Rumble (Bedworth) Limited - Limited company accounts 16.3

REGISTERED NUMBER: 02805963 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

RUMBLE (BEDWORTH) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

M Rumble

Mrs M J Rumble

R P Lumb

T A Haycock

REGISTERED OFFICE:

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

REGISTERED NUMBER:

02805963 (England and Wales)

AUDITORS:

Harrison Beale & Owen Limited

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

BANKERS:

Royal Bank of Scotland

27 Park Row

Leeds

Yorkshire

LS1 5QB

The directors present their strategic report for the year ended 31 December 2016.

REVIEW OF BUSINESS

Turnover for the year ended 31 December 2016 was £14,205,376 a small decrease on last year (2015 - £14,543,886).

The profit before tax was £229,139 which represents a considerable decrease from the prior year (2015 - £424,253).

The company's trading results for the year and the financial position at the end of the year are shown in the attached

financial statements. Despite some challenging trading conditions the company has achieved above average performance

in its composite.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the nature of the company's strategy are subject to a number of risks. The directors

have set out below the principal risks facing the business.

Manufacturer supply of new and improved products

The company is reliant on new vehicle products from Vauxhall. This exposes the company to risks in a number of areas

as the company is dependent on its manufacturer/supplier in respect of the availability of the new vehicle product,

quality of new vehicle product and the pricing of new vehicle product.

The directors are confident that future new products from its manufacturer/supplier will continue to be competitively

priced and high quality and therefore considers that this "manufacturer" risk is minimal. It is, in any case, mitigated by

the other core business areas of the company, including used vehicle sales, parts sales and service work.

Economic downturn

The success of the business is reliant on consumer spending. An economic downturn resulting in reduction of consumer

spending power will have a direct impact on the income achieved by the company. In response to this risk, senior

management aim to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing

strategies are modified to reflect the new market conditions.

SUMMARY OF KEY PERFORMANCE INDICATORS

The directors have monitored the progress of the overall company strategy and the individual strategic elements by

reference to gross margin and operating profit which are set out in the attached accounts. A key non-financial key

performance indicator is sales of new vehicle units.

ON BEHALF OF THE BOARD:

M Rumble - Director

23 August 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of purchasing, selling and repairing of motor

vehicles and other ancillary services.

DIVIDENDS

During the year dividends totalling £59,000 (2015 - £165,000) were voted.

FUTURE DEVELOPMENTS

In March 2017 it was announced that General Motors shall be selling its European brands to PSA Group. The directors

believe that the company is well equipped for this change in ultimate ownership and consider that the majority of risk

surrounding the deal rests with the manufacturing arms of the business, rather than the retail network.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of this

report.

M Rumble

Mrs M J Rumble

R P Lumb

T A Haycock

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company uses various financial instruments which include bank, financial institution and stocking loans, cash and

various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these

financial instruments is to raise finance for the company's operations. Their existence exposes the company to a number

of financial risks.

The main risks arising from the financial instruments are interest rate risk, credit risk and liquidity risk. The directors

review and agree polices for managing each of these risks which are summarised below. These polices have remained

unchanged from previous years.

Interest rate risk

The company finances its operations through a mixture of bank, other external borrowings and preference shares. The

company's exposure to interest fluctuations on its borrowings is managed by the use of fixed and floating facilities. The

balance sheet includes trade debtors and creditors which do not attract interest and are therefore subject to fair value

interest rate risk.

The company policy throughout the year has been to achieve its objectives of managing interest rate risk through

day-to-day involvement of management in business decisions rather than through setting maximum or minimum levels

for the level of fixed interest rate borrowings.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the

counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises

therefore from trade debtors.

In order to manage credit risk the directors set credit limits for customers based on a combination of payment history and

third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with

debt ageing and collection history.

Liquidity risk

The company seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest

cash assets safely and profitably.

The company's policy throughout the year has been to achieve this objective through the day-today involvement of

management in business decisions rather than through setting maximum or minimum liquidity ratios.

