Company registration number 03667036 (England and Wales)
C & C MOTOR CARAVANS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
C & C MOTOR CARAVANS LIMITED
COMPANY INFORMATION
Directors
A Eyles
R Eyles
T Kavanagh
F Eyles
W Kavanagh
Secretary
S M Eyles
Company number
03667036
Registered office
Chelston Business Park
Wellington
Somerset
TA21 9JE
Auditor
Lentells (Audit) Limited
Ash House
Cook Way
Bindon Road
Taunton
Somerset
UK
TA2 6BJ
Business address
Chelston Business Park
Wellington
Somerset
TA21 9JE
C & C MOTOR CARAVANS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 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 - 27
C & C MOTOR CARAVANS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
The Board are delighted to have posted another set of positive financial results for the year amidst a climate of increasing uncertainty and inflationary pressures in the wider economy.
During the reporting year we have seen a continued strong demand for high quality leisure vehicles with particularly strong performance in the entry level and high-end luxury models.
The company continues to focus on its existing business plan and in particular our trading margins and overhead control.
Principal risks and uncertainties
The principal risk faced by the company is our stock position, the view of the board is that we will continue the strategy of conservative optimism when purchasing stock and committing to manufacturer forward order schedules.
We need to ensure that we make the most of every opportunity to maintain our margins and continue the profitability of the business in the face of increasing costs.
Key performance indicators
The key drivers of the business are the order book and deliveries together with unit margin. These metrics are monitored by management monthly with the aim of seeing long term sustainable growth.
Future developments
At the time of writing the only future development planned is the refurbishment of the Sales Floor and Customer Lounge. This is an investment in the customer experience.
W Kavanagh
Director
14 August 2024
C & C MOTOR CARAVANS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of the sale and servicing of motorhomes.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £177,050. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Eyles
R Eyles
T Kavanagh
F Eyles
W Kavanagh
Financial instruments
Financial risk objectives and policies
The directors assess the company's need for liquid assets on a regular basis, where possible trying to achieve the best returns on monies. No hedging transactions are undertaken and foreign transactions are undertaken at current spot rates.
Liquidity risk
The company manages its cashflow requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.
Auditor
The auditor, Lentells (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
C & C MOTOR CARAVANS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
On behalf of the board
W Kavanagh
Director
14 August 2024
C & C MOTOR CARAVANS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
The directors are responsible 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 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.
C & C MOTOR CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C & C MOTOR CARAVANS LIMITED
- 5 -
Opinion
We have audited the financial statements of C & C Motor Caravans Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 2024 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.
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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
C & C MOTOR CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C & C MOTOR CARAVANS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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.
Irregularities, including fraud, are instance of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which out procedures are capable of detecting irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, review other communications and considered findings from previous audits.
C & C MOTOR CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C & C MOTOR CARAVANS LIMITED (CONTINUED)
- 7 -
The key laws and regulations we identified as relevant were regulations around vehicle safety, employment law and health and safety regulations.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006 and relevant UK tax law.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance; and
Reviewed Board minutes
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management. The key risks we identified were financial performance targets for the senior management team and financial loan covenants. We determined that the principal risks were related to cut-off in respect of revenue recognition and stock valuation, the use of estimates and management override of controls.
In response to the identified risk, as part of our audit work we:
Review journal entries throughout the year, for accuracy and appropriateness;
Reviewed estimates and judgements made in the financial statements for any indication of bias and challenged assumptions used by management in making the estimates;
Undertook specific cut-off procedures in respect of revenue recognition; and
Undertook physical stock counts at the year end
Given the inherent limitations of an audit, the more remote the non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the greater the risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements, as we are less likely to become aware of instances of non-compliance. 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, collusion, omission or misrepresentation.
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.
C & C MOTOR CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C & C MOTOR CARAVANS LIMITED (CONTINUED)
- 8 -
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.
