Anthony Motors Ltd - Period Ending 2014-01-31

Registration number: 01418735

Anthony Motors Ltd

Directors' Report and Financial Statements

for the Year Ended 31 January 2014
 

Anthony Motors Ltd
Contents

Company Information 1

Directors' Report 2

Statement of Directors' Responsibilities 3

Independent Auditor's Report 4 to 5

Profit and Loss Account 6

Balance Sheet 7

Cash Flow Statement 8 to 9

Notes to the Financial Statements 10 to 19

Anthony Motors Ltd
Company Information

Directors

J M Manley W A Richards

Company secretary

R M Powell

Registered office

Llanbadarn Road Aberystwyth Ceredigion SY23 3QP

Auditors

PJE Chartered Accountants Statutory Auditor 23, College Street Lampeter Ceredigion SA48 7DY

Page 1

Anthony Motors Ltd
Directors' Report for the Year Ended 31 January 2014

The directors present their report and the financial statements for the year ended 31 January 2014.

Directors of the company

The directors who held office during the year were as follows:

J M Manley

W A Richards

Principal activity

The principal activity of the company is motor dealers and garage services.

Business review

Fair review of the business

Trading results for the year ended 31st January 2014 were pleasingly ahead of those of the previous year in turnover, gross margin and net profit. The motor industry has shown strengthening signs of recovery and the company has continued to perform well after year end. The financial position, liquidity and solvency of the company remain strong at, and after, the year end.

Principal risks and uncertainties

The directors continually consider risk and uncertainty in the business and in its market. They have not identified any significant risk to the achievement of the company's strategic objectives, and they do not believe that there are any key risks or uncertainties that warrant discussion or disclosure in this report.

Financial instruments

Objectives and policies

The company does not require a policy for financial instruments. It has no securities and has no exchange-related or over-the-counter derivatives. The company does not make loans. Where it borrows money, it does so under the terms of the lenders' contracts.

Price risk, credit risk, liquidity risk and cash flow risk

The Directors do not believe that there is any significant likelihood of these risks in the foreseeable future.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and which they know the auditors are unaware of.

Approved by the Board on 18 July 2014 and signed on its behalf by:

.........................................
R M Powell
Company secretary

Page 2

Anthony Motors Ltd
Statement of Directors' Responsibilities

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

directors

to prepare financial statements for each financial year. Under that law the

directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the

directors

must not approve the financial statements unless

they are

satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the

directors are

required to:
•
select suitable accounting policies and apply them consistently;
•
make judgements and accounting estimates that are reasonable and prudent
; and
•
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.

Page 3

Independent Auditor's Report to the Members of
Anthony Motors Ltd

We have audited the financial statements of Anthony Motors Ltd for the year ended 31 January 2014, set out on pages 6 to 19. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 auditor’s 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.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors' Responsibilities (set out on page 3), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors' Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on the financial statements

In our opinion the financial statements:
•
give a true and fair view of the state of the company's affairs as at

31 January 2014

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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Page 4

Independent Auditor's Report to the Members of
Anthony Motors Ltd
 
 ......... continued

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

......................................
SA Longworth FCA (Senior Statutory Auditor)
For and on behalf of PJE Chartered Accountants, Statutory Auditor

23, College Street
Lampeter
Ceredigion
SA48 7DY

18 July 2014

Page 5

Anthony Motors Ltd
Profit and Loss Account for the Year Ended 31 January 2014

		Note			2014 £			2013 £
Turnover		2			16,329,922			15,631,977
Cost of sales					(14,193,540)			(13,600,470)
Gross profit					2,136,382			2,031,507
Administrative expenses					(1,803,859)			(1,753,490)
Other operating income					118,094			106,051
Operating profit		3			450,617			384,068
Interest payable and similar charges		6			(72,693)			(73,186)
Profit on ordinary activities before taxation					377,924			310,882
Tax on profit on ordinary activities		7			17,220			(76,988)
Profit for the financial year		17			395,144			233,894

Turnover and operating profit derive wholly from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 10 to 19 form an integral part of these financial statements.
Page 6

