STEWART LONGTON CARAVANS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
Company Registration No. 01563648 (England and Wales)
STEWART LONGTON CARAVANS LIMITED
COMPANY INFORMATION
Directors
Mr G D Hall
Mr D Hall
Mr J T Hall
Secretary
G M Whittle
Company number
01563648
Registered office
Friday Street
Off Stump Lane
Chorley
Lancashire
PR6 0AH
Auditor
Champion Accountants LLP
Unit 2 Olympic Court
Whitehills Business Park
Blackpool
Lancashire
FY4 5GU
Business address
Friday Street
Off Stump Lane
Chorley
Lancashire
PR6 0AH
Bankers
Virgin Money
Syminton House
7-8 North Avenue
Clydebank
G81 2NT
STEWART LONGTON CARAVANS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Strategic report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
STEWART LONGTON CARAVANS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

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 retailing and distributing caravans and caravan equipment.

The principal activity of its subsidiary was as follows:

Halson Services Limited : Dormant
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £110,058. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P C Hall
(Resigned 19 September 2023)
Mr G D Hall
Mr D Hall
Mr J T Hall
Fixed assets

In the opinion of the directors there is no material difference between the book value and the current open market value of the company’s interests in land and buildings. The freehold land and buildings were revalued during the year by an independent professional valuer.

 

Auditor

In accordance with the company's Articles, a resolution proposing that Champion Accountants LLPbe reappointed as auditors of the company will be put at a General Meeting.

Statement of directors' responsibilities

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:

 

 

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.

- 1 -
STEWART LONGTON CARAVANS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and

(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are 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.

On behalf of the board
Mr G D Hall
Director
31 October 2024
- 2 -
STEWART LONGTON CARAVANS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The directors present the strategic report for the year ended 31 January 2024.

Review of the business

The directors are satisfied with the results for the year particularly in a competitive market, and although turnover has decreased the gross profit margins have been managed well and have been maintained.

Administrative expenses have been controlled well due to close monitoring, as can be seen in the key performance indicators below.

 

The company carried out a purchase of own shares in September 2023, which saw the retirement of a director and former shareholder.

 

The company operates from three sites in the North West and is constantly looking to maintain and improve standards of service to valued customers. This is provided through the core activities of trade in new and used caravans, campervans and motorhomes, together with service and repair of these vehicles, and an accessory shop. Whilst the company is always looking to expand its customer base, it relies of its long standing good reputation in welcoming back loyal customers over many years.

 

Principal risks and uncertainties

The principal risks affecting the company going forward are seen to be general cost of living rises for its customer base and inflation which create challenging trading conditions. These issues have impacted customer personal disposable income and therefore company profits.

 

The cost of borrowing, with interest rates being higher since early 2022, means that in some cases, it is no longer viable for consumers to obtain finance to fund the purchase of a caravan or motorhome.

 

The Board monitors cash flow requirement and results against budget on a monthly basis and ensures that the facilities available are sufficient for their working capital needs. They aim to maintain and build on a healthy Balance Sheet and increase reserves and liquidity.

Development and performance

At the year end the company was in a sound financial position with a good level of net current assets and reserves available. The aim is to maintain and hopefully increase market share and net assets over the next financial year, whilst recognising the economic challenges faced.

Key performance indicators

The Board monitors the business on a daily, weekly and monthly basis, with emphasis on monthly management accounts showing both financial results and volume of sales for the company as a whole, and by each department and branch in detail. This enables them to react in a timely manner to any problems which occur.