Philip Adrian Stallard FCA
Senior Statutory Auditor
For and on behalf of Lentells (Audit) Limited
14 August 2024
Chartered Certified Accountants
Statutory Auditors
Ash House
Cook Way
Bindon Road
Taunton
Somerset
UK
TA2 6BJ
C & C MOTOR CARAVANS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
27,252,049
19,340,581
Cost of sales
(23,883,001)
(16,568,371)
Gross profit
3,369,048
2,772,210
Distribution costs
(659,694)
(488,309)
Administrative expenses
(1,326,027)
(1,374,514)
Operating profit
4
1,383,327
909,387
Interest receivable and similar income
8
4,068
500
Interest payable and similar expenses
7
(201,224)
(82,396)
Profit before taxation
1,186,171
827,491
Tax on profit
10
(303,246)
(148,276)
Profit for the financial year
882,925
679,215
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C & C MOTOR CARAVANS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
882,925
679,215
Other comprehensive income
Deferred tax movements relating to revaluation reserve
2,953
2,952
Total comprehensive income for the year
885,878
682,167
C & C MOTOR CARAVANS LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,300,193
2,414,655
Current assets
Stocks
12
10,493,997
5,145,591
Debtors
13
212,565
53,997
Cash at bank and in hand
739,516
1,053,781
11,446,078
6,253,369
Creditors: amounts falling due within one year
15
(9,579,094)
(5,084,192)
Net current assets
1,866,984
1,169,177
Total assets less current liabilities
4,167,177
3,583,832
Creditors: amounts falling due after more than one year
16
(898,689)
(1,054,950)
Provisions for liabilities
Deferred tax liability
18
216,113
223,182
(216,113)
(223,182)
Deferred income
(230,896)
(193,049)
Net assets
2,821,479
2,112,651
Capital and reserves
Called up share capital
20
180,006
180,006
Revaluation reserve
21
526,088
534,945
Profit and loss reserves
2,115,385
1,397,700
Total equity
2,821,479
2,112,651
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 14 August 2024 and are signed on its behalf by:
W Kavanagh
Director
Company registration number 03667036 (England and Wales)
C & C MOTOR CARAVANS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
180,006
543,803
890,425
1,614,234
Year ended 31 January 2023:
Profit
-
-
679,215
679,215
Other comprehensive income:
Tax relating to other comprehensive income
-
2,952
2,952
Total comprehensive income
-
2,952
679,215
682,167
Dividends
9
-
-
(183,750)
(183,750)
Transfers
-
11,810
11,810
Transfers
-
(11,810)
-
(11,810)
Balance at 31 January 2023
180,006
534,945
1,397,700
2,112,651
Year ended 31 January 2024:
Profit
-
-
882,925
882,925
Other comprehensive income:
Tax relating to other comprehensive income
-
2,953
2,953
Total comprehensive income
-
2,953
882,925
885,878
Dividends
9
-
-
(177,050)
(177,050)
Transfers
-
11,810
11,810
Transfers
-
(11,810)
-
(11,810)
Balance at 31 January 2024
180,006
526,088
2,115,385
2,821,479
C & C MOTOR CARAVANS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
427,943
148,584
Interest paid
(201,224)
(82,396)
Income taxes paid
(147,037)
(197,172)
Net cash inflow/(outflow) from operating activities
79,682
(130,984)
Investing activities
Purchase of tangible fixed assets
(2,034)
(7,551)
Interest received
4,068
500
Net cash generated from/(used in) investing activities
2,034
(7,051)
Financing activities
Repayment of bank loans
(218,931)
(202,567)
Dividends paid
(177,050)
(183,750)
Net cash used in financing activities
(395,981)
(386,317)
Net decrease in cash and cash equivalents
(314,265)
(524,352)
Cash and cash equivalents at beginning of year
1,053,781
1,578,133
Cash and cash equivalents at end of year
739,516
1,053,781
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information
C & C Motor Caravans Limited is a private company limited by shares incorporated in England and Wales (registration no.: 03667036). The registered office is Chelston Business Park, Wellington, Somerset, TA21 9JE.
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.
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 on the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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 buildings
4% straight line
Plant and machinery
15 - 25% reducing balance
Fixtures, fittings & equipment
15 - 30% reducing balance
Motor vehicles
15% 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.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises cost of purchase or part exchange value given in respect of vehicles.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any significant unused holiday entitlement would be recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The accounts include a stock provision which has been estimated by the directors. The provision is based on management's judgement as to the potential losses on the sale of vehicles and parts based on historic performance and anticipated market movements.
Other significant judgements and estimates include the warranty provision and depreciation.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Vehicle and accessory sales
26,695,600
18,766,539
Vehicle servicing and repairs
556,449
574,042
27,252,049
19,340,581
2024
2023
£
£
Other revenue
Interest income
4,068
500
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(2)
(135)
Fees payable to the company's auditor for the audit of the company's financial statements
11,500
7,000
Depreciation of owned tangible fixed assets
116,496
119,129
Operating lease charges
24,000
24,000
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
11
13
Workshop
11
12
Administration
17
16
39
41
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,583,709
1,395,108
Social security costs
138,069
141,931
Pension costs
100,155
92,936
1,821,933
1,629,975
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
325,602
347,149
Company pension contributions to defined contribution schemes
76,000
73,800
401,602
420,949
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
106,435
119,565
Company pension contributions to defined contribution schemes
36,000
35,000
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
44,055
46,722
Other finance costs:
Other interest
157,169
35,674
201,224
82,396
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,772
500
Other interest income
296
Total income
4,068
500
9
Dividends
2024
2023
£
£
Interim paid
177,050
183,750
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
307,363
154,385
Deferred tax
Origination and reversal of timing differences
(4,117)
(6,109)
Total tax charge
303,246
148,276
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,186,171
827,491
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
285,037
157,223
Difference between capital allowances and depreciation
26,780
21,298
Deferred tax movement
(4,117)
(6,109)
Movement in general provisions
(4,454)
(24,136)
Taxation charge for the year
303,246
148,276
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
(2,953)
(2,952)
11
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 February 2023
3,228,063
316,612
104,417
115,729
3,764,821
Additions
2,034
2,034
At 31 January 2024
3,228,063
316,612
106,451
115,729
3,766,855
Depreciation and impairment
At 1 February 2023
913,143
239,131
93,899
103,993
1,350,166
Depreciation charged in the year
99,433
11,622
3,681
1,760
116,496
At 31 January 2024
1,012,576
250,753
97,580
105,753
1,466,662
Carrying amount
At 31 January 2024
2,215,487
65,859
8,871
9,976
2,300,193
At 31 January 2023
2,314,920
77,481
10,518
11,736
2,414,655
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
11
Tangible fixed assets
(Continued)
- 23 -
Freehold land and buildings with a carrying amount of £2,215,487 (2023 - £2,314,920) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
During the year ended 31 January 2013, the freehold land and buildings, owned at that time by the company, were revalued on an open market basis by Chesterton Humberts a firm of independent Chartered Surveyors. The directors believe that the valuation is reasonable and not more than its market value.
