ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

FURROWS HOLDINGS LIMITED - Company Information

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Registered number: 03162759

FURROWS HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FURROWS HOLDINGS LIMITED

COMPANY INFORMATION

Directors	N I Coward
	B J Coward
	R M J Downey
	W E Downey
	V E Coward


Company secretary	N Burgess


Registered number	03162759


Registered office	The Shrewsbury Garage
	Benbow Business Park
	Harlescott Lane
	Shrewsbury
	Shropshire


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

FURROWS HOLDINGS LIMITED

CONTENTS

	Page
Group strategic report	1 - 3
Directors' report	4 - 7
Independent auditors' report	8 - 11
Consolidated income statement	12
Consolidated statement of comprehensive income	13
Consolidated statement of financial position	14 - 15
Company statement of financial position	16 - 17
Consolidated statement of changes in equity	18
Company statement of changes in equity	19
Consolidated Statement of cash flows	20 - 21
Analysis of net debt	22
Notes to the financial statements	23 - 52

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

Business review

Despite an unprecedented year, operating profit was £2,411,607 (2019: £1,942,702) with turnover for the Group in the year ended 31 December 2020 at £84,210,439 (2019: £110,310,429).
Diversification within the Group and the motor dealership trade itself, combined with the significant contributions of a great number of people throughout the business, and strong partnerships, enabled what by many measures was a strong performance for the year.
Although non-motor trade activities were largely as planned and forecast, the motor trade was significantly impacted during the year by the Coronavirus pandemic and the associated UK national lockdowns announced by the Prime Minister on 22 March 2020 and again in November 2020.
During the first lockdown period, the dealership showrooms were closed between 24 March and 1 June 2020. The majority of staff were furloughed during this period with a small team working tirelessly to carry out essential services work, and to prepare for reopening. On reopening, we did so with enhanced health and safety measures and strict social distancing guidelines in place to ensure the safest environment for our customers and staff. These measures included reconfigured showrooms to allow for social distancing, appointment only vehicle viewings and test drives, PPE and sanitising stations in all showrooms, more rigorous daily cleaning routines, cashless payment options and an enhanced digital experience with online appointments. Performance is always a product of the commitment and dedication of people, and this year was no different: but it did once again highlight this considerable strength within the business and the communities we serve.
The financial performance in June to October 2020 was stronger than forecast and despite the reduction in activities in November as a result of the second lockdown in England, the Group was able to achieve and exceed targets.
The Group continues its strategy of reinvestment, with profits generated in the year being retained in the business. The financial statements report on a continuing period of consolidation with the net assets of the Group increasing to £16,354,538 (2019: £15,450,198) and net current assets at 31 December 2020 of £1,205,582.

Principal risks and uncertainties

The business activities, financial condition and trading results are subject to risk factors and uncertainties that the Directors keep under review. The Directors are of the opinion that principal risks and uncertainties facing the Group relate to general economic and market conditions, which influence cost, pricing and the demand for its products and services as well as supply.
Economic risks and uncertainties brought about by the Coronavirus pandemic and Brexit are also closely monitored by the Directors.
The Directors consider that the Group is well placed to continue in line with its business strategy.

Financial key performance indicators

The Group measures its financial performance and broader position by reference to key performance indicators. The key performance indicators used by the business include those relating to turnover, operating profit and net assets as referenced in the business review above.

Page 1

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Other key performance indicators

The Group uses a range of other KPI's to monitor and measure performance within the business on a regular basis. These cover the whole business and reflect its evolving nature. KPI’s cover diverse areas of the business such as customer service and productivity.

Directors' statement of compliance with duty to promote the success of the Company

The board of directors consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a) (f) of the Act) in the decisions taken during the year ended 31 December 2020.
Decision making at the Board
The Directors meet on a regular basis. When making decisions which are in the best interests of the Company and the Group they consider any potential impacts and risks for our customers, employees (both current and former employees, by reference to the Furrows pension Scheme, and as a future significant employer within our communities) and other stakeholders including our partners, suppliers, the communities in which we operate, and serve, and the environment and how they are to be managed.
Stakeholders
Our key stakeholders are our employees, customers, partners, suppliers, finance providers and the communities in which we operate. We take a current and future view in relation to all such stakeholders.
Sustainability
Furrows is a family business in its widest sense, and we consider the “Furrows Family” to be of great significance. We are proud that it has now provided employment, training and financial reward for its employees and owners and benefits for a wide group of stakeholders for over 100 years. When making business decisions we consider the needs of our current and future customers, employees, suppliers and the communities in which we operate to ensure we are conducting all our business relationships with integrity, as well as ongoing responsibilities for previous staff. The continued sustainability of the Company and the wider Group is paramount in our decision making, particularly in response to the challenging economic conditions and the Coronavirus pandemic.
Employees
Our people are fundamental to the delivery of our business plans. We aim to be a responsible employer in our approach to the pay and benefits our people receive. The health, safety and well being of our team is one of our primary considerations in the way we do business. We place considerable value on the involvement of our employees and continue to keep them informed on matters affecting them.
Customers
Engagement with customers who form the community we serve is key to our success. We are proud of our award-winning customer service and ensure that this is maintained through customer satisfaction surveys, social media, focus group meetings and a dedicated customer service team.
Partners and Suppliers
The Company operates a franchise business model in its motor trading subsidiary and therefore strong relationships with manufacturers is fundamental to what we do. We maintain regular communication with our key