 

Key financial performance indicators utilised by the company are as follows:

 

Turnover £15,170,015 (2023 : £17,640,337) Movement 14%

 

Gross margin £2,645,818 (2023: £3,121,297) Movement 15.2%

Gross Margin % 17.4% (2023 : 17.7%)

 

Overheads £1,872,413 (2023: £1,982,150) Movement 5.5%

% of sales 12.3 (2023: 11.2%)

 

People costs £1,353,012 (2023: £1,407,212) Movement 3.9%

% sales 8.9 % (2023 8%)

 

Profit before taxation £780,793 (2023: £1,124,620)

 

 

- 3 -
STEWART LONGTON CARAVANS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

On behalf of the board

Mr G D Hall
Director
31 October 2024
- 4 -
STEWART LONGTON CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEWART LONGTON CARAVANS LIMITED
Opinion
- 5 -

We have audited the financial statements of Stewart Longton 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:

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'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.

Other information

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:

STEWART LONGTON CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEWART LONGTON CARAVANS LIMITED (CONTINUED)
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:

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.

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

As part of our planning process:

 

 

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS102, Companies Act 2006 and compliance with Financial Conduct Authority (FCA) regulations in relation to Consumer Credit.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

- 6 -
STEWART LONGTON CARAVANS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STEWART LONGTON CARAVANS LIMITED (CONTINUED)

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

 

- Identifying and testing journal entries in the accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to stock provision write downs, bad debt provisions and depreciation methods.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Testing key revenue lines, in particular relating to cut off of van sales, for evidence of management bias.

- Obtaining third-party confirmation of material bank balances.

- Documenting and verifying all significant related party balances and transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Deborah Thorn FCA
Senior Statutory Auditor
For and on behalf of Champion Accountants LLP
31 October 2024
Chartered Accountants
Statutory Auditor
Unit 2 Olympic Court
Whitehills Business Park
Blackpool
Lancashire
FY4 5GU
- 7 -
STEWART LONGTON CARAVANS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
2024
2023
Notes
£
£
Turnover
8
15,170,015
17,640,337
Cost of sales
(12,524,197)
(14,519,040)
Gross profit
2,645,818
3,121,297
Administrative expenses
(1,872,413)
(1,982,150)
Other operating income
10,240
10,140
Operating profit
3
783,645
1,149,287
Interest receivable and similar income
6
16,358
2,665
Interest payable and similar expenses
7
(19,210)
(27,332)
Profit before taxation
780,793
1,124,620
Tax on profit
11
(274,777)
(217,885)
Profit for the financial year
506,016
906,735

The profit and loss account has been prepared on the basis that all operations are continuing operations.

- 8 -
STEWART LONGTON CARAVANS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
2024
2023
£
£
Profit for the year
506,016
906,735
Other comprehensive income
Revaluation of tangible fixed assets
420,731
-
0
Total comprehensive income for the year
926,747
906,735
- 9 -
STEWART LONGTON CARAVANS LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,298,263
854,309
Current assets
Stocks
13
3,735,347
3,819,470
Debtors
15
401,206
361,547
Cash at bank and in hand
775
458,632
4,137,328
4,639,649
Creditors: amounts falling due within one year
16
(2,976,246)
(2,249,819)
Net current assets
1,161,082
2,389,830
Total assets less current liabilities
2,459,345
3,244,139
Creditors: amounts falling due after more than one year
17
(15,557)
-
0
Provisions for liabilities
Deferred tax liability
20
99,636
14,176
(99,636)
(14,176)
Net assets
2,344,152
3,229,963
Capital and reserves
Called up share capital
22
2,500
5,000
Revaluation reserve
800,675
387,614
Capital redemption reserve
7,500
5,000
Profit and loss reserves
1,533,477
2,832,349
Total equity
2,344,152
3,229,963

