REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2021 |
for |
R & J Strang Tyre Services Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 December 2021 |
for |
R & J Strang Tyre Services Limited |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 |
Income Statement | 6 |
Other Comprehensive Income | 7 |
Statement of Financial Position | 8 |
Statement of Changes in Equity | 9 |
Notes to the Financial Statements | 10 |
R & J Strang Tyre Services Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Radleigh House |
1 Golf Road |
Clarkston |
Glasgow |
G76 7HU |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Report of the Directors |
for the Year Ended 31 December 2021 |
On 1st July 2019 KIM Holdings Scotland Limited, the holding company for R&J Strang Services Limited was acquired by Continental UK Group Holdings Limited. R&J Strang Tyre Services Limited continues to trade and offer the same services as before, but now enjoys the added resources and services that Continental ownership can bring to its new Group member. |
In continuing to provide the above products and services this acquisition enables the wider Continental Group to provide a fully integrated tyre solution. Supplying customers with new tyres, retreaded tyres, call centre breakdown services, tyre fitting service and ultimately a casing management service. The Group is now better placed to provide a full lifecycle tyre solution which is now strengthened further following this acquisition. |
DIRECTORS |
The directors of the company who were in office during the year and up to the date of signing the financial statements were: |
D Smith (resigned 31 March 2022) |
M Owen |
T Gorgun (appointed 31 March 2022) |
These directors have no substantial shareholdings in the company. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
R & J Strang Tyre Services Limited |
Opinion |
We have audited the financial statements of R & J Strang Tyre Services Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Statement of Financial Position, 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 101 'Reduced Disclosure Framework' (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 the provisions available for small entities, in the circumstances set out in note seventeen to the financial statements, 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
R & J Strang Tyre Services Limited |
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 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; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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. |
We gained an understanding of the legal and regulatory framework applicable to the company and the tyre industry in which it operates. We made enquiries of management as to whether there were any known or suspected instances of non-compliance with laws and regulations or fraud, and reviewed available board minutes for any indication of such matters. |
We gained an understanding of management's internal controls designed to prevent and detect irregularities in their day-to-day operations. |
We considered laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement components. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of relevant third parties. |
We considered how fraud might occur in this company and designed our tests accordingly. |
As in all audits, we also addressed the risk of management override of internal controls, including reviewing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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 |
R & J Strang Tyre Services Limited |
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. |
for and on behalf of |
Radleigh House |
1 Golf Road |
Clarkston |
Glasgow |
G76 7HU |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Income Statement |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
166,423 | (106,550 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | ( |
) |
Interest receivable and similar income |
172,857 | (46,761 | ) |
Interest payable and similar expenses | 4 |
PROFIT/(LOSS) BEFORE TAXATION | 5 | ( |
) |
Tax on profit/(loss) | 6 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Other Comprehensive Income |
for the Year Ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Statement of Financial Position |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Owned |
Tangible assets | 7 | 518,419 | 536,994 |
Right-of-use |
Tangible assets | 7, 12 | 355,599 | 428,021 |
CURRENT ASSETS |
Stocks |
Debtors | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
10 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 13 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
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 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2020 | 3,623,739 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
R & J Strang Tyre Services Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Going Concern |
The Coronavirus outbreak has created great uncertainty and many challenges in all companies. The company has taken prompt action to minimise costs across the company. While the impact of COVID-19 is still uncertain and the final impact on the company cannot be accurately predicted, the directors have reviewed their projections and feel that the company has sufficient cash reserves, and the support of the larger group of which it is part, to enable it to trade through the current difficult climate. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral Resources; |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases; |
the requirements of paragraph 58 of IFRS 16; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group. |
Tangible fixed assets |
Leasehold prop | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Inventories |
Inventories and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items |
Cost is calculated using average costing method and includes all purchase, transport, and handling costs in bringing inventories to their present location and condition. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | ACCOUNTING POLICIES - continued |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Employee benefit costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
Investments |
Fixed asset investments are stated at cost less provision for diminution in value. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Impairment of fixed assets |
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
3. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 1,425,964 | 1,419,881 |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
3. | EMPLOYEES AND DIRECTORS - continued |
2021 | 2020 |
£ | £ |
Directors' remuneration |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Other interest | 6,149 | 8,767 |
Leasing |
5. | PROFIT/(LOSS) BEFORE TAXATION |
The profit before taxation (2020 - loss before taxation) is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts or finance leases |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | TAXATION |
Analysis of tax expense |
2021 | 2020 |
£ | £ |
Current tax: |
Tax |
Prior year under provision | - | 10,907 |
Total current tax |
Deferred tax | ( |
) |
Total tax expense in income statement |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
6. | TAXATION - continued |
Factors affecting the tax expense |
The tax assessed for the year is lower (2020 - higher) than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit/(loss) before income tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | ( |
) |
Provision for deferred tax | ( |
) |
Prior year under provision | - | 10,907 |
Tax expense | 23,374 | 2,015 |
7. | TANGIBLE FIXED ASSETS |
Improvements |
Leasehold | to | Plant and |
prop | property | machinery |
£ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 | 428,021 | 168,919 |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
7. | TANGIBLE FIXED ASSETS - continued |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 | 15,178 | 350,419 | 2,470 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Intercompany-CTG | 1,747,231 | 1,565,619 |
Prepayments and accrued income |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Leases (see note 11) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 18,452 | 160,227 |
Intercompany - Bandvulc | (1,534 | ) | 46,092 |
Accruals and deferred income |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Leases (see note 11) |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
11. | FINANCIAL LIABILITIES - BORROWINGS |
2021 | 2020 |
£ | £ |
Current: |
Leases (see note 12) | 71,938 | 70,879 |
Non-current: |
Leases (see note 12) | 288,930 | 360,869 |
Terms and debt repayment schedule |
1 year or |
less | 1-2 years | Totals |
£ | £ | £ |
Leases | 71,938 | 288,930 | 360,868 |
12. | LEASING |
Right-of-use assets |
Tangible fixed assets |
2021 | 2020 |
£ | £ |
COST |
At 1 January 2021 | 545,182 | 282,185 |
Additions | - | 262,997 |
545,182 | 545,182 |
DEPRECIATION |
At 1 January 2021 | 117,161 | 44,738 |
Charge for year | 72,422 | 72,423 |
189,583 | 117,161 |
NET BOOK VALUE | 355,599 | 428,021 |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
12. | LEASING - continued |
Lease liabilities |
Minimum lease payments fall due as follows: |
2021 | 2020 |
£ | £ |
Gross obligations repayable: |
Within one year | 77,028 | 77,028 |
Between one and five years | 300,813 | 377,841 |
377,841 | 454,869 |
Finance charges repayable: |
Within one year | 5,090 | 6,149 |
Between one and five years | 11,883 | 16,972 |
16,973 | 23,121 |
Net obligations repayable: |
Within one year | 71,938 | 70,879 |
Between one and five years | 288,930 | 360,869 |
360,868 | 431,748 |
13. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Deferred |
tax |
£ |
Balance at 1 January 2021 |
Provided during year | 9,503 |
Balance at 31 December 2021 |
14. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
R & J Strang Tyre Services Limited (Registered number: SC156534) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2021 |
Profit for the year |
At 31 December 2021 |
16. | ULTIMATE PARENT COMPANY |
The company is a wholly owned subsidiary undertaking of Continental UK Group Holdings Limited, the ultimate parent company of which is Continental AG, a company incorporated in Germany. The consolidated accounts of Continental AG are available to the public and may be obtained from; |
Continental AG |
Vahrenwalder Strasse 9 |
30001 Hannover |
Germany |
17. | FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. |