Central Motors (Calderbank) Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: SC032937 (Scotland)

Report of the Directors and

Financial Statements

For The Year Ended 28 February 2018

for

Central Motors (Calderbank) Limited

Page

Company Information

1

Report of the Directors

2

Statement of Comprehensive Income

3

Balance Sheet

4

Statement of Changes in Equity

6

Notes to the Financial Statements

7

DIRECTORS:

Mr J Currie

Mr A Currie

Mr G Currie

Mr B Currie

SECRETARY:

Mrs M M Currie

REGISTERED OFFICE:

105 Carlisle Road

Airdrie

Lanarkshire

ML6 8AG

REGISTERED NUMBER:

SC032937 (Scotland)

ACCOUNTANTS:

Cahill Jack Associates Limited

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

SOLICITORS:

McWhinney Richards

8a Bank Street

Airdrie

ML6 6AF

The directors present their report with the financial statements of the company for the year ended 28 February 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2017 to the date of this report.

Mr J Currie

Mr A Currie

Mr G Currie

Mr B Currie

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

Mrs M M Currie - Secretary

14 May 2018

TURNOVER

1,685,119

1,951,020

Cost of sales

1,097,165

1,295,832

GROSS PROFIT

587,954

655,188

Distribution costs

1,482

2,000

Administrative expenses

631,008

608,070

632,490

610,070

(44,536

)

45,118

Other operating income

65,162

66,327

OPERATING PROFIT

4

20,626

111,445

Profit/loss on sale of

tangible fixed assets

5

1,861

6,000

22,487

117,445

Interest receivable and similar income

1,859

968

Other finance income

14

-

6,000

1,859

6,968

24,346

124,413

Other finance costs

14

7,000

-

PROFIT BEFORE TAXATION

17,346

124,413

Tax on profit

7,140

28,264

PROFIT FOR THE FINANCIAL YEAR

10,206

96,149

OTHER COMPREHENSIVE INCOME

Actuarial re-measurement losses defined

benefit pension obligation Note 13

134,000

(294,000

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

134,000

(294,000

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

144,206

(197,851

)

FIXED ASSETS

Tangible assets

7

174,955

163,220

Investments

8

713,934

713,934

888,889

877,154

CURRENT ASSETS

Stocks

159,859

165,135

Debtors

9

369,766

317,306

Investments

10

201,738

-

Cash at bank and in hand

473,152

788,668

1,204,515

1,271,109

CREDITORS

Amounts falling due within one year

11

105,330

149,373

NET CURRENT ASSETS

1,099,185

1,121,736

TOTAL ASSETS LESS CURRENT LIABILITIES

1,988,074

1,998,890

PROVISIONS FOR LIABILITIES

12

(160,223

)

(154,821

)

PENSION LIABILITY

14

(177,000

)

(268,000

)

NET ASSETS

1,650,851

1,576,069

CAPITAL AND RESERVES

Called up share capital

12,619

12,619

Revaluation reserve

13

42,076

45,286

Capital redemption reserve

13

4,331

4,331

Retained earnings

13

1,591,825

1,513,833

SHAREHOLDERS' FUNDS

1,650,851

1,576,069

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 14 May 2018 and were signed on its behalf by:

Mr J Currie - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 March 2016

12,619

1,796,072

48,496

4,331

1,861,518

Changes in equity

Dividends

-

(87,598

)

-

-

(87,598

)

Total comprehensive income

-

(194,641

)

(3,210

)

-

(197,851

)

Balance at 28 February 2017

12,619

1,513,833

45,286

4,331

1,576,069

Changes in equity

Dividends

-

(69,424

)

-

-

(69,424

)

Total comprehensive income

-

147,416

(3,210

)

-

144,206

Balance at 28 February 2018

12,619

1,591,825

42,076

4,331

1,650,851

1.	STATUTORY INFORMATION

Central Motors (Calderbank) Limited is a private company, limited by shares , registered in Scotland. 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 the provisions of Section 1A "Small Entities" of 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 revaluation of certain assets.