Page 2

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

suppliers through regular reporting, conferences and councils.
Finance Providers
The Company seeks to make information available to financial stakeholders, including our relationship bank with whom we are proud to have had a strong relationship for over 100 years, as part of information provided about and by the Company and the Group.
Communities and environment
The Company and the Group aim to use their resources to create positive change for the communities and the environment in which we operate. We are very pleased to have recently been recognised by the British Chamber of Commerce as a 'UK Business Hero 2020' to recognise that we 'have gone the extra mile to support their local community during the Coronavirus outbreak'.
Business Conduct
The Board of Directors always strive to behave responsibly and ensure that the management of the Company and the Group operate the business in a responsible manner and with high standards of business conduct and governance.

This report was approved by the board and signed on its behalf.

................................................

N I Coward

Director

Date: 28 July 2021

Page 3

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Directors present their report and the financial statements for the year ended 31 December 2020.

Directors' responsibilities statement

The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial yearr 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 for the Group's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,449,530 (2019 - £935,439).

The Directors considered that it was appropriate due to the Pandemic not to pay dividends during the year, (2019: £360,000).

Directors

The Directors who served during the year were:

N I Coward

B J Coward

R M J Downey

W E Downey

V E Coward

Page 4

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Financial instruments

The Group's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interest rate risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs.
Credit risk - The Group has implemented policies that require appropriate credit checks on potential customers where credit sales are made.
Liquidity risk - The Group actively maintains a mixture of long term and short term debt finance that is designed to ensure that it has sufficient available funds for operations and any planned expansions.
Interest rate cash flow risk - The Group has interest bearing liabilities in the form of bank and financing facilities. Interest cash flows are monitored on a regular basis and interest rates are agreed at fixed rates where possible to ensure the certainty of future interest cash flows.

Disabled employees

Applications for employment by disabled persons are fully considered, bearing in mind the respective aptitude and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that employment with the Group continues and that training, career development and promotion opportunities of disabled persons should as far as possible be identical to that of other employees.

Qualifying third party indemnity provisions

During the year, and at the date of signing this report, the Group maintained liability insurance and third party indemnification provisions for its Directors, under which the Group has agreed to indemnify the Directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as Directors of the Company and any of its associated companies.

Page 5

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Greenhouse gas emissions, energy consumption and energy efficiency action

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2020 to 31 December 2020, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’ issued by DEFRA, using DEFRA's 2020 conversion factors. In some cases consumption has been extrapolated from available data or direct comparison made to a comparable period.
We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.
During the reporting period, with its significant challenges, no new energy efficiency actions have been taken however, our energy management programme is ongoing at a number of sites, including monitoring and targeted reporting of energy consumption on a daily basis. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues as and when they arrive, allowing us to eliminate unnecessary energy waste.

The table below includes total energy consumption (reported as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.
Total Energy Consumption – Used for Emissions Calculation (kWh) 3,654,069
Gas Combustion Emissions, Scope 1 (tCO2e) 223.1
Purchased Electricity Emissions, Scope 2 (tCO2e) 294.0
Vehicle Fuel Combustion Emissions, Scope 1 (tCO2e) 268.0
Vehicle Fuel Combustion Emissions, Scope 3 (tCO2e) 9.8
Total Gross Reported Emissions (tCO2e) 794.9
Turnover (£m) 84.2
Intensity Ratio: Turnover (tCO2e / £m) 9.4

Matters covered in the strategic report

Disclosure of engagement with employees, suppliers, customers and others are included in the Strategic Report.
Future developments are also disclosed in the Strategic Report.

Page 6

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

N I Coward

Director

Date: 28 July 2021

Page 7

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED

Opinion

We have audited the financial statements of Furrows Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2020, which comprise the Group Income statement, the Group Statement of comprehensive income, the Group and Company Statements of financial position, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, 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's affairs as at 31 December 2020 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 United Kingdom, including the Financial Reporting Council'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 or 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.

Page 8

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Directors' report 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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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.

Page 9

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement set out on page 4, 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 is 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 an Auditors' report 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

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 Auditors' report.

Page 10

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

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 an Auditors' report 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.

John Fletcher BA (Hons) FCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

28 July 2021

Page 11

FURROWS HOLDINGS LIMITED

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

	2020	2019
Note	£	£


Turnover	4	84,210,439	110,310,429
Cost of sales		(74,670,871)	(98,496,374)
Gross profit		9,539,568	11,814,055
Administrative expenses		(8,631,616)	(9,880,806)
Other operating income	5	1,523,837	-
Fair value movements		(20,182)	9,453
Operating profit		2,411,607	1,942,702
Interest receivable and similar income	9	12,732	-
Interest payable and similar expenses	10	(771,952)	(704,510)
Other finance costs		(63,000)	(91,000)
Profit before tax		1,589,387	1,147,192
Tax on profit	12	(139,857)	(211,753)
Profit for the financial year		1,449,530	935,439

Profit for the year attributable to:
Owners of the parent	1,449,530	935,439
	1,449,530	935,439

The notes on pages 23 to 52 form part of these financial statements.

