Liverare Limited t/a GMD Car Sales Small abridged accounts

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Statement of Consent to Prepare Abridged Financial Statements

All of the members of Liverare Limited t/a GMD Car Sales have consented to the preparation of the abridged statement of comprehensive income and the abridged statement of financial position for the year ending 31 December 2016 in accordance with Section 444(2A) of the Companies Act 2006.

COMPANY REGISTRATION NUMBER: 02381042

Liverare Limited t/a GMD Car Sales

Unaudited Abridged Financial Statements

31 December 2016

MITCHELLS LIMITED

Chartered accountant

Swallow House

Parsons Road

Washington

Tyne and Wear

NE37 1EZ

Liverare Limited t/a GMD Car Sales

Abridged Financial Statements

Year ended 31 December 2016

Contents	Page

Officers and professional advisers	1

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory abridged financial statements	2

Abridged statement of financial position	3

Statement of changes in equity	5

Notes to the abridged financial statements	6

Liverare Limited t/a GMD Car Sales

Officers and Professional Advisers

The board of directors	M Sparks
	E G Clark
	K A Sparks

Company secretary	M Sparks

Registered office	C/O GMD Fiat
	Finchale Road
	Arnison Centre
	Durham
	DH1 5RW

Accountants	MITCHELLS LIMITED
	Chartered accountant
	Swallow House
	Parsons Road
	Washington
	Tyne and Wear
	NE37 1EZ

Liverare Limited t/a GMD Car Sales

Chartered Accountant's Report to the Board of Directors on the Preparation of the Unaudited Statutory Abridged Financial Statements of Liverare Limited t/a GMD Car Sales

Year ended 31 December 2016

As described on the abridged statement of financial position, the directors of the company are responsible for the preparation of the abridged financial statements for the year ended 31 December 2016, which comprise the abridged statement of financial position, statement of changes in equity and the related notes. You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these abridged financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.

MITCHELLS LIMITED Chartered accountant

Swallow House Parsons Road Washington Tyne and Wear NE37 1EZ

26 September 2017

Liverare Limited t/a GMD Car Sales

Abridged Statement of Financial Position

31 December 2016

	2016		2015
Note	£	£	£

Fixed assets

Tangible assets	7		1,140,113	1,104,405

Current assets

Stocks	1,137,751	919,115
Debtors	370,038	310,574
Cash at bank and in hand	487	17,372
	------------	------------
	1,508,276	1,247,061

Creditors: amounts falling due within one year	1,326,825		976,504
	------------		------------
Net current assets		181,451	270,557
		------------	------------
Total assets less current liabilities		1,321,564	1,374,962

Creditors: amounts falling due after more than one year	8		648,743	559,709

Provisions

Taxation including deferred tax	25,900	51,079
	------------	------------
Net assets	646,921	764,174
	------------	------------

Capital and reserves

Called up share capital	51,100	51,100
Revaluation reserve	167,263	167,263
Profit and loss account	428,558	545,811
	---------	---------
Members funds	646,921	764,174
	---------	---------

These abridged financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the abridged statement of comprehensive income has not been delivered.

For the year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities:

- The members have not required the company to obtain an audit of its abridged financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of abridged financial statements .

Liverare Limited t/a GMD Car Sales

Abridged Statement of Financial Position (continued)

31 December 2016

These abridged financial statements were approved by the board of directors and authorised for issue on 26 September 2017 , and are signed on behalf of the board by:

M Sparks	E G Clark
Director	Director

K A Sparks
Director

Company registration number: 02381042

Liverare Limited t/a GMD Car Sales

Statement of Changes in Equity

Year ended 31 December 2016

	Called up share capital	Revaluation reserve	Profit and loss account	Total
	£	£	£	£
At 1 January 2015	51,080	167,263	517,364	735,707

Profit for the year			115,147	115,147
	--------	---------	---------	---------
Total comprehensive income for the year	–	–	115,147	115,147

