C.P.G. (Wales) PLC - Limited company accounts 18.2

REGISTERED NUMBER: 01880557 (England and Wales)

C.P.G. (WALES) PLC

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 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 Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

to

34

DIRECTORS:

G A Humphries

P A Humphries

REGISTERED OFFICE:

Corner Park Garages

Llantrisant Road

Mwyndy

Pontyclun

CF72 8YR

REGISTERED NUMBER:

01880557 (England and Wales)

SENIOR STATUTORY AUDITOR:

Brian Garland

AUDITORS:

Gerald Thomas

Chartered Accountants and Statutory Auditor

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

The directors present their strategic report of the company and the group for the year ended

31 December 2017.

REVIEW OF BUSINESS

The key financial highlights are as follows:

2017

2016

2015

2014

('000s)

('000s)

('000s)

('000s)

Turnover

£18,916

19,873

£15,984

£17,946

Turnover growth

(4.81%)

24.33%

(10.93%)

2.09%

Gross profit margin

5.32%

4.85%

5.59%

5.02%

Operating profit

£101

£291

£260

£339

Net assets

£1,354

£1,838

£1,872

£1,826

Gross profit percentage is the group's key performance indicator, despite the reduction in turnover the gross

profit has increased to £1,007,298 compared to £963,198 in the prior period. The vehicle preparation costs

continue to be closely monitored and the buying process being more focused on vehicles that require the

minimum of preparation costs has enabled the group to maintain its margin. The directors believe that the

business has made further good progress in the year of review.

Whilst the directors have continued to support the development of the business they have also continued with

their ongoing strategy. The directors believe that paying down debt and retaining cash within the business will

leave the group well placed to take advantage of new opportunities as they arise.

The directors continue to be pleased with the improvements and efficiencies being implemented within the

business and look forward to these contributing to improved financial performance in the coming year.

PRINCIPAL RISKS AND UNCERTAINTIES

The business is subject to certain risks which are monitored closely by the directors.

The group relies on its bank overdraft and bank loan facilities, and loans from directors to finance its working

capital requirements. The directors maintain a close working relationship with their bankers and following

recent discussions have secured the facilities on acceptable terms for the foreseeable future. The directors

indicate their willingness to continue to provide support to the group if required.

The board has considered the potential impact of adverse interest rate movements and concluded that based

on the current project borrowing levels this risk is immaterial and does not require any specific mitigation

strategies at the current time. This position will be kept under review.

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank balances, loans, trade debtors and creditors,

directors' loans and finance lease agreements. The main purpose of these instruments is to raise funds for

the group's operations and to finance the group's operations.

In respect of loans, these comprise loans to and from the directors and related party companies and loans

from financial institutions. The interest rate on the loans from financial institutions is variable, but the monthly

repayments are fixed. The company manages liquidity risk by ensuring there are sufficient funds to meet the

repayments. The loans to and from directors are interest bearing and repayable over several years. Loans to

and from related party companies are not interest bearing and are repayable on demand.

The group is a lessee in respect of financed leased assets. The liquidity risk in respect of these is managed in

the same way as loans.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to

customers and the regular monitoring of amounts outstanding for both time and credit risk. Trade creditors

liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ON BEHALF OF THE BOARD:

G A Humphries - Director

26 September 2018

The directors present their report with the financial statements of the company and the group for the year

ended 31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the buying and selling of motor vehicles

and the sale of fuel, oil and forecourt sales.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2017.

FUTURE DEVELOPMENTS

The directors are confident that the group will continue to achieve improved trading levels in future periods.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of

this report.

G A Humphries

P A Humphries

Other changes in directors holding office are as follows:

Ms V M Humphries - resigned 8 October 2017

DISCLOSURE IN THE STRATEGIC REPORT

Included in the group's strategic report is a review of the business performance and a description of the

principle risks and uncertainties facing the company.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

G A Humphries - Director

26 September 2018

Opinion

We have audited the financial statements of C.P.G. (Wales) PLC (the 'parent company') and its subsidiaries

(the 'group') for the year ended 31 December 2017 which comprise the Consolidated Income Statement,

Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet,

Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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).

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 December 2017 and of the group's loss 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.

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.

Brian Garland (Senior Statutory Auditor)

for and on behalf of Gerald Thomas

Chartered Accountants and Statutory Auditor

3 New Mill Court

Swansea Enterprise Park

Swansea

SA7 9FG

26 September 2018

TURNOVER

4

18,916,131

19,872,928

Cost of sales

17,908,833

18,909,730

GROSS PROFIT

1,007,298

963,198

Administrative expenses

1,634,218

1,497,151

(626,920

)

(533,953

)

Other operating income

728,329

824,714

OPERATING PROFIT

6

101,409

290,761

Exceptional item

7

-

145,953

101,409

144,808

Interest payable and similar expenses

8

169,597

214,944

LOSS BEFORE TAXATION

(68,188

)

(70,136

)

Tax on loss

9

(5,442

)

11,556

LOSS FOR THE FINANCIAL YEAR

(62,746

)

(81,692

)

Loss attributable to:

Owners of the parent

(62,746

)

(81,692

)

LOSS FOR THE YEAR

(62,746

)

(81,692

)

OTHER COMPREHENSIVE INCOME

Transaction between equity holders

(1,405

)

(1,410

)

Movement in non controlling interest

(19,500

)

(19,500

)

Revaluation of freehold property

(500,000

)

