| Goodwin Lee Investments Limited |
| Notes to the Accounts |
| for the year ended 31 December 2020 |
|
|
| 1 |
Accounting policies |
|
|
Basis of preparation |
|
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
|
|
Turnover |
|
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
|
|
Intangible fixed assets |
|
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
|
|
Franchise costs are the amount paid in connection with the acquisition of franchise licences in 2008 and 2009. The cost is amortised on a straight line basis over the term of the franchise agreements; being ten years from 15 March 2011. |
|
|
Tangible fixed assets |
|
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
|
|
Fixtures and fittings |
25% on cost |
|
Motor vehicles |
30% on cost |
|
Computer equipment |
100% on cost |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Accounting policies (continued) |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
Government grants |
|
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in "other operating income" within profit and loss in the same period as the related expenditure. The company has not benefited from any other forms of government assistance. |
|
| 2 |
Employees |
2020 |
|
2019 |
| Number |
Number |
|
|
Average number of persons employed by the company |
30 |
|
52 |
|
|
|
|
|
|
|
|
|
| 3 |
Taxation |
2020 |
|
2019 |
| £ |
£ |
|
|
Corporation tax on (loss) profit for the year |
- |
|
(93,139) |
|
Adjustments in respect of prior years |
(28,386) |
|
- |
|
Deferred taxation in respect of accelerated capital allowances |
- |
|
(52,961) |
|
Taxation (credit) charge for the year |
(28,386) |
|
(146,100) |
|
|
|
|
|
|
|
|
|
| 4 |
Intangible fixed assets |
£ |
|
Goodwill: |
|
|
Cost |
|
At 1 January 2020 |
30,000 |
|
At 31 December 2020 |
30,000 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 January 2020 |
26,375 |
|
Provided during the year |
3,000 |
|
At 31 December 2020 |
29,375 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2020 |
625 |
|
At 31 December 2019 |
3,625 |
|
|
|
|
|
|
|
|
|
| 5 |
Tangible fixed assets |
|
|
Fixtures and fittings |
|
Computer equipment |
|
Motor vehicles |
|
Total |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 January 2020 |
22,289 |
|
8,402 |
|
2,010,505 |
|
2,041,196 |
|
Additions |
- |
|
- |
|
189,020 |
|
189,020 |
|
Disposals |
- |
|
- |
|
(254,800) |
|
(254,800) |
|
At 31 December 2020 |
22,289 |
|
8,402 |
|
1,944,725 |
|
1,975,416 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2020 |
22,289 |
|
8,401 |
|
704,715 |
|
735,405 |
|
Charge for the year |
- |
|
- |
|
578,847 |
|
578,847 |
|
On disposals |
- |
|
- |
|
(127,621) |
|
(127,621) |
|
At 31 December 2020 |
22,289 |
|
8,401 |
|
1,155,941 |
|
1,186,631 |
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2020 |
- |
|
1 |
|
788,784 |
|
788,785 |
|
At 31 December 2019 |
- |
|
1 |
|
1,305,790 |
|
1,305,791 |
|
|
|
|
|
|
|
|
|
|
The historical cost of motor vehicles held under hire purchase is £1,944,725 (2019: £1,977,256) and their net book value is £788,784 (2019: £1,302,414). |
|
|
| 6 |
Debtors |
2020 |
|
2019 |
| £ |
£ |
|
|
Trade debtors |
301,030 |
|
460,918 |
|
Accrued income |
54,908 |
|
209,965 |
|
Loan to related undertakings |
|
|
|
|
663,292 |
|
900,778 |
|
Prepayments |
|
|
|
|
39,567 |
|
104,247 |
|
Corporation tax |
|
|
|
|
28,386 |
|
- |
|
Other debtors |
13,065 |
|
10,635 |
|
|
|
|
|
|
1,100,248 |
|
1,686,543 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Creditors: amounts falling due within one year |
2020 |
|
2019 |
| £ |
£ |
|
|
Trade creditors |
797,059 |
|
353,768 |
|
Bank loans and overdrafts |
34,722 |
|
- |
|
Hire purchase |
461,180 |
|
522,181 |
|
Social security and value added tax |
21,432 |
|
45,919 |
|
Amounts owed to related undertaking |
|
34,982 |
|
206,000 |
|
Accrued expenses |
146,508 |
|
243,880 |
|
Corporation tax |
|
|
|
|
- |
|
- |
|
Deferred income |
55,904 |
|
55,904 |
|
|
|
|
|
|
1,551,787 |
|
1,427,652 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Creditors: amounts falling due after one year |
2020 |
|
2019 |
| £ |
£ |
|
|
Bank loans |
215,278 |
|
- |
|
Hire purchase |
748,016 |
|
945,191 |
|
Loans from shareholders |
333 |
|
333 |
|
|
|
|
|
|
963,627 |
|
945,524 |
|
|
|
|
|
|
|
|
|
|
| 9 |
Provisions for liabilities - deferred taxation |
2020 |
|
2019 |
| £ |
£ |
|
|
At 1 January 2020 |
- |
|
52,961 |
|
Adjustment in respect of accelerated capital allowances |
- |
|
(52,961) |
|
At 31 December 2020 |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
| 10 |
Other financial commitments |
2020 |
|
2019 |
| £ |
£ |
|
|
Total future minimum payments under non-cancellable operating leases |
|
296,182 |
|
784,714 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Related party transactions |
|
|
WBC Consultancy Limited, a company controlled by A A Woods, a shareholder, loaned the company £34,982 interest free. |
|
|
The company has loaned £9,614 (2019: £5,809) and charged management fees of £26,000 (2019: £30,000) to Westcountry Rentals Limited, a company related by virtue of common shareholdings. |
|
|
The company has loaned £148,277 (2019: £263,249) to Goodwin Lee B Limited and £721,455 (2019: £714,368) to Goodwin Lee Developments Limited, companies related by virtue of common shareholdings. |
|
| 12 |
Controlling party |
|
|
The company is controlled by the shareholders with no individual shareholder having overall control. |
|
|
| 13 |
Other information |
|
|
Goodwin Lee Investments Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
2 Reigate Road |
|
Sidlow |
|
Reigate |
|
Surrey |
|
RH2 8QH |
