Parkway Derby Limited - Limited company accounts 18.2
Parkway Derby Limited - Limited company accounts 18.2
| REGISTERED NUMBER: 03784257 (England and Wales) |
| PARKWAY DERBY LIMITED |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 5 |
| Report of the Independent Auditors | 6 | to | 7 |
| Consolidated Income statement | 8 |
| Consolidated Other Comprehensive Income | 9 |
| Consolidated Statement of Financial Position | 10 | to | 11 |
| Company Statement of Financial Position | 12 | to | 13 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Statement of Cash Flows | 16 |
| Notes to the Consolidated Statement of Cash Flows | 17 |
| Notes to the Consolidated Financial Statements | 18 | to | 37 |
| PARKWAY DERBY LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Ian Phillips FCA |
| AUDITORS: |
| The Gables |
| Bishop Meadow Road |
| Loughborough |
| Leicestershire |
| LE11 5RE |
| BANKERS: | National Westminster Bank plc |
| 501 Silbury Boulevard |
| Saxon Gate East |
| Central Milton Keynes |
| Milton Keynes |
| MK9 3ER |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| The directors present their strategic report of the company and the group for the year ended 30 November 2017. |
| The results for the year and financial position of the group and company are as shown in the annexed financial |
| statements. |
| The directors aim to present a balanced and comprehensive review of the development and performance of the group |
| during the year and its position at the year end. The review is consistent with the size and the non-complex nature of |
| the group and is written in the context of the risks and uncertainties faced. |
| As a main Volkswagen retailer representing the Brand in Derbyshire, Leicestershire and Northamptonshire the group |
| continues to deal in new and used motor cars and commercial vehicles, provide vehicle servicing and body repairs and |
| sell spare parts. The group also has a small contract hire division providing vehicles to predominately local businesses. |
| The directors consider the key performance and business performance indicators as being those that represent the |
| financial performance and strength of the group as a whole. |
| REVIEW OF BUSINESS |
| Revenue has decreased by £10,389,867 in the year ended 30 November 2017 to £123,495,039. The new car market is |
| extremely competitive with manufacturers fighting for market share, this impacted revenue significantly with the |
| number of vehicles sold reducing during the year to 30 November 2017 compared to 2016. |
| Gross profit has decreased by £534,248, however as a percentage of revenue gross profit has marginally increased to |
| 7.58%. This increase is largely due to the focus of keeping overage car stock to a minimum, as well as improved |
| manufacturer bonus terms and the timing of when margin builder bonuses are recognised. Lower sub contractor costs |
| alongside an increase in rental income has resulted in the increase in profit before tax. |
| The above results have seen net assets increase by £695,908 to £7,220,640. |
| DEVELOPMENT AND PERFORMANCE |
| As a business, Parkway continues to look at ways to maximise on its returns, through strong management and |
| leadership, whilst constantly reviewing the business, its performance and its opportunities. |
| Central TPS LLP has good levels of turnover and profitability again this year but the trade of Parkway Autopoint |
| Limited was transferred into the parent company and ceased to trade as of 30 November 2016. |
| KEY PERFORMANCE INDICATORS |
2017 |
2016 |
% inc / (dec) |
| £'000 | £'000 |
| Revenue | 123,495 | 133,885 | (7.76) |
| Gross Profit | 9,367 | 9,901 | (7.40) |
| Gross Profit % | 7.58% | 7.40% | 0.18 |
| Net Profit Before Taxation | 840 | (5) | 845 |
| Net Profit % | 0.68% | - | 0.68 |
| Earnings Before Interest, Tax, Depreciation and Amortisation | 2,055 | 1,212 | 69.56 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The board considers the areas of risk are the renewal of its franchise agreement with Volkswagen and the renewal of |
| its leasehold property. To mitigate these risks the company ensures that Volkswagen's policies and procedures are |
| adhered to and is in the process of purchasing freehold land where possible. |
| The group continues to have borrowings which are secured against some of the group's properties. These borrowings |
| are subject to covenants which are regularly monitored by management, and are currently being met. |
| ON BEHALF OF THE BOARD: |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| The directors present their report with the financial statements of the company and the group for the year ended |
| 30 November 2017. |
| PRINCIPAL ACTIVITY |
| The company owns 100% of the shares in Parkway Autopoint Limited and is entitled to 100% of the profits in Central |
| TPS LLP. The group's principal activities during the year were:- |
| Company | Nature of business |
| Parkway Derby Limited | The sale of motor vehicles, vehicle parts, servicing and bodywork and the contract hire of fleet vehicles. |
| Central TPS LLP | The supply of parts to the motor trade. |
| Parkway Autopoint Limited | Dormant |
| Parkway Autopoint Limited ceased trading on 30 November 2016 and the trade was transferred to Parkway Derby |
| Limited. |
| DIVIDENDS |
| An interim dividend of £2.15 per share on the Ordinary B £1 shares was paid on 4 April 2017. The directors |
