Baldwins Repair GP Limited - Limited company accounts 18.2

REGISTERED NUMBER: 08239702 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 March 2018

for

Baldwins Repair GP Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTOR:

Mr R K Steer

REGISTERED OFFICE:

20-21 March Place

Gatehouse Way

Aylesbury

Buckinghamshire

HP19 8UG

REGISTERED NUMBER:

08239702 (England and Wales)

AUDITORS:

WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

The director presents his strategic report for the year ended 31 March 2018.

REVIEW OF BUSINESS

During the year the company focused on growing volumes along with continued operational efficiency

through improved working practices to support future growth prospects and margin improvements. This

strategy resulted in continued growth in operating profit compared with the prior year. The investment

made in operational efficiency is expected to yield ongoing benefits for the company.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's main risk derives from the volume of referred work from its major customers. This risk

comprises both the overall number of motor accidents requiring repairs (which can be influenced by

factors such as weather and longer term trends in automotive safety such as driver aids) as well as

retaining and winning new customers with large volumes of work to refer (primarily insurers). To mitigate

this risk the company continues to invest in improving operational performance, customer service and its

network of depots which are all key to retaining and winning new customers.

KEY PERFORMANCE INDICATORS

The key financial performance indicators during the year were as follows:

2018

£'000s

Turnover

10,477

Gross profit margin

30.9%

Operating profit / (loss)

721

Shareholders' funds

987

The operating results have been in line with the expectations of the director. The company's key profit

measure is operating profit which is a measure of the underlying profitability of the company. The results

show a profit for the year which reflects investment made to support growth in volumes and margin which

have been achieved in the year. Excluding the effect of a one-off impairment of assets related to a

leasehold site in Hayes which will no longer be utilised, the adjusted operating profit was £804,689.

ON BEHALF OF THE BOARD:

Mr R K Steer - Director

22 November 2018

The director presents his report with the financial statements of the company for the year ended 31 March 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of accident repair specialists.

DIVIDENDS

An interim dividend of £3,450 per share was paid on 12 June 2017. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 345,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTOR

Mr S Warner held office from 1 April 2017 until after 31 March 2018 but prior to the date of this report.

Mr R K Steer was appointed as a director after 31 March 2018 but prior to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial

statements in accordance with applicable law and regulations.

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

the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He

is 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 director is 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 he 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.

ON BEHALF OF THE BOARD:

Mr R K Steer - Director

22 November 2018

Opinion

We have audited the financial statements of Baldwins Repair GP Limited (the 'company') for the year

ended 31 March 2018 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 March 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has 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 director is responsible for the other information. The other information comprises the information in

the Strategic Report and the Report of the Director, 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 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,

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 Strategic Report and the Report of the Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is

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 director determines 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 director is 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 director either intends to liquidate the company or to cease

operations, or has 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.

Philippa Duckworth BSc FCCA (Senior Statutory Auditor)

for and on behalf of WP Audit Limited

Statutory Auditors

5a Frascati Way

Maidenhead

Berkshire

SL6 4UY

22 November 2018

TURNOVER

3

10,476,811

10,720,820

Cost of sales

(7,237,067

)

(7,211,937

)

GROSS PROFIT

3,239,744

3,508,883

Administrative expenses

(2,518,261

)

(2,423,333

)

OPERATING PROFIT

5

721,483

1,085,550

Interest receivable and similar income

3,520

128

725,003

1,085,678

Interest payable and similar expenses

6

(26,184

)

(29,858

)

PROFIT BEFORE TAXATION

698,819

1,055,820

Tax on profit

7

(149,101

)

(210,114

)

PROFIT FOR THE FINANCIAL YEAR

549,718

845,706

PROFIT FOR THE YEAR

549,718

845,706

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

549,718

845,706

FIXED ASSETS

Tangible assets

9

927,266

1,224,448

Investments

10

-

-

927,266

1,224,448

CURRENT ASSETS

Stocks

11

155,892

61,889

Debtors

12

1,689,153

1,061,766

Cash at bank and in hand

829,902

724,448

2,674,947

1,848,103

CREDITORS

Amounts falling due within one year

13

(2,263,381

)

