Company registration number 08784326 (England and Wales)
DALES CORNWALL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
DALES CORNWALL LIMITED
CONTENTS
Page
Balance sheet
4
Statement of changes in equity
5
Notes to the financial statements
6 - 12
DALES CORNWALL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALES CORNWALL LIMITED
- 1 -
Opinion

We have audited the financial statements of Dales Cornwall Limited (the 'company') for the year ended 31 December 2021 which comprise , the balance sheet and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

DALES CORNWALL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALES CORNWALL LIMITED
- 2 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 auditor's 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We consider that the company's financial statements have a low susceptibility of material misstatement as a result of fraud. The opportunity for fraud to occur would be limited due to the strict regulations in place for registering new vehicles with the manufacturer and the DVLA and the internal controls over used vehicle stock. There is minimal cash handling by the nature of the type of transactions and therefore any fraud from misappropriation of cash would be trivial.

The main laws and regulations of significance to the company are; FCA compliance, health and safety regulations, employment law and tax and accounting law, etc.

Our audit work in response to the risks identified included but was not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices for any evidence of non-compliance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

DALES CORNWALL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALES CORNWALL LIMITED
- 3 -

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 auditor's 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.

Amy Sole (Senior Statutory Auditor)
For and on behalf of Phillips Frith LLP
10 August 2022
Chartered Accountants
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
DALES CORNWALL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 4 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
5
35,134
68,202
Current assets
Stocks
6
1,817,461
1,090,097
Debtors
7
187,129
383,326
Cash at bank and in hand
1,482,151
460,185
3,486,741
1,933,608
Creditors: amounts falling due within one year
8
(2,401,268)
(1,397,173)
Net current assets
1,085,473
536,435
Total assets less current liabilities
1,120,607
604,637
Provisions for liabilities
Deferred tax liability
9
(4,251)
(2,075)
4,251
2,075
Net assets
1,124,858
606,712
Capital and reserves
Called up share capital
10
1,000
1,000
Profit and loss reserves
1,123,858
605,712
Total equity
1,124,858
606,712

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 10 August 2022 and are signed on its behalf by:
Mr D E Cadge
Director
Company Registration No. 08784326
DALES CORNWALL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
1,000
649,540
650,540
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
291,422
291,422
Dividends
-
(335,250)
(335,250)
Balance at 31 December 2020
1,000
605,712
606,712
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
518,146
518,146
Balance at 31 December 2021
1,000
1,123,858
1,124,858
DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
1
Accounting policies
Company information

Dales Cornwall Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wheal Rose, Scorrier, Redruth, Cornwall, TR16 5BX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

The impact of Covid-19 continues to cause widespread economic disruption in the supply of vehicles and shortage of staff, however based on current bank balances and facilities and current trading, atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on handover of the vehicle or in the case of workshop services, when the work is complete). It is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, using the straight-line method as follows:

Leasehold land and buildings
Over the period of the lease
Plant and equipment
20% on cost
Fixtures and fittings
20% - 33% on cost
Computers
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 7 -

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stock and work in progress are stated at the lower of cost and estimated selling price, after making due allowances for obsolete and slow-moving stock.

 

Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale.

 

The company has applied the accounting treatment required by FRS 102 Section 13 to its vehicle consignment stock. Where the interest free consignment period has expired, vehicles are included in the statement of financial position as stock with a matching liability for the purchase price included in trade creditors.

 

Stock valuation is regularly monitored against age profile and market demand. Management use a number of market tools during the appraisal process including Glass' and CAP valuation guides. The directors maintain oversight of ageing stock profiles and a monthly review of the relevant provision is performed.

 

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price. Financial assets are all receivable within one year and are therefore, not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities are all potentially payable within one year and therefore are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities as payment is due within one year or less.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 8 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The company operates a defined contribution plan for its employees. The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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.

 

The judgements which have the most significant impact on the financial statements are those related to stock valuations, which is regularly monitored against age profile and market demand using CAP valuation guides. Any provision is reviewed on a monthly basis.