Page 12

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2020

				2020	2019
				£	£

Profit for the financial year	1,449,530	935,439
Other comprehensive income
Actuarial loss on defined benefit schemes	(659,000)	(355,000)
Movement on deferred tax relating to pension losses	113,810	(27,513)
Other comprehensive income for the year	(545,190)	(382,513)
Total comprehensive income for the year	904,340	552,926

Profit for the year attributable to:
Owners of the parent Company	1,449,530	935,439
	1,449,530	935,439

Total comprehensive income attributable to:
Owners of the parent Company	904,340	552,926
	904,340	552,926

The notes on pages 23 to 52 form part of these financial statements.

Page 13

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£

Fixed assets
Tangible assets	14		13,668,044		13,539,691
Investments	15		168,420		165,602
Investment property	16		13,179,429		13,214,853
			27,015,893		26,920,146
Current assets
Stocks	17	15,566,344		25,667,475
Debtors: amounts falling due after more than one year	18	940,320		1,055,672
Debtors: amounts falling due within one year	18	3,564,608		4,803,923
Cash at bank and in hand	19	1,304,536		695,484
		21,375,808		32,222,554
Creditors: amounts falling due within one year	20	(20,170,226)		(35,102,815)
Net current assets/(liabilities)			1,205,582		(2,880,261)
Total assets less current liabilities			28,221,475		24,039,885
Creditors: amounts falling due after more than one year	21		(7,282,136)		(4,429,682)
Provisions for liabilities
Deferred taxation	23	(629,801)		(804,005)
			(629,801)		(804,005)
Net assets excluding pension liability			20,309,538		18,806,198
Pension liability	27		(3,955,000)		(3,356,000)
Net assets			16,354,538		15,450,198

Page 14

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2020

	2020	2019
Note	£	£

Capital and reserves
Called up share capital	24	2,000	2,000
Revaluation reserve	25	6,516,573	6,516,573
Other reserves	25	(47,234)	(27,052)
Profit and loss account	25	9,883,199	8,958,677
Equity attributable to owners of the parent Company		16,354,538	15,450,198
		16,354,538	15,450,198

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

N I Coward

Director

Date: 28 July 2021

The notes on pages 23 to 52 form part of these financial statements.

Page 15

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

		2020		2019
Note		£		£

Fixed assets
Tangible assets	14		13,052,601		13,417,330
Investments	15		4,641,933		4,616,933
Investment property	16		13,179,429		12,584,853
			30,873,963		30,619,116
Current assets
Stocks	17	733,917		723,392
Debtors: amounts falling due within one year	18	2,140,106		2,426,742
Cash at bank and in hand	19	796,491		129,182
		3,670,514		3,279,316
Creditors: amounts falling due within one year	20	(13,032,336)		(16,086,918)
Net current liabilities			(9,361,822)		(12,807,602)
Total assets less current liabilities			21,512,141		17,811,514

Creditors: amounts falling due after more than one year	21		(6,032,136)		(3,173,474)
Provisions for liabilities
Deferred taxation	23	(601,325)		(571,380)
			(601,325)		(571,380)
Net assets excluding pension liability			14,878,680		14,066,660
Net assets			14,878,680		14,066,660

Page 16

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2020

	31 December	31 December
	2020	2019
Note	£	£

Capital and reserves
Called up share capital	24	2,000	2,000
Revaluation reserve	25	6,516,573	6,516,573
Profit and loss account	25	8,360,107	7,548,087
		14,878,680	14,066,660

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

N I Coward

Director

Date: 28 July 2021

The notes on pages 23 to 52 form part of these financial statements.

Page 17

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020

	Called up share capital	Revaluation reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2019	2,000	6,516,573	(36,505)	8,775,204	15,257,272

Profit for the year	-	-	-	935,439	935,439
Actuarial losses on pension scheme	-	-	-	(382,513)	(382,513)
Total comprehensive income for the year	-	-	-	552,926	552,926
Dividends: Equity capital	-	-	-	(360,000)	(360,000)
	-	-	-	-	-
Transfer to/from profit and loss account	-	-	9,453	(9,453)	-
Total transactions with owners	-	-	9,453	(369,453)	(360,000)

At 1 January 2020	2,000	6,516,573	(27,052)	8,958,677	15,450,198

Profit for the year	-	-	-	1,449,530	1,449,530
Actuarial losses on pension scheme	-	-	-	(545,190)	(545,190)
Total comprehensive income for the year	-	-	-	904,340	904,340
	-	-	-	-	-
Transfer to/from profit and loss account	-	-	(20,182)	20,182	-
Total transactions with owners	-	-	(20,182)	20,182	-
At 31 December 2020	2,000	6,516,573	(47,234)	9,883,199	16,354,538

The notes on pages 23 to 52 form part of these financial statements.

