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REGISTERED NUMBER: 03012938 (England and Wales)













BASSETTS (WALES) LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021






BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


BASSETTS (WALES) LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: Mrs D Fry
Mr E H Francis





SECRETARY: Mr E H Francis





REGISTERED OFFICE: Valley Way
The Enterprise Park
Swansea
West Glamorgan
SA6 8QX





REGISTERED NUMBER: 03012938 (England and Wales)





AUDITORS: Carr, Jenkins & Hood
Chartered Accountant & Registered Auditor
Oystermouth House
Charter Court, Phoenix Way
Swansea Enterprise Park
Swansea
SA7 9FS

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021


The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The principal activity of the company during the year was that of a motor dealership. The company is part of the Bassetts Group which has grown to be one of the top motor dealers in South Wales today, representing motor manufacturers Citroen, DS, Honda, Nissan and Ssangyong with dealerships across the region.

In a very difficult new car market the company enjoys a number of competitive advantages including strong local brand recognition in its heartland trading region and market share of the vehicle franchise it represents. Turnover increased by 23% during the year to £24.4 million.

Coming out of lockdown and the restrictions imposed by the UK Government to stem the spread of Covid-19, the company experienced increased revenues and improved margins in relation to used vehicle sales. Whilst trading is still recovering to pre-pandemic levels, the company continues to mitigate impact on margins by taking strategic steps to reduce expenses wherever possible and as a result recorded an increase in profit before tax of £29,374 (13%) to £260,771.

The liquidity ratios remained positive at 1.18 (2020: 1.10). The company as a part of the group continues to be in strong position financially, capable of funding further acquisitions should such opportunities arise.

The focus for the future is to develop the culture of continuous development to the benefit of our customers, our company and our employees.

Key performance indicators
2021 2020
Revenue £24,380,872 £18,621,445
Gross Profit £2,329,392 £1,787,329
Gross Profit % 9.6% 9.6%
Profit before Tax £260,771 £231,397

PRINCIPAL RISKS AND UNCERTAINTIES
The principle risk facing the Company is the strength of the UK economy affected by the coronavirus outbreak and ramifications of the UK decision to leave the EU, the repercussions of both remain relatively unknown and the effect they will have on the demand for the new and used vehicles. The industry saw new car registrations decline in 2021 and the society of Motor Manufactures and Traders considers that a continued decline should be expected in 2022. With a decline in new car registrations, the industry is forecasting used car sales to remain strong. New vehicle technologies and government legislations in relation to emissions and environmental concerns will ensure that new vehicles will remain relevant in contributing to turnover. However to mitigate the economic risk and potential price increases in new vehicles, the Company will look to capitalise on current consumer demands for used vehicles, while also focusing further on aftermarket services.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company operates a number of risk management policies designed to minimise its exposure to financial risk.

LIQUIDITY AND CASH FLOW RISK
The company produces detailed management accounts and forecasts, which enable the directors to monitor the cash position and to ensure that there is sufficient liquidity and cash flow to minimise the risk of the company being unable to pay its debts as they fall due.


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

INTEREST RATE RISK
The company utilises a number of financial instruments including bank overdrafts in order to finance its operations. The primary risk faced by the company as a result of its use of these financial instruments is interest rate risk.

The bank overdraft borrowings at variable rates expose the company to cash-flow interest rate risk, however the directors actively manage risk by maintaining sufficient cash reserves within the company to avoid using its overdraft facility wherever possible.

CREDIT RISK
The company operates a number of policies and controls to minimise credit risk. All customers are subject to a detailed credit review prior to any terms being agrees directors must authorise any larger value contracts and the company will only conduct business with customers deemed to be credit-worthy.

PRICE RISK
The company activly manages price risk by agreeing terms with suppliers prior to entering into any transactions with customers.

ON BEHALF OF THE BOARD:





Mr E H Francis - Director


31 May 2022

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021


The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of Sale of new cars and light motor vehicles
Sale of used cars and light motor vehicles

DIVIDENDS
Total dividends paid during the year were £15,000 (2020: £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

Mrs D Fry
Mr E H Francis

FUTURE DEVELOPMENTS AND GOING CONCERN
The company will continue to focus on sustained profitability and growth. The company's primary aim will be to continue to concentrate on delivering a consistently high level of service to all of its customers.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The company meets its day to day working capital requirements from its cash reserves and overdraftfacilities, the company's forecasts and projections show that the company will be able to comfortably operate within those facilities.

