Downeys Rental Limited iXBRL

Relate AccountsProduction v2.4.3 v2.4.3 2020-01-01 The company was not dormant during the period The company was trading for the entire period The principal activity of the business during the year was the rental of motor vehicles. 30 September 2021 25 32 NI636209 2020-12-31 NI636209 2019-12-31 NI636209 2018-12-31 NI636209 2020-01-01 2020-12-31 NI636209 2019-01-01 2019-12-31 NI636209 uk-bus:PrivateLimitedCompanyLtd 2020-01-01 2020-12-31 NI636209 uk-bus:SmallCompaniesRegimeForAccounts 2020-01-01 2020-12-31 NI636209 uk-bus:FullAccounts 2020-01-01 2020-12-31 NI636209 uk-core:ShareCapital 2020-12-31 NI636209 uk-core:ShareCapital 2019-12-31 NI636209 uk-core:RetainedEarningsAccumulatedLosses 2020-12-31 NI636209 uk-core:RetainedEarningsAccumulatedLosses 2019-12-31 NI636209 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2020-12-31 NI636209 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2019-12-31 NI636209 uk-bus:FRS102 2020-01-01 2020-12-31 NI636209 uk-core:LandBuildings 2020-01-01 2020-12-31 NI636209 uk-core:PlantMachinery 2020-01-01 2020-12-31 NI636209 uk-core:FurnitureFittingsToolsEquipment 2020-01-01 2020-12-31 NI636209 uk-core:MotorVehicles 2020-01-01 2020-12-31 NI636209 uk-bus:Audited 2020-01-01 2020-12-31 NI636209 uk-core:CurrentFinancialInstruments 2020-12-31 NI636209 uk-core:CurrentFinancialInstruments 2019-12-31 NI636209 uk-core:CurrentFinancialInstruments 2020-12-31 NI636209 uk-core:CurrentFinancialInstruments 2019-12-31 NI636209 uk-core:WithinOneYear 2020-12-31 NI636209 uk-core:WithinOneYear 2019-12-31 NI636209 uk-core:WithinOneYear 2020-12-31 NI636209 uk-core:WithinOneYear 2019-12-31 NI636209 uk-core:AfterOneYear 2020-12-31 NI636209 uk-core:AfterOneYear 2019-12-31 NI636209 uk-core:BetweenOneFiveYears 2020-12-31 NI636209 uk-core:BetweenOneFiveYears 2019-12-31 NI636209 uk-core:EmployeeBenefits 2019-12-31 NI636209 uk-core:EmployeeBenefits 2020-01-01 2020-12-31 NI636209 uk-core:AcceleratedTaxDepreciationDeferredTax 2020-12-31 NI636209 uk-core:TaxLossesCarry-forwardsDeferredTax 2020-12-31 NI636209 uk-core:OtherDeferredTax 2020-12-31 NI636209 uk-core:RevaluationPropertyPlantEquipmentDeferredTax 2020-12-31 NI636209 uk-core:EmployeeBenefits 2020-12-31 NI636209 uk-core:ParentEntities 2020-01-01 2020-12-31 NI636209 uk-core:UltimateParent 2020-01-01 2020-12-31 NI636209 uk-countries:NorthernIreland 2020-01-01 2020-12-31 NI636209 uk-bus:Director1 2020-01-01 2020-12-31 xbrli:pure iso4217:GBP xbrli:shares
Downeys Rental Limited
Financial Statements
for the financial year ended 31 December 2020

Downeys Rental Limited
Company Number: NI636209
as at 31 December 2020

2020 2019
Notes £ £
Fixed Assets
Tangible assets 9 3,429,570 3,716,297
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Current Assets
Debtors 10 462,606 1,119,640
Cash and cash equivalents 175,669 408,142
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638,275 1,527,782
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Creditors: Amounts falling due within one year 11 (2,113,947) (4,658,938)
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Net Current Liabilities (1,475,672) (3,131,156)
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Total Assets less Current Liabilities 1,953,898 585,141
Amounts falling due after more than one year 12 (1,188,325) -
Provisions for liabilities 13 (173,927) -
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Net Assets 591,646 585,141
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Capital and Reserves
Called up share capital 100 100
Profit and Loss Account 591,546 585,041
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Shareholders' Funds 591,646 585,141
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A (Small Entities).
The company has taken advantage of the exemption under section 444 not to file the Profit and Loss Account and Director's Report.
Approved by the Director and authorised for issue on 30 September 2021
David Andrew John McCulla          