The company's presentational currency is pounds sterling.

Information on the impact of first time adoption of FRS 102 is given in the notes to the accounts.

Significant judgements and estimates

The preparation of financial information in compliance with FRS 102 requires management to make judgements,

estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

The directors have identified the following areas which give rise to estimation uncertainty:

1) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where

appropriate. The actual lives of the assets and any residual values are assessed annually and may vary depending

on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance

programmes are taken into account.

2) Valuation of stock of parts uses estimations for provisions against old and obsolete items of stock.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised and in any future periods affected.

3) Revaluation of Investment Property

Investment property is included at fair value which is determined by the director. Various assumptions and

estimates are used in making the assessment of the fair value.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and

the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or

receivable, excluding value added tax and any other sales taxes The following criteria must also be met before

revenue is recognised:

Sale of goods

Revenue from sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from agreement to provide services is recognised in the period in which the services are provided when

all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the agreement.

Rental income

Rental income from property or operating leases is recognised on a straight-line basis over the term of the

relevant lease unless the lease payments are structured to increase in line with expected general inflation in which

case the income is recognised as revenue in accordance with expected payments. Rental income is included in

other operating income.

Tangible fixed assets and investment property

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

Freehold property

-

2.5% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

The company's freehold property was revalued at the open market value on 28th February 1990 and

subsequently reduced by depreciation on that value.

The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item

when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the

company. Any carrying amount of the replaced part is written off. Repairs and maintenance are charged to

the profit and loss during the year in which they are incurred except for any parts unused at the year end.

Asset residual values, useful lives and depreciation methods of relevant assets are reviewed, and adjusted

prospectively if appropriate. Gains and losses on disposals are determined by comparing the proceeds with

the carrying amount and recognised in the profit and loss during the year of disposal.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets

have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any

affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the

carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised

immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of

its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss

been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit

or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value being the estimated selling price less costs to

complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and

finished goods include labour and attributable overheads.

At each reporting date, inventories are assessed for impairment. If inventory is 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a funded defined benefit pension scheme which requires contributions to be made to a

separately administered fund. A defined plan defines the pension benefit that the employee will receive on

retirement, usually dependent upon several factors including age, length of service and remuneration.

Contributions to this fund are charged in the profit and loss account so as to spread the cost of pensions over the

employees working lives within the company. The regular cost is attributed to individual years using the

projected unit credit method. Variations in pension cost, which are identified as a result of actuarial valuation,

are amortised over the average expected remaining working lives of employees in proportion to their expected

payroll costs. Surpluses or deficits are provided for in this manner only where their existence leads to either

reduced or increased contributions.

The company also operates a defined contribution pension scheme for the benefit of the directors.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank

loans, directors' loans and forward currency contracts (derivatives).

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest,

and subsequently at amortised cost using the effective interest method. Directors' loans (being repayable on

demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other

consideration expected to be paid or received. Forward currency contracts are derivative financial instruments.

They are measured at fair value. Gains and losses arising from changes in the fair value of derivative financial

instruments are included in the profit or loss in the period in which they arise.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective

evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the

profit and loss.

Other items

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest rate method so

that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a

reduction in the proceeds of the associated capital instrument.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised

when paid. Final equity dividends are recognised when approved by the shareholders at an annual general

meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest

payable.

Holiday pay

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance

sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future

holiday entitlement so accrued at the balance sheet date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2017 - 26 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

28.2.18

28.2.17

£

£

Depreciation - owned assets

37,997

32,294

5.	EXCEPTIONAL ITEMS

28.2.18

28.2.17

£

£

Profit/loss on sale of

tangible fixed assets

1,861

6,000

6.

