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Registration number: 00618090

R.Smith(Windermere)Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2023

 

R.Smith(Windermere)Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 27

 

R.Smith(Windermere)Limited

Company Information

Directors

Mr D N Smith

Mr G W Smith

Mrs C H Jenson

Company secretary

Mrs S Williams

Registered office

Ground Floor, Seneca House
Links Point, Amy Johnson Way
Blackpool
Lancashire
FY4 2FF

Auditors

Crossley & Davis Chartered Accountants
Ground Floor Seneca House
Links Point
Amy Johnson Way
Blackpool
FY4 2FF

 

R.Smith(Windermere)Limited

Strategic Report for the Year Ended 31 January 2023

The directors present their strategic report for the year ended 31 January 2023.

Principal activity

The principal activity of the company is that of commercial property development.

Fair review of the business

Historically, the directors consider the main KPIs for R.Smith(Windermere) Limited to be turnover, gross profit and operating profit. On 5 April 2022 the company sold all trade and assets relating to the Kia trade, the usual KPI’s have fallen as a result.

Following the sale of trade and assets, the principal activity of the company is now that of commercial property development. Costs relating to the new trade in the year to 31 January 2023 were £84,124 (2022: £147,189).

Work in Progress of £231,313 was included in the financial statements to 31 January 2023 (2022: £147,190).

Principal risks and uncertainties

The trade and assets of R.Smith(Windermere) Limited were sold during the year and the principal activity of the company is now that of commercial property developers. The company has a strong balance sheet position, continues to be backed by its creditors and any potential risks are closely monitored by management.

The company does not have any major overseas suppliers or customers and is not exposed to exchange rate risk.

Approved and authorised by the Board on 3 October 2023 and signed on its behalf by:
 

.........................................
Mr D N Smith
Director

 

R.Smith(Windermere)Limited

Directors' Report for the Year Ended 31 January 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr D N Smith

Mr G W Smith

Mrs C H Jenson

Financial instruments

Objectives and policies

The company uses several financial instruments, that at all times through the business cycle aims at managing financial risk, while recognising the operational risks within the business.

Price risk, credit risk, liquidity risk and cash flow risk

The financial risks to which R.Smith(Winderemere) Limited is exposed include:

Liquidity risk: The risk that the funding required for the business to pursue its activities may not be available. We seek to manage this risk by ensuring sufficient liquidity is available to meet current and future needs. Short-term flexibility (if required) is achieved by shareholder loans.

Future developments

The company will continue with the development of commercial property, with careful focus on the continued management of its projects as well as analysis of external economic factors. The directors are confident that the strong financial position of the company will continue.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 3 October 2023 and signed on its behalf by:
 

.........................................
Mr D N Smith
Director

 

R.Smith(Windermere)Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

R.Smith(Windermere)Limited

Independent Auditor's Report to the Members of R.Smith(Windermere)Limited

Opinion

We have audited the financial statements of R.Smith(Windermere)Limited (the 'company') for the year ended 31 January 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 January 2023 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 auditor 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.

Other significant future developments

The company will proceed with the principle activity of developing commercial property in isolation from the financial year end 31 January 2024 onwards. With careful focus on the continued management of company performance as well as analysis of external economic factors, the directors are confident that the strong financial position of the company will continue.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.

 

R.Smith(Windermere)Limited

Independent Auditor's Report to the Members of R.Smith(Windermere)Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 Statement of Directors' Responsibilities [set out on page 4], 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.

 

R.Smith(Windermere)Limited

Independent Auditor's Report to the Members of R.Smith(Windermere)Limited

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a 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.

We focused on 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. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

R.Smith(Windermere)Limited

Independent Auditor's Report to the Members of R.Smith(Windermere)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 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.

......................................
Mr Peter Swarbrick (Senior Statutory Auditor)
For and on behalf of Crossley & Davis Chartered Accountants, Statutory Auditor

Ground Floor Seneca House
Links Point
Amy Johnson Way
Blackpool
FY4 2FF

3 October 2023

 

R.Smith(Windermere)Limited

Profit and Loss Account for the Year Ended 31 January 2023

Note

2023
£

2022
£

Turnover

3

2,745,051

19,517,819

Cost of sales

 

(2,473,022)

(17,754,774)

Gross profit

 

272,029

1,763,045

Administrative expenses

 

(253,056)

(168,648)