The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities. At 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.

DIRECTORS' RESPONSIBILITIES STATEMENT
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.


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021

DIRECTORS' RESPONSIBILITIES STATEMENT - continued
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
Carr, Jenkins & Hood were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

ON BEHALF OF THE BOARD:





Mr E H Francis - Director


31 May 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


Opinion
We have audited the financial statements of Bassetts (Wales) Ltd (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 2021 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 Report of the Auditors 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


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 Directors' Responsibilities Statement set out on pages four and five, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included UK Companies Act and relevant tax legislation.

Audit procedures performed by the engagement team to respond to the risk of irregularities and non-compliance with laws and regulations, including fraud, include the following:

- discussions with management to enquire of any known instances of non-compliance with laws and regulations,
including fraud;
- discussions with management in respect of any actual or potential litigation claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
- testing the appropriateness of journal entries and other adjustments to address the risk of fraud through
management override of controls;
- review of accounting estimates and challenging assumptions made by management in respect of significant
estimates;
- review of the financial statement disclosures and testing to supporting documentation to assess compliance
with relevant laws and regulations; and
- evaluating the business rationale of any significant transactions that are unusual or outside the normal course
of business.

There are inherent limitations in the audit procedures which means we are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BASSETTS (WALES) LTD


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.




Laura Farrow MSc BSc FCA (Senior Statutory Auditor)
for and on behalf of Carr, Jenkins & Hood
Chartered Accountant & Registered Auditor
Oystermouth House
Charter Court, Phoenix Way
Swansea Enterprise Park
Swansea
SA7 9FS

31 May 2022

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £    £   

TURNOVER 4 24,380,872 18,621,445

Cost of sales 22,051,480 16,834,116
GROSS PROFIT 2,329,392 1,787,329

Administrative expenses 2,137,314 1,926,721
192,078 (139,392 )

Other operating income 68,693 370,789
OPERATING PROFIT and
PROFIT BEFORE TAXATION 260,771 231,397

Tax on profit 7 52,323 44,484
PROFIT FOR THE FINANCIAL YEAR 208,448 186,913

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

BALANCE SHEET
31 DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 286,552 291,000

CURRENT ASSETS
Stocks 10 4,076,387 3,467,953
Debtors 11 621,329 358,841
Cash at bank and in hand 6,758 636,422
4,704,474 4,463,216
CREDITORS
Amounts falling due within one year 12 4,100,745 4,057,383
NET CURRENT ASSETS 603,729 405,833
TOTAL ASSETS LESS CURRENT LIABILITIES 890,281 696,833

PROVISIONS FOR LIABILITIES 14 20,500 20,500
NET ASSETS 869,781 676,333

CAPITAL AND RESERVES
Called up share capital 15 100,000 100,000
Retained earnings 16 769,781 576,333
SHAREHOLDERS' FUNDS 869,781 676,333

The financial statements were approved by the Board of Directors and authorised for issue on 31 May 2022 and were signed on its behalf by:





Mr E H Francis - Director


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 100,000 389,420 489,420

Changes in equity
Total comprehensive income - 186,913 186,913
Balance at 31 December 2020 100,000 576,333 676,333

Changes in equity
Dividends - (15,000 ) (15,000 )
Total comprehensive income - 208,448 208,448
Balance at 31 December 2021 100,000 769,781 869,781

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. STATUTORY INFORMATION

Bassetts (Wales) Ltd 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

- Section 4 'Statement of financial position' - Reconciliation of the opening and closing number of shares;
- Section 7 'Statement of Cash flows' - Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss nd in other comprehensive income;
- Section 33 'Related Party Disclosures'.

The financial statements of the company are consolidated in the financial statements of Bassett Property Holdings Limited. These consolidated financial statements are available from its registered office, Valley Way, Swansea Enterprise Park, Swansea, SA6 8QX.

Going concern
The company will continue to focus on sustained profitability and growth. The company's primary aim will be to continue to concentrate on delivering a consistently high level of service to all of its customers.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely future cash flows of the business and have considered the facilities that are in place at the date of signing the report.

The company meets its day to day working capital requirements from its cash reserves and overdraft
facilities, the company's forecasts and projections show that the company will be able to comfortably operate within those facilities.

The directors have a reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the company will be able to continue to operate within those facilities. At 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.

