) | (4,793 | ) |
NET ASSETS | 6,004,122 | 5,123,575 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 3,350 | 3,350 |
Share premium | 21 | 139,744 | 139,744 |
Retained earnings | 21 | 5,861,028 | 4,980,481 |
SHAREHOLDERS' FUNDS | 6,004,122 | 5,123,575 |
The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2022 and were signed on its behalf by: |
S N Pinkstone - Director |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 250,000 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 | 3,350 | 3,957,553 | 139,744 | 4,100,647 |
Changes in equity |
Total comprehensive income | - | 1,022,928 | - | 1,022,928 |
Balance at 31 December 2020 | 3,350 | 4,980,481 | 139,744 | 5,123,575 |
Changes in equity |
Dividends | - | (250,000 | ) | - | (250,000 | ) |
Total comprehensive income | - | 1,130,547 | - | 1,130,547 |
Balance at 31 December 2021 | 3,350 | 5,861,028 | 139,744 | 6,004,122 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 871,456 | (388,871 | ) |
Interest paid | (18,128 | ) | (20,375 | ) |
Tax paid | (229,401 | ) | (34,544 | ) |
Net cash from operating activities | 623,927 | (443,790 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (64,207 | ) | (70,172 | ) |
Interest received | 186 | 932 |
Net cash from investing activities | (64,021 | ) | (69,240 | ) |
Cash flows from financing activities |
Capital repayments in year | (39,175 | ) | (36,161 | ) |
Equity dividends paid | (250,000 | ) | - |
Net cash from financing activities | (289,175 | ) | (36,161 | ) |
Increase/(decrease) in cash and cash equivalents | 270,731 | (549,191 | ) |
Cash and cash equivalents at beginning of year |
2 |
18,774 |
567,965 |
Cash and cash equivalents at end of year |
2 |
289,505 |
18,774 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.21 | 31.12.20 |
£ | £ |
Profit before taxation | 1,413,394 | 1,136,832 |
Depreciation charges | 174,816 | 186,850 |
Finance costs | 18,128 | 20,375 |
Finance income | (186 | ) | (932 | ) |
1,606,152 | 1,343,125 |
Increase in stocks | (1,201,047 | ) | (1,706,671 | ) |
Increase in trade and other debtors | (21,585 | ) | (219,373 | ) |
Increase in trade and other creditors | 487,936 | 194,048 |
Cash generated from operations | 871,456 | (388,871 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 289,505 | 18,774 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 18,774 | 567,965 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 18,774 | 270,731 | 289,505 |
18,774 | 270,731 | 289,505 |
Debt |
Finance leases | (123,553 | ) | 39,175 | (84,378 | ) |
(123,553 | ) | 39,175 | (84,378 | ) |
Total | (104,779 | ) | 309,906 | 205,127 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Pinkstone Retail Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate those of Pinkstone Retail Limited and its subsidiary undertaking for the year. Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. The difference between the cost of acquisition of shares in subsidiaries and the fair value of the identifiable net assets acquired is capitalised as purchased goodwill and amortised through the profit and loss account over its estimated economic life. Provision is made for any impairment. The financial statements are made up to 31 December 2021. |
All companies have co-terminus year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
As permitted by Section 408 of the Companies Act 2006, the company has not presented its own profit and loss account. The company's profit and total comprehensive income are presented in the company Statement of Financial Position. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the |
circumstances. |
(i) Critical accounting estimates and assumptions |
The group makes estimates and assumptions concerning the future. The resulting accounting |
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(ii) Estimated useful lives and residual values of tangible and intangible fixed assets |
Depreciation of tangible and intangible fixed assets has been based on estimated useful lives and |
residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during the current and prior accounting periods. |
(iii) Consignment stock |
In recognising consignment stock, management makes judgements as to whether substantially |
all of the principal benefits and inherent risks rest with the group. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,rebates, value added tax and other sales taxes. |
Sale of goods |
Turnover is recognised when it and the associated costs can be measured reliably, future economic benefits are probable, and the risks and rewards of ownership have been transferred to the customer. Sales of vehicles and parts are recognised when goods are delivered and legal title has passed and the group has no continuing managerial involvement associated with ownership or effective control of the goods sold. This is generally when goods have been checked and accepted by the customer on delivery at the specified location. |