| recommend that no final dividend be paid on these shares. |
| No interim dividend was paid on the Ordinary A £1 shares. The directors recommend that no final dividend be paid on |
| these shares. |
| The total distribution of dividends for the year ended 30 November 2017 will be £ 21,500 . |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 December 2016 to the date of this |
| report. |
| EMPLOYEES |
| The group ensures that its employees are kept informed of developments within the company and within their |
| individual departments, as it appreciates the importance of communication for effective employee performance and |
| to maintain morale. |
| 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; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
| 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. |
| AUDITORS |
| Re-appointment of the auditors, Duncan & Toplis Limited, Statutory Auditor, is deemed at the forthcoming Annual |
| General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PARKWAY DERBY LIMITED |
| Opinion |
| We have audited the financial statements of Parkway Derby Limited (the 'parent company') and its subsidiaries (the |
| 'group') for the year ended 30 November 2017 which comprise the Consolidated Income statement, Consolidated |
| Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial |
| Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated |
| Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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). |
| 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 30 November 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PARKWAY DERBY LIMITED |
| 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 pages four and five, 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. |
| Auditors' 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. |
| Use of our report |
| 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. |
| for and on behalf of |
| The Gables |
| Bishop Meadow Road |
| Loughborough |
| Leicestershire |
| LE11 5RE |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| REVENUE | 3 | 123,495,039 | 133,884,906 |
| Cost of sales | 114,127,950 | 123,983,569 |
| GROSS PROFIT | 9,367,089 | 9,901,337 |
| Administrative expenses | 8,612,864 | 9,505,618 |
| 754,225 | 395,719 |
| Other operating income | 680,522 | 232,058 |
| OPERATING PROFIT | 5 | 1,434,747 | 627,777 |
| Interest receivable and similar income | 746 | 2,481 |
| 1,435,493 | 630,258 |
| Interest payable and similar expenses | 6 | 595,276 | 635,827 |
| PROFIT/(LOSS) BEFORE TAXATION | 840,217 | (5,569 | ) |
| Tax on profit/(loss) | 7 | 135,347 | 55,846 |
| PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
| Profit/(loss) attributable to: |
| Owners of the parent | 704,870 | (61,415 | ) |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| PROFIT/(LOSS) FOR THE YEAR | 704,870 | (61,415 | ) |
| OTHER COMPREHENSIVE INCOME |
| Deferred tax on revaluation gains | 12,538 | 11,653 |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
12,538 |
11,653 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
717,408 |
(49,762 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | 717,408 | (49,762 | ) |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
| 30 NOVEMBER 2017 |
| 2017 | 2016 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | - | - |
| Property, plant and equipment | 11 | 11,028,990 | 11,193,862 |
| Investments | 12 | 692,213 | 696,516 |
| 11,721,203 | 11,890,378 |
| CURRENT ASSETS |
| Inventories | 13 | 22,215,788 | 22,821,911 |
| Debtors | 14 | 3,609,709 | 3,659,397 |
| Cash at bank and in hand | 1,114,936 | 953,476 |
| 26,940,433 | 27,434,784 |
| CREDITORS |
| Amounts falling due within one year | 15 | 26,476,815 | 27,742,943 |
| NET CURRENT ASSETS/(LIABILITIES) | 463,618 | (308,159 | ) |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 12,184,821 | 11,582,219 |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
(4,896,563 |
) |
(4,963,593 |
) |
| PROVISIONS FOR LIABILITIES | 21 | (67,618 | ) | (93,894 | ) |
| NET ASSETS | 7,220,640 | 6,524,732 |
| CAPITAL AND RESERVES |
| Called up share capital | 22 | 100,000 | 100,000 |
| Revaluation reserve | 23 | 419,928 | 409,499 |
| Retained earnings | 23 | 6,700,712 | 6,015,233 |
| SHAREHOLDERS' FUNDS | 7,220,640 | 6,524,732 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued |
| 30 NOVEMBER 2017 |
| The financial statements were approved by the Board of Directors on 27 June 2018 and were signed on its behalf by: |
| S R Booth - Director |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| COMPANY STATEMENT OF FINANCIAL POSITION |
| 30 NOVEMBER 2017 |
| 2017 | 2016 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Property, plant and equipment | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Inventories | 13 |
| Debtors | 14 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 15 |
| NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Revaluation reserve |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 636,730 | 21,426 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| COMPANY STATEMENT OF FINANCIAL POSITION - continued |
| 30 NOVEMBER 2017 |
| The financial statements were approved by the Board of Directors on |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 December 2015 | 100,000 | 6,074,539 | 399,955 | 6,574,494 |