Following the transition to FRS 102, the directors opted not to continue a revaluation policy.
If revalued assets were measured on a historical cost basis rather than a fair value basis, the amounts included would have been as follows:
2024
2023
£
£
Cost
2,570,323
2,570,323
Accumulated depreciation
(847,236)
(759,614)
Carrying value
1,723,087
1,810,709
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
10,493,997
5,145,591
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
38,404
7,608
Corporation tax recoverable
7,347
Other debtors
144,686
10,000
Prepayments and accrued income
29,475
29,042
212,565
53,997
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
48,404
17,608
Carrying amount of financial liabilities
Measured at amortised cost
10,144,337
5,817,635
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
143,153
205,823
Trade creditors
1,290,992
2,829,592
Stocking loan finance
7,136,439
1,381,537
Other taxation and social security
333,446
321,507
Other creditors
116,090
192,907
Accruals and deferred income
558,974
152,826
9,579,094
5,084,192
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
898,689
1,054,950
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,041,842
1,260,773
Payable within one year
143,153
205,823
Payable after one year
898,689
1,054,950
The bank loans and overdrafts are secured by fixed charges over the freehold properties and a debenture over all other assets.
The bank loans are repayable by instalments. Two of the loans have interest rates that are fixed at 3.28% . The fixed loan term ceases on 13 January 2027 for both fixed loans. Interest was charged on the variable loan at 1.7% above the bank base rate, this loan was settled during the year.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated Capital Alllowances
40,750
44,867
Revaluation of freehold properties
175,363
178,315
216,113
223,182
2024
Movements in the year:
£
Liability at 1 February 2023
223,182
Credit to profit or loss
(4,117)
Credit to other comprehensive income
(2,952)
Liability at 31 January 2024
216,113
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,155
92,936
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
600
600
6
6
'A' Ordinary shares of £1 each
180,000
180,000
180,000
180,000
180,600
180,600
180,006
180,006
The ordinary share capital of the company holds full voting rights and entitles the holder to capital and dividend distribution.
The ordinary 'A' share capital are non-voting shares, the members have the right to the return of the nominal value of the share only upon winding up.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
21
Revaluation reserve
The revalution reserve relates to the revaluation of the freehold property and land at Chelston Business Park. In accordance with FRS 102 the directors have decided to no longer apply the revaluation policy.
22
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company on land & equipment. Leases vary from 5 to 20 years.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
49,306
55,146
Between two and five years
180,297
197,197
In over five years
36,000
71,325
265,603
323,668
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
474,019
460,632
24
Directors' transactions
Dividends totalling £177,050 (2023 - £183,750) were paid in the year in respect of shares held by the company's directors.
The company paid rent of £24,000 (2023: £24,000) to a director's pension fund in the year.
At 31 January 2024, the company owed its directors £111,736 (2023: £177,322). The loans are repayable on demand.
The directors loan accounts are repayable on demand. No interest is paid on credit balances but interest is due on overdrawn accounts at HMRC's official rate.
C & C MOTOR CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
882,925
679,215
Adjustments for:
Taxation charged
303,246
148,276
Finance costs
201,224
82,396
Investment income
(4,068)
(500)
Depreciation and impairment of tangible fixed assets
116,496
119,129
Increase in deferred income
37,847
29,261
Movements in working capital:
Increase in stocks
(5,348,406)
(2,837,470)
(Increase)/decrease in debtors
(165,915)
39,505
Increase in creditors
4,404,594
1,888,772
Cash generated from operations
427,943
148,584
26
Analysis of changes in net debt
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,053,781
(314,265)
739,516
Borrowings excluding overdrafts
(1,260,773)
218,931
(1,041,842)
(206,992)
(95,334)
(302,326)
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