Downeys Rental Limited
for the financial year ended 31 December 2020

Downeys Rental Limited (company number: NI636209) is a private company limited by shares incorporated in Northern Ireland. Unit 2 Channel Wharf, 21 Old Channel Road, Belfast, Co. Antrim, BT3 9DE, Northern Ireland is the registered office. The nature of the company's operations and its principal activities are set out in the Director's Report. The financial statements have been presented in Pound Sterling (£) which is also the functional currency of the company.
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
Statement of compliance
The financial statements of the company for the year ended 31 December 2020 have been prepared in accordance with the provisions of FRS 102 Section 1A (Small Entities) and the Companies Act 2006.
Basis of preparation
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
Turnover comprises the invoice value of goods and services supplied by the company, exclusive of trade discounts and value added tax.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows:
  Land and buildings freehold - 4% Straight line
  Plant and machinery - 15% Straight line
  Fixtures, fittings and equipment - 15% Straight line
  Motor vehicles - 12% Reducing Balance
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
Leasing and hire purchases
Tangible fixed assets held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Balance Sheet at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Profit and Loss Account.
Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.
Borrowing costs
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
Taxation and deferred taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.
Ordinary share capital
The ordinary share capital of the company is presented as equity.
In the application of the Company’s accounting policies which are described in note 2, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
During the reporting period, the COVID-19 crisis had a significant impact on the business and overall motor rental industry. As a result of these effects, operating results have declined significantly in 2020.  The entity has availed of claim grant relief from the government by furloughing the majority of staff during government restrictions.

The director has considered the impact of the current COVID-19 environment on the business for the next 12 months, the viability period and the longer term. Whilst the situation is constantly evolving, making scenario planning difficult, we have considered a number of impacts on sales, profits and cash flows. We have assumed that our operations remain open and that we will continue to be able to sell our products to customers.

The director has confirmed that funds can and will be made available, if required, and that other group companies will provide any excess funds, if necessary, to support the going concern of the company.

After considering the company's reserves, government support and future outlook of the industry, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the company continues to adopt the going concern basis in preparing the annual report and accounts.
The company has agreed a limitation of liability clause with its auditor. The aggregate liability of the firm, its partners, agents and employees or any of them for Total Damage shall be limited to the amount of £1.5 million.
The Audit Report was unqualified. The following are the matters to which the auditors were required to refer by way of emphasis
Emphasis of Matter
There is a material uncertainty related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.
In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in note 3 to the financial statements concerning the company’s ability to continue as a going concern.

