Green 4 Motor Company Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 04069636 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 October 2017

for

Green 4 Motor Company Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTORS:

Mr T Leggett

Mr A P Dodds

Mr D Everitt

Mr J Wainwright

Mrs A C France

SECRETARY:

Mrs A C France

REGISTERED OFFICE:

655 London Road

Coventry

West Midlands

CV3 4EX

REGISTERED NUMBER:

04069636 (England and Wales)

AUDITORS:

Franklin Underwood, Statutory Auditor

1 Pinnacle Way

Pride Park

Derby

Derbyshire

DE24 8ZS

The directors present their strategic report for the year ended 31 October 2017.

REVIEW OF BUSINESS

The principal activity of the business during the year was that of sale of motor vehicles.

The companies turnover increased in the year from £26.93 Million to £33.44 Million, an increase of 25.1% (2016:

16.9%). The company opened a third site during the year which accounts for the majority of the increase in sales.

The operating profit of the company decreased in the year to £462k compared to £675k in the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

The trading performance to date in the year to 31 October 2017 has been in line with the directors expectations.

The directors are satisfied that there are no significant risks to the business outside those normally associated with the

competitive nature of the motor industry.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors use turnover and operating profit as key performance indicators for the business.

ON BEHALF OF THE BOARD:

Mr T Leggett - Director

24 May 2018

The directors present their report with the financial statements of the company for the year ended 31 October 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of sale of motor vehicles.

DIVIDENDS

The total distribution of interim dividends for the year ended 31 October 2017 was £303,358 (2016: £465,242). The

directors do not recommend the payment of a final dividend.

RESEARCH AND DEVELOPMENT

The company is not currently undertaking any research and development activities.

FUTURE DEVELOPMENTS

The trading performance of the company to date in the year to 31 October 2017 has been strong and in line with the

directors expectations.

The directors are satisfied that there are no significant risks to the business outside those normally associated with the

competitive nature of the motor industry.

DIRECTORS

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

report.

Mr T Leggett

Mr A P Dodds

Mr D Everitt

Mr J Wainwright

Mrs A C France

FINANCIAL INSTRUMENTS

Treasury operations

The company operates a centralised treasury function which is responsible for managing the liquidity and interest rate

risks associated with the company's activities. The company's principal instruments are a bank loan and bank and cash

balances. In addition the company has various other financial assets and liabilities such as trade debtors, trade creditors

and consignment stock creditors arising directly from the operations of the business.

Liquidity risk

The company manages its cash requirements centrally to maximise interest income and minimise interest expense, whilst

ensuring the the company has sufficient liquid resources to meet the operating needs of its business.

Interest rate risk

The company is exposed to fair value interest rate risk on its bank loan facility only. The company does not have a bank

overdraft facility.

Foreign currency risk

The company does not have any foreign currency risk as all sales and purchases are made within the UK.

Credit risk

Investments of cash surpluses are made with the company's main bankers. Receivable balances are monitored on an

ongoing basis and provision is made for doubtful debts where necessary.

DISCLOSURE IN THE STRATEGIC REPORT

The directors have chosen to disclose the Review of the Business and Principal Risks and Uncertainties of the business

within the the company's Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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:

Mr T Leggett - Director

24 May 2018

Opinion

We have audited the financial statements of Green 4 Motor Company Limited (the 'company') for the year ended

31 October 2017 which comprise the Statement of Income and Retained Earnings, 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 2017 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

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact. We have

nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the 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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are 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,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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.

Our responsibilities for the audit of the financial statements

Our 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 Auditors that includes our 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.

A further description of our 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 our Report of the Auditors.

Gary Underwood (Senior Statutory Auditor)

on behalf of Franklin Underwood, Statutory Auditor

1 Pinnacle Way

Pride Park

Derby

Derbyshire

DE24 8ZS

24 May 2018

TURNOVER

33,444,412

26,930,708

Cost of sales

31,716,817

25,225,425

GROSS PROFIT

1,727,595

1,705,283

Administrative expenses

1,266,520

1,029,550

OPERATING PROFIT

4

461,075

675,733

Interest receivable and similar income

1,573

-

PROFIT BEFORE TAXATION

462,648

675,733

Tax on profit

5

94,670

142,933

PROFIT FOR THE FINANCIAL YEAR

367,978

532,800

Retained earnings at beginning of year

870,731

803,173

Dividends

6

(303,358

)

(465,242

)

RETAINED EARNINGS AT END OF YEAR

935,351

870,731

FIXED ASSETS

Tangible assets

7

435,618

232,223

CURRENT ASSETS

Stocks

8

5,265,535

3,817,709

Debtors

9

1,208,301

1,780,686

Cash at bank

578,022

2,867

7,051,858

5,601,262

CREDITORS

Amounts falling due within one year

10

6,384,935

4,871,712

NET CURRENT ASSETS

666,923

729,550

TOTAL ASSETS LESS CURRENT LIABILITIES

1,102,541

961,773

CREDITORS

Amounts falling due after more than one year

11

(107,868

)

(63,101

)

PROVISIONS FOR LIABILITIES

15

(59,222

)

(27,841

)

NET ASSETS

935,451

870,831

CAPITAL AND RESERVES

Called up share capital

16

100

100

Retained earnings

17

935,351

870,731

SHAREHOLDERS' FUNDS

935,451

870,831

The financial statements were approved by the Board of Directors on 24 May 2018 and were signed on its behalf by:

Mr T Leggett - Director

1.	STATUTORY INFORMATION

Green 4 Motor Company 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 as modified by the use of fair values

for certain financial instruments in accordance with the accounting policies set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements,

as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

In the application of the companies accounting policies, the directors are required to make judgements, estimates

and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other

sources. The estimates and associated assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumption are reviewed on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which the estimate is reversed if the revision affects only that period, or in the

period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by managements in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of uncertainty have been identified by management in preparing these financial statements other

than those detailed in these accounting policies.