| Changes in equity |
| Total comprehensive income | - | (59,306 | ) | 9,544 | (49,762 | ) |
| Balance at 30 November 2016 | 100,000 | 6,015,233 | 409,499 | 6,524,732 |
| Changes in equity |
| Dividends | - | (21,500 | ) | - | (21,500 | ) |
| Total comprehensive income | - | 706,979 | 10,429 | 717,408 |
| Balance at 30 November 2017 | 100,000 | 6,700,712 | 419,928 | 7,220,640 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 December 2015 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 30 November 2016 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 30 November 2017 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,761,084 | 1,688,997 |
| Interest paid | (581,857 | ) | (617,072 | ) |
| Interest element of hire purchase payments paid |
(13,419 |
) |
(18,755 |
) |
| Tax paid | 27,411 | (228,730 | ) |
| Net cash from operating activities | 1,193,219 | 824,440 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (405,989 | ) | (6,002,550 | ) |
| Purchase of fixed asset investments | - | (279,304 | ) |
| Sale of tangible fixed assets | 17,191 | 193,037 |
| Interest received | 129 | 2,481 |
| Net cash from investing activities | (388,669 | ) | (6,086,336 | ) |
| Cash flows from financing activities |
| New loans in year | - | 5,200,000 |
| Loan repayments in year | (316,112 | ) | (145,511 | ) |
| Capital repayments in year | (134,169 | ) | (154,063 | ) |
| Amount introduced by directors | - | 210,163 |
| Amount withdrawn by directors | (346,796 | ) | - |
| Repayment of other loans | (100,000 | ) | (351,455 | ) |
| Equity dividends paid | (21,500 | ) | - |
| Net cash from financing activities | (918,577 | ) | 4,759,134 |
| Decrease in cash and cash equivalents | (114,027 | ) | (502,762 | ) |
| Cash and cash equivalents at beginning of year |
2 |
287,048 |
789,810 |
| Cash and cash equivalents at end of year | 2 | 173,021 | 287,048 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2017 | 2016 |
| £ | £ |
| Profit/(loss) before taxation | 840,217 | (5,569 | ) |
| Depreciation charges | 620,537 | 621,953 |
| Loss/(profit) on disposal of fixed assets | 57,677 | (6,688 | ) |
| Finance costs | 595,276 | 635,827 |
| Finance income | (746 | ) | (2,481 | ) |
| 2,112,961 | 1,243,042 |
| Decrease in inventories | 606,123 | 13,330,514 |
| Decrease/(increase) in trade and other debtors | 46,119 | (811,417 | ) |
| Decrease in trade and other creditors | (1,004,119 | ) | (12,073,142 | ) |
| Cash generated from operations | 1,761,084 | 1,688,997 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect |
| of these Statement of Financial Position amounts: |
| Year ended 30 November 2017 |
| 30.11.17 | 1.12.16 |
| £ | £ |
| Cash and cash equivalents | 1,114,936 | 953,476 |
| Bank overdrafts | (941,915 | ) | (666,428 | ) |
| 173,021 | 287,048 |
| Year ended 30 November 2016 |
| 30.11.16 | 1.12.15 |
| £ | £ |
| Cash and cash equivalents | 953,476 | 1,177,955 |
| Bank overdrafts | (666,428 | ) | (388,145 | ) |
| 287,048 | 789,810 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 1. | STATUTORY INFORMATION |
| Parkway Derby Limited is a |
| company's registered number and registered office address can be found on the General Information page. |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| The nature of the company's operations and principal activities are detailed in the report of the directors on |
| page three. |
| The significant accounting policies applied in the preparation of these financial statements are set out below. |
| These policies have been consistently applied to all years presented unless otherwise stated. |
| 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 on a going concern basis under the historical cost convention as |
| modified by the revaluation of certain assets. |
| Basis of consolidation |
| The group accounts consolidate the accounts of Parkway Derby Limited and its subsidiary undertakings for the |
| year ended 30 November 2017. No income statement has been presented for Parkway Derby Limited as |
| permitted by section 408 of the Companies Act 2006. |
| Unless otherwise stated, the acquisition method of accounting has been adopted. Under this method, the |
| results of subsidiary undertakings acquired or disposed of in the period are included in the consolidated |
| income statement from the date of acquisition or up the date of disposal. |
| Financial reporting standard 102 - reduced disclosure exemptions |
| The parent company has taken advantage of the following disclosure exemptions 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; |
- |
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) |
| The disclosure above is incorporated within these consolidated financial statements. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
| Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
| transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the |
| financial statements. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2. | ACCOUNTING POLICIES - continued |
| Significant judgements and estimates |
| In the application of the Group's accounting policies, management is required to make judgements, estimates |
| and assumptions about the carrying value of assets and liabilities that are not readily apparent from other |
| sources. The estimates and underlying 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 assumptions are reviewed on an ongoing basis. Revisions to accounting |
