Capsicum Leasing Limited - Limited company accounts 11.7

REGISTERED NUMBER: 07112783 (England and Wales)

Report of the Directors and

Financial Statements

for the Year Ended 31st October 2014

for

CAPSICUM LEASING LIMITED

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Profit and Loss Account

6

Balance Sheet

7

Notes to the Financial Statements

8

DIRECTORS:

G D Chilton

R W Swallow

REGISTERED OFFICE:

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

REGISTERED NUMBER:

07112783 (England and Wales)

AUDITORS:

Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

The directors present their report with the financial statements of the company for the year ended 31st October 2014.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of leasing of freehold property, motor sports

cars and equipment to fellow subsidiary companies.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st November 2013 to the date of

this report.

G D Chilton

R W Swallow

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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

company's auditors are aware of that information.

AUDITORS

The auditors, Simpson Wreford & Partners, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

R W Swallow - Director

30th June 2015

We have audited the financial statements of Capsicum Leasing Limited for the year ended 31st October 2014 on pages

six to thirteen. The financial reporting framework that has been applied in their preparation is applicable law and the

Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted

Accounting Practice applicable to Smaller Entities).

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's

circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we

read all the financial and non-financial information in the Report of the Directors to identify material inconsistencies

with the audited financial statements and to identify any information that is apparently materially incorrect based on,

or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become

aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st October 2014 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Deborah Wilkes (Senior Statutory Auditor)

for and on behalf of Simpson Wreford & Partners

Chartered Accountants & Statutory Auditors

Suffolk House

George Street

Croydon

Surrey

CR0 0YN

1st July 2015

TURNOVER

753,792

815,973

Cost of sales

457,907

464,954

GROSS PROFIT

295,885

351,019

Administrative expenses

67,346

77,051

OPERATING PROFIT

2

228,539

273,968

Interest payable and similar charges

57,661

56,898

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

170,878

217,070

Tax on profit on ordinary activities

3

26,523

-

PROFIT FOR THE FINANCIAL YEAR

144,355

217,070

FIXED ASSETS

Tangible assets

4

3,522,262

3,596,031

Investments

5

56

56

3,522,318

3,596,087

CURRENT ASSETS

Debtors

6

4,827,327

4,926,759

Cash at bank

94

682

4,827,421

4,927,441

CREDITORS

Amounts falling due within one year

7

67,104

54,330

NET CURRENT ASSETS

4,760,317

4,873,111

TOTAL ASSETS LESS CURRENT LIABILITIES

8,282,635

8,469,198

CREDITORS

Amounts falling due after more than one year

8

(7,346,520

)

(7,703,961

)

PROVISIONS FOR LIABILITIES

10

(70,152

)

(43,629

)

NET ASSETS

865,963

721,608

CAPITAL AND RESERVES

Called up share capital

11

100

100

Profit and loss account

12

865,863

721,508

SHAREHOLDERS' FUNDS

865,963

721,608

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 30th June 2015 and were signed on its behalf by:

R W Swallow - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts have been drawn up on a going concern basis as the beneficial owner of the group has indicated

his intention to continue providing financial support to the company and the group by way of loans. The

directors anticipate that the company will continue to achieve profitability in the forthcoming year.

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Related party exemption

The company has taken advantage of the exemption under Financial Reporting Standard For Smaller Entities

(effective April 2008) from disclosing transactions with entities that are part of the group. The consolidated

financial statements of the ultimate parent company are publicly available.

Turnover

Turnover represents lease income, excluding value added tax. Where sales invoices are raised during the year

for periods subsequent to the balance sheet date, appropriate amounts are removed from turnover and

included as deferred income in current liabilities. Where sales invoices are raised subsequent to the balance

sheet date for services rendered during the financial year, appropriate amounts are added to turnover and

included as accrued income in current assets.

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 4% on cost

Motor racing cars At varying rates over the life of asset

Tractors and trailers At varying rates over the life of asset

Motor Vehicles 33% on cost

Fixed assets with a net book value of £376,000 (2013: £544,000 have not yet been depreciated during the

year, as the estimated residual value is calculated to be in excess of the discounted purchase costs when the

assets were acquired from the liquidators of a previous business enterprise.

Deferred tax

Deferred tax liabilities are recognised on all taxable temporary timing differences and deferred tax assets are

recognised to the extent that it is probable that taxable profits will be available against which deductible

temporary differences can be utilised. Unrecognised tax assets are reassessed at each balance sheet date and

are recognised to the extent that it has become probable that future tax profits will allow for the deferred tax

asset to be recovered.