Anthony Motors Ltd
(Registration number: 01418735)
Balance Sheet at 31 January 2014

		Note			2014 £			2013 £
Fixed assets
Tangible fixed assets		8			1,500,221			1,385,704
Current assets
Stocks		9			3,339,382			2,926,396
Debtors		10			585,794			595,469
Investments		11			33,583			20,023
Cash at bank and in hand					297,849			364,097
					4,256,608			3,905,985
Creditors: Amounts falling due within one year		12			(3,036,761)			(2,806,304)
Net current assets					1,219,847			1,099,681
Total assets less current liabilities					2,720,068			2,485,385
Creditors: Amounts falling due after more than one year		13			(286,775)			(329,109)
Provisions for liabilities		14			(39,552)			(107,679)
Net assets					2,393,741			2,048,597
Capital and reserves
Called up share capital		15			124			124
Share premium account		17			20,859			20,859
Revaluation reserve		17			106,026			106,026
Profit and loss account		17			2,266,732			1,921,588
Shareholders' funds		18			2,393,741			2,048,597

Approved by the Board on 18 July 2014 and signed on its behalf by:

.........................................
W A Richards
Director

The notes on pages 10 to 19 form an integral part of these financial statements.
Page 7

Anthony Motors Ltd
Cash Flow Statement for the Year Ended 31 January 2014

Reconciliation of operating profit to net cash flow from operating activities

		2014 £			2013 £
Operating profit		450,617			384,068
Depreciation, amortisation and impairment charges		70,946			54,395
(Increase)/decrease in stocks		(412,986)			588,966
Decrease/(increase) in debtors		9,675			(269,371)
(Decrease)/increase in creditors		(211,203)			44,279
Net cash (outflow)/inflow from operating activities		(92,951)			802,337

Cash flow statement

		2014 £			2013 £
Net cash (outflow)/inflow from operating activities		(92,951)			802,337
Returns on investments and servicing of finance
HP and finance lease interest		(1,271)			(1,271)
Interest paid		(71,422)			(71,915)
		(72,693)			(73,186)
Taxation paid		(68,218)			(57,610)
Capital expenditure and financial investment
Purchase of tangible fixed assets		(185,463)			(51,859)
Purchase of investments		(13,560)			-
		(199,023)			(51,859)
Equity dividends paid		(50,000)			(47,880)
Net cash (outflow)/inflow before management of liquid resources and financing		(482,885)			571,802
Financing
Repayment of loans and borrowings		423,709			(578,758)
Repayment of capital element of finance leases and HP contracts		(7,072)			(7,073)
		416,637			(585,831)
Decrease in cash		(66,248)			(14,029)

The notes on pages 10 to 19 form an integral part of these financial statements.
Page 8

Anthony Motors Ltd
Cash Flow Statement for the Year Ended 31 January 2014......... continued

Reconciliation of net cash flow to movement in net debt

		Note			2014 £			2013 £
Decrease in cash					(66,248)			(14,029)
Cash outflow from repayment of loans					(423,709)			578,758
Cash outflow from repayment of capital element of finance leases and hire purchase contracts					7,072			7,073
Change in net debt resulting from cash flows		20			(482,885)			571,802
Movement in net debt		20			(482,885)			571,802
Net debt at 1 February		20			(2,024,290)			(2,596,092)
Net debt at 31 January		20			(2,507,175)			(2,024,290)

The notes on pages 10 to 19 form an integral part of these financial statements.
Page 9

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

1	Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention. However, land and buildings were revalued in 1983. Thr transitional arrangements of FRS15 have therefore been adopted such that there is no requirement for subsequent revaluation.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class	Depreciation method and rate
Freehold property	1% on cost and 1.5% on cost
Plant and machinery	20% on cost
Fixtures and fittings	20% on cost and, in the case of showroom fit-outs, 10% on cost.

Current asset investments

Current asset investments are included at the lower of cost and net realisable value.

Stock

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by FRS19. Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Hire purchase and leasing

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding. HP finance is secured on the assets to which it relates.