| estimates are recognised in the period in which the estimate is revised 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. |
| The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the |
| financial statements are described below. |
| (i) Valuation of freehold property |
| One of the freehold properties has been revalued based on the valuations performed by Colliers International, |
| and used as a deemed cost on transition to FRS 102. The valuers used observable market prices adjusted as |
| necessary for any difference sin the future, location or condition of the specific asset. |
| Revenue |
| Revenue is measured at the fair value of the consideration received or receivable, net of discounts, rebates, |
| value added tax and other sales taxes. |
| Vehicle sales and parts sales are recognised upon delivery to the customer, or upon collection by the customer. |
| Servicing and workshop sales are recognised in the period in which the services are rendered. Forecourt sales |
| are recognised at the point of sale. |
| Revenue also includes manufacturer's bonuses along with income from operating leases as described in |
| accounting policy Hire purchase and leasing commitments. |
| Goodwill |
| Acquired goodwill is written off in equal instalments over its estimated useful life of 3 years. This is based on |
| the terms of the franchise agreement with Volkswagen. |
| 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. |
| Property, plant and equipment |
| Property, plant and equipment is stated at cost less depreciation. Depreciation is provided at rates calculated |
| to write off the cost less estimated residual value of each asset over its expected useful life, as follows: |
| Land and buildings - freehold | 2% straight line |
| Land and buildings - leasehold | 6.67 - 10% straight line |
| Plant and machinery | 10 - 33% straight line |
| Computer equipment | 20 - 33% straight line |
| Fixtures, fittings & equipment | 10 - 33% straight line |
| Company vehicles | 25% straight line |
| Contract hire vehicles | over period of lease |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2. | ACCOUNTING POLICIES - continued |
| Inventories |
| (i) New vehicle inventories are stated at cost, as charged by the manufacturer. Used vehicle inventories are |
| stated at purchase cost, or part exchange value less any adjustment to reflect over allowance on exchange |
| value, less provision for slow moving inventory. |
| (ii) Consignment vehicles are included within inventories in the statement of financial position, together with |
| an equivalent liability, when the terms of the consignment agreement and normal commercial practice |
| indicate that the group enjoys the principal benefit equivalent to owning the inventory, being the ability to sell |
| it, and carries the principal risks of ownership which are the cost of inventory holding and some risks of |
| obsolescence. Where these criteria are not met, consignment inventories are not accounted for in the |
| statement of financial position but disclosed in the notes to the financial statements. |
| (iii) Parts inventory is stated at the lower of cost and fair value less costs to complete and sell. Cost is |
| determined on an average cost basis. Fair value less costs to complete and sell is the price at which the |
| inventory can be realised in the normal course of business after allowing for the costs of realisation. Provision |
| is made for obsolete, slow moving and defective inventory. |
| Financial instruments |
| The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at |
| transaction price, unless the arrangement constitutes a financing transaction, where the transaction is |
| measured at the present value of the future receipts discounted at a market rate of interest. |
| At the end of each reporting period financial assets measured at amortised cost are assessed for objective |
| evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying |
| amount and the present value of the estimated cash flows discounted at the asset's original effective interest |
| rate. The impairment loss is recognised in profit or loss. |
| Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group |
| companies are initially recognised at transaction price, unless the arrangement constitutes a financing |
| transaction, where the debt instrument is measured at the present value of the future receipts discounted at a |
| market rate of interest. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| 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 payment is due within one year |
| or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at |
| transaction price and subsequently measured at amortised cost using the effective interest method. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
| statement of financial position 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 |
| Assets obtained under hire purchase contracts and finance leases are capitalised as property, plant and |
| equipment and depreciated over the shorter of the lease term and their useful lives. Obligations under such |
| agreements are included in creditors net of the finance charge allocated to future periods. The finance |
| element of the rental payment is charged to profit and loss so as to produce a constant periodic rate of charge |
