Swansea TPS Limited - Limited company accounts 18.2

REGISTERED NUMBER: 06283589 (England and Wales)

Swansea TPS Limited

Report of the Directors and

Financial Statements for the Year Ended 31 December 2018

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

Directors:

Mr G S Sinclair

Mr A J Sinclair

Registered office:

c/o Sinclair Group, Old Field Road

Bocam Park

Pencoed

Bridgend

CF35 5LJ

Registered number:

06283589 (England and Wales)

Auditors:

Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

Bankers:

Barclays Bank PLC

P O Box 10

Windsor Court

Cardiff

CF11 3WP

Solicitors:

Acuity Legal

3 Assembly Square

Britannia Quay

Cardiff Bay

Cardiff

CF10 4PL

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

Principal activity

The principal activity of the company in the year under review was that of the distribution of VW franchise parts.

Directors

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

Mr G S Sinclair

Mr A J Sinclair

Statement of directors' responsibilities

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with

applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors

must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of

affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements,

the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible

for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to

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

company's auditors are aware of that information.

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:

Mr A J Sinclair - Director

9 May 2019

Opinion

We have audited the financial statements of Swansea TPS Limited (the 'company') for the year ended

31 December 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in

Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

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

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

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

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

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

Conclusions relating to going concern

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

you where:

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

-

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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, except to the extent otherwise

explicitly stated in our report, 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 we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the

financial statements or a material misstatement of the other information. 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view,

and for such internal control as the directors determine necessary to enable the preparation of financial statements that

are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

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.

Clive Edwards (Senior Statutory Auditor)

for and on behalf of Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ

9 May 2019

Turnover

787,781

649,072

Cost of sales

(581,688

)

(490,812

)

Gross profit

206,093

158,260

Administrative expenses

(121,780

)

(98,621

)

Operating profit

4

84,313

59,639

Interest payable and similar expenses

5

(302

)

(1,200

)

Profit before taxation

84,011

58,439

Tax on profit

6

(39,140

)

(9,388

)

Profit for the financial year

44,871

49,051

Other comprehensive income

-

-

Total comprehensive income for the year

44,871

49,051

Fixed assets

Tangible assets

7

222,080

34,586

Current assets

Debtors

8

578,301

695,391

Cash at bank and in hand

24,665

38,265

602,966

733,656

Creditors

Amounts falling due within one year

9

(72,168

)

(86,650

)

Net current assets

530,798

647,006

Total assets less current liabilities

752,878

681,592

Provisions for liabilities

12

(28,202

)

(1,787

)

Net assets

724,676

679,805

Capital and reserves

Called up share capital

13

1

1

Retained earnings

14

724,675

679,804

Shareholders' funds

724,676

679,805

The financial statements were approved by the Board of Directors on 9 May 2019 and were signed on its behalf by:

Mr A J Sinclair - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

1

630,753

630,754

Changes in equity

Total comprehensive income

-

49,051

49,051

Balance at 31 December 2017

1

679,804

679,805

Changes in equity

Total comprehensive income

-

44,871

44,871

Balance at 31 December 2018

1

724,675

724,676

1.	Statutory information

Swansea TPS Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Group and Company have adopted Amendments to Financial Reporting Standard 102 - Triennial Review

2017 in these financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

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

Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

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.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of recharges and commissions

earned.

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

probable that the collectability of the related debtor is reasonable assured and when the specific criteria for the

company's activities are met.

Tangible fixed assets

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

Infrastructure

-

10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, 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 defined contribution pension scheme. Contributions payable to the company's

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

3.	Employees and directors

2018

2017

£

£

Wages and salaries

522,477

441,681

Social security costs

41,850

37,744

Other pension costs

4,603

2,823

568,930

482,248

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

2018

2017

Employees

23

23

Key management remuneration is disclosed within the consolidated financial statements of the parent entity,

Sinclair Motor Holdings Limited (incorporated in England & Wales).

2018

2017

£

£

Directors' remuneration

-

-

4.	Operating profit

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

13,862

15,623

Loss on disposal of fixed assets

1,811

-

Auditors' remuneration

1,845

2,088

5.

Interest payable and similar expenses

2018

2017

£

£

Loan

302

1,200

6.

Taxation

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

12,724

13,190

Deferred tax

26,416

(3,802

)

Tax on profit

39,140

9,388

7.	Tangible fixed assets

Fixtures

Plant and

and

Infrastructure

machinery

fittings

£

£

£

Cost

At 1 January 2018

88,766

12,673

9,160

Additions

200,633

2,009

9,296

Disposals

(34,680

)

(8,751

)

(475

)

At 31 December 2018

254,719

5,931

17,981

Depreciation

At 1 January 2018

67,777

8,735

5,054

Charge for year

7,390

1,234

2,337

Eliminated on disposal

(15,971

)

(5,980

)

(475

)

At 31 December 2018

59,196

3,989

6,916

Net book value

At 31 December 2018

195,523

1,942

11,065

At 31 December 2017

20,989

3,938

4,106

Motor

Computer

vehicles

equipment

Totals

£

£

£

Cost

At 1 January 2018

7,500

15,650

133,749

Additions

-

10,898

222,836

Disposals

-

-

(43,906

)

At 31 December 2018

7,500

26,548

312,679

Depreciation

At 1 January 2018

3,000

14,597

99,163

Charge for year

1,500

1,401

13,862

Eliminated on disposal

-

-

(22,426

)

At 31 December 2018

4,500

15,998

90,599

Net book value

At 31 December 2018

3,000

10,550

222,080

At 31 December 2017

4,500

1,053

34,586

Included within fixed assets is a motor vehicle with a net book value of £3,000 (2017: £4,500) purchased on a

hire purchase agreement. The depreciation charged on this asset was £1,500 (2017: £1,500) for the year.

8.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

75,891

190,409

Amounts owed by group undertakings

400,000

500,000

Other debtors

1,349

150

Prepayments

101,061

4,832

578,301

695,391

9.

Creditors: amounts falling due within one year

2018

2017

£

£

Hire purchase contracts (see note 10)

-

800

Trade creditors

18,767

-

Tax

12,724

13,190

VAT

33,180

29,397

Other creditors

1,690

4,512

Accrued expenses

5,807

38,751

72,168

86,650

10.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

-

800

Non-cancellable

operating leases

2018

2017

£

£

Within one year

-

3,364

11.	Secured debts

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

-

800

Hire purchase creditors are secured against the assets to which they relate.

12.	Provisions for liabilities

2018

2017

£

£

Deferred tax

28,202

1,787

Deferred

tax

£

Balance at 1 January 2018

1,787

Charge to Statement of Comprehensive Income during year

26,415

Balance at 31 December 2018

28,202

13.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

1

Ordinary

1

1

1

14.

Reserves

Retained

earnings

£

At 1 January 2018

679,804

Profit for the year

44,871

At 31 December 2018

724,675

15.	Ultimate controlling party

The controlling party is Sinclair Motor Holdings Limited.

The ultimate controlling party is Mr G S Sinclair.