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on supply of vehicles and parts or when mechanical services have been completed), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 on the following bases:

Leasehold improvements1% straight line
Plant and machinery10% straight line
Fixtures, fittings and equipment10% straight line

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 the profit or loss.
Depreciation is not charged during the year where impairment adjustments exist.

Impairment of fixed assets
At each reporting 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.


BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued
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.

Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern on which economic benefits from the leases asset are consumed.

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.

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

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Related party transactions
The company entered into transactions with related parties during the year. The related parties consist of fellow group companies where the transactions are eliminated upon consolidation in the consolidated accounts of the holding company Bassetts Property Holdings Limited. The company has taken advantage of the exemption under FRS102 not to disclose such transactions.

Employee benefits
The cost 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 asset.

The cost of any unused holiday entitlement is recognised in the period in which the employees 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.

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


3. CRITICAL ACCOUNTING 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. Such estimates and assumptions are as follows:

Inventory provisioning
Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. The market value of motor vehicles varies constantly and therefore the company attempts to mitigate any risk by frequently using guidance from independent industry valuation tools. Calculation of these provisions requires judgements to be made, which include forecast customer demand, the economic environment and guidance from independent industry valuation tools.

4. TURNOVER

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

An analysis of turnover by class of business is given below:

2021 2020
£    £   
Vehicles, parts and service 24,380,872 18,621,445
24,380,872 18,621,445

An analysis of turnover by geographical market is given below:

2021 2020
£    £   
United Kingdom 24,380,872 18,621,445
24,380,872 18,621,445

5. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 1,394,906 1,320,554
Social security costs 115,046 116,774
Other pension costs 28,415 26,155
1,538,367 1,463,483

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2021 2020

Total 41 44

2021 2020
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging:

2021 2020
£    £   
Other operating leases 197,459 18,832
Depreciation - owned assets 18,109 17,375
Auditors' remuneration 7,300 7,200

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax 52,323 44,484
Tax on profit 52,323 44,484

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:

2021 2020
£    £   
Profit before tax 260,771 231,397
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

49,546

43,965

Effects of:
Expenses not deductible for tax purposes 124 45
Depreciation in excess of capital allowances 2,653 474
Total tax charge 52,323 44,484

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


8. DIVIDENDS
2021 2020
£    £   
Ordinary shares of £1 each
Final 15,000 -

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings Totals
£    £    £    £   
COST
At 1 January 2021 125,210 163,409 142,688 431,307
Additions 11,994 - 1,667 13,661
At 31 December 2021 137,204 163,409 144,355 444,968
DEPRECIATION
At 1 January 2021 1,339 125,143 13,825 140,307
Charge for year 1,368 14,397 2,344 18,109
At 31 December 2021 2,707 139,540 16,169 158,416
NET BOOK VALUE
At 31 December 2021 134,497 23,869 128,186 286,552
At 31 December 2020 123,871 38,266 128,863 291,000

10. STOCKS
2021 2020
£    £   
Motor vehicles and parts 3,140,450 2,840,711
Consignment stock 935,937 627,242
4,076,387 3,467,953

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 486,181 257,876
Other debtors 135,148 87,670
Prepayments and accrued income - 13,295
621,329 358,841

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 13) 207,106 -
Trade creditors 830,370 1,492,124
Amounts owed to group undertakings 1,740,128 1,423,716
Tax 52,323 44,484
Social security and other taxes 42,298 245,762
VAT 104,707 -
Other creditors 935,937 627,242
Directors' loan accounts 617 -
Accruals and deferred income 187,259 224,055
4,100,745 4,057,383

Other creditors includes consignment stock of £935,937 (2020: £627,242).

13. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 207,106 -

Bank overdrafts are secured by fixed and floating charges over assets of the company.

14. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax 20,500 20,500

Deferred
tax
£   
Balance at 1 January 2021 20,500
Balance at 31 December 2021 20,500

15. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
100,000 Ordinary £1 100,000 100,000

BASSETTS (WALES) LTD (REGISTERED NUMBER: 03012938)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


16. RESERVES
Retained
earnings
£   

At 1 January 2021 576,333
Profit for the year 208,448
Dividends (15,000 )
At 31 December 2021 769,781

17. ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of the parent company Bassett Property Holdings Limited, a company incorporated In the UK.

Bassett Property Holdings Limited prepare consolidated financial statements of which the results of this company are included. The consolidated financial statements are available at the registered office.

Mr E H Francis is considered to be the ultimate controlling party by virtue of his majority shareholding in the parent company.