| on the net obligation outstanding in each period. |
| Assets held for hiring as operating leases are included within fixed assets and are depreciated over their useful |
| economic lives. Rental income is allocated to profit and loss on a straight line basis over the period of the |
| lease. |
| Rentals payable under operating leases are charged against income on a straight line basis over the lease term. |
| Employer financed retirement benefit schemes (efrbs) |
| During 2010 the Company established an employer financed retirement benefit scheme for the benefit of its |
| officers, employees and their wider families, The Parkway Derby Limited Employer Financed Retirement |
| Benefit Scheme ('the Scheme'). |
| In accordance with FRS 102 Section 28, the Company does not include the assets and liabilities of the Scheme |
| on its statement of financial position to the extent that it considers that it will not retain any future economic |
| benefit from the assets of the Scheme and will not have control of the rights or other access to those future |
| economic benefits. |
| Investments |
| Fixed asset investments are recognised at cost less impairment. |
| Comparatives |
| Discounts allowed are now netted off revenue as opposed to being a cost of sale. This reclassification was |
| adopted following a change in reporting by Volkswagen. The comparative figures were restated to reduce |
| turnover by £4,996,507 and reduce cost of sales by the same amount. There is no effect on overall net profit. |
| 3. | REVENUE |
| The total turnover of the group for the year has been derived from its principal activities wholly undertaken in |
| the United Kingdom. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2017 | 2016 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2017 | 2016 |
| Sales | 97 | 102 |
| Administration | 19 | 22 |
| Productive | 157 | 155 |
| 2017 | 2016 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| The Group, in order to motivate and incentivise its officers and employees, established an employer financed |
| retirement benefit scheme for the benefit of the Company's Officers, employees and their wider families, The |
| Parkway Derby Limited Employer Financed Retirement Benefit Scheme ('the Scheme'). No scheme |
| contributions were made during the year. |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2017 | 2016 |
| £ | £ |
| Depreciation - owned assets | 541,805 | 508,569 |
| Depreciation - assets on hire purchase contracts | 78,732 | 75,771 |
| Loss on disposal of tangible fixed assets | 57,677 | 31,147 |
| Other operating leases | 808,609 | 820,912 |
| Hire of plant and machinery | 14,012 | 10,835 |
| Profit on disposal of tangible fixed assets | - | (5,001 | ) |
| Auditors remuneration - audit of consolidated financial statements | 23,155 | 20,000 |
| Auditors remuneration - audit of subsidiary financial statements | 2,400 | 7,250 |
| Auditors remuneration - taxation compliance | 4,240 | 9,765 |
| Rentals received from operating leases | (509,598 | ) | (258,839 | ) |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2017 | 2016 |
| £ | £ |
| Bank interest |
| Other interest |
| Hire purchase interest |
| 7. | 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 |
| Adjustment re previous years | (49,160 | ) | (5,085 | ) |
| Total current tax |
| Deferred tax | ( |
) | ( |
) |
| Tax on profit/(loss) |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
| explained below: |
| 2017 | 2016 |
| £ | £ |
| Profit/(loss) before tax | ( |
) |
| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| Difference due to change in tax rates |
| Other adjustments | 1,604 | 19,408 |
| Deferred tax | (13,738 | ) | (21,040 | ) |
| Total tax charge | 135,347 | 55,846 |
| Tax effects relating to effects of other comprehensive income |
| 2017 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax on revaluation gains | - | 12,538 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 7. | TAXATION - continued |
| 2016 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax on revaluation gains | - | 11,653 |
| 8. | PROFIT OF PARENT COMPANY |
| 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. |
| 9. | DIVIDENDS |
| 2017 | 2016 |
| £ | £ |
| Ordinary B shares of £1 each |
| Interim |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 December 2016 |
| and 30 November 2017 |
| AMORTISATION |
| At 1 December 2016 |
| and 30 November 2017 |
| NET BOOK VALUE |
| At 30 November 2017 |
| At 30 November 2016 |
| Company |
| Goodwill |
| £ |
| COST |
| At 1 December 2016 |
| and 30 November 2017 |
| AMORTISATION |
| At 1 December 2016 |
| and 30 November 2017 |
| NET BOOK VALUE |
| At 30 November 2017 |
| At 30 November 2016 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 11. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Freehold | Short | Long |
| property | leasehold | leasehold |
| £ | £ | £ |
| COST |
| At 1 December 2016 | 8,953,868 | 43,574 | 513,125 |
| Additions | 31,430 | - | 4,945 |
| At 30 November 2017 | 8,985,298 | 43,574 | 518,070 |
| DEPRECIATION |
| At 1 December 2016 | 69,817 | 7,262 | 152,351 |
| Charge for year | 20,716 | 4,358 | 25,078 |
| Eliminated on disposal | - | - | - |
| At 30 November 2017 | 90,533 | 11,620 | 177,429 |
| NET BOOK VALUE |
| At 30 November 2017 | 8,894,765 | 31,954 | 340,641 |
