Swansea TPS Limited - Limited company accounts 20.1
Swansea TPS Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
Swansea TPS Limited |
Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
Swansea TPS Limited (Registered number: 06283589) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
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 |
Swansea TPS Limited |
Company Information |
for the Year Ended 31 December 2021 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Bankers: |
P O Box 10 |
Windsor Court |
Cardiff |
CF11 3WP |
Solicitors: |
3 Assembly Square |
Britannia Quay |
Cardiff Bay |
Cardiff |
CF10 4PL |
Swansea TPS Limited (Registered number: 06283589) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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 2021 to the date of this report. |
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: |
Report of the Independent Auditors to the Members of |
Swansea TPS Limited |
Opinion |
We have audited the financial statements of Swansea TPS Limited (the 'company') for the year ended 31 December 2021 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 2021 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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 this gives rise to a material misstatement in the financial statements themselves. 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. |
Opinions 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. |
Report of the Independent Auditors to the Members of |
Swansea TPS Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation. |
Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include: |
- | Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities; |
- | Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally; |
- | Assessing the risk of management override and review and testing of journal entries made into the accounting system; |
- | Challenging assumptions and judgements made by the company in relation to the significant accounting estimates employed in the preparation of the financial statements; |
- | Discussing with Directors and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance. |
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls. |
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 |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Swansea TPS Limited (Registered number: 06283589) |
Statement of Comprehensive |
Income |
for the Year Ended 31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
85,247 | (26,602 | ) |
Other operating income |
Operating profit | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 7 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Swansea TPS Limited (Registered number: 06283589) |
Balance Sheet |
31 December 2021 |
2021 | 2020 |
as restated |
Notes | £ | £ |
Fixed assets |
Tangible assets | 9 |
Current assets |
Debtors | 10 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 13 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 14 |
Retained earnings |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Swansea TPS Limited (Registered number: 06283589) |
Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | Statutory information |
Swansea TPS Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The 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 requirement of paragraph 33.7. |
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 reasonably assured and when the specific criteria for the company's activities are met. |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Government grants |
Government grants represents income receivable in relation to the UK government COVID-19 job retention scheme. This is recognised in the period in which it becomes receivable. |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | Accounting policies - continued |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Financial liabilities are derecognised when the company's contractual obligations expire or are discharged & cancelled. |
Trade Debtors |
Trade debtors are amounts due from customers for merchandise sold in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade creditors |
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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve |
months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months |
after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost |
using the effective interest method. |
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. |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
as restated |
£ | £ |
4. | Employees and directors |
2021 | 2020 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
as restated |
Employees |
Key management remuneration is disclosed within the consolidated financial statements of the parent entity, Sinclair Motor Holdings Limited (incorporated in England & Wales). |
2021 | 2020 |
as restated |
£ | £ |
Directors' remuneration |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
as restated |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
6. | Interest payable and similar expenses |
2021 | 2020 |
as restated |
£ | £ |
Loan |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is the same as the standard rate of corporation tax in the UK. |
2021 | 2020 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Depreciation in excess of capital allowances |
Deferred tax adjustment | (4,131 | ) | (3,670 | ) |
Total tax charge | 24,170 | 15,180 |
8. | Prior year adjustment |
The company has reviewed the way in which it has reported its activities in the past and has compared this against the market within which they operate. Although the total profit and net assets have not changed, the way in which their component parts are disclosed has. The change has been made to bring the financial information more in line with the motor trade market as a whole which will allow the business to better analyse and reflect on market trends and aid in more meaningful comparisons against competitors. |
9. | Tangible fixed assets |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
Cost |
At 1 January 2021 |
and 31 December 2021 |
Depreciation |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
Net book value |
At 31 December 2021 |
At 31 December 2020 |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
10. | Debtors: amounts falling due within one year |
2021 | 2020 |
as restated |
£ | £ |
Amounts owed by group undertakings |
Amounts owed by participating interests | 1,356 | - |
Other debtors |
Prepayments |
11. | Creditors: amounts falling due within one year |
2021 | 2020 |
as restated |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
VAT | 43,233 | 29,315 |
Accrued expenses |
12. | Secured debts |
The company has entered into a Composite Accounting Agreement dated 26/04/2012. |
Each participating company has provided a guarantee to the bank. |
1. Cross guarantee and debenture between Sinclair Garages (Bridgend) Limited, Sinclair Garages (Cardiff) Limited,Sinclair Garages ( Newport) Limited, Sinclair Garages (Port Talbot) Limited, Sinclair Garages (Swansea) Limited, Sinclair Garages Limited, Sinclair Motor Holdings Limited and Technik Construction (South Wales) Limited dated 29/4/2004. |
2. Unlimited guarantee given by Sinclair Garages (Bridgend) Limited, Sinclair Garages (Cardiff) Limited, Sinclair Garages (Newport), Sinclair Garages (Port Talbot) Limited, Sinclair Garages Limited and Sinclair Garages (Swansea) Limited dated 26/4/2012. |
13. | Provisions for liabilities |
2021 | 2020 |
as restated |
£ | £ |
Deferred tax | 19,202 | 23,333 |
Deferred |
tax |
£ |
Balance at 1 January 2021 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 December 2021 |
14. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | as restated |
£ | £ |
Ordinary | £1 | 1 | 1 |
Swansea TPS Limited (Registered number: 06283589) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | Pension commitments |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £14,258 (2020: £7,263). |
16. | Ultimate controlling party |
The immediate and ultimate parent company is Sinclair Motor Holdings Limited, whose registered office is Old |
Field Road, Bocam Park, Pencoed, Bridgend CF35 5LJ. Sinclair Motor Holdings Limited is the smallest and |
largest group for which consolidated financial statements are prepared. Copies of the financial statements of |
both companies are available from Companies house, Crown Way, Cardiff CF14 3UZ. |
The Ultimate controlling party is Mr G Sinclair, a director of the company and shareholder of Sinclair Motor Holdings Ltd. |