Turnover

The company recognises revenue when the amount of revenue can be reliably measured, and it is probable that

future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to

the entity. Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred

to the customer. Revenue from services is recognised in the accounting periods in which the services are

rendered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful

life.

Improvements to property

-

14.28%/20% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Motor vehicles

-

33% on cost

Stocks

Stocks consists of new and used cars for sale, together with spare parts and are valued at the lower of cost and

net realisable value, after making due allowance for obsolete and slow moving items.

Cost is determined using the first-in, first out (FIFO) method. Net realisable value is based on selling price less

anticipated costs to completion and selling costs.

Stocks held on consignment are accounted for on the balance sheet when in terms of a consignment and

commercial practice indicate that the principal benefit and risks of owning the stocks rest with the company. The

corresponding creditor is accordingly accounted for on the balance sheet.

Hire purchase and leasing commitments

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their value at inception of the lease and the

present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the

shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in

the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease

obligation so as to achieve a constant periodic rate of interest on the remaining balance of 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.

Taxation

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or

recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Financial instruments

The limited company enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities such as trade and other debtors and creditors, loans from and to related parties and bank

loans.

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 for goods sold or services rendered in the ordinary course of business.

Trade debtors are recognised initially at the transaction price and subsequently measured at amortised cost using

the effective interest method. 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 debtor.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers.

Trade creditors are classified as current liabilities of the company does not have an unconditional right, at the

end of the reporting date, 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.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

141,003

138,466

Other pension costs

11,539

9,287

152,542

147,753

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

2017

2016

Management and Administration

16

14

Sales

18

11

Parts and Servicing

35

24

69

49

2017

2016

£

£

Directors' remuneration

70,273

34,578

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Hire of plant and machinery

17,986

25,858

Other operating leases

250,944

207,630

Depreciation - owned assets

105,154

63,781

Auditors' remuneration

14,000

13,500

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

63,289

128,997

Deferred tax

31,381

13,936

Tax on profit

94,670

142,933

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

462,648

675,733

Profit multiplied by the standard rate of corporation tax in the UK of 19.410% (2016 - 20%)

89,800

135,147

Effects of:

Expenses not deductible for tax purposes

-

2,992

Capital allowances in excess of depreciation

(21,685

)

(9,142

)

Capitalised revenue expenditure allowable

(4,826

)

-

Deferred tax charge

31,381

13,936

Total tax charge

94,670

142,933

A reduction in the UK corporation tax rate from 20% to 19% took effect from 1st April 2017. A further

reduction in the UK corporation tax rate to 17% from 1st April 2020 has been announced but has not been

substantively enacted.

6.

DIVIDENDS

2017

2016

£

£

Ordinary shares of 1 each

Interim

303,358

465,242

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 November 2016

498,505

218,212

158,024

Additions

155,630

33,160

76,250

Disposals

(135,829

)

-

-

At 31 October 2017

518,306

251,372

234,274

DEPRECIATION

At 1 November 2016

314,908

188,516

140,744

Charge for year

58,334

16,312

18,189

Eliminated on disposal

(135,829

)

-

-

At 31 October 2017

237,413

204,828

158,933

NET BOOK VALUE

At 31 October 2017

280,893

46,544

75,341

At 31 October 2016

183,597

29,696

17,280

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 November 2016

-

186,835

1,061,576

Additions

22,336

21,173

308,549

Disposals

-

(142,401

)

(278,230

)

At 31 October 2017

22,336

65,607

1,091,895

DEPRECIATION

At 1 November 2016

-

185,185

829,353

Charge for year

6,763

5,556

105,154

Eliminated on disposal

-

(142,401

)

(278,230

)

At 31 October 2017

6,763

48,340

656,277

NET BOOK VALUE

At 31 October 2017

15,573

17,267

435,618

At 31 October 2016

-

1,650

232,223

8.

STOCKS

2017

2016

£

£

Finished goods

5,265,535

3,817,709

Costs of stocks recognised as an expense in the year amounted to £31,914,247 (2016: £19,548,726)

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

540,267

491,893

Amounts owed by group undertakings

515,496

1,167,871

Other debtors

300

44,580

Prepayments and accrued income

152,238

76,342

1,208,301

1,780,686

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts (see note 12)

42,974

24,399

Hire purchase contracts (see note 13)

98,582

199,665

Consignment stock creditor

2,723,930

1,703,415

Trade creditors

2,847,573

2,328,560

Amounts owed to group undertakings

58,104

58,104

Tax

63,289

128,997

Social security and other taxes

105,324

52,981

Other creditors

98,463

128,850

Accruals and deferred income

346,696

246,741

6,384,935

4,871,712

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans (see note 12)

107,868

63,101

12.

LOANS

An analysis of the maturity of loans is given below:

2017

2016

£

£

Amounts falling due within one year or on demand:

Bank loans

42,974

24,399

Amounts falling due between one and two years:

Bank loans - 1-2 years

41,775

23,688

Amounts falling due between two and five years:

Bank loans - 2-5 years

66,093

39,413