Other operating income

4

65,898

109,794

Operating profit

6

84,871

1,704,191

Other interest receivable and similar income

8

121,405

51,523

Interest payable and similar expenses

9

(49,579)

(57,202)

   

71,826

(5,679)

Profit before tax

 

156,697

1,698,512

Tax on profit

13

60,519

(63,109)

Profit for the financial year

 

217,216

1,635,403

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

R.Smith(Windermere)Limited

Statement of Comprehensive Income for the Year Ended 31 January 2023

2023
£

2022
£

Profit for the year

217,216

1,635,403

Surplus on property, plant and equipment revaluation

-

684,469

Deficit on revaluation of other assets

-

(684,469)

-

-

Total comprehensive income for the year

217,216

1,635,403

 

R.Smith(Windermere)Limited

(Registration number: 00618090)
Balance Sheet as at 31 January 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

14

-

514,551

Current assets

 

Stocks

15

236,313

1,404,449

Debtors

16

5,030,644

4,211,148

Cash at bank and in hand

17

2,213,898

2,772,229

 

7,480,855

8,387,826

Creditors: Amounts falling due within one year

18

(2,021,149)

(3,534,239)

Net current assets

 

5,459,706

4,853,587

Total assets less current liabilities

 

5,459,706

5,368,138

Provisions for liabilities

19

-

(4,240)

Net assets

 

5,459,706

5,363,898

Capital and reserves

 

Called up share capital

21

1,000

1,000

Profit and loss account

5,458,706

5,362,898

Shareholders' funds

 

5,459,706

5,363,898

Approved and authorised by the Board on 3 October 2023 and signed on its behalf by:
 

.........................................
Mr D N Smith
Director

 

R.Smith(Windermere)Limited

Statement of Changes in Equity for the Year Ended 31 January 2023

Share capital
£

Retained earnings
£

Total
£

At 1 February 2022

1,000

5,362,898

5,363,898

Profit for the year

-

217,216

217,216

Dividends

-

(121,408)

(121,408)

At 31 January 2023

1,000

5,458,706

5,459,706

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 February 2021

1,000

684,469

3,091,358

3,776,827

Profit for the year

-

-

1,635,403

1,635,403

Other comprehensive income

-

(684,469)

684,469

-

Total comprehensive income

-

(684,469)

2,319,872

1,635,403

Dividends

-

-

(48,332)

(48,332)

At 31 January 2022

1,000

-

5,362,898

5,363,898

 

R.Smith(Windermere)Limited

Statement of Cash Flows for the Year Ended 31 January 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

217,216

1,635,403

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,149

19,082

Loss/(profit) on disposal of tangible assets

5

113,402

(1,600,006)

Profit on disposal of intangible assets

5

(250,000)

-

Finance income

8

(121,405)

(51,523)

Finance costs

9

49,579

57,202

Income tax expense

13

(60,519)

63,109

Rounding

 

-

(1)

 

(50,578)

123,266

Working capital adjustments

 

Decrease in stocks

15

1,168,136

818,848

Increase in trade debtors

16

(763,237)

(860,605)

Decrease in trade creditors

18

(1,448,171)

(701,304)

Cash generated from operations

 

(1,093,850)

(619,795)

Income taxes paid

13

(64,900)

(36,523)

Net cash flow from operating activities

 

(1,158,750)

(656,318)

Cash flows from investing activities

 

Interest received

8

121,405

51,523

Acquisitions of tangible assets

-

(1,995)

Proceeds from sale of tangible assets

 

400,001

2,500,006

Proceeds from sale of intangible assets

 

250,000

-

Net cash flows from investing activities

 

771,406

2,549,534

Cash flows from financing activities

 

Interest paid

9

(49,579)

(57,202)

Repayment of other borrowing

 

-

(170,000)

Dividends paid

23

(121,408)

(48,332)

Net cash flows from financing activities

 

(170,987)

(275,534)

Net (decrease)/increase in cash and cash equivalents

 

(558,331)

1,617,682

Cash and cash equivalents at 1 February

 

2,772,229

1,154,547

Cash and cash equivalents at 31 January

 

2,213,898

2,772,229

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Ground Floor, Seneca House
Links Point, Amy Johnson Way
Blackpool
Lancashire
FY4 2FF
England

These financial statements were authorised for issue by the Board on 3 October 2023.

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom 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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Government grants

Government grants include amounts that became receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the company with no future related cost and are recognised in income in the period in which they became receivable.

