W.S. (Accrington) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02822459 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2020

for

W.S. (Accrington) Limited

Page

Company Information

1

Chartered Accountants' Report

2

Statement of Financial Position

3

Notes to the Financial Statements

4

DIRECTOR:

W Singh

REGISTERED OFFICE:

Citypoint 16th Floor

One Ropemaker Street

London

EC2Y 9AW

REGISTERED NUMBER:

02822459 (England and Wales)

ACCOUNTANTS:

ASE Audit LLP

Chartered Accountants

Rowan Court

Concord Business Park

Manchester

Greater Manchester

M22 0RR

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of Financial Position. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of W.S. (Accrington) Limited for the year ended 31 December 2020 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of W.S. (Accrington) Limited in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of W.S. (Accrington) Limited and state those matters that we have agreed to state to the director of W.S. (Accrington) Limited in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than W.S. (Accrington) Limited and its director for our work or for this report.

It is your duty to ensure that W.S. (Accrington) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of W.S. (Accrington) Limited. You consider that W.S. (Accrington) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of W.S. (Accrington) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

ASE Audit LLP

Chartered Accountants

Rowan Court

Concord Business Park

Manchester

Greater Manchester

M22 0RR

29 September 2021

FIXED ASSETS

Tangible assets

4

302,215

326,608

CURRENT ASSETS

Stocks

5

891,676

619,634

Debtors

6

104,771

39,879

Cash at bank and in hand

749,608

526,205

1,746,055

1,185,718

CREDITORS

Amounts falling due within one year

7

1,277,743

839,621

NET CURRENT ASSETS

468,312

346,097

TOTAL ASSETS LESS CURRENT LIABILITIES

770,527

672,705

PROVISIONS FOR LIABILITIES

2,848

4,499

NET ASSETS

767,679

668,206

CAPITAL AND RESERVES

Called up share capital

9

50,001

50,001

Capital redemption reserve

10

199,999

199,999

Retained earnings

10

517,679

418,206

SHAREHOLDERS' FUNDS

767,679

668,206

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 28 September 2021 and were signed by:

W Singh - Director

1.	STATUTORY INFORMATION

W.S. (Accrington) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 02822459 and the registered office of the business is Citypoint 16th Floor, One Ropemaker Street, London EC2Y 9AW.

The presentation currency of the financial statements is Pound Sterling (£).

The company's principal place of business is The Motor House, Burnley Rd, Accrington BB5 6DJ.

The principal activity of the company was that of a motor dealership.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

Covid-19 has caused, and will continue to cause, widespread economic disruption. Based on current bank balances and facilities, current funding and current trading, the director believes that the company will be able to meet its debts as they fall due for the period of 12 months after the approval of these financial statements. He has therefore prepared the financial statements on a going concern basis.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements have been made by the director in applying the company's accounting policies:

Stock valuation

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including CAP valuation guides. The director maintains oversight of ageing stock profiles and a monthly review of any provision required is performed.

Consignment stock

Vehicles held on consignment have been included in 'vehicle stock' within 'stocks' on the basis that the company has determined that it holds the significant risks and rewards attached to these vehicles.

Property, plant and equipment

At each reporting date property, plant and equipment is assessed for any indication of impairment. If such indication exists, the recoverable amount of the asset is determined based on value in use calculations which require estimates to be made of future cash flows.

An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Brand incentives

The company receives income in the form of various incentives which are determined by its brand partner. The amount receivable is generally based on achieving specific objectives such as a specified sales volume, as well as other objectives including maintaining brand partner standards which may include, but are not limited to, retail centre image and design requirements, customer satisfaction survey results and training standards. Objectives are generally set and measured on either a quarterly or annual basis.

Where incentives are based on a specific sales volume or number of registrations, the related income is recognised as a reduction in cost of sales when it is reasonably certain that the income has been earned. This is generally the later of the date the related vehicles are sold or registered or when it is reasonably certain that the related target will be met. Where incentives are linked to retail centre image and design requirements, customer satisfaction survey results or training standards, they are recognised as a reduction in cost of sales when it is reasonably certain that the incentive will be received for the relevant period.

The company may also receive contributions towards advertising, promotional and rent expenditure. Where such contributions are received they are recognised as a reduction in the related expenditure in the period to which they relate.

Turnover

Turnover from the sale of goods is recognised in the Income Statement, net of discounts and value added tax, when the significant risks and rewards of ownership have been transferred to the buyer. In general this occurs when vehicles or parts have been supplied or when a service has been completed.

