Webbs Caravans Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 08772577 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 30 April 2021

for

Webbs Caravans Ltd

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditor

3

Income Statement

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTORS:

Mr D R Webb

Mrs C A Webb

Mr M Webb

REGISTERED OFFICE:

132A Bournemouth Road

Chandlers Ford

Eastleigh

Hampshire

REGISTERED NUMBER:

08772577 (England and Wales)

SENIOR STATUTORY AUDITOR:

Michael Alan Northover TD FCA

AUDITOR:

Michael Alan Northover TD FCA

Senior Statutory Auditor

132A Bournemouth Road

Chandlers Ford

Eastleigh

Hampshire

SO53 3AL

The directors present their report with the financial statements of the company for the year ended 30 April 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and servicing of caravans.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2020 to the date of this report.

Mr D R Webb

Mrs C A Webb

Mr M Webb

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditor is unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

AUDITOR

The auditor, Michael Alan Northover TD FCA, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr D R Webb - Director

27 April 2022

Opinion

I have audited the financial statements of Webbs Caravans Ltd (the 'company') for the year ended 30 April 2021 which comprise the Income Statement, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In my opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 April 2021 and of its 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

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of my report. I am independent of the company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

My responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and my Report of the Auditor thereon.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In my opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which I am required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, I have not identified material misstatements in the Report of the Directors.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

-	adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	I have not received all the information and explanations I require for my audit; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditor that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which my procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which an audit is capable of detecting irregularities, including fraud.

As part of planning my audit, I determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, I looked at where management made subjective judgements, for example in respect of any significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. I also considered potential financial or other pressures, opportunity, and motivations for fraud. As part of this discussion, I identified the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of key estimates and judgements made by management.

I gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates and considered the risk of acts by the Company that could be contrary to these laws and regulations, including fraud.

I focused on laws and regulations that could give rise to a material misstatement in the financial statements, including UK tax legislation and equivalent local laws and regulations.

I made enquiries of management with regards to compliance with the above laws and regulations and corroborated any available evidence to relevant information provided to the Directors.

I completed a review of a random sample of income and expenditure items throughout the period and any unusual findings, if any, raised with the directors for further investigation.

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.

I did not identify any key audit matters relating to irregularities, including fraud. As in all of my audits, I also addressed the risk of management override of internal controls including testing management accounts adjustment or journals and evaluation as to whether there was any evidence of bias by the Directors that represented a risk of material misstatement due to fraud including tax fraud.

My audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of my 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 my Report of the Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

Michael Alan Northover TD FCA

Senior Statutory Auditor

132A Bournemouth Road

Chandlers Ford

Eastleigh

Hampshire

SO53 3AL

27 April 2022

TURNOVER

3,971,100

4,436,486

Cost of sales

3,323,869

3,617,865

GROSS PROFIT

647,231

818,621

Administrative expenses

763,660

855,990

(116,429

)

(37,369

)

Other operating income

123,785

18,576

OPERATING PROFIT/(LOSS)

4

7,356

(18,793

)

Interest payable and similar expenses

3,840

8,584

PROFIT/(LOSS) BEFORE TAXATION

3,516

(27,377

)

Tax on profit/(loss)

1,928

(2,856

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,588

(24,521

)

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

160,906

171,170

160,906

171,170

CURRENT ASSETS

Stocks

7

772,596

950,861

Debtors

8

154,566

236,637

Cash at bank

358,629

8,909

1,285,791

1,196,407

CREDITORS

Amounts falling due within one year

9

1,128,666

1,045,891

NET CURRENT ASSETS

157,125

150,516

TOTAL ASSETS LESS CURRENT LIABILITIES

318,031

321,686

CREDITORS

Amounts falling due after more than one year

10

(4,849

)

(14,992

)

PROVISIONS FOR LIABILITIES

11

(25,000

)

(20,100

)

NET ASSETS

288,182

286,594

CAPITAL AND RESERVES

Called up share capital

12

100

100

Retained earnings

13

288,082

286,494

SHAREHOLDERS' FUNDS

288,182

286,594

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

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2022 and were signed on its behalf by:

Mr D R Webb - Director

1.	STATUTORY INFORMATION

Webbs Caravans Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Improvements to property

-

10% on cost

Plant and machinery

-

15% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

411,265

443,262

Social security costs

41,772

45,731

Other pension costs

7,980

8,215

461,017

497,208

The average number of employees during the year was as follows:

2021

2020

Management

1

1

Administration

1

1

Sales

3

4

Servicing

6

9

Parts

2

2

Directors

3

3

16

20

4.	OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging:

2021

2020

£

£

Other operating leases

68,255

68,711

Depreciation - owned assets

28,616

30,854

Auditors' remuneration

3,800

3,325

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 May 2020

and 30 April 2021

30,000

AMORTISATION

At 1 May 2020

and 30 April 2021

30,000

NET BOOK VALUE

At 30 April 2021

-

At 30 April 2020

-

6.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 May 2020

139,265

38,505

92,105

12,422

282,297

Additions

-

19,301

-

-

19,301

Disposals

-

-

(3,000

)

-

(3,000

)

At 30 April 2021

139,265

57,806

89,105

12,422

298,598

DEPRECIATION

At 1 May 2020

38,369

23,655

39,463

9,640

111,127

Charge for year

9,489

5,282

12,923

922

28,616

Eliminated on disposal

-

-

(2,051

)

-

(2,051

)

At 30 April 2021

47,858

28,937

50,335

10,562

137,692

NET BOOK VALUE

At 30 April 2021

91,407

28,869

38,770

1,860

160,906

At 30 April 2020

100,896

14,850

52,642

2,782

171,170

7.

STOCKS

2021

2020

£

£

Stock

772,596

950,861

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

1,798

36,113

Loan to associated company

124,136

124,136

Other debtors

-

36,607

VAT

1,274

-

Deferred tax asset

1,395

2,598

Prepayments

25,963

37,183

154,566

236,637

Included in trade debtors is £Nil (2020 - £9,000) due from Webb's Motor Caravans (Reading) Limited, a company under the control of Webb's Holdings Ltd.

Included in trade debtors is £Nil (2020 - £292) due from Webb's Motor Caravans Limited, a company under the control of Webb's Holdings Ltd.

Included in loans to associated company is £124,136 (2020 - £124,136) made to Webb's Holdings Ltd.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

100,000

-

Hire purchase contracts

7,863

7,863

Trade creditors

274,662

281,382

Tax

725

-

Social security and other taxes

15,036

24,525

VAT

-

9,363

Loan from associated company

721,540

714,624

Accrued expenses

8,840

8,134

1,128,666

1,045,891

Included in trade creditors is £25,062 (2020 - £62,168) due to Webb's Motor Caravans (Reading) Limited, a company under the control of Webb's Holdings Ltd.

Included in trade creditors is £Nil (2020 - £1,669) due to Webb's Motor Caravans Limited, a company under the control of Webb's Holdings Ltd.

Included in trade creditors is £6,500 (2020 - £6,500) due to Webb's Holdings Ltd, a company under the control of Mr D and Mrs C Webb.

Included in loans from associated companies is £721,540 (2020 - £714,624) due to Webb's Motor Caravans Limited.

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Hire purchase contracts

4,849

10,733

Other creditors

-

4,259

4,849

14,992

11.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Other provisions

Warranty provisions

25,000

20,100

Deferred

tax

£

Balance at 1 May 2020

(2,598

)

Charge to Income Statement during year

1,203

Balance at 30 April 2021

(1,395

)

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

100

100

100

13.

RESERVES

Retained

earnings

£

At 1 May 2020

286,494

Profit for the year

1,588

At 30 April 2021

288,082

14.	RELATED PARTY DISCLOSURES

During the period the company paid rent to Webb's Holdings Ltd of £65,000 (2020 - £65,000).

During the period an amount of £Nil (2020 £9,082) was paid to Webb's Holdings Ltd, a company under the control of Mr D & Mrs C Webb. The amount outstanding at the year end was £124,136 (2020 - £124,136).

During the year a net amount of £6,916 (2020 - £83,145 received) was received from Webbs Motor Caravans Limited a company under the control of Webb's Holdings Ltd. The amount outstanding at the year end was £721,540 (2020 - £714,624).

During the period the company purchased goods and services from Webb's Motor Caravans Limited of £2,649 (2020 - £4,207), a company under the control of Webb's Holdings Ltd.

During the period the company purchased goods and services from Webb's Motor Caravans (Reading) Limited of £422,397 (2020 - £303,389), a company under the control of Webb's Holdings Ltd.

During the period the company sold goods and services to Webb's Motor Caravans Limited of £Nil (2020 - £292).

During the period the company sold goods and services to Webb's Motor Caravans (Reading) Limited of £81,373 (2020 - £171,719).

15.	ULTIMATE CONTROLLING PARTY

Mr D R Webb and Mrs C Webb are the ultimate controlling parties of the Company by virtue of their joint 100% shareholding in the Company's Parent Company, Webb's Holdings Limited.