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 31 October 2024 and are signed on its behalf by:
Mr G D Hall
Director
Company registration number 01563648 (England and Wales)
- 10 -
STEWART LONGTON CARAVANS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2022
5,000
398,831
5,000
2,244,405
2,653,236
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
-
906,735
906,735
Dividends
9
-
-
-
(330,008)
(330,008)
Transfers
-
(11,217)
-
11,217
-
Balance at 31 January 2023
5,000
387,614
5,000
2,832,349
3,229,963
Year ended 31 January 2024:
Profit
-
-
-
506,016
506,016
Other comprehensive income:
Revaluation of tangible fixed assets
-
420,731
-
-
420,731
Total comprehensive income
-
420,731
-
506,016
926,747
Dividends
9
-
-
-
(110,058)
(110,058)
Redemption of shares
22
(2,500)
-
2,500
(1,702,500)
(1,702,500)
Transfers
-
(7,670)
-
7,670
-
Balance at 31 January 2024
2,500
800,675
7,500
1,533,477
2,344,152
- 11 -
STEWART LONGTON CARAVANS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,401,896
599,216
Interest paid
(19,210)
(27,332)
Income taxes paid
(218,798)
(247,629)
Net cash inflow from operating activities
1,163,888
324,255
Investing activities
Purchase of tangible fixed assets
(78,214)
(14,504)
Proceeds from disposal of tangible fixed assets
37,605
-
0
Interest received
16,358
2,665
Net cash used in investing activities
(24,251)
(11,839)
Financing activities
Redemption of shares
(1,702,500)
-
0
Payment of finance leases obligations
28,890
(4,038)
Dividends paid
(110,058)
(330,008)
Net cash used in financing activities
(1,783,668)
(334,046)
Net decrease in cash and cash equivalents
(644,031)
(21,630)
Cash and cash equivalents at beginning of year
458,632
480,262
Cash and cash equivalents at end of year
(185,399)
458,632
Relating to:
Cash at bank and in hand
775
458,632
Bank overdrafts included in creditors payable within one year
(186,174)
-
0
- 12 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
Company information

Stewart Longton Caravans Limited is a private company limited by shares incorporated in England and Wales. The registered office is Friday Street, Off Stump Lane, Chorley, Lancashire PR6 0AH.

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 under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

In the opinion of the directors, the company and its subsidiary undertaking comprise a medium sized group. The subsidiary, Halson Services Limited, is a dormant company and has share capital and reserves of only £10,000. The company has taken advantage of the exemption provided by Section 405 (2) of the Companies Act 2006 not to prepare group accounts on the grounds that exclusion of the subsidiary is not material for the purpose of giving a true and fair view.

The financial statements present information about the company and not the group.

 

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
- 13 -

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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.

STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)

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
over 100 years from date of purchase
Leasehold property improvements
10 years straight-line from inception of lease
Fixtures, fittings & equipment
15% on net book value
Motor vehicles
25% on net book value

Freehold land is not depreciated.

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.

1.5
Impairment of fixed assets
- 14 -

At each reporting period 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 direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
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.

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.

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.

- 15 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
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.

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.

Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
- 16 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
1.11
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, where material.

 

1.12
Retirement benefits

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

1.13
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.

- 17 -

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
Trading subject to reservation of title
Certain purchases are made through a finance company, accordingly title does not pass until payment has been made. The financial statements are, however, prepared on the basis that such ownership will be established in the normal course of trading.
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets

The useful economic life of tangible fixed assets is judged at the point of purchase and reviewed at each financial reporting date. This judgement is based upon the directors' extensive knowledge of the industry in which the company operates and of the individual assets.

As standard, motor vehicles have a useful economic life of between 4 and 10 years, land and buildings have a 100 year useful life from date of purchase and fixtures and fittings having a useful life of between 6 and 20 years.

Impairment of tangible fixed assets

At each balance sheet date, the directors undertake an assessment of the carrying amounts of its tangible fixed assets, based upon their knowledge of each item, to determine whether there is any indication that the assets have suffered an impairment loss. Where necessary, an impairment charge is recognised within the Profit and Loss Account.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of trade debtors

At each Balance Sheet date, the directors and their finance team undertake a review of outstanding debtor balances and estimate which, if any, should either be impaired or provided against. Deposits received in advance, which are shown in creditors, are also reviewed and released to sales where the deposit has been forfeited within the relevant period adopted by the company.