| At 30 November 2016 | 8,884,051 | 36,312 | 360,774 |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 December 2016 | 2,983,530 | 1,921,957 | 450,756 | 14,866,810 |
| Additions | 259,151 | 115,754 | 119,503 | 530,783 |
| Disposals | (19,207 | ) | (137,337 | ) | (146,084 | ) | (302,628 | ) |
| At 30 November 2017 | 3,223,474 | 1,900,374 | 424,175 | 15,094,965 |
| DEPRECIATION |
| At 1 December 2016 | 1,854,727 | 1,447,179 | 141,612 | 3,672,948 |
| Charge for year | 301,316 | 190,337 | 78,732 | 620,537 |
| Eliminated on disposal | (19,207 | ) | (137,087 | ) | (71,216 | ) | (227,510 | ) |
| At 30 November 2017 | 2,136,836 | 1,500,429 | 149,128 | 4,065,975 |
| NET BOOK VALUE |
| At 30 November 2017 | 1,086,638 | 399,945 | 275,047 | 11,028,990 |
| At 30 November 2016 | 1,128,803 | 474,778 | 309,144 | 11,193,862 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 11. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Group |
| The group applied the transitional arrangements of section 35 of FRS 102 and used a valuation as the deemed |
| cost for one of the freehold properties. The property is depreciated from the date of transition to FRS 102. As |
| the property is depreciated, an appropriate transfer is made from the revaluation reserve to retained earnings. |
| If freehold property had not been revalued it would have been included at the following historic cost: |
| 2017 | 2016 |
| £ | £ |
| Cost | 2,228,153 | 2,228,153 |
| Aggregate depreciation | 82,722 | 65,720 |
| Freehold land and buildings were valued on an open market basis on 1 December 2014 by Colliers |
| International, qualified independent valuers. The methods and assumptions used to ascertain the fair value are |
| in accordance with RICS standards, and the valuation was prepared having regard to the market based |
| evidence for similar properties sold in the local area. |
| The net book value of property, plant and equipment includes £ 275,047 (2016 - £ 309,144 ) in respect of |
| assets held under hire purchase contracts. |
| Company |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1 December 2016 |
| Additions |
| Disposals | ( |
) |
| At 30 November 2017 |
| DEPRECIATION |
| At 1 December 2016 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 30 November 2017 |
| NET BOOK VALUE |
| At 30 November 2017 |
| At 30 November 2016 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 11. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Company |
| Fixtures |
| and | Motor |
| fittings | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 December 2016 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 30 November 2017 |
| DEPRECIATION |
| At 1 December 2016 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 30 November 2017 |
| NET BOOK VALUE |
| At 30 November 2017 |
| At 30 November 2016 |
| The company applied the transitional arrangements of section 35 of FRS 102 and used a valuation as the |
| deemed cost for one of the freehold properties. The property is depreciated from the date of transition to FRS |
| 102. As the property is depreciated, an appropriate transfer is made from the revaluation reserve to retained |
| earnings. |
| If freehold property had not been revalued it would have been included at the following historic cost: |
| 2017 | 2016 |
| £ | £ |
| Cost | 2,228,153 | 2,228,153 |
| Aggregate depreciation | 82,722 | 65,720 |
| Freehold land and buildings were valued on an open market basis on 1 December 2014 by Colliers |
| International, qualified independent valuers. The methods and assumptions used to ascertain the fair value are |
| in accordance with RICS standards, and the valuation was prepared having regard to the market based |
| evidence for similar properties sold in the local area. |
| The net book value of property, plant and equipment includes £ 275,047 (2016 - £ 309,144 ) in respect of |
| assets held under hire purchase contracts. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 12. | FIXED ASSET INVESTMENTS |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Shares in group undertakings | - | - |
| Other investments not loans | 692,213 | 696,516 |
| 692,213 | 696,516 |
| Additional information is as follows: |
| Investments (neither listed nor unlisted) were as follows: |
| 2017 | 2016 |
| £ | £ |
| Other investments | 692,213 | 696,516 |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 December 2016 |
| and 30 November 2017 |
| NET BOOK VALUE |
| At 30 November 2017 |
| At 30 November 2016 |
| Investments (neither listed nor unlisted) were as follows: |
| 2017 | 2016 |
| £ | £ |
| Other investments | 692,213 | 696,516 |
| The group or the company's investments at the Statement of Financial Position date in the share capital of |
| companies include the following: |
| Subsidiaries |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| Parkway Autopoint Limited ceased trading on 30 November 2016 and is now dormant. The trade and assets of |
| the company were transferred to Parkway Derby Limited. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 12. | FIXED ASSET INVESTMENTS - continued |
| Registered office: England and Wales |
| Nature of business: |
| % |
| Class of shares: | holding |
| 13. | INVENTORIES |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Raw materials | 494,618 | 661,581 |
| Consignment vehicles | 6,028,280 | 6,676,827 |
| Finished goods | 15,692,890 | 15,483,503 |
| 22,215,788 | 22,821,911 |