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.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

The current income 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 countries 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 balance sheet 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% on cost

Freehold land and buildings

No depreciation provided

Improvements to property

Over lease-term

The directors believe that the policy of not providing depreciation on freehold property is necessary in order for the financial statements to give a true and fair view. The directors confirm that buildings are maintained to high standards of condition and the fair value is not significantly impaired by the passage of time. Consequently, any element of depreciation is not considered to be material. The directors review the market values with sufficient regularity to enable them to identify any material diminution in value, should that occur.

Investment property

Investment property is initially recognised at cost which includes purchase cost and any directly attributable expenditure. Investment property is subsequently carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Included in stock are items consigned and owned by the entity but manufactured and held elsewhere. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

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 as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Revenue

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Motor trade

2,745,051

19,517,819

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

84,594

Rental income

65,898

25,200

65,898

109,794

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

(Loss)/gain on disposal of Tangible assets

(113,402)

1,600,006

Gain on disposal of intangible assets

250,000

-

136,598

1,600,006

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

1,149

19,082

Loss/(profit) on disposal of property, plant and equipment

113,402

(1,600,006)

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

7

Government grants

Included within other operating income are government grants receivable. The company received grants in the form of the Coronavirus Job Retention Scheme (CJRS) and the Local Restriction Support Grant (LRSG). Government grants have been recognised on an accruals basis.

The amount of grants recognised in the financial statements was £Nil (2022 - £84,594).

8

Other interest receivable and similar income

2023
£

2022
£

Other finance income

121,405

51,523

9

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

-

3,527

Interest expense on other finance liabilities

49,579

53,675

49,579

57,202

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

138,977

779,599

Social security costs

27,308

75,752

Other short-term employee benefits

5,472

29,788

Pension costs, defined contribution scheme

(10,831)

212,094

Redundancy costs

-

47,263

Other employee expense

1,260

15,285

162,186

1,159,781

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

2023
No.

2022
No.

Service

-

11

Administration and support

2

8

Sales

5

13

Other departments

6

6

13

38

11

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

18,225

24,061

12

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

14,926

19,839


 

The company entered into a liability limitation agreement with the auditor on 25 May 2021. The liability of the auditor in respect of any claim or claims made by the company is limited to £4,000,000 inclusive of interest and costs.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

13

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(25,566)

64,900

Deferred taxation

Arising from origination and reversal of timing differences

(34,953)

(1,791)

Tax (receipt)/expense in the income statement

(60,519)

63,109

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

156,697

1,698,512

Corporation tax at standard rate

29,772

322,717

Effect of expense not deductible in determining taxable profit (tax loss)

(55,003)

(260,386)

Tax (decrease)/increase from effect of capital allowances and depreciation

(336)

2,570

Tax decrease from other short-term timing differences

(7,561)

(1,792)

Tax decrease from effect of unrelieved tax losses carried forward

(27,391)

-

Total tax (credit)/charge

(60,519)

63,109

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated tax depreciation

3,321

-

Tax loss c/fwd

27,392

-

30,713

-

2022

Asset
£

Liability
£

Accelerated tax depreciation

-

4,240

-

4,240

14

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 February 2022

528,767

291,147

819,914

Disposals

(528,767)

(291,147)

(819,914)

At 31 January 2023

-

-

-

Depreciation

At 1 February 2022

25,631

279,732

305,363

Charge for the year

553

595

1,148

Eliminated on disposal

(26,184)

(280,327)

(306,511)

At 31 January 2023

-

-

-

Carrying amount

At 31 January 2023

-

-

-

At 31 January 2022

503,136

11,415

514,551

Included within the net book value of land and buildings above is £Nil (2022 - £450,000) in respect of freehold land and buildings and £Nil (2022 - £53,136) in respect of short leasehold land and buildings.
 

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

15

Stocks

2023
£

2022
£

Parts and accessories

-

30,405

Work in progress

231,313

147,190

New and used cars

5,000

1,226,854

236,313

1,404,449

16

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

(4,038)

92,874

Amounts owed by related parties

24

186,776

186,776

Other debtors

 

4,781,575

3,895,822

Prepayments

 

10,072

35,676

Deferred tax assets

13

30,712

-

Income tax asset

13

25,547

-

   

5,030,644

4,211,148

17

Cash and cash equivalents

2023
£

2022
£

Cash on hand

-

110

Cash at bank

2,213,898

2,772,119

2,213,898

2,772,229

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

18

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

4,841

389,378

Amounts due to related parties

24

711,258

834,140

Social security and other taxes

 

82,380

190,149

Outstanding defined contribution pension costs

 

435

2,891

Other payables

 

1,156,271

1,716,171

Accruals

 

65,964

336,591

Income tax liability

13

-

64,919

 

2,021,149

3,534,239

HSBC Bank PLC had a charge with R.Smith(Windermere) Limited and R.N.Smith Holdings Limited over the freehold property, Rayrigg Motors, Rayrigg Road, Bowness on Windermere. The charge was satisfied on 2 March 2022.