-

Income tax relating to components of other comprehensive income

100,189

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(420,716

)

(20,910

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(483,462

)

(102,602

)

Total comprehensive income attributable to:

Owners of the parent

(463,962

)

(83,102

)

Non-controlling interests

(19,500

)

(19,500

)

(483,462

)

(102,602

)

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

3,186,331

3,733,291

Investments

13

Interest in joint venture

1

1

3,186,332

3,733,292

CURRENT ASSETS

Stocks

14

100,115

142,400

Debtors

15

2,046,442

2,497,157

Cash at bank and in hand

4,357

4,653

2,150,914

2,644,210

CREDITORS

Amounts falling due within one year

16

1,693,535

1,397,056

NET CURRENT ASSETS

457,379

1,247,154

TOTAL ASSETS LESS CURRENT LIABILITIES

3,643,711

4,980,446

CREDITORS

Amounts falling due after more than one year

17

(2,269,554

)

(3,017,196

)

PROVISIONS FOR LIABILITIES

22

(20,026

)

(125,657

)

NET ASSETS

1,354,131

1,837,593

CAPITAL AND RESERVES

Called up share capital

23

1,126,500

1,126,500

Retained earnings

24

198,515

662,477

SHAREHOLDERS' FUNDS

1,325,015

1,788,977

NON-CONTROLLING INTERESTS

25

29,116

48,616

TOTAL EQUITY

1,354,131

1,837,593

The financial statements were approved by the Board of Directors on 26 September 2018 and were signed on

its behalf by:

G A Humphries - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

3,186,331

3,733,291

Investments

13

513,016

492,111

3,699,347

4,225,402

CURRENT ASSETS

Stocks

14

100,115

142,400

Debtors

15

2,015,242

2,445,157

Cash at bank and in hand

4,342

4,638

2,119,699

2,592,195

CREDITORS

Amounts falling due within one year

16

2,149,794

1,832,515

NET CURRENT (LIABILITIES)/ASSETS

(30,095

)

759,680

TOTAL ASSETS LESS CURRENT LIABILITIES

3,669,252

4,985,082

CREDITORS

Amounts falling due after more than one year

17

(2,269,554

)

(3,017,196

)

PROVISIONS FOR LIABILITIES

22

(20,026

)

(125,657

)

NET ASSETS

1,379,672

1,842,229

CAPITAL AND RESERVES

Called up share capital

23

1,126,500

1,126,500

Retained earnings

24

253,172

715,729

SHAREHOLDERS' FUNDS

1,379,672

1,842,229

Company's loss for the financial year

(62,746

)

(81,692

)

The financial statements were approved by the Board of Directors on 26 September 2018 and were signed on its behalf by:

G A Humphries - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2016

1,126,500

745,579

1,872,079

68,116

1,940,195

Changes in equity

Total comprehensive income

-

(83,102

)

(83,102

)

(19,500

)

(102,602

)

Balance at 31 December 2016

1,126,500

662,477

1,788,977

48,616

1,837,593

Changes in equity

Total comprehensive income

-

(463,962

)

(463,962

)

(19,500

)

(483,462

)

Balance at 31 December 2017

1,126,500

198,515

1,325,015

29,116

1,354,131

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2016

1,126,500

797,421

1,923,921

Changes in equity

Total comprehensive income

-

(81,692

)

(81,692

)

Balance at 31 December 2016

1,126,500

715,729

1,842,229

Changes in equity

Total comprehensive income

-

(462,557

)

(462,557

)

Balance at 31 December 2017

1,126,500

253,172

1,379,672

Cash flows from operating activities

Cash generated from operations

1

597,095

319,943

Interest paid

(168,758

)

(214,439

)

Interest element of hire purchase payments paid

(839

)

(505

)

Tax paid

(10,891

)

(21,375

)

Net cash from operating activities

416,607

83,624

Cash flows from investing activities

Purchase of tangible fixed assets

(16,414

)

(103,070

)

Purchase of fixed asset investments

(20,905

)

(20,910

)

Sale of tangible fixed assets

1,450

-

Sale of fixed asset investments

-

500

Net cash from investing activities

(35,869

)

(123,480

)

Cash flows from financing activities

New loans in year

-

365,978

Loan repayments in year

(217,685

)

(337,670

)

Amount withdrawn by directors

(217,062

)

(277,860

)

Net cash from financing activities

(434,747

)

(249,552

)

Decrease in cash and cash equivalents

(54,009

)

(289,408

)

Cash and cash equivalents at beginning of year

2

(67,522

)

221,886

Cash and cash equivalents at end of year

2

(121,531

)

(67,522

)

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

2017

2016

£

£

Loss before taxation

(68,188

)

(70,136

)

Depreciation charges

61,995

48,410

(Profit)/loss on disposal of fixed assets

(71

)

31,000

Finance costs

169,597

214,944

163,333

224,218

Decrease/(increase) in stocks

42,285

(36,542

)

Decrease in trade and other debtors

450,715

69,217

(Decrease)/increase in trade and other creditors

(59,238

)

63,050

Cash generated from operations

597,095

319,943

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 December 2017

31/12/17

1/1/17

£

£

Cash and cash equivalents

4,357

4,653

Bank overdrafts

(125,888

)

(72,175

)

(121,531

)

(67,522

)

Year ended 31 December 2016

31/12/16

1/1/16

£

£

Cash and cash equivalents

4,653

221,886

Bank overdrafts

(72,175

)

-

(67,522

)

221,886