C J Cox Limited - Limited company accounts 23.2

REGISTERED NUMBER: 03468426 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2022

for

C J Cox Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Independent Auditors' Report

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mrs V J Cox

C J Cox

SECRETARY:

Mrs V J Cox

REGISTERED OFFICE:

Bagber

Sturminster Newton

Dorset

DT10 2HT

REGISTERED NUMBER:

03468426 (England and Wales)

AUDITORS:

Amherst & Shapland (Taunton & Wiveliscombe)

141 Staplegrove Road

Taunton

Somerset

TA2 6AF

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

The company is an independent company owned by the Directors. The principal activities of the

company is the sale of new and second hand tractors and agricultural machinery and the servicing,

maintenance and repair of equipment used in the agricultural sector. The company operates from

premises at Bagber near Sturminster Newton in Dorset, the shop, offices, workshop and yard

being owned by the Directors of the company. In late 2022 the company opened additional premises at Chard in Somerset.

The company operates as an agent for a number of manufacturers the major one being Valtra.

Valtra is part of the AGCO Corporation and manufactures tractors and agricultural equipment in

Suolahti, Finland.

Negotiations are ongoing with other manufacturers in the agricultural equipment sector for

additional franchises that would fit symbiotically with existing agreements.

The performance of the company continues strong with the result that it is a Medium sized

company under the Companies Act 2006 both turnover and gross assets having exceeded the

thresholds and are expected to remain over these thresholds. The company's growth has been

organic through building steadily on its base of service and reliability in a market that gives such

qualities as a high significance.

The continued training and quality of staff is very important and the company actively engages in the development of apprentices.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is not dependant on the income generated through the franchises and the support of

the manufacturers this is a significant contributor to the growth of the company and the level of this

support can vary from year to year depending on the level of activity.

The Government is reviewing and has published papers on the future of the agricultural grants and

subsidies system. If these were to be dramatically cut it could well affect the demand for new

equipment in the agricultural sector.

If demand for new machines reduces it could be replaced by the increased demand on the

secondhand market and the repairs and maintenance market the company is already well

established in both of these.

The company operates in a competitive market but the directors are of the opinion that the quality

of service, experience and business and customer relationships built up over many years together

with its reputation give the company a competitive edge in the market place.

KEY PERFORMANCE INDICATORS

The directors consider that the very nature of the business is relatively straight forward the

standard figures produced in the financial statements are therefore sufficient for the necessary

understanding of the development and performance of the business. The key indicators would be:

Turnover, Operating profit and Cash at bank together with Net Assets.

ON BEHALF OF THE BOARD:

Mrs V J Cox - Secretary

25 September 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of agricultural engineers.

DIVIDENDS

Interim dividends per share were paid as follows:

21.4

- 31 January 2022

0.65

- 28 February 2022

3.45

- 31 March 2022

1.175

- 30 June 2022

26.675

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2022 will be £ 26,675 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mrs V J Cox

C J Cox

POLITICAL DONATIONS AND EXPENDITURE

Charitable donations of £6173 were made in the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Amherst & Shapland (Taunton & Wiveliscombe), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs V J Cox - Secretary

25 September 2023

Opinion

We have audited the financial statements of C J Cox Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2022 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 Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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.

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 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 an Auditors' Report 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:

Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud. The objectives of our audit in respect of fraud, are; to identify and assess the risks

of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate

audit evidence regarding the assessed risks of material misstatement due to fraud, through

designing and implementing appropriate responses to those assessed risks; and to respond

appropriately to instances of fraud or suspected fraud identified during the audit. However, the

primary responsibility for the prevention and detection of fraud rests with both management and

those charged with governance of the company.

Our approach was as follows;

- We obtained an understanding of the legal and regulatory requirements applicable to the

company and considered that the most significant are the Companies Act 2006, The General Data

Protection Regulations, Health and Safety Regulations and employment legislation.

- We obtained an understanding of how the company complies with the requirements by

discussions with management and those charged with governance.

- We assessed the risk of material misstatement of the financial statements, including the risk of

material misstatement due to fraud and how it might occur, by holding discussions with

management and those charged with governance.

- We inquired of management and those charged with governance as to any known instances of

non-compliance or suspected non-compliance with laws and regulations.

- Based on this understanding, we designed specific appropriate audit procedures to identify

instances of non-compliance with laws and regulations. This included making enquiries of

management and those charged with governance and obtaining additional corroborative evidence

as required.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain

professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override

of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an

opinion on the effectiveness of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting

and, based on the audit evidence obtained, whether a material uncertainty exists related to events

or conditions that may cast significant doubt on the company's ability to continue as a going

concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditor's report to the related disclosures in the financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor's report. However, future events or conditions may cause the company to

cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events

in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the

planned scope and timing of the audit and significant audit findings, including any significant

deficiencies in internal control that we identify during our audit.

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 Auditors' Report.

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 an Auditors' Report 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.

Anthony Giles Porter (Senior Statutory Auditor)

for and on behalf of Amherst & Shapland (Taunton & Wiveliscombe)

141 Staplegrove Road

Taunton

Somerset

TA2 6AF

25 September 2023

TURNOVER

20,053,054

17,982,790

Cost of sales

18,042,570

16,787,702

GROSS PROFIT

2,010,484

1,195,088

Administrative expenses

473,844

624,363

1,536,640

570,725

Other operating income

9,416

20,224

OPERATING PROFIT

4

1,546,056

590,949

Interest receivable and similar income

1,999

196

PROFIT BEFORE TAXATION

1,548,055

591,145

Tax on profit

5

311,577

115,530

PROFIT FOR THE FINANCIAL YEAR

1,236,478

475,615

PROFIT FOR THE YEAR

1,236,478

475,615

OTHER COMPREHENSIVE INCOME

Fair value reserve

50,000

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

50,000

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,286,478

475,615

FIXED ASSETS

Tangible assets

7

1,301,710

362,287

Investment property

8

700,000

650,000

2,001,710

1,012,287

CURRENT ASSETS

Stocks

9

5,418,866

3,372,597

Debtors

10

1,559,695

1,900,009

Cash at bank

534,849

1,733,819

7,513,410

7,006,425

CREDITORS

Amounts falling due within one year

11

1,389,100

1,167,579

NET CURRENT ASSETS

6,124,310

5,838,846

TOTAL ASSETS LESS CURRENT LIABILITIES

8,126,020

6,851,133

PROVISIONS FOR LIABILITIES

12

55,632

40,548

NET ASSETS

8,070,388

6,810,585

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Fair value reserve

14

110,776

70,276

Retained earnings

14

7,958,612

6,739,309

SHAREHOLDERS' FUNDS

8,070,388

6,810,585

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:

Mrs V J Cox - Director

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2021

1,000

6,280,824

70,276

6,352,100

Changes in equity

Dividends

-

(17,130

)

-

(17,130

)

Total comprehensive income

-

475,615

-

475,615

Balance at 31 December 2021

1,000

6,739,309

70,276

6,810,585

Changes in equity

Dividends

-

(26,675

)

-

(26,675

)

Total comprehensive income

-

1,245,978

40,500

1,286,478

Balance at 31 December 2022

1,000

7,958,612

110,776

8,070,388

Cash flows from operating activities

Cash generated from operations

1

(228,510

)

(510,440

)

Tax paid

(110,775

)

(219,227

)

Net cash from operating activities

(339,285

)

(729,667

)

Cash flows from investing activities

Purchase of tangible fixed assets

(835,210

)

(86,410

)

Sale of tangible fixed assets

200

950

Interest received

1,999

196

Net cash from investing activities

(833,011

)

(85,264

)