DISABLED COLLEAGUES

Applications for employment by disabled persons are given full and fair consideration for all vacancies in accordance

with their particular aptitudes and abilities. In the event of employees becoming disabled, every effort is made to retrain

them in order that their employment with the company may continue.

It is the policy of the company that training, career development and promotion opportunities should be available to all

employees.

STRATEGY

The strategy adopted during the year has been to build continually on the market position established by the company,

together with a strong manufacturer brand nationally. This strategy is based largely on well-established models under the

manufacturer brand (including Insignia, Astra and Corsa).

ENVIRONMENTAL POLICY

Management continue to work towards the development of the company's environmental policy. It is the management's

objective to improve performance continually in this area. When assessing the environmental performance of the

company, management consider various measures, including waste recycling and CO2 emissions from the company's

vehicles.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, 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). 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 auditors are 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 auditors are aware of that information.

ON BEHALF OF THE BOARD:

M Rumble - Director

23 August 2017

We have audited the financial statements of Rumble (Bedworth) Limited for the year ended 31 December 2016 on pages

eight to twenty two. 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), including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 a Report of the Auditors 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 auditors

As explained more fully in the Directors' Responsibilities Statement set out on page five, 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 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 Strategic Report and the Report of the Directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on 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 December 2016 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, based on the work undertaken in the course of our audit, the information given in the Strategic Report

and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with

the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements in

the Strategic Report or the Report of the Directors.

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.

Sarah Wilson FCA MSci (Senior Statutory Auditor)

for and on behalf of Harrison Beale & Owen Limited

Chartered Accountants and Statutory Auditor

Highdown House

11 Highdown Road

Leamington Spa

Warwickshire

CV31 1XT

23 August 2017

TURNOVER

3

14,205,376

14,543,886

Cost of sales

12,230,873

12,424,651

GROSS PROFIT

1,974,503

2,119,235

Administrative expenses

1,767,904

1,719,451

206,599

399,784

Other operating income

91,475

100,365

OPERATING PROFIT

5

298,074

500,149

Interest receivable and similar income

42

38

298,116

500,187

Interest payable and similar expenses

6

68,977

75,934

PROFIT BEFORE TAXATION

229,139

424,253

Tax on profit

7

49,359

88,875

PROFIT FOR THE FINANCIAL YEAR

179,780

335,378

PROFIT FOR THE YEAR

179,780

335,378

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

179,780

335,378

FIXED ASSETS

Tangible assets

9

1,818,307

1,861,386

CURRENT ASSETS

Stocks

10

1,483,796

1,627,157

Debtors

11

385,962

404,874

Cash at bank and in hand

109,105

120,357

1,978,863

2,152,388

CREDITORS

Amounts falling due within one year

12

2,083,483

2,323,504

NET CURRENT LIABILITIES

(104,620

)

(171,116

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,713,687

1,690,270

CREDITORS

Amounts falling due after more than one year

13

(583,316

)

(682,327

)

PROVISIONS FOR LIABILITIES

17

(44,499

)

(42,851

)

NET ASSETS

1,085,872

965,092

CAPITAL AND RESERVES

Called up share capital

18

83,000

83,000

Capital redemption reserve

19

476,000

476,000

Retained earnings

19

526,872

406,092

SHAREHOLDERS' FUNDS

1,085,872

965,092

The financial statements were approved by the Board of Directors on 23 August 2017 and were signed on its behalf by:

M Rumble - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2015

83,000

235,714

476,000

794,714

Changes in equity

Dividends

-

(165,000

)

-

(165,000

)

Total comprehensive income

-

335,378

-

335,378

Balance at 31 December 2015

83,000

406,092

476,000

965,092

Changes in equity

Dividends

-

(59,000

)

-

(59,000

)

Total comprehensive income

-

179,780

-

179,780

Balance at 31 December 2016

83,000

526,872

476,000

1,085,872

Cash flows from operating activities

Cash generated from operations

1

367,324

451,924

Interest paid

(68,977

)

(68,682

)

Interest element of hire purchase payments paid

-

(7,252

)