| Inventories recognised in cost of sales during the year as an expense was £108,214,918 (2016 - £123,342,429). |
| Used and demonstrator vehicle inventories are funded by used vehicle funding facilities secured on the |
| inventories and are included within creditors at the year end. |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Trade debtors | 1,369,268 | 1,705,506 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 855,912 | 824,758 |
| Corporation tax | 16,244 | 19,813 |
| Prepayments | 1,368,285 | 1,109,320 |
| 3,609,709 | 3,659,397 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 17) | 950,276 | 1,016,830 |
| Other loans (see note 17) | 100,000 | 100,000 |
| Hire purchase contracts (see note 18) | 96,565 | 118,272 |
| Trade creditors | 7,292,831 | 5,944,823 |
| Amounts owed to group undertakings | - | - |
| Corporation tax | 172,927 | - |
| Other taxes and social security | 203,247 | 773,225 |
| Other creditors | 10,291,642 | 11,630,876 |
| Consignment creditor | 6,028,280 | 6,676,827 | 6,028,280 | 6,676,827 |
| Directors' current accounts | 491,934 | 838,730 | 491,934 | 838,730 |
| Accrued expenses | 849,113 | 643,360 |
| 26,476,815 | 27,742,943 |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Bank loans (see note 17) | 4,730,016 | 4,704,087 |
| Other loans (see note 17) | - | 100,000 |
| Hire purchase contracts (see note 18) | 166,547 | 159,506 |
| 4,896,563 | 4,963,593 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on |
| demand: |
| Bank overdrafts | 941,915 | 666,428 |
| Bank loans | 8,361 | 350,402 |
| Other loans | 100,000 | 100,000 |
| 1,050,276 | 1,116,830 |
| Amounts falling due between one and two |
| years: |
| Bank loans - 1-2 years | 230,583 | 351,108 |
| Other loans - 1-2 years | - | 100,000 | - |
| 230,583 | 451,108 |
| Amounts falling due between two and five |
| years: |
| Bank loans - 2-5 years | 4,499,433 | 4,352,979 |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2017 | 2016 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 96,565 | 118,272 |
| Between one and five years | 166,547 | 159,506 |
| 263,112 | 277,778 |
| The hire purchase contracts relate to a number of vehicles. The remaining lease terms range from one to four |
| years. At the end of the lease, title of the assets passes to the company for a nominal fee. |
| Company |
| Hire purchase contracts |
| 2017 | 2016 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 18. | LEASING AGREEMENTS - continued |
| Group |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2017 | 2016 |
| £ | £ |
| Within one year | 874,783 | 874,783 |
| Between one and five years | 3,499,132 | 3,499,132 |
| In more than five years | 4,393,615 | 5,268,398 |
| 8,767,530 | 9,642,313 |
| Total future minimum lease payments receivable under non-cancellable operating leases are as follows: |
| 2017 | 2016 |
| £ | £ |
| Within one year | 399,000 | 399,000 |
| Between one and five years | 1,596,000 | 1,596,000 |
| In more than five years | 1,496,250 | 1,895,250 |
| 3,491,250 | 3,890,250 |
| Company |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2017 | 2016 |
| £ | £ |
| Within one year | 874,783 | 874,783 |
| Between one and five years | 3,499,132 | 3,499,132 |
| In more than five years | 4,393,615 | 5,268,398 |
| 8,767,530 | 9,642,313 |
| Total future minimum lease payments receivable under non-cancellable operating leases are as follows: |
| 2017 | 2016 |
| £ | £ |
| Within one year | 399,000 | 399,000 |
| Between one and five years | 1,596,000 | 1,596,000 |
| In more than five years | 1,496,250 | 1,895,250 |
| 3,491,250 | 3,890,250 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 19. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Bank overdrafts | 941,915 | 666,428 |
| Bank loans | 4,738,377 | 5,054,489 |
| Other loans | 100,000 | 200,000 | 100,000 | 200,000 |
| Hire purchase contracts | 263,112 | 277,778 | 263,112 | 277,778 |
| Trade creditors | 4,930,421 | 3,255,028 | 4,930,421 | 3,255,028 |
| Other creditors | 9,092,763 | 10,359,972 | 9,092,763 | 9,603,997 |
| 20,066,588 | 19,813,695 |
| Included within trade creditors is demonstrator funding amounting to £4,930,421 (2016: £3,255,028) which is |
| secured over certain vehicle stocks held by the company and the group. |
| Included within other creditors is used vehicle funding amounting to £9,092,763 (2016: £10,359,972) which is |
| secured over certain vehicle stocks held by the group and £9,092,763 (2016 : £9,603,997) for the company. |
| Monies owing to Volkswagen Financial Services (UK) Limited and Volkswagen Bank GmbH trading as |
| Volkswagen Bank United Kingdom branch for the purchase of land and property at Northampton is secured by |
| a legal charge dated 29 November 2013. The balance outstanding at 30 November 2017 is £100,000 (2016: |
| £200,000) and the interest rate payable is 3.95%. |
| In addition to the above Volkswagen Bank also have a personal guarantee of S Booth, limited to £50,000. |
| The bank overdraft is secured by a mortgage debenture dated 15 November 1999 over all freehold and |
| leasehold properties and over the proceeds of sale thereof, fixed and floating charges and all property and |
| assets present and future. |
| There is a charge dated 11 June 2010 over sub-hire agreements to Lombard North Central plc. The net |
| obligations under these finance leases and hire purchase contracts are secured on the assets to which they |
| relate. |