There are currently no charges over R.Smith (Windermere) Limited.
 

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 February 2022

4,240

4,240

Increase (decrease) in existing provisions

(34,952)

(34,952)

At 31 January 2023

(30,712)

(30,712)

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £(10,831) (2022 - £212,094).

Contributions totalling £435 (2022 - £2,891) were payable to the scheme at the end of the year and are included in creditors.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

1,000

1,000

1,000

1,000

         

22

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

77,274

77,274

Later than one year and not later than five years

64,360

141,634

141,634

218,908

The amount of non-cancellable operating lease payments recognised as an expense during the year was £77,274 (2022 - £77,274).

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

23

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of 121.40 (2022 - 48.33) per each Ordinary shares

 

121,408

 

48,332

         

24

Related party transactions

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

61,825

69,791

Other transactions with directors

There have been transactions with directors during the year. Interest totalling £18,914 has been charged to R.Smith(Windermere) Limited on loans that are payable to its directors. During the year the directors advanced £147,783 and R.Smith(Windermere) Limited repaid £289,577 on these loans. At the year end 31 January 2023 the amount owed by R.Smith(Windermere) Limited to its directors was £390,484 (2022: £513,364). The loans are unsecured and repayable on demand.

There are other loans payable to the directors. Interest totalling £12,200 (2022: £9,760) has been charged to R.Smith(Windermere) Limited. During the year R.Smith(Windermere) Limited repaid £12,200 (2022: £19,371) on these loans. At the year end 31 January 2022 the amount owed by R.Smith(Windermere) Limited on these loans was £610,000 (2022: £610,000).

The above transactions with directors have been given in an aggregated format.

Summary of transactions with other related parties


R.Smith(Windermere) Directors Retirement Plan

A pension scheme of which D N Smith and R G Smith are trustees and members. Interest of £10,200 has been charged to R.Smith(Windermere) Limited. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Directors Retirement Plan was £160,000 (2022: £160,000). The loan is unsecured and repayable on demand.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

White House Windermere Limited

White House Windermere Limited is a company which is owned and controlled by G W Smith and D N Smith is a director. During the year there have been transactions of £434,889 between the entities. Interest of £53,075 has been charged to White House Windermere Limited. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £1,517,847 (2022: £1,952,736). The loan is unsecured and repayable on demand.


Lake District Vehicle Sales Limited

Lake District Vehicle Sales Limited is a company which is controlled and jointly owned by G W Smith. During the year R.Smith(Windermere) Limited wrote off £11,240 of the Lake District Vehicle Sales Limited debtor. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £154,960 (2022: £143,720). The loan is unsecured and repayable on demand.


Bordriggs Farm (Windermere) Limited

Bordriggs Farm (Windermere) Limited is a company which is controlled and jointly owned by D N Smith, C H Smith, and G W Smith. During the year there have been transactions of £25,000 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £1,354,133 (2022: £1,329,133). The loan is unsecured and repayable on demand.


Oldfield Properties (Windermere) Limited

Oldfield Properties (Windermere) Limited is a company which is controlled and jointly owned by D N Smith, C H Smith, and G W Smith. During the year there have been transactions of £14,000 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £123,861 (2022: £109,861). The loan is unsecured and repayable on demand.


Craig Walk Properties Limited

Craig Walk Properties Limited is a company which is controlled and jointly owned by D N Smith, and G W Smith. During the year there have been transactions of £31,789 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £294,168 (2022: £325,957). The loan is unsecured and repayable on demand.







Bellman Properties Windermere Limited

Bellman Properties Windermere Limited is a company which is controlled and owned by G W Smith. During the year there have been transactions £215,661 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £22,550 (2022: £238,211). The loan is unsecured and repayable on demand.