Issue of shares	20	–	–	20
Dividends paid and payable	–	–	( 86,700)	( 86,700)
	--------	---------	---------	---------
Total investments by and distributions to owners	20	–	( 86,700)	( 86,680)

At 31 December 2015	51,100	167,263	545,811	764,174

Loss for the year			( 117,253)	( 117,253)
	--------	---------	---------	---------
Total comprehensive income for the year	–	–	( 117,253)	( 117,253)

	--------	---------	---------	---------
At 31 December 2016	51,100	167,263	428,558	646,921
	--------	---------	---------	---------

Liverare Limited t/a GMD Car Sales

Notes to the Abridged Financial Statements

Year ended 31 December 2016

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O GMD Fiat, Finchale Road, Arnison Centre, Durham, DH1 5RW.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The abridged financial statements are prepared in sterling, which is the functional currency of the entity.

Exceptional items

The exceptional direct costs and exceptional staff costs that have arisen are a direct result of the directors taking the steps to bring the Mitsubishi franchise contract that the company held to an end. The direct costs are the resultant losses suffered on stock disposal and the staff costs relate to the redundancy costs of the members of staff that were specific to servicing the Mitsubishi contract.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 January 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 12.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	Not depreciated
Plant and machinery	-	5% reducing balance
Fixtures and fittings	-	10% reducing balance
Equipment	-	10% reducing balance

No depreciation is charged against freehold property as the directors believe that the net book value in the accounts accurately reflects the market value. The directors have made a refinement to the depreciation policy of Plant & Machinery, Fixtures & Fittings and Equipment and Freehold Property this year which they believe more accurately reflects the value of the assets. For the current year this change has resulted in a decrease in depreciation of £33,745 and an increase in profit on ordinary activities before tax of £33,745.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the abridged statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the abridged statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Auditor's remuneration

	2016	2015
	£	£
Fees payable for the audit of the abridged financial statements	–	3,300
	----	-------

5. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to 27 (2015: 20).

6. Profit before taxation

(Loss)/profit before taxation is stated after charging:

	2016	2015
	£	£
Depreciation of tangible assets	24,134	47,205
	--------	--------

7. Tangible assets

	£
Cost
At 1 January 2016	1,734,032
Additions	59,842
	------------
At 31 December 2016	1,793,874
	------------
Depreciation
At 1 January 2016	629,627
Charge for the year	24,134
	------------
At 31 December 2016	653,761
	------------
Carrying amount
At 31 December 2016	1,140,113
	------------
At 31 December 2015	1,104,405
	------------

8. Creditors: amounts falling due after more than one year

The hire purchase creditors are secured on the asset to which the loan relates.

The bank loan and overdraft are secured by a fixed and floating charge over the assets of the company.

9. Directors' advances, credits and guarantees

Included in creditors: amounts falling due after more than one year is a directors loan balance of £110,051 (2015: £120,000).

10. Related party transactions

The company was under the control of Mr M Sparks by virtue of his shareholding in the parent company throughout the current and previous year. Mr M Sparks is the managing director. Dividends were paid to the directors as follows: M Sparks £Nil (2015 - £44,700) K Sparks £Nil (2015 - £21,000) E Clark £Nil (2015 - £21,000) Dividends paid by the holding company, are disclosed in the accounts of GMD (North East) Holdings Limited. Mr M Sparks is also a director and majority shareholder in C M S Properties (N.E.) Limited. During the year the company purchased services from C M S Properties (N.E.) Limited amounting to £Nil (2015 - £Nil). Included in trade creditors is £Nil (2015 - £Nil) due to C M S Properties (N.E.) Limited. Included in creditors due after one year is a loan from C M S Properties (N.E.) Limited for £418,333 (2015 - £389,383). The loan is interest free.

11. Controlling party

The ultimate holding company is GMD (North East) Holdings Limited, a company incorporated in England and Wales. The registered office of the GMD (North East) Holdings Limited is: Finchale Road Durham County Durham DH1 5RW

12. Transition to FRS 102

These are the first abridged financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 January 2015.

No transitional adjustments were required in equity or profit or loss for the year.