Page 18

FURROWS HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2020

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2019	2,000	6,516,573	7,133,537	13,652,110

Profit for the year	-	-	774,550	774,550
Dividends: Equity capital	-	-	(360,000)	(360,000)

At 1 January 2020	2,000	6,516,573	7,548,087	14,066,660

Profit for the year	-	-	812,020	812,020
At 31 December 2020	2,000	6,516,573	8,360,107	14,878,680

The notes on pages 23 to 52 form part of these financial statements.

Page 19

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

			2020	2019
			£	£

Cash flows from operating activities
Profit for the financial year	1,449,530	935,439
Adjustments for:
Depreciation of tangible assets	301,721	285,446
Loss on disposal of tangible assets	(113,936)	(132,795)
Government grants	(1,523,837)	-
Interest paid	816,493	842,794
Interest received	(12,732)	-
Taxation charge	139,857	211,753
Decrease/(increase) in stocks	10,101,131	(1,225,420)
Decrease in debtors	1,423,511	825,213
(Decrease)/increase in creditors	(11,463,330)	5,577,941
(Decrease) in net pension assets/liabs	(60,000)	(331,000)
Net fair value losses/(gains) recognised in P&L	20,182	(9,453)
Corporation tax (paid)	(274,795)	(211,007)
Net cash generated from operating activities	803,795	6,768,911

Cash flows from investing activities
Purchase of tangible fixed assets	(256,160)	(474,806)
Sale of tangible fixed assets	10,745	-
Purchase of investment properties	(357,449)	(1,471,427)
Sale of investment properties	299,150	326,608
Purchase of unlisted and other investments	(25,000)	(25,000)
Sale of unlisted and other investments	25,000	-
Government grants received	1,523,837	-
Interest received	12,732	-
Net cash from investing activities	1,232,855	(1,644,625)

Page 20

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

		2020	2019
		£	£


Cash flows from financing activities
New secured loans	6,459,000	-
Repayment of loans	(4,481,807)	(1,509,846)
Repayment of debenture loans	(2,114,051)	-
Dividends paid	-	(360,000)
Interest paid	(816,493)	(669,476)
Net cash used in financing activities	(953,351)	(2,539,322)
Net increase in cash and cash equivalents	1,083,299	2,584,964
Cash and cash equivalents at beginning of year	(79,398)	(2,664,362)
Cash and cash equivalents at the end of year	1,003,901	(79,398)

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,304,536	695,484
Bank overdrafts	(300,635)	(774,882)
	1,003,901	(79,398)

The notes on pages 23 to 52 form part of these financial statements.

Page 21

FURROWS HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2020


At 1 January 2020	Cash flows	At 31 December 2020
£	£	£

Cash at bank and in hand	695,484	609,052	1,304,536
Bank overdrafts	(774,882)	474,247	(300,635)
Debt due after 1 year	(4,492,682)	(2,789,454)	(7,282,136)
Debt due within 1 year	(6,504,238)	1,760,784	(4,743,454)
	(11,076,318)	54,629	(11,021,689)

The notes on pages 23 to 52 form part of these financial statements.

Page 22

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1.	General information

Furrows Holdings Limited is a limited liability company which is incorporated in England. The registered office is disclosed on the Company Information page.
The principal activities of the Group are the sales of motor vehicles and associated activities, property development and rental and the provision of finance.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income statement in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of Group and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Going concern

In assessing the appropriateness of the going concern basis in preparing the accounts the Directors have considered the current financial position of the Group along with detailed forecasts for the 12 months from the date of signing these accounts.
In reviewing the forecasts the Directors have considered the headroom in the finance facilities which the Directors have a reasonable expectation will be renewed. The Directors have also considered the potential impact of Brexit on the working capital requirements of the Group based on the information available at the date of signing these accounts.
The Directors consider that the Group is well positioned and have reasonable expectations that it has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 23

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Page 24

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.5

Tangible fixed assets (continued)

Depreciation is provided on the following basis:

Freehold property (including property under construction)	-	Not depreciated
Plant, machinery and office equipment	-	10 -25%
Fixtures & Fittings	-	20%
Hire Vehicles	-	20 - 42%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
The Directors are of the opinion that the residual values of the properties are such that no depreciation is required.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated profit and loss account.

2.6

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of financial position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.7

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 25

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Unlisted investments held as fixed assets are shown at cost less provision for impairment.
Listed investments held as fixed assets are shown at market value. Permanent diminuations in value are taken to the profit and loss account. Temporary changes in market value are taken to a revaluation reserve.

2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Work in progress and finished goods include labour and attributable overheads.

2.10

Consignment stocks

Consignment vehicles that are regarded effectively as being under the control of the company due to the transfer of the risks and responsibilities, are included within new vehicles stocks on the balance sheet, although legal title has not passed to the company. The corresponding liability is included within trade creditors and is secured directly on these vehicles..