Stock provision

Following each Balance Sheet date, the directors and the finance team undertake a review of the caravan stock sold since the accounting period end to confirm realised market value. This is done on an ongoing basis as near as practicable to the date of signing the financial statements. Where the actual sale price of a vehicle is lower than cost, a stock provision is put in place where material, to ensure the appropriate accounting policy is adhered to.

- 18 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
9,000
Depreciation of owned tangible fixed assets
36,999
42,924
Profit on disposal of tangible fixed assets
(19,614)
-
Operating lease charges
102,582
91,296
4
Employees

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

2024
2023
Number
Number
Directors
4
4
Admin & finance
4
4
Shop
3
3
Sales & service
30
32
Total
41
43

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,220,541
1,227,792
Social security costs
110,054
115,960
Pension costs
22,417
63,460
1,353,012
1,407,212
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
110,073
108,842

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 2 (2023 - 2).

The amounts paid into pensions during the year, for Directors amounted to £12,000 (2023: £42,000)

 

- 19 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
16,358
2,665
2024
2023
Investment income includes the following:
£
£
Interest on financial assets measured at fair value through profit or loss
16,358
2,665
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
17,829
26,963
Other finance costs:
Interest on finance leases and hire purchase contracts
1,526
369
Other interest
(145)
-
0
19,210
27,332
8
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,170,015
17,640,337
2024
2023
£
£
Other revenue
Interest income
16,358
2,665
9
Dividends
2024
2023
£
£
Final paid
110,058
330,008
- 20 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Tangible fixed assets
Freehold buildings
Leasehold property improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 February 2023
900,000
20,545
308,947
124,486
1,353,978
Additions
-
0
-
0
5,174
73,040
78,214
Disposals
-
0
-
0
-
0
(59,831)
(59,831)
Revaluation
300,000
-
0
-
0
-
0
300,000
At 31 January 2024
1,200,000
20,545
314,121
137,695
1,672,361
Depreciation and impairment
At 1 February 2023
120,730
20,545
274,917
83,477
499,669
Depreciation charged in the year
11,765
-
0
5,335
19,899
36,999
Eliminated in respect of disposals
-
0
-
0
-
0
(41,840)
(41,840)
Revaluation
(120,730)
-
0
-
0
-
0
(120,730)
At 31 January 2024
11,765
20,545
280,252
61,536
374,098
Carrying amount
At 31 January 2024
1,188,235
-
0
33,869
76,159
1,298,263
At 31 January 2023
779,270
-
0
34,030
41,009
854,309

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
59,346
-
0

The freehold land and buildings were valued on an open market existing use basis by Eckersley Commercial Property Solutions, Chartered Surveyors in April 2023. In the directors opinion the value has not changed materially since that date.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

Land & Buildings
2024
2023
£
£
Cost
456,301
456,301
Accumulated depreciation
(4,095)
(64,645)
Carrying value
452,206
391,656
- 21 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
189,317
218,798
Deferred tax
Origination and reversal of timing differences
80,982
(913)
Changes in tax rates
4,478
-
0
Total deferred tax
85,460
(913)
Total tax charge
274,777
217,885

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
780,793
1,124,620
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00.% (2023: 19.00%)
187,390
213,678
Tax effect of expenses that are not deductible in determining taxable profit
12,707
8,773
Tax effect of income not taxable in determining taxable profit
-
0
(3,652)
Change in unrecognised deferred tax assets
85,460
-
0
Permanent capital allowances in excess of depreciation
-
0
(914)
Tax relief in respect of gift aid
(101)
-
0
Capital allowances
(10,679)
-
0
Taxation charge for the year
274,777
217,885
12
Financial instruments
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,735,347
3,819,470

The company finances the purchase of caravan stock with a stocking facility. The amount of stock pledged as security for this borrowing amounted to £1,861,087 (2023: £1,480,623).

14
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

- 22 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Subsidiaries
(Continued)
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Halson Services Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Halson Services Limited
10,000
-

Investment in the subsidiary is stated at cost of £10,000 less provision for permanent diminution in value of £10,000 and is therefore included in the Balance Sheet at £Nil (2023: £Nil).