C Smith Properties Limited

C Smith Properties Limited is a company which is controlled and owned by C H Smith. During the year there have been transactions of £9,807 between the entities. Interest of £9,456 has been charged to C Smith Properties Limited. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £316,761 (2022: £326,568). The loan is unsecured and repayable on demand.


Windermere Accommodation Limited

Windermere Accommodation Limited is a company which is owned and controlled by C H Smith. During the year there have been transactions of £790,329 between the entities. Interest of £8,000 has been charged to Windermere Accommodation Limited. At the year end 31 January 2023 the amount due from Windermere Accommodation Limited was £790,329 (2022: £nil). The loan is unsecured and repayable on demand.

Jaxwin Limited

Jaxwin Limited is a company which is owned and controlled by G W Smith. During the year there have been transactions of £203,183 between the entities. Interest of £6,486 has been charged to Jaxwin Limited. At the year end 31 January 2023 the amount due from Jaxwin Limited was £203,183 (2022: £nil). The loan is unsecured and repayable on demand.

 

R.Smith(Windermere)Limited

Notes to the Financial Statements for the Year Ended 31 January 2023

White House Windermere Limited

White House Windermere Limited is a company which is owned and controlled by G W Smith and D N Smith is a director. During the year there have been transactions of £434,889 between the entities. Interest of £53,075 has been charged to White House Windermere Limited. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £1,517,847 (2022: £1,952,736). The loan is unsecured and repayable on demand.


Lake District Vehicle Sales Limited

Lake District Vehicle Sales Limited is a company which is controlled and jointly owned by G W Smith. During the year R.Smith(Windermere) Limited wrote off £11,240 of the Lake District Vehicle Sales Limited debtor. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £154,960 (2022: £143,720). The loan is unsecured and repayable on demand.


Bordriggs Farm (Windermere) Limited

Bordriggs Farm (Windermere) Limited is a company which is controlled and jointly owned by D N Smith, C H Smith, and G W Smith. During the year there have been transactions of £25,000 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £1,354,133 (2022: £1,329,133). The loan is unsecured and repayable on demand.


Oldfield Properties (Windermere) Limited

Oldfield Properties (Windermere) Limited is a company which is controlled and jointly owned by D N Smith, C H Smith, and G W Smith. During the year there have been transactions of £14,000 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £123,861 (2022: £109,861). The loan is unsecured and repayable on demand.


Craig Walk Properties Limited

Craig Walk Properties Limited is a company which is controlled and jointly owned by D N Smith, and G W Smith. During the year there have been transactions of £31,789 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £294,168 (2022: £325,957). The loan is unsecured and repayable on demand.







Bellman Properties Windermere Limited

Bellman Properties Windermere Limited is a company which is controlled and owned by G W Smith. During the year there have been transactions £215,661 between the entities. No interest has been charged on this loan. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £22,550 (2022: £238,211). The loan is unsecured and repayable on demand.


C Smith Properties Limited

C Smith Properties Limited is a company which is controlled and owned by C H Smith. During the year there have been transactions of £9,807 between the entities. Interest of £9,456 has been charged to C Smith Properties Limited. At the year end 31 January 2023 the amount due to R.Smith(Windermere) Limited was £316,761 (2022: £326,568). The loan is unsecured and repayable on demand.


Windermere Accommodation Limited

Windermere Accommodation Limited is a company which is owned and controlled by C H Smith. During the year there have been transactions of £790,329 between the entities. Interest of £8,000 has been charged to Windermere Accommodation Limited. At the year end 31 January 2023 the amount due from Windermere Accommodation Limited was £790,329 (2022: £nil). The loan is unsecured and repayable on demand.

Jaxwin Limited

Jaxwin Limited is a company which is owned and controlled by G W Smith. During the year there have been transactions of £203,183 between the entities. Interest of £6,486 has been charged to Jaxwin Limited. At the year end 31 January 2023 the amount due from Jaxwin Limited was £203,183 (2022: £nil). The loan is unsecured and repayable on demand.

25

Parent and ultimate parent undertaking

The company's immediate parent is R.N.Smith Holdings Limited, incorporated in England and Wales.

 The ultimate parent is Rayrigg Limited, incorporated in England and Wales.

 

The parent of the largest and small group in which these financial statements are consolidated is Rayrigg Limited, incorporated in England and Wales.
The address of Rayrigg Limited is:
Ground Floor
Seneca House, Links Point
Amy Johnson Way
Blackpool
England
FY4 2FF
.