2.11

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.13

Financial instruments

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

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an

Page 26

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.13

Financial instruments (continued)

out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

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

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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

2.14

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.15

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 27

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.16

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 28

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.18

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.19

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Page 29

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

2.Accounting policies (continued)

2.21

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

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.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are no 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.

Page 30

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Motor dealership, provision of finance and related activities	83,041,524	109,333,175
Property development and rental	1,168,915	977,254
	84,210,439	110,310,429

All turnover arose within the United Kingdom.

5.	Other operating income
		2020	2019
		£	£

Government grants receivable	1,523,837	-
	1,523,837	-

6.	Auditors' remuneration
		2020	2019
		£	£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

31,000

29,460

Fees payable to the Group's auditor and its associates in respect of:
Preparation of financial statements and Corporation Tax returns	9,775	11,525
Other services relating to taxation	-	13,865
	9,775	25,390

Page 31

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

7.	Employees
	Staff costs, including Directors' remuneration, were as follows:

Group	Group	Company	Company
2020	2019	2020	2019
£	£	£	£


Wages and salaries	7,285,084	7,601,977	318,857	366,683
Social security costs	677,912	749,928	23,680	30,439
Staff pension current service costs (DB)	161,000	125,000	-	-
Staff pension past service costs (DB)	216,000	44,000	-	-
Cost of defined contribution scheme	148,593	135,738	3,170	3,704
	8,488,589	8,656,643	345,707	400,826

During the year, key management personnel, including the Directors, of the Group received remuneration totalling £360,327 (2019 - £267,839).

The average monthly number of employees, including the Directors, during the year was as follows:

	Group	Group	Company	Company
	2020	2019	2020	2019
	No.	No.	No.	No.

Sales	143	137	15	17
Technicians and workshop	136	127	-	-
Administration	56	52	-	-

	335	316	15	17

Page 32

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

8.	Directors' remuneration
		2020	2019
		£	£

Directors' emoluments	237,374	229,699
	237,374	229,699

	During the year retirement benefits were accruing to 2 Directors (2019 - 4) in respect of defined contribution pension schemes.
	The highest paid Director received remuneration of £88,088 (2019 - £90,000).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £1,206 (2019 - £1,188).

9.	Interest receivable
		2020	2019
		£	£

	Other interest receivable	12,732	-
		12,732	-

10.	Interest payable and similar expenses
		2020	2019
		£	£

Bank interest payable	378,472	474,552
Other interest payable	81,741	104,116
Vehicle stocking interest	311,739	125,842
	771,952	704,510

Page 33

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

11.	Other finance costs
		2020	2019
		£	£

Interest income on pension scheme assets	273,000	371,000
Net interest on net defined benefit liability	(336,000)	(462,000)
	(63,000)	(91,000)

Corporation tax
Current tax on profits for the year	293,883	139,419
	293,883	139,419

Total current tax	293,883	139,419

Deferred tax
Origination and reversal of timing differences	(172,292)	72,334
Changes to tax rates	18,266	-
Total deferred tax	(154,026)	72,334


	Taxation on profit on ordinary activities	139,857	211,753

Page 34

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

12.Taxation (continued)

Profit on ordinary activities before tax

1,589,387

1,147,192

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)	301,984	217,966
Effects of:
Fixed asset differences	(157,156)	37,591
Non-taxable income/expenditure	3,843	1,796
Pension scheme movements	(11,400)	(45,600)
Chargeable gains	4,370	-
Other differences leading to an increase (decrease) in the tax charge	(1,784)	-
Total tax charge for the year	139,857	211,753

Factors that may affect future tax charges

The pension payments made during the year have reduced the pension deficit provision, whilst interest on the scheme's assets and liabilities have been charged to the Statement of Comprehensive Income. For corporation tax purposes it is only the pension payments made that are deductible for tax purposes.

Page 35

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

13.	Dividends
		2020	2019
		£	£

Dividends paid on ordinary B shares	-	80,000
Dividends paid on ordinary C shares	-	80,000
Dividends paid on ordinary D shares	-	80,000
Dividends paid on ordinary E shares	-	30,000
Dividends paid on ordinary F shares	-	30,000
Dividends paid on ordinary G shares	-	30,000
Dividends paid on ordinary H shares	-	30,000
	-	360,000

Page 36

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14.	Tangible fixed assets
	Group

	Freehold property	Property under construction	Plant, machinery and office equipment	Motor Vehicles	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2020	11,908,451	849,194	2,908,497	281,212	15,947,354
Additions	67,847	4,791	183,522	-	256,160
Disposals	-	-	(34,923)	-	(34,923)
Transfers between classes	200,000	-	-	-	200,000
At 31 December 2020	12,176,298	853,985	3,057,096	281,212	16,368,591
Depreciation
At 1 January 2020	-	-	2,151,549	256,114	2,407,663
Charge for the year on owned assets	-	-	279,335	22,386	301,721
Disposals	-	-	(8,837)	-	(8,837)
At 31 December 2020	-	-	2,422,047	278,500	2,700,547
Net book value
At 31 December 2020	12,176,298	853,985	635,049	2,712	13,668,044
At 31 December 2019	11,908,451	849,194	756,948	25,098	13,539,691

The land and buildings were revalued on 23 March 2017 by Colliers International and on 31 December 2017 by Towler Shaw Roberts, on an open market basis. Both firms are members of the Royal Institute of Chartered Surveyors. The Directors consider that there have not been any material change in the market values of the properties since the valuations were performed.