Page 10

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

2

Turnover

An analysis of turnover by class of business is given below:

		2014 £			2013 £
UK vehicle sales		14,441,803			13,720,903

UK parts and labour sales		1,866,163			1,891,026

UK vehicle hire income		21,956			20,048

		16,329,922			15,631,977

3	Operating profit

Operating profit is stated after charging:

		2014 £			2013 £
Operating leases - plant and machinery		46,636			48,542
Operating leases - other assets		48,000			48,937
Auditor's remuneration - The audit of the company's annual accounts		8,497			8,525
Depreciation of owned assets		70,946			54,395

4	Particulars of employees

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

		2014 No.			2013 No.
Administration and support		3			3
Sales, marketing and distribution		42			41
		45			44

The aggregate payroll costs were as follows:

		2014 £			2013 £
Wages and salaries		1,080,147			1,063,906

Page 11

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

5	Directors' remuneration

The directors' remuneration for the year was as follows:

		2014 £			2013 £
Remuneration		71,000			71,807

6	Interest payable and similar charges

		2014 £			2013 £
Interest on bank borrowings		9,510			10,330
Interest on other loans		61,912			61,585
Finance charges		1,271			1,271
		72,693			73,186

7

Taxation

Tax on profit on ordinary activities

		2014 £			2013 £
Current tax
Corporation tax charge		50,907			68,218
Deferred tax
Origination and reversal of timing differences		(68,127)			8,770
Total tax on profit on ordinary activities		(17,220)			76,988

Factors affecting current tax charge for the year

Tax on profit on ordinary activities for the year is lower than (2013 - higher than) the standard rate of corporation tax in the UK of 20% (2013 - 20.5%).

The differences are reconciled below:

Page 12

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

		2014 £			2013 £
Profit on ordinary activities before taxation		377,924			310,882
Corporation tax at standard rate		75,585			63,731
Accelerated capital allowances		(24,678)			4,487
Total current tax		50,907			68,218

8	Tangible fixed assets

		Freehold land and buildings £			Plant and machinery £			Fixtures and fittings £			Total £
Cost or valuation
At 1 February 2013		1,425,397			651,364			185,241			2,262,002
Additions		-			24,488			160,975			185,463
Disposals		-			(494,970)			(28,847)			(523,817)
At 31 January 2014		1,425,397			180,882			317,369			1,923,648
Depreciation
At 1 February 2013		153,880			563,111			159,307			876,298
Charge for the year		9,480			33,944			27,522			70,946
Eliminated on disposals		-			(494,970)			(28,847)			(523,817)
At 31 January 2014		163,360			102,085			157,982			423,427
Net book value
At 31 January 2014		1,262,037			78,797			159,387			1,500,221
At 31 January 2013		1,271,517			88,253			25,934			1,385,704

Land and buildings were revalued in 1983 but not subsequently. Under the transitional arrangements of FRS15 there is no statutory requirement to revalue. However the directors believe that the open market value of land and buildings significantly exceeds the book value

9

Stocks

		2014 £			2013 £
Stocks		3,339,382			2,926,396

Page 13

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

10

Debtors

		2014 £			2013 £
Trade debtors		350,953			499,674
Other debtors		112,907			22,086
Directors' current accounts		82,655			21,783
Prepayments and accrued income		39,279			51,926
		585,794			595,469

11	Current asset investments

		2014 £			2013 £
Other investments		33,583			20,023

12	Creditors: Amounts falling due within one year

		2014 £			2013 £
Trade creditors		350,393			535,158
Bank loans and overdrafts		23,590			22,038
Other loans		2,477,466			2,030,167
Obligations under finance lease and hire purchase contracts		17,193			7,073
Corporation tax		50,907			68,218
Other taxes and social security		24,511			87,114
Other creditors		1,998			-
Accruals and deferred income		90,703			56,536
		3,036,761			2,806,304

Page 14

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the company:

		2014 £			2013 £
Bank loan		23,590			22,038

There are first fixed charges in favour of the bank over three commercial sites in Aberystwyth, all used by Anthony Motors Ltd, and a director has provided a secured personal guarantee. Stock loan providers have secondary charges over two of the company properties.