DIVIDENDS

28.2.18

28.2.17

£

£

Ordinary shares of £1 each

Interim

69,424

87,598

7.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST OR VALUATION

At 1 March 2017

221,313

11,842

112,209

Additions

-

-

34,266

At 28 February 2018

221,313

11,842

146,475

DEPRECIATION

At 1 March 2017

140,570

1,776

91,034

Charge for year

5,046

296

8,702

Eliminated on disposal

-

-

-

At 28 February 2018

145,616

2,072

99,736

NET BOOK VALUE

At 28 February 2018

75,697

9,770

46,739

At 28 February 2017

80,743

10,066

21,175

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 March 2017

64,658

147,043

37,056

594,121

Additions

-

10,045

7,060

51,371

Disposals

-

(6,555

)

-

(6,555

)

At 28 February 2018

64,658

150,533

44,116

638,937

DEPRECIATION

At 1 March 2017

49,757

110,903

36,861

430,901

Charge for year

3,832

18,259

1,862

37,997

Eliminated on disposal

-

(4,916

)

-

(4,916

)

At 28 February 2018

53,589

124,246

38,723

463,982

NET BOOK VALUE

At 28 February 2018

11,069

26,287

5,393

174,955

At 28 February 2017

14,901

36,140

195

163,220

Included in cost or valuation of land and buildings is freehold land of £ 19,500 (2017 - £ 19,500 ) which is not

depreciated.

Cost or valuation at 28 February 2018 is represented by:

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

Valuation in 1990

146,491

-

-

Cost

74,822

11,842

146,475

221,313

11,842

146,475

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 1990

-

-

-

146,491

Cost

64,658

150,533

44,116

492,446

64,658

150,533

44,116

638,937

If freehold land and buildings had not been revalued they would have been included at the following historical

cost:

28.2.18

28.2.17

£

£

Cost

74,822

74,822

Aggregate depreciation

59,211

57,375

Value of land in freehold land and buildings

1,413

1,413

Freehold land and buildings were valued on an open market basis on 28 February 1990 by Thomas J Ross and Partners, Surveyors

.

The depreciation charge for the year based on revalued land and buildings is £3,210 greater than the charge

based on cost.

8.	FIXED ASSET INVESTMENTS

Other

investments

£

COST OR VALUATION

At 1 March 2017

and 28 February 2018

713,934

NET BOOK VALUE

At 28 February 2018

713,934

At 28 February 2017

713,934

Cost or valuation at 28 February 2018 is represented by:

Other

investments

£

Valuation in 2002

100,000

Valuation in 2005

200,000

Valuation in 2007

400,000

Cost

13,934

713,934

If investment properties had not been revalued they would have been included at the following historical cost:

28.2.18

28.2.17

£

£

Cost

13,934

13,934

Investment properties were valued on an open market value basis on 28 February 2016 by the directors .

The directors have reviewed the value of investment properties and consider that the value currently stated in the

accounts is a fair reflection of the current market value.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.18

28.2.17

£

£

Trade debtors

259,169

239,054

Loan to related company

67,240

51,880

Prepayments and accrued income

43,357

26,372

369,766

317,306

10.	CURRENT ASSET INVESTMENTS

28.2.18

28.2.17

£

£

Other

201,738

-

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.18

28.2.17

£

£

Trade creditors

27,781

54,964

Tax

1,738

30,225

Social security and other taxes

13,998

11,195

VAT

40,145

36,433

Other creditors

1,552

1,553

Accruals and deferred income

20,116

15,003

105,330

149,373

12.	PROVISIONS FOR LIABILITIES

28.2.18

28.2.17

£

£

Deferred tax

160,223

154,821

Deferred

tax

£

Balance at 1 March 2017

154,821

Accelerated capital allowances

5,575

Change in corporation tax rate

(173

)

Balance at 28 February 2018

160,223

13.

RESERVES

Capital

Retained

Revaluation

redemption

earnings

reserve

reserve

Totals

£

£

£

£

At 1 March 2017

1,513,833

45,286

4,331

1,563,450

Profit for the year

10,206

10,206

Dividends

(69,424

)

(69,424

)

Transfer between reserves

3,210

(3,210

)

-

-

Pension adjustments

134,000

-

-

134,000

At 28 February 2018

1,591,825

42,076

4,331

1,638,232