Page 37

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

14.Tangible fixed assets (continued)

	Company

	Freehold property	Property under construction	Plant, machinery and office equipment	Fixtures & Fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2020	12,538,451	849,194	10,210	33,302	13,431,157
Additions	67,847	4,791	-	24,130	96,768
Disposals	-	-	(10,210)	(24,713)	(34,923)
Transfers between classes	(430,000)	-	-	-	(430,000)
At 31 December 2020	12,176,298	853,985	-	32,719	13,063,002
Depreciation
At 1 January 2020	-	-	-	13,827	13,827
Charge for the year on owned assets	-	-	-	5,411	5,411
Disposals	-	-	-	(8,837)	(8,837)
At 31 December 2020	-	-	-	10,401	10,401
Net book value
At 31 December 2020	12,176,298	853,985	-	22,318	13,052,601
At 31 December 2019	12,538,451	849,194	10,210	19,475	13,417,330

Page 38

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

15.	Fixed asset investments
	Group

	Listed Investments	Unlisted Investments	Total
	£	£	£
Cost or valuation
At 1 January 2020	56,006	109,596	165,602
Additions	-	25,000	25,000
Disposals	-	(2,000)	(2,000)
Revaluations	(20,182)	-	(20,182)
At 31 December 2020	35,824	132,596	168,420

Page 39

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

	Company

	Investments in Subsidiary Companies	Unlisted Investments	Total
	£	£	£
Cost or valuation
At 1 January 2020	4,519,337	97,596	4,616,933
Additions	-	25,000	25,000
At 31 December 2020	4,519,337	122,596	4,641,933

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Principal activity	Class of shares	Holding

Furrows Limited	Motor dealers	Ordinary	100%
Security Investments (Industrial) Limited	Finance house	Ordinary	100%
Furrows Properties Limited	Property development	Ordinary	100%
Deemster Investment Trust Limited	Dormant	Ordinary	100%
Motor House (Shrewsbury) Limited	Dormant	Ordinary	100%
TPS (Shrewsbury) Limited	Dormant	Ordinary	100%

Furrows Properties Limited is exempt from the requirements of the Act relating to the audit of individual accounts by virtue of S479A of the Companies Act 2006. As part of the requirements of fulfilling the exemption requirements Furrows Holdings Limited has provided the Company with a S479C guarantee.

Page 40

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

16.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 January 2020	13,214,853
	Additions at cost	357,449
	Disposals	(192,873)
	Transfers between classes	(200,000)
	At 31 December 2020	13,179,429

The 2017 valuations were made by Colliers International, Towler Shaw Roberts and the Directors, on an open market value for existing use basis.

The Directors consider that there have not been any material change in the market values of the properties since the valuations were performed.

	Company

		Freehold investment property
		£
	Valuation
	At 1 January 2020	12,584,853
	Additions at cost	357,449
	Disposals	(192,873)
	Transfers between classes	430,000
	At 31 December 2020	13,179,429

The 2017 valuations were made by Colliers International, Towler Shaw Roberts and the Directors, on an open market value for existing use basis.

The Directors consider that there have not been any material change in the market values of the properties since the valuations were performed.

Page 41

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

17.	Stocks
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

New and used vehicle stocks	12,622,931	22,374,437	-	-
Demo & courtesy vehicles	1,504,520	1,753,095	-	-
Development stock and work in progress	667,103	635,724	667,063	640,724
Parts, accessories and forecourt stock	771,790	904,219	66,854	82,668
	15,566,344	25,667,475	733,917	723,392

	The difference between purchase price or production cost of stocks and their replacement cost is not material.
	Stocks are stated after a provision for impairment of £40,207 (2019 - £43,075). Included within vehicle stock is £8,310,079 (2019: £16,162,195) in relation to interest bearing consignment stocks. A corresponding liability is included within trade creditors in relation to these vehicles.

Page 42

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

18.	Debtors
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Due after more than one year
Trade debtors	940,320	1,055,672	-	-
	940,320	1,055,672	-	-

Group	Group	Company	Company
2020	2019	2020	2019
£	£	£	£

Due within one year
Trade debtors	1,434,291	2,873,781	62,858	101,416
Amounts owed by group undertakings	-	-	1,645,223	1,760,556
Other debtors	781,224	624,733	7,854	92,883
Prepayments and accrued income	229,356	279,304	55,884	83,422
Deferred taxation	1,119,737	1,026,105	368,287	388,465
	3,564,608	4,803,923	2,140,106	2,426,742

An impairment loss of £43,694 (2019 - £20,493) was recognised in the Consolidated Income Statement against trade debtors.

