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Registration number: 01335620

Brecon Motors (Distributors) Limited

Annual Report and

Unaudited Financial Statements


for the Year Ended 31 December 2021

 

Brecon Motors (Distributors) Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 9

 

Brecon Motors (Distributors) Limited

Company Information

Directors

Mr J L Williams

Miss S M Williams

Company secretary

Mrs H M Williams

Registered office

Bishop House
10 Wheat Street
Brecon
Powys
LD3 7DG

 

Bankers

HSBC Bank plc
5 High Street
Brecon
Powys
LD3 7AH

Accountants

WJ James & Co
Chartered Accountants
Bishop House
10 Wheat Street
Brecon
Powys
LD3 7DG

 

Brecon Motors (Distributors) Limited

(Registration number: 01335620)

Balance Sheet
as at 31 December 2021

Note

2021
 £

2020
 £

           

Fixed assets

   

 

Tangible assets

4

 

544,499

 

539,776

Investment property

5

 

4,163,398

 

4,162,948

   

4,707,897

 

4,702,724

Current assets

   

 

Stocks

150,538

 

175,332

 

Debtors

6

12,494

 

15,306

 

Cash at bank and in hand

 

508,664

 

383,962

 

 

671,696

 

574,600

 

Creditors: Amounts falling due within one year

7

(607,186)

 

(684,012)

 

Net current assets/(liabilities)

   

64,510

 

(109,412)

Total assets less current liabilities

   

4,772,407

 

4,593,312

Creditors: Amounts falling due after more than one year

7

 

-

 

(46,066)

Provisions for liabilities

 

(79,585)

 

(82,032)

Net assets

   

4,692,822

 

4,465,214

Capital and reserves

   

 

Called up share capital

6,000

 

6,000

 

Share premium reserve

25,000

 

25,000

 

Fair value reserve

1,389,257

 

1,389,257

 

Profit and loss account

3,272,565

 

3,044,957

 

Total equity

   

4,692,822

 

4,465,214

For the financial year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Brecon Motors (Distributors) Limited

(Registration number: 01335620)

Balance Sheet
as at 31 December 2021

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 August 2022 and signed on its behalf by:
 

.........................................
Mr J L Williams
Director

 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

1

General information

The company is a incorporated in England and Wales within the United Kingdom.

The address of its registered office is:
Bishop House
10 Wheat Street
Brecon
Powys
LD3 7DG
United Kingdom

The principal place of business is:
Rich Way
The Watton
Brecon
Powys
LD3 7EH

These financial statements were authorised for issue by the Board on 30 August 2022.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling, which is the functional currency of the company, and rounded to the nearest £1.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services to customers, and the receipt of rental income from tenants.

Trading revenue is recognised when a vehicle that has been sold, serviced or repaired is accepted by the customer, and rental income is recognised in accordance with the daily amounts receivable in accordance with the leases.

Government grants

Government grants are accounted for as received, except that grants under the Job Retention Scheme are accounted for in accordance with the payroll periods to which they relate.

The interest on the Bounce Back Loan is paid by the UK Government for the first 12 months. Interest paid in this way during the accounting period is shown as an interest cost and as a matching government grant received.

 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK, which is where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and equipment

4% and 15% on cost

Freehold property

1% on cost

Motor vehicles

25% on cost or 25% on reducing balance

Investment property

Investment property is included at fair value. Gains are recognised in the income statement. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.
 

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for vehicles sold , services performed or rent receivable in the ordinary course of business.

Trade debtors are recognised at the transaction price.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated selling cosrs.

 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash received .

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2020 - 6).

 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

4

Tangible assets

Freehold land and buildings
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2021

461,728

245,956

5,497

713,181

Additions

3,620

14,509

-

18,129

At 31 December 2021

465,348

260,465

5,497

731,310

Depreciation

At 1 January 2021

44,121

124,254

5,030

173,405

Charge for the year

2,354

11,020

32

13,406

At 31 December 2021

46,475

135,274

5,062

186,811

Carrying amount

At 31 December 2021

418,873

125,191

435

544,499

At 31 December 2020

417,607

121,702

467

539,776

Included in freehold property is freehold land with a cost price of £229,937 which is not depreciated.
 

5

Investment properties

2021
 £

At 1 January

4,162,948

Additions

450

At 31 December

4,163,398

The investment property class of fixed assets was revalued on 31 December 2021 by a director who is internal to the company. The properties have been valued on an open market basis, taking into account similar properties in the locality, and the terms and length of the current leases.

6

Debtors

Note

2021
£

2020
£

Trade debtors

 

9,440

5,434

Amounts owed by group undertakings and undertakings in which the company has a participating interest

1,592

-

Prepayments

 

1,462

8,313

Other debtors

 

-

1,559

 

12,494

15,306

 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

7

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

9

-

3,934

Trade creditors

 

28,769

17,205

Amounts owed to group undertakings and undertakings in which the company has a participating interest

-

99,311

Taxation and social security

 

68,767

57,983

Accruals and deferred income

 

46,600

47,433

Other creditors

 

463,050

458,146

 

607,186

684,012

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

9

-

46,066

2021
£

2020
£

Due after more than five years

After more than five years by instalments

-

6,156

-

-


Creditors include bank loans not repayable by instalments of £0.00 (2020 - £6,156.00) due after more than five years.

8

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary of £1 each

6,000

6,000

6,000

6,000

         
 

Brecon Motors (Distributors) Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 December 2021

9

Loans and borrowings

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings

-

46,066

2021
£

2020
£

Current loans and borrowings

Bank borrowings

-

3,934

The bank loans are secured on the some of the investment properties.

10

Parent and ultimate parent undertaking

The company's immediate parent is Globalroad Ltd, incorporated in England and Wales.