Company registration number 05082827 (England and Wales)
BROOKBROUGH TRADING COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
BROOKBROUGH TRADING COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
BROOKBROUGH TRADING COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,084,503
1,148,911
Investments
4
57,856
57,856
1,142,359
1,206,767
Current assets
Stocks
3,010,314
2,585,930
Debtors
5
446,698
187,548
Cash at bank and in hand
11,389
191,749
3,468,401
2,965,227
Creditors: amounts falling due within one year
6
(3,906,712)
(3,130,178)
Net current liabilities
(438,311)
(164,951)
Total assets less current liabilities
704,048
1,041,816
Creditors: amounts falling due after more than one year
7
(574,338)
(672,874)
Net assets
129,710
368,942
Capital and reserves
Called up share capital
8
612,112
612,112
Profit and loss reserves
(482,402)
(243,170)
Total equity
129,710
368,942

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

For the financial year ended 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

BROOKBROUGH TRADING COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 September 2023 and are signed on its behalf by:
Mr P R Brooks
Director
Company Registration No. 05082827
BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information

Brookbrough Trading Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 Alvaston Business Park, Middlewich Road, Nantwich, Cheshire, CW5 6PF. The business address is Stanney Mill Lane, Little Stanney, Chester CH2 4HY.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents amounts receivable for goods and services net of VAT.

1.3
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 improvements
2% straight line or over the period of the lease term whichever is the shorter
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% straight line
Computer equipment
15% straight line
Motor vehicles
25% reducing balance

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.

1.4
Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value.

1.5
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.

BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.6
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.

1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.8
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 in which economic benefits from the leases asset are consumed.

1.9
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.

BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
2
Employees

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

2022
2021
Number
Number
Total
39
37
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
1,289,845
609,475
1,899,320
Additions
-
0
36,335
36,335
At 31 December 2022
1,289,845
645,810
1,935,655
Depreciation and impairment
At 1 January 2022
283,154
467,255
750,409
Depreciation charged in the year
67,178
33,565
100,743
At 31 December 2022
350,332
500,820
851,152
Carrying amount
At 31 December 2022
939,513
144,990
1,084,503
At 31 December 2021
1,006,691
142,220
1,148,911
4
Fixed asset investments
2022
2021
£
£
Other investments other than loans
57,856
57,856
BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
198,833
113,399
Other debtors
129,332
35,557
328,165
148,956
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset
118,533
38,592
Total debtors
446,698
187,548
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
547,345
658,036
Trade creditors
1,360,979
1,052,746
Taxation and social security
52,815
115,258
Other creditors
1,945,573
1,304,138
3,906,712
3,130,178

The bank borrowings are secured on the assets of the company.

 

Included within other creditors are amounts due for motorcycle stocking loan facilities of £1,163,235 (2021: £672,009) which are secured on each individual motorcycle held in stock and by personal guarantees from Mr P R Brooks, Mrs M A Brooks and Mr K J Herbert.

BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
551,318
671,304
Other creditors
23,020
1,570
574,338
672,874

Other creditors due within one year and after one year include obligations due under hire purchase agreements of £10,077 (2021: £9,218). The balance is secured on the assets purchased.

 

The bank borrowings are secured on the assets of the company.

Creditors which fall due after five years are as follows:
2022
2021
£
£
Payable by instalments
(41,392)
113,377
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A of £1 each
612,110
612,110
612,110
612,110
Ordinary Class B of £1 each
2
2
2
2
612,112
612,112
612,112
612,112
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
401,778
201,281
BROOKBROUGH TRADING COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
10
Related party transactions
Transactions with related parties
Rent Payable
Other Administrative Costs
2022
2021
2022
2021
£
£
£
£
Entities with control, joint control or significant influence over the company
140,020
-
-
-
Entities with common control
-
99,663
-
-
Key management personnel
-
-
-
26,500

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
420,069
-
Entities with common control
-
434,413
Key management personnel
-
46,564
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