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Cash at bank and in hand	1,304,536	695,484	796,491	129,182
Less: bank overdrafts	(300,635)	(774,882)	-	(492,159)
	1,003,901	(79,398)	796,491	(362,977)

Page 43

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Vehicle stocking loans	3,291,590	5,405,641	-	-
Bank overdrafts	300,635	774,882	-	492,159
Bank loans	1,451,864	2,833,333	1,451,864	2,833,333
Trade creditors	11,039,097	20,949,213	26,529	28,035
Amounts owed to group undertakings	-	-	9,581,835	12,481,206
Corporation tax	41,804	47,504	321	-
Other taxation and social security	469,427	647,784	237,570	132,949
Other creditors	1,818,938	3,347,405	1,567,479	85,551
Accruals and deferred income	1,756,871	1,097,053	166,738	33,685
	20,170,226	35,102,815	13,032,336	16,086,918

Secured loans
The bank loans and overdrafts are secured by fixed and floating charges on certain freehold properties and other named assets belonging to the Group.
Other balances of £10,045,156 (2019 - £17,718,752) within trade creditors and stocking loans of £3,291,590 (2019 - £5,405,641) are secured over certain stocks of the Group.

21.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Bank loans	7,282,136	3,923,474	6,032,136	3,173,474
Other creditors	-	506,208	-	-
	7,282,136	4,429,682	6,032,136	3,173,474

Secured loans
The bank loans are secured by fixed and floating charges on certain freehold properties and other named assets belonging to the Group.

Page 44

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

22.	Loans

		Group	Group	Company	Company
		2020	2019	2020	2019
		£	£	£	£

Amounts falling due within one year
Bank loans	1,451,864	2,833,333	1,451,864	2,833,333
Vehicle stocking loans	3,291,590	5,405,641	-	-
	4,743,454	8,238,974	1,451,864	2,833,333
Amounts falling due 1-2 years
Bank loans	1,820,540	3,923,474	570,540	3,173,474
	1,820,540	3,923,474	570,540	3,173,474
Amounts falling due 2-5 years
Bank loans	5,461,596	-	5,461,596	-

	12,025,590	12,162,448	7,484,000	6,006,807

23.	Deferred taxation
	Group

		2020
		£

	At beginning of year	222,100
	Charged to profit or loss	154,026
	Charged to other comprehensive income	113,810
	At end of year	489,936

Page 45

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

23.Deferred taxation (continued)

Company

		2020
		£

	At beginning of year	(182,915)
	Charged to the profit or loss	(50,123)
	At end of year	(233,038)

The deferred tax balance is made up as follows:
	Group	Group	Company	Company
	2020	2019	2020	2019
	£	£	£	£

Accelerated capital allowances	(228,845)	(403,050)	(200,369)	(170,425)
On revalued properties	(32,669)	(12,490)	(32,669)	(12,490)
Pension surplus	751,450	637,640	-	-
	489,936	222,100	(233,038)	(182,915)

Comprising:
Asset - due within one year	1,119,737	1,026,105	368,287	388,465
Liability	(629,801)	(804,005)	(601,325)	(571,380)
	489,936	222,100	(233,038)	(182,915)

Page 46

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

24.	Share capital
		2020	2019
		£	£

Allotted, called up and fully paid

1,000 (2019 - 1,000) Ordinary shares of £1.00 each	1,000	1,000
100 (2019 - 100) Ordinary A shares of £1.00 each	100	100
100 (2019 - 100) Ordinary B shares of £1.00 each	100	100
100 (2019 - 100) Ordinary C shares of £1.00 each	100	100
100 (2019 - 100) Ordinary D shares of £1.00 each	100	100
150 (2019 - 150) Ordinary E shares of £1.00 each	150	150
150 (2019 - 150) Ordinary F shares of £1.00 each	150	150
150 (2019 - 150) Ordinary G shares of £1.00 each	150	150
150 (2019 - 150) Ordinary H shares of £1.00 each	150	150

	2,000	2,000

25.

Reserves

Revaluation reserve

The revaluation reserve represents unrealised gains and losses arising on the revaluation of the parent Company's investment property.

Other reserves

Other reserves represent unrealised gains and losses arising on the revaluation of the Group's investment in listed shares to fair value and a capital redemption reserve.

Profit & loss account

The profit and loss account represents the accumulated profits of the Group since incorporation less distributions made to shareholders.

26.	Contingent liabilities

The Company is a member of a group guarantee arrangement with Furrows Limited, Deemster Investment Trust Limited, Furrows Properties Limited and Security Investments (Industrial) Limited.
The Company is part of a Cross Guarantee arrangement with Furrows Limited, TPS (Shrewsbury) Limited, Motorhouse (Shrewsbury) Limited, Security Investments (Industrial) Limited and Deemster Investment Trust Limited. The guarantee unconditionally and irrevocably ensures that due and punctual payments to the Trustee are made in relation to the repayment of the Group's pension deficit recovery plan. The deficit of the pension scheme, as reported in Furrows Limited on an FRS 102 basis is £3,955,000 (2019 - £3,356,000).