| The bank loan is secured by a legal charge dated 30 August 2016 over the freehold properties at Leicester and |
| Kettering. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 20. | FINANCIAL INSTRUMENTS |
| Group |
| The group has the following financial instruments: |
| 2017 | 2016 |
| £ | £ |
| Financial assets measured at amortised cost |
| Trade debtors | 1,369,268 | 1,705,506 |
| Other debtors | 855,912 | 824,758 |
| Financial liabilities measured at amortised cost |
| Bank loans and overdrafts | 5,680,292 | 5,054,489 |
| Other loans | 100,000 | 200,000 |
| Hire purchase contracts | 263,112 | 277,778 |
| Trade creditors | 7,292,831 | 5,944,823 |
| Other creditors | 10,291,642 | 11,630,876 |
| Consignment creditor | 6,028,280 | 6,676,827 |
| Directors' current accounts | 491,934 | 838,730 |
| The total interest income and interest expense for financial assets and financial liabilities that are not |
| measured at fair value through profit or loss was £nil (2016: £nil) and £595,276 (2016: £635,827). |
| 21. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Deferred tax |
| Accelerated capital allowances | 40,310 | 54,048 | 40,310 | 54,048 |
| Other timing differences | 27,308 | 39,846 | 27,308 | 39,846 |
| 67,618 | 93,894 | 67,618 | 93,894 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 December 2016 | 93,894 |
| Credit to Income statement during year | (13,738 | ) |
| Charge/(credit) to other |
| comprehensive income in the |
| year | (12,538 | ) |
| Balance at 30 November 2017 | 67,618 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 21. | PROVISIONS FOR LIABILITIES - continued |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1 December 2016 |
| Credit to Income Statement during year | ( |
) |
| Charge/(credit) to other |
| comprehensive income in the |
| year | (12,538 | ) |
| Balance at 30 November 2017 |
| The expected net reversal of deferred tax liabilities in 2018 is not expected to be significant based on planned |
| capital expenditure for the company and the group. |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2017 | 2016 |
| value: | £ | £ |
| Ordinary A | £1 | 90,000 | 90,000 |
| Ordinary B | £1 | 10,000 | 10,000 |
| 100,000 | 100,000 |
| The 'A' and 'B' shares rank pari passu in all respects with the exception of dividend rights. The directors are |
| entitled to declare different dividends on the different classes of ordinary shares as they may in their exclusive |
| discretion deem fit from time to time. |
| 23. | RESERVES |
| Group |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 December 2016 | 6,015,233 | 409,499 | 6,424,732 |
| Profit for the year | 704,870 | 704,870 |
| Dividends | (21,500 | ) | (21,500 | ) |
| Depreciation transfer | 2,109 | (2,109 | ) | - |
| Deferred tax movement on |
| revaluation gains | - | 12,538 | 12,538 |
| At 30 November 2017 | 6,700,712 | 419,928 | 7,120,640 |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 23. | RESERVES - continued |
| Company |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 December 2016 | 6,361,355 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Depreciation transfer | 2,109 | (2,109 | ) | - |
| Deferred tax movement on |
| revaluation gains | - | 12,538 | 12,538 |
| At 30 November 2017 | 6,989,123 |
| The aggregate surplus on re-measurement of freehold property, net of associated deferred tax, is shown as a |
| separate non-distributable revaluation reserve. |
| 24. | PENSION COMMITMENTS |
| Defined Contribution scheme |
| The group operates a defined contribution pension scheme. The assets of the scheme are held separately from |
| those of the group in an independently administered fund. The pension cost charge represents contributions |
| payable by the group to the fund and amounted to £55,579 (2016- £49,935). Contributions totalling £10,314 |
| (2016- £10,597) were payable to the fund at the year end and are included in creditors. |
| 25. | RELATED PARTY DISCLOSURES |
| Key management personnel of the entity or its parent (in the aggregate) |
| The company paid dividends of £21,500 (2016: £nil) to key management personnel. |
| At the year end £491,934 (2016: £838,730) was owing to its directors. The loans are interest free and |
| repayable on demand. |
| Key management personnel compensation is considered to be the same as reported under directors' |
| remuneration disclosed in note 4. |
| Other related parties |
| 2017 | 2016 |
| £ | £ |
| Sales | 63,585 | 203,324 |
| Purchases | 89,677 | 76,204 |
| Amount due from related party | 9,768 | 18,383 |
| The above transactions relate to trading with a company in which one of the directors has an interest. |
| Included in other debtors is a loan to a company in which one of the directors has an interest. The balance at |
| year end was £649,500 (2016: £754,500). The loan is interest free and repayable on demand. |
| PARKWAY DERBY LIMITED (REGISTERED NUMBER: 03784257) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 NOVEMBER 2017 |
| 26. | ULTIMATE CONTROLLING PARTY |
| The controlling party is S R Booth. |
| 27. | CHANGE IN ACCOUNTING ESTIMATE |
| Income received previously under the Margin Builder Bonus Scheme has been accounted for when received. |
| Following a change in Volkswagen's reporting this income is now accounted for when earned. This has resulted |
| in an extra income of approximately £450,000 for this year. |