Sale of services |
Turnover from contracts for the provision of vehicle services is recognised on completion of the service being performed. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a previously acquired business, is being amortised evenly over its estimated useful life of twenty years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Freehold property | - | 2% straight line |
Plant and machinery | - | 20 - 50% straight line |
Fixtures and fittings | - | 3 - 7 years straight line |
Computer equipment | - | 25 - 33.3% straight line |
No depreciation is provided on freehold land. |
Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the asset as if it were at the age and in the condition expected at the end of its useful life. |
Land and buildings are accounted for separately even when acquired together. |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost is determined on an actual basis in respect of new vehicles, on a net realisable basis in respect of used vehicles and on a first in, first out basis in respect of other stocks. |
Vehicles on consignment are included in stock when substantially all of the principal benefits and |
inherent risks rest with the group. The corresponding liability is included within creditors. |
At each reporting date, the group assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. Any excess of the carrying amount of stock over its |
estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
An asset and corresponding liability are recognised for leasing agreements that transfer to the group substantially all of the risks and rewards incidental to ownership ("finance leases"). The amount capitalised is the fair value of the leased asset or, if lower, the present value of the minimum lease payments payable during the lease term, both determined at the inception of the lease. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit and loss so as to produce a constant perodic rate of interest on the remaining balance of the liability. |
All other leases are operating leases and the annual rentals are charged to profit and loss on a straight line basis over the lease term. |
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. |
Investments |
In the seperate accounts of the group, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. |
Interests in subsidiaries are assessed for impairment at each reporting date. Any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
Government grants |
Government grants are recognised using the accrual model. |
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which is becomes receivable. |
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: |
31.12.21 | 31.12.20 |
£ | £ |
Sale of goods | 60,659,330 | 44,935,017 |
Sale of services | 1,896,563 | 1,648,515 |
62,555,893 | 46,583,532 |
4. | EMPLOYEES AND DIRECTORS |
31.12.21 | 31.12.20 |
£ | £ |
Wages and salaries | 2,701,115 | 2,500,391 |
Social security costs | 342,877 | 275,278 |
Other pension costs | 54,111 | 62,303 |
3,098,103 | 2,837,972 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.21 | 31.12.20 |
Vehicle sales | 45 | 48 |
Parts and service | 37 | 39 |
Office and management | 14 | 15 |
31.12.21 | 31.12.20 |
£ | £ |
Directors' remuneration | 357,738 | 86,243 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director for the year ended 31 December 2021 is as follows: |
31.12.21 |
£ |
Emoluments etc | 250,000 |
In addition to the directors remuneration above, the directors received additional benefits of £10,506 |
(2020: £10,501). |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.21 | 31.12.20 |
£ | £ |
Other operating leases | 87,000 | 87,000 |
Depreciation - owned assets | 151,193 | 140,142 |
Goodwill amortisation | - | 22,568 |
Computer software amortisation | 23,623 | 24,139 |
Auditors' remuneration | 14,000 | 21,581 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.21 | 31.12.20 |
£ | £ |
Stock finance interest | 14,492 | 16,597 |
Other interest | 3,636 | 3,778 |
18,128 | 20,375 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.21 | 31.12.20 |
£ | £ |
Current tax: |
UK corporation tax | 285,405 | 231,366 |
Deferred tax | (2,558 | ) | (117,462 | ) |
Tax on profit | 282,847 | 113,904 |
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: |
31.12.21 | 31.12.20 |
£ | £ |
Profit before tax | 1,413,394 | 1,136,832 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
268,545 |
215,998 |
Effects of: |
Expenses not deductible for tax purposes | - | 3,639 |
Capital allowances in excess of depreciation | - | (105,733 | ) |