Cash flows from financing activities

Amount introduced by directors

1

-

Amount withdrawn by directors

-

(3,802

)

Equity dividends paid

(26,675

)

(17,130

)

Net cash from financing activities

(26,674

)

(20,932

)

Decrease in cash and cash equivalents

(1,198,970

)

(835,863

)

Cash and cash equivalents at beginning of year

2

1,733,819

2,569,682

Cash and cash equivalents at end of year

2

534,849

1,733,819

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

31.12.22

31.12.21

£

£

Profit before taxation

1,548,055

591,145

Depreciation charges

108,687

77,953

Loss on disposal of fixed assets

1,494

4,664

Finance income

(1,999

)

(196

)

1,656,237

673,566

Increase in stocks

(2,046,269

)

(932,925

)

Decrease/(increase) in trade and other debtors

340,314

(584,932

)

(Decrease)/increase in trade and other creditors

(178,792

)

333,851

Cash generated from operations

(228,510

)

(510,440

)

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 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

534,849

1,733,819

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

1,733,819

2,569,682

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank

1,733,819

(1,198,970

)

534,849

1,733,819

(1,198,970

)

534,849

Total

1,733,819

(1,198,970

)

534,849

1.	STATUTORY INFORMATION

C J Cox 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 as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Freehold property

-

4% on cost

Long leasehold

-

in accordance with the property

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

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

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.

3.	EMPLOYEES AND DIRECTORS

31.12.22

31.12.21

£

£

Wages and salaries

1,185,934

1,155,062

Social security costs

3,479

10,685

1,189,413

1,165,747

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

31.12.22

31.12.21

Production staff

26

24

Management staff

2

2

28

26

31.12.22

31.12.21

£

£

Directors' remuneration

36,750

89,080

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.22

31.12.21

£

£

Depreciation - owned assets

108,687

77,953

Loss on disposal of fixed assets

1,494

4,664

Auditors' remuneration

2,500

2,100

5.

TAXATION

Analysis of the tax charge

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

31.12.22

31.12.21

£

£

Current tax:

UK corporation tax

296,493

110,693

Deferred tax

15,084

4,837

Tax on profit

311,577

115,530

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.22

31.12.21

£

£

Profit before tax

1,548,055

591,145

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

294,130

112,318

Effects of:

Expenses not deductible for tax purposes

11,863

(1,625

)

Depreciation in excess of capital allowances

5,584

4,837

Total tax charge

311,577

115,530

Tax effects relating to effects of other comprehensive

income

31.12.22

Gross

Tax

Net

£

£

£

Fair value reserve

50,000

-

50,000

31.12.21

Gross

Tax

Net

£

£

£

Fair value reserve

6.

DIVIDENDS

31.12.22

31.12.21

£

£

Ordinary shares of £1 each

Interim

26,675

17,130

7.	TANGIBLE FIXED ASSETS

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 January 2022

-

214,969

181,571

Additions

961,771

-

31,567

Disposals

-

-

-

At 31 December 2022

961,771

214,969

213,138

DEPRECIATION

At 1 January 2022

-

42,994

113,044

Charge for year

29,887

21,497

21,840

Eliminated on disposal

-

-

-

At 31 December 2022

29,887

64,491

134,884

NET BOOK VALUE

At 31 December 2022

931,884

150,478

78,254

At 31 December 2021

-

171,975

68,527

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2022

75,332

320,478

792,350

Additions

9,918

46,548

1,049,804

Disposals

-

(8,750

)

(8,750

)

At 31 December 2022

85,250

358,276

1,833,404

DEPRECIATION

At 1 January 2022

43,985

230,040

430,063

Charge for year

8,346

27,117

108,687

Eliminated on disposal

-

(7,056

)

(7,056

)

At 31 December 2022

52,331

250,101

531,694

NET BOOK VALUE

At 31 December 2022

32,919

108,175

1,301,710

At 31 December 2021

31,347

90,438

362,287