(1,777,867

)

NET CURRENT ASSETS

411,566

70,236

TOTAL ASSETS LESS CURRENT LIABILITIES

1,338,832

1,294,684

CREDITORS

Amounts falling due after more than one year

14

(295,033

)

(428,576

)

PROVISIONS FOR LIABILITIES

18

(56,551

)

(83,578

)

NET ASSETS

987,248

782,530

CAPITAL AND RESERVES

Called up share capital

19

100

100

Other reserves

20

200

200

Retained earnings

20

986,948

782,230

SHAREHOLDERS' FUNDS

987,248

782,530

The financial statements were approved by the director on 22 November 2018 and were signed by:

Mr R K Steer - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 April 2016

100

69,524

200

69,824

Changes in equity

Dividends

-

(133,000

)

-

(133,000

)

Total comprehensive income

-

845,706

-

845,706

Balance at 31 March 2017

100

782,230

200

782,530

Changes in equity

Dividends

-

(345,000

)

-

(345,000

)

Total comprehensive income

-

549,718

-

549,718

Balance at 31 March 2018

100

986,948

200

987,248

Cash flows from operating activities

Cash generated from operations

1

1,125,967

1,619,784

Interest paid

(12,692

)

(17,490

)

Interest element of hire purchase payments paid

(13,492

)

(12,368

)

Tax paid

(208,318

)

(107,606

)

Net cash from operating activities

891,465

1,482,320

Cash flows from investing activities

Purchase of tangible fixed assets

(54,628

)

(261,713

)

Sale of tangible fixed assets

45,331

83,244

Interest received

3,520

128

Net cash from investing activities

(5,777

)

(178,341

)

Cash flows from financing activities

Loan repayments in year

(10,012

)

(9,732

)

Capital repayments in year

(138,949

)

(96,437

)

Amount withdrawn by directors

(286,273

)

(821,059

)

Equity dividends paid

(345,000

)

(133,000

)

Net cash from financing activities

(780,234

)

(1,060,228

)

Increase in cash and cash equivalents

105,454

243,751

Cash and cash equivalents at beginning of year

2

724,448

480,697

Cash and cash equivalents at end of year

2

829,902

724,448

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

31.3.18

31.3.17

£

£

Profit before taxation

698,819

1,055,820

Depreciation charges

181,053

189,654

Loss/(profit) on disposal of fixed assets

143,021

(11,722

)

Finance costs

26,184

29,858

Finance income

(3,520

)

(128

)

1,045,557

1,263,482

Increase in stocks

(94,003

)

(13,554

)

(Increase)/decrease in trade and other debtors

(341,114

)

198,768

Increase in trade and other creditors

515,527

171,088

Cash generated from operations

1,125,967

1,619,784

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 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

829,902

724,448

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

724,448

572,807

Bank overdrafts

-

(92,110

)

724,448

480,697

1.	STATUTORY INFORMATION

Baldwins Repair GP 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The functional currency of the company is considered to be pounds sterling because that is the

currency of the primary economic environment in which the company operates.

Significant judgements and estimates

In the application of the company's accounting policies the directors are 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 if the revision

affects only that period, or in the period of the revision and future periods if the revision affects

both current and future periods.

The company's key source of estimation uncertainty relates to provision made for remedial repairs

that are required under warranty.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

The company's turnover is derived from the repair of motor vehicles. Turnover is recognised in line

with when the work is completed. For repairs in progress at the year end, the company accrues a

proportion of the turnover associated with the repair based on the percentage completion of the

job.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Short leasehold

-

Over the lease term

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for

impairment.

Stocks

Stock, which relates to component parts used in the repair of motor vehicles, is valued at the lower

of cost, calculated on an actual cost basis, 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.

