Company registration number 01831780 (England and Wales)
CHESHIRE VEHICLE RENTAL & SALES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JANUARY 2023
PAGES FOR FILING WITH REGISTRAR
CHESHIRE VEHICLE RENTAL & SALES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
CHESHIRE VEHICLE RENTAL & SALES LIMITED
BALANCE SHEET
AS AT
30 JANUARY 2023
30 January 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
506,623
701,901
Investment property
4
745,000
745,000
1,251,623
1,446,901
Current assets
Debtors
5
20,218
41,972
Cash at bank and in hand
155,539
625
175,757
42,597
Creditors: amounts falling due within one year
6
(303,441)
(288,703)
Net current liabilities
(127,684)
(246,106)
Total assets less current liabilities
1,123,939
1,200,795
Creditors: amounts falling due after more than one year
7
(323,317)
(459,340)
Net assets
800,622
741,455
Capital and reserves
Called up share capital
100
100
Revaluation reserve
9
223,497
223,497
Other reserves
203,719
203,719
Profit and loss reserves
10
373,306
314,139
Total equity
800,622
741,455
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
CHESHIRE VEHICLE RENTAL & SALES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JANUARY 2023
30 January 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 26 October 2023
Mr J H Kirkby
Director
Company registration number 01831780 (England and Wales)
CHESHIRE VEHICLE RENTAL & SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JANUARY 2023
- 3 -
1
Accounting policies
Company information
Cheshire Vehicle Rental & Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Rental Centre, West Road Garage, Congleton, Cheshire, CW12 4ES.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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:
Freehold land and buildings
2% on cost
Leasehold land and buildings
2% on cost
Fixtures and fittings
at varying rates on cost
Motor vehicles
at varying rates on cost
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
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CHESHIRE VEHICLE RENTAL & SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Employee benefits
The costs 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 assets.
1.7
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.8
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.
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.
CHESHIRE VEHICLE RENTAL & SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
8
3
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 31 January 2022
397,500
27,683
71,052
427,631
923,866
Additions
20,000
20,000
Disposals
(257,079)
(257,079)
At 30 January 2023
397,500
27,683
71,052
190,552
686,787
Depreciation and impairment
At 31 January 2022
32,974
27,683
69,396
91,912
221,965
Depreciation charged in the year
7,950
169
11,136
19,255
Eliminated in respect of disposals
(61,056)
(61,056)
At 30 January 2023
40,924
27,683
69,565
41,992
180,164
Carrying amount
At 30 January 2023
356,576
1,487
148,560
506,623
At 30 January 2022
364,526
1,656
335,719
701,901
Included in cost or valuation of land and buildings is freehold land of £179,073 (2022 - £179,073) which is not depreciated.
Freehold land and buildings with a carrying amount of £397,500 were revalued at 27th March 2018 by Timothy A. Brown, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
CHESHIRE VEHICLE RENTAL & SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2023
3
Tangible fixed assets
(Continued)
- 6 -
Land and Buildings
2023
2022
£
£
Cost
193,662
193,662
Accumulated depreciation
(35,336)
(35,366)
Carrying value
158,326
158,296
4
Investment property
2023
£
Fair value
At 31 January 2022 and 30 January 2023
745,000
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
18,176
31,296
Other debtors
2,042
10,676
20,218
41,972
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
27,065
29,802
Trade creditors
33,571
28,910
Taxation and social security
51,128
117,387
Other creditors
191,677
112,604
303,441
288,703
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
109,861
147,659
Other creditors
213,456
311,681
323,317
459,340
CHESHIRE VEHICLE RENTAL & SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JANUARY 2023
7
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
(11,615)
(85,639)
8
Secured Debts
The following secured debts are included within creditors:
Bank overdrafts totalling £NIL(2022 - £13,469)
Other loans totalling £136,926(2022 - £163,991)
Hire purchase contracts totalling £13,601(2022 - £9,796)
There is a right of set-off incorporated in all Legal Mortgages, Life Policies and Mortgage Debentures unless otherwise stated. There is a mortgage over 51 Crompton Road, Macclesfield and a Mortgage Debenture.
There is a legal charge dated 13 January 2011 and created by Cheshire Vehicle Rental and Sales Limited for securing all monies due or to become due from the company to National Westminster Bank Plc on any account whatsoever.
The hire purchase loans are secured against the asset to which they relate.
9
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
223,497
223,497
10
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
314,139
99,086
Profit for the year
61,167
215,053
Dividends declared and paid in the year
(2,000)
-
At the end of the year
373,306
314,139
11
Financial commitments, guarantees and contingent liabilities
The company had total guarantees and commitments at the balance sheet date of £NIL (2022 - £8,308).