 

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
24
27
4
Directors' remuneration
2021
2020
£
£
Company pension contributions to defined contribution schemes
60,000
-
0
DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
5
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2021
7,947
122,034
94,076
59,475
283,532
Additions
-
0
2,356
848
2,795
5,999
At 31 December 2021
7,947
124,390
94,924
62,270
289,531
Depreciation and impairment
At 1 January 2021
7,947
77,668
77,731
51,984
215,330
Depreciation charged in the year
-
0
21,063
10,093
7,911
39,067
At 31 December 2021
7,947
98,731
87,824
59,895
254,397
Carrying amount
At 31 December 2021
-
0
25,659
7,100
2,375
35,134
At 31 December 2020
-
0
44,366
16,345
7,491
68,202
6
Stocks
2021
2020
£
£
Parts and accessories
57,420
66,235
Work in progress
15,852
11,310
Vehicle stock
1,744,189
1,012,552
1,817,461
1,090,097

There were no vehicles received on consignment excluded from stocks at the year end. All vehicles were accruing interest and are therefore considered to be in substance assets of the company as at the balance sheet date.

7
Debtors: amounts falling due within one year
2021
2020
£
£
Trade debtors
146,092
140,799
Other debtors
-
0
110,453
Prepayments and accrued income
41,037
132,074
187,129
383,326
DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
8
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,184,827
943,940
Amounts owed to group undertakings
1,013,117
252,029
Corporation tax
87,289
92,832
Other taxation and social security
104,300
15,151
Accruals and deferred income
11,735
93,221
2,401,268
1,397,173
9
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
(4,251)
(2,075)
2021
Movements in the year:
£
Asset at 1 January 2021
(2,075)
Credit to profit or loss
(2,176)
Asset at 31 December 2021
(4,251)

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

10
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Amy Sole and the auditor was Phillips Frith LLP.
DALES CORNWALL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
12
Ultimate controlling party

The parent company of Dales Cornwall Ltd is DCM (Cornwall) Ltd and its registered office is Wheal Rose, Scorrier, Redruth, Cornwall, TR16 5BX.

2021-12-312021-01-01false10 August 2022CCH SoftwareCCH Accounts Production 2022.200No description of principal activityThis audit opinion is unqualifiedMr T DaleMrs M DaleMrs S L CadgeMrs C J PetersMr D E CadgeMr S S PetersMr J S RouseMrs M Dale087843262021-01-012021-12-31087843262021-12-31087843262020-12-3108784326core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3108784326core:PlantMachinery2021-12-3108784326core:FurnitureFittings2021-12-3108784326core:ComputerEquipment2021-12-3108784326core:LandBuildingscore:LeasedAssetsHeldAsLessee2020-12-3108784326core:PlantMachinery2020-12-3108784326core:FurnitureFittings2020-12-3108784326core:ComputerEquipment2020-12-3108784326core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3108784326core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3108784326core:CurrentFinancialInstruments2021-12-3108784326core:CurrentFinancialInstruments2020-12-3108784326core:ShareCapital2021-12-3108784326core:ShareCapital2020-12-3108784326core:RetainedEarningsAccumulatedLosses2021-12-3108784326core:RetainedEarningsAccumulatedLosses2020-12-3108784326core:ShareCapital2019-12-3108784326core:RetainedEarningsAccumulatedLosses2019-12-31087843262019-12-3108784326bus:Director42021-01-012021-12-3108784326core:RetainedEarningsAccumulatedLosses2020-01-012020-12-31087843262020-01-012020-12-3108784326core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3108784326core:LandBuildingscore:LongLeaseholdAssets2021-01-012021-12-3108784326core:PlantMachinery2021-01-012021-12-3108784326core:FurnitureFittings2021-01-012021-12-3108784326core:ComputerEquipment2021-01-012021-12-3108784326core:LandBuildingscore:LeasedAssetsHeldAsLessee2020-12-3108784326core:PlantMachinery2020-12-3108784326core:FurnitureFittings2020-12-3108784326core:ComputerEquipment2020-12-31087843262020-12-3108784326core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-01-012021-12-3108784326bus:PrivateLimitedCompanyLtd2021-01-012021-12-3108784326bus:SmallCompaniesRegimeForAccounts2021-01-012021-12-3108784326bus:FRS1022021-01-012021-12-3108784326bus:Audited2021-01-012021-12-3108784326bus:Director12021-01-012021-12-3108784326bus:Director22021-01-012021-12-3108784326bus:Director32021-01-012021-12-3108784326bus:Director52021-01-012021-12-3108784326bus:Director62021-01-012021-12-3108784326bus:Director72021-01-012021-12-3108784326bus:CompanySecretary12021-01-012021-12-3108784326bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP