Legend Automotive Ltd - Period Ending 2017-01-31
Legend Automotive Ltd - Period Ending 2017-01-31
Registration number:
Legend Automotive Ltd
trading as
for the Year Ended 31 January 2017
Chartered Accountants
8c High Street
Southampton
Hampshire
SO14 2DH
Legend Automotive Ltd
trading as New Car UK
Contents
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Company Information |
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Directors' Report |
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Accountants' Report |
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Abridged Profit and Loss Account |
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Statement of Comprehensive Income |
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Abridged Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Abridged Financial Statements |
Legend Automotive Ltd
trading as New Car UK
Company Information
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Directors |
Mr Vipul Dave Mr Patrick White |
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Company secretary |
Mr Patrick White |
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Registered office |
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Accountants |
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Page 1 |
Legend Automotive Ltd
trading as New Car UK
Directors' Report for the Year Ended 31 January 2017
The directors present their report and the abridged financial statements for the year ended 31 January 2017.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is Sale of used cars and light motor vehicles
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board on
.........................................
Mr Vipul Dave
Director
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Page 2 |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Legend Automotive Ltd
trading as New Car UK
for the Year Ended 31 January 2017
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Legend Automotive Ltd for the year ended 31 January 2017 as set out on pages 4 to 12 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Legend Automotive Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Legend Automotive Ltd and state those matters that we have agreed to state to the Board of Directors of Legend Automotive Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Legend Automotive Ltd and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Legend Automotive Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Legend Automotive Ltd. You consider that Legend Automotive Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Legend Automotive Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
......................................
Chartered Accountants
Southampton
Hampshire
SO14 2DH
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Page 3 |
Legend Automotive Ltd
trading as New Car UK
Abridged Profit and Loss Account for the Year Ended 31 January 2017
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Note |
Total |
Total |
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Gross profit/(loss) |
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( |
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Administrative expenses |
( |
( |
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Profit/(loss) before tax |
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( |
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Profit/(loss) for the financial year |
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( |
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
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Page 4 |
Legend Automotive Ltd
trading as New Car UK
Statement of Comprehensive Income for the Year Ended 31 January 2017
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Note |
2017 |
2016 |
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Profit/(loss) for the year |
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( |
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Total comprehensive income for the year |
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( |
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Page 5 |
Legend Automotive Ltd
trading as New Car UK
(Registration number: 08359582)
Abridged Balance Sheet as at 31 January 2017
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Note |
2017 |
2016 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
( |
( |
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Accruals and deferred income |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
( |
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Total equity |
( |
( |
For the financial year ending 31 January 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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• |
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
All of the company’s members have consented to the preparation of an Abridged Profit and Loss Account and an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.
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Page 6 |
Legend Automotive Ltd
trading as New Car UK
(Registration number: 08359582)
Abridged Balance Sheet as at 31 January 2017
Approved and authorised by the Board on
.........................................
Mr Vipul Dave
Director
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Page 7 |
Legend Automotive Ltd
trading as New Car UK
Statement of Changes in Equity for the Year Ended 31 January 2017
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Share capital |
Profit and loss account |
Total |
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At 1 February 2016 |
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( |
( |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 January 2017 |
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( |
( |
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Share capital |
Profit and loss account |
Total |
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At 1 February 2015 |
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Loss for the year |
- |
( |
( |
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Total comprehensive income |
- |
( |
( |
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At 31 January 2016 |
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( |
( |
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Page 8 |
Legend Automotive Ltd
trading as New Car UK
Notes to the Abridged Financial Statements for the Year Ended 31 January 2017
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General information |
The company is a private company limited by share capital incorporated in United Kingdom.
The address of its registered office is:
England
The principal place of business is:
The Workshop
Barley Heath
Barley Heath
Hook
Hampshire
RG27 9AB
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These abridged financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The accounts have been prepared on a going concern basis which assumes the continued support of the company’s creditors. Should this support be withdrawn and not replaced by alternative finance, the company would be unable to continue trading. Adjustments would have to be made to reduce the value of assets to their recoverable amount, to provide for any further liabilities that might arise and to reclassify fixed assets and long term liabilities as current assets and liabilities.
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Page 9 |
Legend Automotive Ltd
trading as New Car UK
Notes to the Abridged Financial Statements for the Year Ended 31 January 2017
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Plant and Machinery |
20% on Reducing balance method |
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Office equipment |
20% on Reducing balance method |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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Page 10 |
Legend Automotive Ltd
trading as New Car UK
Notes to the Abridged Financial Statements for the Year Ended 31 January 2017
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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Staff numbers |
Average number of employees
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Profit/loss before tax |
Arrived at after charging/(crediting)
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2017 |
2016 |
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Depreciation expense |
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Page 11 |
Legend Automotive Ltd
trading as New Car UK
Notes to the Abridged Financial Statements for the Year Ended 31 January 2017
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Tangible assets |
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Total |
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Cost or valuation |
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At 1 February 2016 |
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At 31 January 2017 |
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Depreciation |
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At 1 February 2016 |
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Charge for the year |
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At 31 January 2017 |
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Carrying amount |
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At 31 January 2017 |
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At 31 January 2016 |
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Stocks |
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2017 |
2016 |
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Other inventories |
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Dividends |
The directors are proposing a final dividend of £Nil (2016 - £Nil) per share totalling £Nil (2016 - £Nil). This dividend has not been accrued in the Balance Sheet.
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Related party transactions |
Key management personnel
The amount owed to directors as at year end was £119,505 (PY - £173,924)
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Page 12 |
Legend Automotive Ltd
trading as New Car UK
Detailed Profit and Loss Account for the Year Ended 31 January 2017
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2017 |
2016 |
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Turnover (analysed below) |
2,936,230 |
3,018,416 |
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Cost of sales (analysed below) |
(2,795,566) |
(3,137,259) |
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Gross profit/(loss) |
140,664 |
(118,843) |
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Gross profit (%) |
4.79% |
(3.94)% |
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Administrative expenses |
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Employment costs (analysed below) |
(21,017) |
(16,072) |
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Establishment costs (analysed below) |
(14,725) |
(13,347) |
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General administrative expenses (analysed below) |
(18,971) |
(20,308) |
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Finance charges (analysed below) |
(1,882) |
(1,016) |
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Depreciation costs (analysed below) |
(190) |
(238) |
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(56,785) |
(50,981) |
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Other operating income (analysed below) |
175 |
109 |
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Operating profit/(loss) |
84,054 |
(169,715) |
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Profit/(loss) before tax |
84,054 |
(169,715) |
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Page 13 |
Legend Automotive Ltd
trading as New Car UK
Detailed Profit and Loss Account for the Year Ended 31 January 2017
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2017 |
2016 |
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Turnover |
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Sales |
2,936,230 |
3,018,416 |
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Cost of sales |
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Materials Purchased |
2,795,366 |
3,137,259 |
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Commissions payable |
200 |
- |
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2,795,566 |
3,137,259 |
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Employment costs |
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Directors' Salaries |
(21,017) |
(16,072) |
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Establishment costs |
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Rent |
(7,200) |
(7,200) |
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Light and Heat |
(671) |
(327) |
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Insurance |
(6,354) |
(5,303) |
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Use of home as office |
(416) |
(416) |
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Repairs and renewals |
(84) |
(101) |
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(14,725) |
(13,347) |
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General administrative expenses |
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Telephone & Fax |
(1,104) |
(1,143) |
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Computer software |
(478) |
(248) |
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Printing, postage and stationery |
(953) |
(1,242) |
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Subscriptions |
(1,655) |
(1,699) |
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Hire of Plant and Machinery |
(419) |
(1,174) |
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Miscellaneous Expenses |
(15) |
(1) |
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Motor expenses |
(8,127) |
(5,342) |
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Travel and subsistence |
(1,696) |
(2,134) |
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Advertising |
(1,485) |
(2,597) |
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Audit and Accountancy Fees |
(3,000) |
(1,500) |
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Professional Fees |
(39) |
(3,228) |
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(18,971) |
(20,308) |
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Finance charges |
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Bank charges |
(1,882) |
(1,016) |
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Depreciation costs |
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Plant & Machinery - Depreciation |
(122) |
(153) |
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Comp. equipts. - Depreciation |
(68) |
(85) |
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(190) |
(238) |
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Page 14 |
Legend Automotive Ltd
trading as New Car UK
Detailed Profit and Loss Account for the Year Ended 31 January 2017
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Other operating income |
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Other income |
175 |
109 |
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Page 15 |