Foreign currencies

Transactions in foreign currencies are recorded at the rate of exchange at the date of the

transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet

date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period

and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising

on translation of the opening net assets and results of overseas operations are reported in other

comprehensive income and accumulated in equity (attributed to non-controlling interests as

appropriate).

Other exchange differences are recognised in profit or loss in the period in which they arise except

for:

- exchange differences on transactions entered into to hedge certain foreign currency risks (see

above);

- exchange differences arising on gains or losses on non-monetary items which are recognised in

other comprehensive income; and

- in the case of the consolidated financial statements, exchange differences on monetary items

receivable from or payable to a foreign operation for which settlement is neither planned nor likely

to occur (therefore forming part of the net investment in the foreign operation), which are

recognised in other comprehensive income and reported under equity.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss 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.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the instrument. Financial liabilities and equity instruments are classified

according to the substance of the contractual arrangements entered into. An equity instrument is

any contract that evidences a residual interest in the assets of the Group after deducting all of its

liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction

costs), except for those financial assets classified as at fair value through profit or loss, which are

initially measured at fair value (which is normally the transaction price excluding transaction costs),

unless the arrangement constitutes a financing transaction. If an arrangement constitutes a

financing transaction, the financial asset or financial liability is measured at the present value of the

future payments discounted at a market rate of interest for a similar debt instrument. Financial

assets and liabilities are only offset in the statement of financial position when, and only when there

exists a legally enforceable right to set off the recognised amounts and the company intends either

to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost

using the effective interest method:

(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive

variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.

(b) The contract may provide for repayments of the principal or the return to the holder (but not

both) to be linked to a single relevant observable index of general price inflation of the currency in

which the debt instrument is denominated, provided such links are not leveraged.

(c) The contract may provide for a determinable variation of the return to the holder during the life

of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not

contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the

holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or

arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and

satisfies condition (a).

(d) There is no contractual provision that could, by its terms, result in the holder losing the principal

amount or any interest attributable to the current period or prior periods.

(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder

to put it back to the issuer before maturity are not contingent on future events, other than to

protect the holder against the credit deterioration of the issuer or a change in control of the issuer,

or to protect the holder or issuer against changes in levies applied by a central bank or arising from

changes in relevant taxation or law.

(f) Contractual provisions may permit the extension of the term of the debt instrument, provided

that the return to the holder and any other contractual provisions applicable during the extended

term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition

and which meet the above conditions are measured at the undiscounted amount of the cash or

other consideration expected to be paid or received, net of impairment. With the exception of some

hedging instruments, other debt instruments not meeting these conditions are measured at fair

value through profit or loss. Commitments to make and receive loans which meet the conditions

mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows

from the financial asset expire or are settled, (b) the company transfers to another party

substantially all of the risks and rewards of ownership of the financial asset, or (c) the company,

despite having retained some, but not all, significant risks and rewards of ownership, has transferred

control of the asset to another party. Financial liabilities are derecognised only when the obligation

specified in the contract is discharged, cancelled or expires.

(ii) Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares

(where shares are publicly traded or their fair value is reliably measurable) are measured at fair

value through profit or loss. Where fair value cannot be measured reliably, investments are

measured at cost less impairment.

In the company balance sheet, investments in subsidiaries and associates are measured at cost less

impairment. For investments in subsidiaries acquired for consideration including the issue of shares

qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued

plus fair value of other consideration. Any premium is ignored.

(iii) Equity instruments

Equity instruments issued by the company are recorded at the fair value of cash or other resources

received or receivable, net of direct issue costs.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.3.18

31.3.17

£

£

United Kingdom

10,476,811

10,720,820

10,476,811

10,720,820

4.	EMPLOYEES AND DIRECTORS

31.3.18

31.3.17

£

£

Wages and salaries

2,761,721

2,661,941

Social security costs

248,048

243,158

Other pension costs

20,246

-

3,030,015

2,905,099