13	Creditors: Amounts falling due after more than one year

		2014 £			2013 £
Bank loans and overdrafts		286,775			311,917
Obligations under finance lease and hire purchase contracts		-			17,192
		286,775			329,109

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the company:

		2014 £			2013 £
Bank loan		286,775			311,917

There are first fixed charges in favour of the bank over three commercial sites in Aberystwyth, all used by Anthony Motors Ltd, and a director has provided a secured personal guarantee. Stock loan providers have secondary charges over two of the company properties.

Included in the creditors are the following amounts due after more than five years:

		2014 £			2013 £
After more than five years by instalments		192,415			223,765

Page 15

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

Obligations under finance leases and HP contracts Amounts repayable:

		2014 £			2013 £
In one year or less on demand		17,193			7,073
Between one and two years		-			17,192
		17,193			24,265

14	Provisions

		Deferred tax £			Total £
At 1 February 2013		107,679			107,679
Credited to the profit and loss account		(68,127)			(68,127)
At 31 January 2014		39,552			39,552

Analysis of deferred tax

		2014 £			2013 £
Difference between accumulated depreciation and amortisation and capital allowances		39,552			107,679

15	Share capital

Allotted, called up and fully paid shares

	2014						2013
		No.			£			No.			£
Ordinary of £1 each		124			124			124			124

Page 16

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

16

Dividends

		2014 £			2013 £
Dividends paid
Current year interim dividend paid		50,000			47,880

17

Reserves

		Share premium account £			Revaluation reserve £			Profit and loss account £			Total £
At 1 February 2013		20,859			106,026			1,921,588			2,048,473
Profit for the year		-			-			395,144			395,144
Dividends		-			-			(50,000)			(50,000)
At 31 January 2014		20,859			106,026			2,266,732			2,393,617

18	Reconciliation of movement in shareholders' funds

		2014 £			2013 £
Profit attributable to the members of the company		395,144			233,894
Dividends		(50,000)			(47,880)
Net addition to shareholders' funds		345,144			186,014
Shareholders' funds at 1 February		2,048,597			1,862,583
Shareholders' funds at 31 January		2,393,741			2,048,597

Page 17

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

19	Commitments

Operating lease commitments

As at 31 January 2014 the company had annual commitments under non-cancellable operating leases as follows:

Operating leases which expire:

		2014 £			2013 £
Land and buildings
Within two and five years		48,000			48,000

20	Analysis of net debt

	At 1 February 2013 £	Cash flow £	At 31 January 2014 £
Cash at bank and in hand	364,097	(66,248)	297,849
Debt due within one year	(2,052,205)	(448,851)	(2,501,056)
Debt due after more than one year	(311,917)	25,142	(286,775)
Finance leases and hire purchase contracts	(24,265)	7,072	(17,193)
Net debt	(2,024,290)	(482,885)	(2,507,175)

21	Related party transactions

Directors' advances and credits

	2014 Advance/ Credit £	2014 Repaid £	2013 Advance/ Credit £	2013 Repaid £
W A Richards
Loan until 6th April 2014. No interest or conditions.	51,629	-	-	-
Loan until sale of personal property. 3% interest.	31,026	-	-	-
Loan until 6th April 2013. no interest or conditions.	-	-	21,783	-
	82,655	-	21,783	-

Other related party transactions

During the year the company made the following related party transactions:

Page 18

Anthony Motors Ltd
Notes to the Financial Statements for the Year Ended 31 January 2014
......... continued

West Wales Kia Ltd (A company with common directors but with no controlling party.) Both companies perform work for each other from time to time. The value of these transactions was immaterial. Included in the sales ledger is an amount of £31,200 owed to Anthony Motors Ltd by West Wales Kia Ltd, and included in accrued income is an amount of £288 owed by West Wales Kia.. At the balance sheet date the amount due from/(to) West Wales Kia Ltd was £31,488 (2013 - £nil).

Directors' retirement plan (A building in use by the company is owned by the retirement plan of the directors of the company) Rent of £6,250 is paid by the company per quarter. At the balance sheet date the amount due to Directors' retirement plan was £nil (2013 - £nil).

22

Control

The company is controlled by Mr WA Richards a director of the company and sole shareholder .

Page 19