Tax paid

(80,275

)

(69,099

)

Net cash from operating activities

218,072

306,891

Cash flows from investing activities

Purchase of tangible fixed assets

(19,588

)

(49,133

)

Interest received

42

38

Net cash from investing activities

(19,546

)

(49,095

)

Cash flows from financing activities

Loan repayments in year

(74,400

)

(74,400

)

Capital element of hire purchase

(13,583

)

(44,426

)

Amount withdrawn by directors

(62,795

)

3,951

Equity dividends paid

(59,000

)

(165,000

)

Net cash from financing activities

(209,778

)

(279,875

)

Decrease in cash and cash equivalents

(11,252

)

(22,079

)

Cash and cash equivalents at beginning of year

2

120,357

142,436

Cash and cash equivalents at end of year

2

109,105

120,357

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2016

2015

£

£

Profit before taxation

229,139

424,253

Depreciation charges

62,667

64,138

Finance costs

68,977

75,934

Finance income

(42

)

(38

)

360,741

564,287

Decrease/(increase) in stocks

143,361

(217,279

)

Decrease/(increase) in trade and other debtors

18,912

(40,000

)

(Decrease)/increase in trade and other creditors

(155,690

)

144,916

Cash generated from operations

367,324

451,924

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 December 2016

31.12.16

1.1.16

£

£

Cash and cash equivalents

109,105

120,357

Year ended 31 December 2015

31.12.15

1.1.15

£

£

Cash and cash equivalents

120,357

142,436

1.	STATUTORY INFORMATION

Rumble (Bedworth) Limited 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and

have remained unchanged from the previous year.

At the balance sheet date the company had net current liabilities of £104,620 (2015 - £171,116). The key funders

will continue to be supportive in the next 12 months and along with the forecasted future profitable trade the

business is considered a going concern. The accounts and financial statements have therefore been prepared on a

going concern basis.

Turnover

Turnover comprises the value of sales (including finance commission earned net of trade discounts, value

added tax and other sales related taxes) of goods and services provided in the normal course of business.

Sales of motor vehicles, parts and accessories are recognised on the earlier of full payment by, or delivery date

to, the customer together with the associated manufacturer vehicle bonus income. Any other manufacturer

income in relation to achieving targets is recognised on an accruals basis. After-sales revenue is recognised on

the completion of the agreed work.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

straight line over 50 years

Plant and machinery

-

3 - 10 years

Fixtures and fittings

-

at varying rates on cost

Computer equipment

-

3 - 5 years

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks are valued at the lower of costs and estimated selling price less costs to complete and sell. Cost includes

all costs of purchase and other costs incurred in bringing stock to its present location and condition, including

any import costs, duties and carriage.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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.

The assets of the scheme are held separately from those of the company.

Financial instruments

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,

they are measured at amortised cost using the effective interest rate method, less impairment.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the income statement.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4.	EMPLOYEES AND DIRECTORS

2016

2015

£

£

Wages and salaries

1,126,482

1,028,911

Social security costs

105,198

103,644

Other pension costs

11,039

1,890

1,242,719

1,134,445

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

2016

2015

Mechanical

21

19

Sales and distribution

9

9

Administration

10

10

40

38

2016

2015

£

£

Directors' remuneration

261,393

208,854

Directors' pension contributions to money purchase schemes

4,470

681

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2016

2015

£

£

Emoluments etc

80,942

91,069

Pension contributions to money purchase schemes

1,614

269

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2016

2015

£

£

Operating lease income

(17,500

)

(17,500

)

Depreciation - owned assets

58,408

39,346

Depreciation - assets on hire purchase contracts

4,259

24,792

Auditors' remuneration

7,725

5,975

Operating lease payments

14,767

2,443

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2016

2015

£

£

Bank interest

(418

)

(220

)

Stocking charges

24,733

28,325

Other loan interest

1,575

2,646

Mortgage interest

21,458

23,657

Hire purchase interest

1,949

7,252

Demonstrator vehicle funding

19,680

14,274

68,977

75,934