Page 47

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

27.	Pension commitments

The Group operates a Defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £148,593 (2019 - £135,738).

The Group operates a Defined benefit pension scheme.

The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Company must agree with the Trustees of the Scheme the contributions to be paid to meet the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 5 April 2019 and the next valuation of the Scheme is due as at 5 April 2022. In the event that the next valuation reveals a larger deficit than expected the Group may be required to increase contributions above existing levels. Conversely, if the position is better than expected, it’s possible that contributions may be reduced.
The Group expects to pay contributions of £500,000 in the year to 31 December 2021.
The Scheme is managed by a board of Trustees appointed in part by the Group and part from elections by members of the Scheme. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme's assets. The Trustees delegate some of these functions to their professional advisers where appropriate.
The Scheme exposes the Group to a number of risks:
- Investment risk. The Scheme holds investments in asset classes, such as equities, which have volatile market values and while these assets are expected to provide real returns over the long-term the short term volatility can cause additional funding to be required if deficit emerges.
- Interest rate risk. The Scheme's liabilities are assessed using market yields on high quality corporate bonds to discount the liabilities. As the Scheme holds assets such as equities the value of the assets and liabilities may not move in the same way.
- Inflation risk. A significant proportion of the benefits under the Scheme are linked to inflation. Although the Scheme's assets are expected to provide a good hedge against inflation over the long term, movements over the short-term could lead to deficits emerging.
- Mortality risk. In the event that members live longer than assumed a deficit will emerge in the Scheme.
The effect of the judgment regarding equalisation of guaranteed minimum pensions for past transfers has been accounted for as a past service cost during the period.
There were no other plan amendments, curtailments or settlements during the period.

Page 48

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

27.Pension commitments (continued)

Reconciliation of present value of plan liabilities:
	2020	2019
	£	£


At the beginning of the year	17,079,000	15,686,000
Interest cost	336,000	462,000
Actuarial gains/losses	1,713,000	1,433,000
Benefits paid	(528,000)	(546,000)
Past service cost	216,000	44,000
At the end of the year	18,816,000	17,079,000

Reconciliation of present value of plan assets:
	2020	2019
	£	£

At the beginning of the year	13,723,000	12,445,000
Current service cost	(161,000)	(125,000)
Interest income	273,000	371,000
Actuarial gains/losses	1,054,000	1,078,000
Contributions	500,000	500,000
Benefits paid	(528,000)	(546,000)
At the end of the year	14,861,000	13,723,000

Page 49

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

27.Pension commitments (continued)

					2020	2019
					£	£

Fair value of plan assets	14,861,000	13,723,000
Present value of plan liabilities	(18,816,000)	(17,079,000)
Net pension scheme liability	(3,955,000)	(3,356,000)

The amounts recognised in profit or loss are as follows:
	2020	2019
	£	£

Current service cost	(161,000)	(125,000)
Interest on obligation	(336,000)	(462,000)
Interest income on plan assets	273,000	371,000
Past service cost	(216,000)	(44,000)
Total	(440,000)	(260,000)

Page 50

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

27.Pension commitments (continued)

A comprehensive actuarial valuation of the company pension scheme, using the projected unit credit method, was carried out at 5 April 2019 by Barnett Waddingham LLP, independent consulting actuaries, Adjustments to the valuation at that date have been made based on the following assumptions:
	2020	2019
	%	%

Discount rate	1.3	2.0
Inflation assumption (RPI)	2.8	3.2
Inflation assumption (CPI)	2.2	2.2
Provision increases:
Service up to 6 April 1997	0	0
Service from 6 April 1997 to 5 April 2006 (RPI max 5%)	2.7	3.1
Service on or after 6 April 2006 (CPI max 2.5%)	1.7	1.7
GMP benefits accrued after 5 April 1988 (CPI max 3%)	1.9	1.9
Revaluation in deferment (CPI)	2.2	2.2
Life expectancy at age 65 of male aged 45 (years)	22.2	22.1
Life expectancy at age 65 of male aged 65 (years)	20.8	20.8
Life expectancy at age 65 of female aged 45 (years)	24.6	24.5
Life expectancy at age 65 of female aged 65 (years)	23.2	23.1
Post retirement morality assumption	115% of S3PA tables with CMI 2018 projections and a long term rate of improvement of 1.25% p.a.	115% of S3PA tables with CMI 2018 projections and a long term rate of improvement of 1.25% p.a.
Commutation	75% of members take the maximum cash	75% of members take the maximum cash

Page 51

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

28.

Related party transactions

Included in other creditors is £554,999 (2019 - £1,081,842) owed to Directors of group companies and their close family members. Interest was charged at a rate of 3.0% to 3.5% (2019 - 3.0% to 3.5%) per annum.
Included within other debtors is an amount owed to Directors of group companies and their close family members of £6,326 (2019: £NIL).
During the year the Group sold a property to a Director of the parent company for proceeds of £299,150 being the fair open market value.

29.	Controlling party

There is no individual ultimate controlling party of the Company.

Page 52