2.	OPERATING PROFIT

The operating profit is stated after charging:

31.10.14

31.10.13

£

£

Depreciation - owned assets

430,083

459,374

Loss on disposal of fixed assets

9,000

-

Auditors' remuneration

4,000

3,000

Directors' remuneration and other benefits etc

25,000

25,000

3.

TAXATION

Analysis of the tax charge

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

31.10.14

31.10.13

£

£

Deferred tax

26,523

-

Tax on profit on ordinary activities

26,523

-

4.	TANGIBLE FIXED ASSETS

Motor

Freehold

racing

Plant and

property

cars

machinery

£

£

£

COST

At 1st November 2013

2,015,543

1,898,625

16,000

Additions

-

372,252

-

Disposals

-

(19,000

)

-

At 31st October 2014

2,015,543

2,251,877

16,000

DEPRECIATION

At 1st November 2013

103,111

892,000

4,956

Charge for year

70,702

331,489

2,900

Charge written back

-

-

-

At 31st October 2014

173,813

1,223,489

7,856

NET BOOK VALUE

At 31st October 2014

1,841,730

1,028,388

8,144

At 31st October 2013

1,912,432

1,006,625

11,044

Tractors

and

Motor

trailers

vehicles

Totals

£

£

£

COST

At 1st November 2013

810,519

78,655

4,819,342

Additions

-

-

372,252

Disposals

-

-

(19,000

)

At 31st October 2014

810,519

78,655

5,172,594

DEPRECIATION

At 1st November 2013

167,527

55,717

1,223,311

Charge for year

24,992

-

430,083

Charge written back

-

(3,062

)

(3,062

)

At 31st October 2014

192,519

52,655

1,650,332

NET BOOK VALUE

At 31st October 2014

618,000

26,000

3,522,262

At 31st October 2013

642,992

22,938

3,596,031

All the above assets, with the exception of freehold property are held for use in operating leases.

5.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1st November 2013

and 31st October 2014

56

NET BOOK VALUE

At 31st October 2014

56

At 31st October 2013

56

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

6.

DEBTORS

31.10.14

31.10.13

£

£

Amounts falling due within one year:

VAT

59

62

31.10.14

31.10.13

£

£

Amounts falling due after more than one year:

Amounts owed by group undertakings

4,827,268

4,926,697

Aggregate amounts

4,827,327

4,926,759

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.14

31.10.13

£

£

Trade creditors

29,147

32,126

Accruals and deferred income

37,957

22,204

67,104

54,330

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.14

31.10.13

£

£

Bank loans - 1-2 years

107,865

107,865

Bank loans - 2-5 years

431,460

431,460

Bank loans more 5 yr by instal

810,675

810,675

Amounts owed to group undertakings

172,268

475,674

Amounts owed to associates

20,020

-

Directors' loan accounts

5,804,232

5,878,287

7,346,520

7,703,961

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

810,675

810,675

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.10.14

31.10.13

£

£

Director's loan account

5,804,232

5,878,287

Bank Loan and overdraft

1,350,000

1,350,000

7,154,232

7,228,287

The bank borrowings and directors loan are secured by fixed and floating charges on all assets held by the

company.

10.	PROVISIONS FOR LIABILITIES

31.10.14

31.10.13

£

£

Deferred tax

70,152

43,629

Deferred

tax

£

Balance at 1st November 2013

43,629

Accelerated capital allowances

26,523

Balance at 31st October 2014

70,152

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.14

31.10.13

value:

£

£

100

Ordinary

£1

100

100

12.

RESERVES

Profit

and loss

account

£

At 1st November 2013

721,508

Profit for the year

144,355

At 31st October 2014

865,863

13.	ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of Capsicum Motorsport Holdings Limited. Copies of that

company's accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the year end, the company owed Tomax Motorsports, and entity controlled and owned by G D Chilton

£28,000 (2013: £28,000).

The total balance owed by the company to G D Chilton, the director, at the year end was £5,804,232 (2013:

£5,878,287). The loan is interest free and repayable on the 25th March 2020.

15.	RELATED PARTY DISCLOSURES

Capsicum Private Office LLP

An LLP in which both G D Chilton and R W Swallow are members.

The company was charged £25,000 (2013: £25,000) for directors fees during the year.

31.10.14

31.10.13

£

£

Amount due to related party at the balance sheet date

20,020

-

Bayly Associates Limited

A company owned and controlled by J Bayly, part of the management team

The company was charged £28,430 (2013: £34,710) for accountancy services provided during the year.

16.	ULTIMATE CONTROLLING PARTY

The company is controlled by the director G D Chilton who owns the entire share capital of the parent

company Capsicum Motorsports Holdings Limited.