Buchans for Towbars & Repairs Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC418277 (Scotland)

BUCHANS FOR TOWBARS & REPAIRS LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Chartered Certified Accountants' Report

8

DIRECTOR:

E M Buchan

REGISTERED OFFICE:

1875 Great Western Road

Glasgow

G13 2YD

REGISTERED NUMBER:

SC418277 (Scotland)

ACCOUNTANTS:

JCWallace & Co

Chartered Certified Accountants

1875 Great Western Road

Glasgow

G13 2YD

FIXED ASSETS

Intangible assets

4

88,848

111,060

Tangible assets

5

284,239

31,214

373,087

142,274

CURRENT ASSETS

Stocks

6

37,960

70,045

Debtors

7

428,026

682,464

Cash in hand

1,608

3,271

467,594

755,780

CREDITORS

Amounts falling due within one year

8

662,816

784,201

NET CURRENT LIABILITIES

(195,222

)

(28,421

)

TOTAL ASSETS LESS CURRENT LIABILITIES

177,865

113,853

PROVISIONS FOR LIABILITIES

11

1,364

1,386

NET ASSETS

176,501

112,467

CAPITAL AND RESERVES

Called up share capital

12

2

2

Retained earnings

13

176,499

112,465

SHAREHOLDERS' FUNDS

176,501

112,467

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 31 March 2022 and were signed by:

E M Buchan - Director

1.	STATUTORY INFORMATION

Buchans for Towbars & Repairs Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the net sales value of goods and services supplied during the period, excluding value added tax.

Goodwill

Directors considered the remaining useful life of purchased goodwill which they consider to be 10 years. Goodwill is amortised equally over this period.

Tangible fixed assets

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

Improvements to property

-

25% on reducing balance

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation

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

Operating lease commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

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

The average number of employees during the year was 19 (2020 - 18 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2021

and 31 December 2021

272,000

AMORTISATION

At 1 January 2021

160,940

Amortisation for year

22,212

At 31 December 2021

183,152

NET BOOK VALUE

At 31 December 2021

88,848

At 31 December 2020

111,060

5.	TANGIBLE FIXED ASSETS

Improvements

Heritable

to

Plant and

property

property

machinery

£

£

£

COST

At 1 January 2021

-

50,073

22,896

Additions

246,250

-

2,241

At 31 December 2021

246,250

50,073

25,137

DEPRECIATION

At 1 January 2021

-

34,694

18,863

Charge for year

-

3,844

1,568

At 31 December 2021

-

38,538

20,431

NET BOOK VALUE

At 31 December 2021

246,250

11,535

4,706

At 31 December 2020

-

15,379

4,033

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 January 2021

25,195

-

22,454

120,618

Additions

-

14,649

-

263,140

At 31 December 2021

25,195

14,649

22,454

383,758

DEPRECIATION

At 1 January 2021

19,681

-

16,166

89,404

Charge for year

1,379

1,752

1,572

10,115

At 31 December 2021

21,060

1,752

17,738

99,519

NET BOOK VALUE

At 31 December 2021

4,135

12,897

4,716

284,239

At 31 December 2020

5,514

-

6,288

31,214

6.

STOCKS

2021

2020

£

£

Stocks

21,070

26,375

Work-in-progress

16,890

43,670

37,960

70,045

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

108,781

182,472

Other debtors

1,567

39,541

Directors' current accounts

147,833

294,001

Corporation tax

48,045

95,550

Prepayments and accrued income

121,800

70,900

428,026

682,464

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

48,957

19,414

Trade creditors

69,630

117,116

Corporation tax

43,358

97,465

Social security and other taxes

10,184

11,115

VAT

54,995

130,476

Other creditors

433,442

405,614

Accrued charges

2,250

3,001

662,816

784,201

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

-

15,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank overdrafts

48,957

19,414

The director has provided a personal guarantee in respect of the bank borrowings.

11.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

1,364

1,386

Deferred

tax

£

Balance at 1 January 2021

1,386

Credit to Income Statement during year

(22

)

Balance at 31 December 2021

1,364

The provision for deferred tax consists of the tax effect of timing differences in respect of the excess of taxation allowances over depreciation on fixed assets.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

2

Ordinary

£1

2

2

13.

RESERVES

Retained

earnings

£

At 1 January 2021

112,465

Profit for the year

64,034

At 31 December 2021

176,499

14.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2021 and 31 December 2020:

2021

2020

£

£

E M Buchan

Balance outstanding at start of year

294,001

221,202

Amounts advanced

125,232

99,199

Amounts repaid

(271,400

)

(26,400

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

147,833

294,001

The advances and repayments are aggregated amounts for the period.

The loans are unsecured, interest free and have not fixed terms of repayment.

15.	RELATED PARTY DISCLOSURES

The company received aggregate loan repayments of £39,041 during the year from 4x4 Hire (Scotland) Ltd reducing the balance to nil. 4x4 Hire (Scotland) Limited is a company under the control of the director E M Buchan.

The company charged £4,200 for book-keeping services to Accident Solutions Scotland Ltd during the year under review. The company fully repaid the loan of £6,671 to Accident Solutions Scotland Ltd during the year. At the Balance Sheet date the company was owed £1,067 from Accident Solutions Scotland Ltd. This amount is included in other debtors. Accident Solutions Scotland Ltd is a company under the control of the director E M Buchan.

Certain expenses were paid and monies received by the company during the year on behalf of Buchans for Towbars Limited. During the year aggregated advances of £35,101 were made to the company by Buchans for Towbars Limited. The loan account balance due to Buchans for Towbars Limited at the year-end was £425,424 (2020 - £390,324) and is included in other creditors. Buchans for Towbars Limited is a company under the control of the director E M Buchan.

The company repaid the loan of £4,000 in full to JBR Estates (Scotland) Limited. The balance due at the year end was £nil (2020 - £4,000), this is included within other creditors. JBR Estates (Scotland) Limited is under the control of the director E M Buchan.

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Buchans for Towbars & Repairs Ltd for the year ended 31 December 2021 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook.

This report is made solely to the director of Buchans for Towbars & Repairs Ltd in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Buchans for Towbars & Repairs Ltd and state those matters that we have agreed to state to the director of Buchans for Towbars & Repairs Ltd in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its director for our work or for this report.

It is your duty to ensure that Buchans for Towbars & Repairs Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Buchans for Towbars & Repairs Ltd. You consider that Buchans for Towbars & Repairs Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Buchans for Towbars & Repairs Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

JCWallace & Co

Chartered Certified Accountants

1875 Great Western Road

Glasgow

G13 2YD

31 March 2022