 

The subsidiary is dormant and the registered office is Stewart Longton Caravans Ltd, Friday Street, Off Stump Lane, Chorley, Lancashire PR6 0AH.

15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,709
19,457
Other debtors
249,123
309,640
Prepayments and accrued income
147,374
32,450
401,206
361,547
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
186,174
-
0
Obligations under finance leases
19
13,333
-
0
Payments received on account
270,197
323,445
Trade creditors
1,924,006
1,612,064
Amounts owed to group undertakings
10,000
10,000
Corporation tax
189,317
218,798
Other taxation and social security
15,669
15,982
Other creditors
275,000
-
0
Accruals and deferred income
92,550
69,530
2,976,246
2,249,819
- 23 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
16
Creditors: amounts falling due within one year
(Continued)

The bank overdraft facility and credit card limit are secured by:

1. A legal first charge over the site at Friday Street, Chorley.

2. A debenture creating a fixed and floating charge over the assets of the company.

 

The total secured creditors due within one year at the Balance Sheet date amounted to £2,060,594 (2023: £1,480,622).

 

The company has a caravan stocking facility with Lombard Finance which is secured against caravan stock. The creditor at the Balance Sheet date amounted to £1,861,087 (2023: £1,480,622) and is included in the total secured creditors figure.

17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
15,557
-
0

Total secured creditors due more than one year amount to £15,557 (2023 : £Nil)

18
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
186,174
-
0
Payable within one year
186,174
-
0

 

 

19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
13,333
-
0
In two to five years
15,557
-
0
28,890
-
0
- 24 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
23,100
14,176
Revaluations
72,058
-
Change in tax rate
4,478
-
99,636
14,176
2024
Movements in the year:
£
Liability at 1 February 2023
14,176
Charge to profit or loss
80,982
Effect of change in tax rate - profit or loss
4,478
Liability at 31 January 2024
99,636

 

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,417
63,460

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
-
2,500
-
2,500
A Ordinary shares of £1 each
2,498
2,498
2,498
2,498
B Ordinary shares of £1 each
1
1
1
1
C Ordinary shares of £1 each
1
1
1
1
2,500
5,000
2,500
5,000
- 25 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
23
Operating lease commitments
Lessee

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
£
£
Between two and five years
160,333
-
0
In over five years
-
0
234,333
160,333
234,333
24
Related party transactions
Transactions with related parties

 

During the year the company employed family members of the directors. The total gross salaries plus benefits in kind paid to these related parties amounted to £78,475 (2023: £88,990).

 

The company paid rent of £74,000 (2023: £74,000) for premises owned by the directors pension scheme.

 

During the year an interest free loan was made to the company by a director in the sum of £275,000.

25
Directors' transactions

Dividends totalling £110,058 (2023 - £330,008) were paid in the year in respect of shares held by the company's directors.

26
Ultimate controlling party

The company is under the control of Mr Gary Hall, who is majority shareholder and director.

27
Analysis of changes in net funds/(debt)
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
458,632
(457,857)
775
Bank overdrafts
-
0
(186,174)
(186,174)
458,632
(644,031)
(185,399)
Obligations under finance leases
-
(28,890)
(28,890)
458,632
(672,921)
(214,289)
- 26 -
STEWART LONGTON CARAVANS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
28
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
506,017
906,735
Adjustments for:
Taxation charged
274,777
217,885
Finance costs
19,210
27,332
Investment income
(16,358)
(2,665)
Gain on disposal of tangible fixed assets
(19,614)
-
Depreciation and impairment of tangible fixed assets
36,999
42,924
Movements in working capital:
Decrease in stocks
84,123
166,546
(Increase)/decrease in debtors
(39,659)
66,876
Increase/(decrease) in creditors
556,401
(826,417)
Cash generated from operations
1,401,896
599,216
- 27 -
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