Green 4 Motor Group Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 08777828 (England and Wales)

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 October 2017

for

Green 4 Motor Group Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Income and Retained Earnings

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Cash Flow Statement

10

Notes to the Consolidated Cash Flow Statement

11

Notes to the Consolidated Financial Statements

12

DIRECTORS:

Mr T Leggett

Mr A P Dodds

Mr D Everitt

Mrs A C France

Mr J Wainwright

SECRETARY:

Mrs A C France

REGISTERED OFFICE:

655 London Road

Coventry

CV3 4EX

REGISTERED NUMBER:

08777828 (England and Wales)

AUDITORS:

Franklin Underwood, Statutory Auditor

1 Pinnacle Way

Pride Park

Derby

Derbyshire

DE24 8ZS

The directors present their strategic report of the company and the group for the year ended 31 October 2017.

REVIEW OF BUSINESS

The group turnover increased in the year from £26.93 Million to £33.44 Million, an increase of 25.1% (2016: 16.9%).

The group opened a third site during the year which accounts for the majority of the increase in sales.

The operating profit of the group 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 profits 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 and the group for the year ended

31 October 2017.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2017 was £303,858 (2016: £465,242)

RESEARCH AND DEVELOPMENT

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

FUTURE DEVELOPMENTS

The trading performance of the group in the period to 31 October 2017 is 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

Mrs A C France

Mr J Wainwright

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.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group 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 group'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

group'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 Group Limited (the 'parent company') and its subsidiaries

(the 'group') for the year ended 31 October 2017 which comprise the Consolidated Statement of Income and Retained

Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the

Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 October 2017 and of the group's 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 group 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 group'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 Group

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 Group 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 Group 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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)

for and 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

31,704,185

25,225,425

GROSS PROFIT

1,740,227

1,705,283

Administrative expenses

1,266,520

1,016,918

OPERATING PROFIT

4

473,707

688,365

Interest receivable and similar income

1,573

-

PROFIT BEFORE TAXATION

475,280

688,365

Tax on profit

5

94,670

142,933

PROFIT FOR THE FINANCIAL YEAR

380,610

545,432

Retained earnings at beginning of year

451,565

371,375

Dividends

7

(303,358

)

(465,242

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

528,817

451,565

Profit attributable to:

Owners of the parent

380,610

545,432

FIXED ASSETS

Intangible assets

8

(214,738

)

(227,370

)

Tangible assets

9

435,618

232,223

Investments

10

-

-

220,880

4,853

CURRENT ASSETS

Stocks

11

5,265,535

3,817,709

Debtors

12

890,447

612,814

Cash at bank

795,276

1,253,235

6,951,258

5,683,758

CREDITORS

Amounts falling due within one year

13

6,326,831

4,996,704

NET CURRENT ASSETS

624,427

687,054

TOTAL ASSETS LESS CURRENT LIABILITIES

845,307

691,907

CREDITORS

Amounts falling due after more than one year

14

(107,868

)

(63,101

)

PROVISIONS FOR LIABILITIES

18

(59,222

)

(27,841

)

NET ASSETS

678,217

600,965

CAPITAL AND RESERVES

Called up share capital

19

149,400

149,400

Retained earnings

20

528,817

451,565

SHAREHOLDERS' FUNDS

678,217

600,965

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

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

-

-

Investments

10

250,000

250,000

250,000

250,000

CURRENT ASSETS

Debtors

12

197,642

-

Cash at bank

217,254

1,250,368

414,896

1,250,368

CREDITORS

Amounts falling due within one year

13

515,496

1,350,968

NET CURRENT LIABILITIES

(100,600

)

(100,600

)

TOTAL ASSETS LESS CURRENT LIABILITIES

149,400

149,400

CAPITAL AND RESERVES

Called up share capital

19

149,400

149,400

SHAREHOLDERS' FUNDS

149,400

149,400

Company's profit for the financial year

303,358

465,242

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

Cash flows from operating activities

Cash generated from operations

1

699,850

(1,183,834

)

Tax paid

(128,997

)

-

Net cash from operating activities

570,853

(1,183,834

)

Cash flows from investing activities

Purchase of tangible fixed assets

(308,549

)

(104,726

)

Interest received

1,573

-

Net cash from investing activities

(306,976

)

(104,726

)

Cash flows from financing activities

New loans in year

100,000

-

Loan repayments in year

(36,657

)

(25,000

)

Hire Purchase advance in year

-

176,349

Capital repayments in year

(101,083

)

23,316

Amount withdrawn by directors

(380,738

)

(97,546

)

Share issue

-

200

Equity dividends paid

(303,358

)

(465,242

)

Net cash from financing activities

(721,836

)

(387,923

)

Decrease in cash and cash equivalents

(457,959

)

(1,676,483

)

Cash and cash equivalents at beginning of year

2

1,253,235

906,498

Cash and cash equivalents at end of year

2

795,276

1,253,235

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

2017

2016

£

£

Profit before taxation

475,280

688,365

Depreciation charges

92,522

51,149

Finance income

(1,573

)

-

566,229

739,514

Increase in stocks

(1,447,826

)

(3,817,709

)

Increase in trade and other debtors

(79,991

)

(346,119

)

Increase in trade and other creditors

1,661,438

2,240,480

Cash generated from operations

699,850

(1,183,834

)

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 October 2017

31.10.17

1.11.16

£

£

Cash and cash equivalents

795,276

1,253,235

Year ended 31 October 2016

31.10.16

1.11.15

£

£

Cash and cash equivalents

1,253,235

906,498

1.	STATUTORY INFORMATION

Green 4 Motor Group 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 General 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.

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.

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.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

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.

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.

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

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme

are charged to profit or loss in the period to which they relate.

Intangible fixed liabilities

Negative goodwill arises on the consolidation of the group accounts following the purchase of Coventry Motor

Company Holdings Limited in January 2014 and is being amortised over 20 years. In the opinion of the

directors, this represents a prudent estimate of the period over which the company will derive economic benefit

from the reputation and customer loyalty acquired as part of that business.

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

The average number of employees by undertakings that were proportionately consolidated during the year was

69 .

2017

2016

£

£

Directors' remuneration

70,273

34,578

4.	OPERATING PROFIT

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

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

Goodwill amortisation

(12,632

)

(12,632

)

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

6.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not

presented as part of these financial statements.

7.

DIVIDENDS

2017

2016

£

£

Interim

303,358

465,242

8.	INTANGIBLE FIXED ASSETS

Group

Goodwill

£

COST

At 1 November 2016

and 31 October 2017

(262,477

)

AMORTISATION

At 1 November 2016

(35,107

)

Amortisation for year

(12,632

)

At 31 October 2017

(47,739

)

NET BOOK VALUE

At 31 October 2017

(214,738

)

At 31 October 2016

(227,370

)