The company's cumulative revenues in the first 2 months of the 2nd quarter of 2020 was significantly lower than their 2019 revenues in the same period with a major negative impact identified in April and May. The company’s operating results have declined significantly in 2020 and have been negative in April and May. There is significant uncertainity over the short term future of the industry and how long the crisis will continue. These conditions, along with the other matters explained in note 3 to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.
The financial statements were audited by PGR Accountants Limited.
The Auditor's Report was signed by Richard Gray (Senior Statutory Auditor) for and on behalf of PGR Accountants Limited on 30th September 2021.
In common with many other businesses of our size and nature, we use our auditors to prepare and submit tax returns to Her Majesty's Revenue and Customs and to assist with the preparation of the financial statements.
The average monthly number of employees, including directos, during the financial year was 25 (2019 - 32).
  2020 2019
  Number Number
Sales 25 32
  ═════════ ═════════
  Land and Plant and Fixtures, Motor Total
  buildings machinery fittings and vehicles  
  freehold   equipment    
  £ £ £ £ £
At 1 January 2020 - 15,732 46,141 4,155,671 4,217,544
Additions 34,509 4,177 5,328 709,757 753,771
Disposals - - - (1,399,432) (1,399,432)
Transfers - - - 1,430,026 1,430,026
  ───────── ───────── ───────── ───────── ─────────
At 31 December 2020 34,509 19,909 51,469 4,896,022 5,001,909
  ───────── ───────── ───────── ───────── ─────────
At 1 January 2020 - 2,170 1,256 497,821 501,247
Charge for the financial year 690 2,621 7,682 456,717 467,710
On disposals - - - (230,597) (230,597)
Transfers - - - 833,979 833,979
  ───────── ───────── ───────── ───────── ─────────
At 31 December 2020 690 4,791 8,938 1,557,920 1,572,339
  ───────── ───────── ───────── ───────── ─────────
Net book value
At 31 December 2020 33,819 15,118 42,531 3,338,102 3,429,570
  ═════════ ═════════ ═════════ ═════════ ═════════
At 31 December 2019 - 13,562 44,885 3,657,850 3,716,297
  ═════════ ═════════ ═════════ ═════════ ═════════
Included above are assets held under finance leases or hire purchase contracts as follows:
  2020   2019  
  Net Depreciation Net Depreciation
  book value charge book value charge
  £ £ £ £
Motor vehicles 1,885,493 747,797 - -
  ═════════ ═════════ ═════════ ═════════
10. DEBTORS 2020 2019
  £ £
Trade debtors 157,538 91,235
Amounts owed by group companies - 449,337
Director's current account (Note ) 2,557 2,557
Taxation 11,042 11,042
Prepayments and accrued income 291,469 565,469
  ───────── ─────────
  462,606 1,119,640
  ═════════ ═════════
11. CREDITORS 2020 2019
Amounts falling due within one year £ £
Net obligations under finance leases
and hire purchase contracts 989,923 -
Trade creditors 336,563 690,570
Amounts owed to group companies 765,571 3,948,615
Taxation - 996
Accruals 21,890 18,757
  ───────── ─────────
  2,113,947 4,658,938
  ═════════ ═════════
12. CREDITORS 2020 2019
Amounts falling due after more than one year £ £
Finance leases and hire purchase contracts 1,188,325 -
  ═════════ ═════════
Net obligations under finance leases
and hire purchase contracts
Repayable within one year 989,923 -
Repayable between one and five years 1,188,325 -
  ───────── ─────────
  2,178,248 -
  ═════════ ═════════
A first mortgage / charge over the assets of the company, comprising 14 properties;

A debenture charging all the assets and undertakings of the borrower;

An assignment of the lifetime policy of the director to cover the sum of £300,000;

A guarantee and indemnity from the director in the sum of £100,000, counter covered by a first mortgage/charge over a further property;

A counter indemnity in respect of guarantees issued by Bank of Ireland in respect of Fiat Auto Fin Services Wholesale Limited in the sum of £25,000;

The hire purchase agreements are secured by the assets to which they relate.

A cross guarantee is in place between Downeys Cars (N.I.) Limited, Downeys Rental Limited and Carvale Developments Limited.
The amounts provided for deferred taxation are analysed below:
  Capital Total Total
    2020 2019
  £ £ £
At financial year start - - -
Charged to profit and loss 173,927 173,927 -
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At financial year end 173,927 173,927 -
  ═════════ ═════════ ═════════
The company had no material capital commitments at the financial year-ended 31 December 2020.
The company has availed of the exemption under FRS 102 in relation to the disclosure of transactions with group companies.
The company regards Downeys (Holdings) Limited as its parent company.
The companys ultimate parent undertaking is Downeys (Holdings) Limited.
The address of Downeys (Holdings) Limited is 39 Portaferry Road, Newtownards, BT23 8NN.
Downeys (Holdings) Limited is regarded as both the controlling party and the ultimate controlling party.
The parent of the largest group in which the results are consolidated is Downeys (Holdings) Limited.
Downeys (Holdings) Limited is registered in Northern Ireland.
There have been no significant events affecting the company since the financial year-end.