Commission income is accounted for on a receivable basis.

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.

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

Freehold property

-

2% on cost or valuation, Land is not depreciated

Plant and machinery

-

10%-20% on cost

Fixtures & fittings

-

Between 10%-33% on cost

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Income Statement.

Government grants

Furlough grant income under the Coronavirus Job Retention Scheme are accounted for in "Other operating income" on a receivable basis.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock.

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement.

Consignment stock

Consignment stock vehicles that are regarded effectively as being under control of the company and, in accordance with FRS 102, are included within stocks on the Statement of Financial Position, although legal title has not passed to the company. The corresponding liability is included in trade creditors and is secured directly on the vehicles to which it relates.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the reporting date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The company only has basic financial instruments, which are recognised at amortised cost.

Debtors

Short term debtors are measured at transaction price less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured at amortised cost.

Finance costs

Finance costs are charged to the Income Statement on an accrual basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2019 - 12 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2020

361,130

424,749

785,879

Additions

-

6,361

6,361

At 31 December 2020

361,130

431,110

792,240

DEPRECIATION

At 1 January 2020

84,525

374,746

459,271

Charge for year

4,222

26,532

30,754

At 31 December 2020

88,747

401,278

490,025

NET BOOK VALUE

At 31 December 2020

272,383

29,832

302,215

At 31 December 2019

276,605

50,003

326,608

Included in land and buildings is freehold land at cost of £150,000 (2019: £150,000) which is not depreciated.

5.

STOCKS

31.12.20

31.12.19

£

£

Vehicle stocks

855,806

571,655

Parts and accessories

35,870

47,979

891,676

619,634

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Trade debtors

59,318

24,943

Other debtors

38,959

-

Prepayments

6,494

14,936

104,771

39,879

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Bank loans and overdrafts

50,000

11,667

Trade creditors

1,053,136

626,515

Corporation tax

27,331

24,835

Social security and other taxes

6,588

67,906

Accruals

140,688

108,698

1,277,743

839,621

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.20

31.12.19

£

£

Bank loans

50,000

11,667

Vehicle creditors

998,651

560,919

1,048,651

572,586

Vehicle creditors are included within trade creditors due within one year. They are secured directly against the respective vehicles to which they relate.

The bank loan is secured by way of debenture over W.S. (Accrington) Limited and a Freehold 1st Legal charge over W.S. (Accrington) Limited.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.20

31.12.19

value:

£

£

50,000

Ordinary shares

£1

50,000

50,000

1

1% Redeemable preference

£1

1

1

50,001

50,001

Ordinary share capital

The ordinary shares confer the right to be paid a dividend out of the distributable profits of the company, after all dividend and redemption rights relating to the redeemable participating preference shares have been satisfied. The ordinary shares also carry the right to attend and vote at all general meetings of the company.

Preference shares

The redeemable participating preference shares confer the right to be paid a dividend out of the profits of the company, in priority to any other class of shares, equal to the percentage of the distributable profits of the company represented by the proportion of preference shares issued in relation to the equity share capital issued.

The balance of distributable profits remaining after any such preference dividend is declared shall then be applied to the redemption of preference shares at par, except when the preference shares have been reduced to 1% or less of the issued capital of the company or converted into 'A' ordinary shares. The preference shares also carry the right to attend and vote at all general meetings of the company.

If the preference shares have not been redeemed, the holders are entitled to request they be converted to 'A' ordinary shares on a 1 for 1 basis.

As the preference shares have been redeemed, the one remaining preference share is shown as equity.

10.

RESERVES

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Retained earnings

Profit and loss account includes all current and prior period retained profit and losses.

11.	PENSION COMMITMENTS

The company contributes into a personal pension plan for employees. The contributions payable by the company for the year totalled £2,769 (2019: £2,648). At the reporting date contributions outstanding to the scheme amounted to £469 (2019: £593).

12.	POST BALANCE SHEET EVENTS

The company continues to be impacted by the constant changes in trading restrictions due to the Covid-19 pandemic. Showrooms were able to open from 12 April 202 and the furlough scheme has been extended by the Government to 30 September 2021.

On 19 May 2021 Stellantis announced that it is to give all of its UK and European dealerships a two years' termination notice for their vehicle and aftersales franchises. Stallantis have since confirmed via an A Letter that the company will retain the franchise.

13.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is W Singh.