Depreciation in excess of capital allowances | 14,302 | - |
tax |
Total tax charge | 282,847 | 113,904 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.12.21 | 31.12.20 |
£ | £ |
Interim | 250,000 | - |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
and 31 December 2021 | 451,452 | 72,416 | 523,868 |
AMORTISATION |
At 1 January 2021 | 451,452 | 48,793 | 500,245 |
Amortisation for year | - | 23,623 | 23,623 |
At 31 December 2021 | 451,452 | 72,416 | 523,868 |
NET BOOK VALUE |
At 31 December 2021 | - | - | - |
At 31 December 2020 | - | 23,623 | 23,623 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2021 | 4,479,208 | 279,124 | 567,962 | 166,417 | 5,492,711 |
Additions | - | 3,945 | 39,996 | 20,266 | 64,207 |
At 31 December 2021 | 4,479,208 | 283,069 | 607,958 | 186,683 | 5,556,918 |
DEPRECIATION |
At 1 January 2021 | 1,154,763 | 248,152 | 414,739 | 141,822 | 1,959,476 |
Charge for year | 63,995 | 14,018 | 51,988 | 21,192 | 151,193 |
At 31 December 2021 | 1,218,758 | 262,170 | 466,727 | 163,014 | 2,110,669 |
NET BOOK VALUE |
At 31 December 2021 | 3,260,450 | 20,899 | 141,231 | 23,669 | 3,446,249 |
At 31 December 2020 | 3,324,445 | 30,972 | 153,223 | 24,595 | 3,533,235 |
Included within freehold land and buildings is freehold land carried at £1,050,000 (2020: £1,050,000) which is not depreciated. |
Included within the assets above are assets held under finance lease contracts as follows: |
Fixtures and Fittings: NBV £78,350 (2020: £117,526). |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
12. | FIXED ASSET INVESTMENTS |
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 group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: Stanley Matthews Way, Trentham Lakes, Stoke On Trent, Staffordshire, ST4 4DD |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Stocks | 5,969,924 | 4,768,877 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Trade debtors | 677,378 | 502,372 |
Other debtors | 489,565 | 428,165 |
Prepayments | 290,080 | 504,901 |
1,457,023 | 1,435,438 |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Finance leases (see note 17) | 36,162 | 36,162 |
Payments on account | 278,154 | 142,191 |
Trade creditors | 2,142,817 | 2,466,663 |
Tax | 285,405 | 229,401 |
Social security and other taxes | 73,698 | 63,748 |
VAT | 273,580 | 9,262 |
Other creditors | 34,547 | 32,696 |
Accruals and deferred income | 1,983,765 | 1,584,065 |
5,108,128 | 4,564,188 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Finance leases (see note 17) | 48,216 | 87,391 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
31.12.21 | 31.12.20 |
£ | £ |
Net obligations repayable: |
Within one year | 36,162 | 36,162 |
Between one and five years | 48,216 | 87,391 |
84,378 | 123,553 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Finance leases | 84,378 | 123,553 |
Finance leases are secured on the assets to which they relate. |
A legal charge is held, incorporating a fixed and floating charge over the freehold land compromising Plot A and Plot B off Gordon Banks Drive, Trentham Lakes dated 9 November 2007. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.12.21 | 31.12.20 |
£ | £ |
Deferred tax | 2,235 | 4,793 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2021 | 4,793 |
Credit to Statement of Comprehensive Income during year | (2,558 | ) |
Balance at 31 December 2021 | 2,235 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.21 | 31.12.20 |
value: | £ | £ |
Ordinary | £1 | 3,350 | 3,350 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2021 | 4,980,481 | 139,744 | 5,120,225 |
Profit for the year | 1,130,547 | 1,130,547 |
Dividends | (250,000 | ) | (250,000 | ) |
At 31 December 2021 | 5,861,028 | 139,744 | 6,000,772 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2021 | 698,720 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2021 | 698,720 |
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
Profit and loss account - This reserve records retained earnings and accumulated losses. |
PINKSTONE RETAIL LIMITED (REGISTERED NUMBER: 04129930) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
22. | RELATED PARTY DISCLOSURES |
Group |
The key personnel of the group are the directors. Directors' remuneration is disclosed in note 4 of the financial statements. |
All transactions undertaken with the directors are deemed to be conducted under normal market |
conditions and/or are not material. |
Company |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
23. | EVENTS AFTER THE END OF THE REPORTING PERIOD |
Other than the events noted in the strategic report, there were no other material events up to the date |
of approval of the financial statements by the board. |
24. | ULTIMATE CONTROLLING PARTY |
The company is under the joint control of Mr N E Pinkstone and Mr S N Pinkstone. |