REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
GB Electrical and Building Services Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
GB Electrical and Building Services Ltd |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Contents of the Financial Statements |
for the year ended 31 December 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Profit and loss account | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
GB Electrical and Building Services Ltd |
Company Information |
for the year ended 31 December 2021 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Senior statutory auditor: |
Auditors: |
Unit 2 Foley Works |
Foley Industrial Estate |
Hereford |
Herefordshire |
HR1 2SF |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Strategic Report |
for the year ended 31 December 2021 |
The directors present their strategic report for the year ended 31 December 2021. |
Review of business |
The principal activity of the company is that of property maintenance for Defence Infrastructure Organisation (DIO), Local Authorities and Housing Associations undertaking building upgrades and refurbishment works. |
Following change in ownership in August 2020, the current Directors have focussed on ensuring the financial and operational development of the business. Similarly, to the change in ownership in 2019, particular attention has been placed on closely monitoring financial performance to ensure long term viability. |
In the previous year's accounts, it was highlighted that a reorganisation of the business to a group structure would be initiated in the first quarter of 2021 to better represent the type of work undertaken. This was achieved during February 2021 resulting in 2 No. new companies added to the existing GB Electrical and Building Services Ltd and organised into a group-style structure. Effectively 2 No. trading companies and an overarching company providing strategic support. Throughout 2021, the group have been able to better market each company brand and seen some gains in monitoring financial performance of each. In 2022, work needs to be undertaken to further improve the level of accountability between the 2 No. trading companies i.e. GB Electrical and Building Services Ltd and GB Home Adaptations Limited.. |
Development and performance |
The company uses a number of measures to assess the on-going financial and operational health of the businesses: - |
- Monthly and weekly operational management reports |
- Overall and Divisional Management Account reporting |
- Productivity reports |
- Health and Safety reports |
- Cashflow monitoring in. debtor reports and monthly WIP assessment |
Included within the above are embedded key performance indicators demonstrating any areas of the business that may need priority action. |
Challenges presented by Covid and the underlying impact of the ongoing exit from the EU continued to impact the companies in first half of 2021. Although unlike 2020, the challenge of losing labour to illness was soon replaced by a significant decrease in the availability of trade related labour in the industry, coupled with significant increases in materials costs. |
In terms of financial performance, despite these challenges, the business had its highest ever level of turnover with an increase in overall profit %. With this increased level of activity, key business information (highlighted above) and effective management has resulted in a successful year overall. |
Although the majority of the company activity was primarily the MOD work, significant growth has been seen elsewhere within business. Additional relationships were established with a number of Local Housing Associations and Care providers furthering the company vision of establishing a more local presence within Herefordshire. |
It was recognised by the senior management team that, outside of the MOD related works, sufficient opportunities to enable targeted growth can be derived from buyers within a defined distance from the Head Office in Hereford. This is established from a desire to target as many buyers as possible but tempered by the need to keep non-productive time to a minimum. |
It was highlighted in the previous review that aspects of the work activity would benefit from increased marketing during 2021. The development and increasing social media presence this year has no doubt furthered the corporate brand and has helped achieve a reputation of delivering successful projects in Herefordshire not just in further away locations. |
Additional accreditation's were achieved to support and guide the business during 2021 were, ISO14001, Constructionline Gold status (previously Silver) and Trustmark. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Strategic Report |
for the year ended 31 December 2021 |
Principal risks and uncertainties |
GB Electrical and Building Services Ltd is exposed to risks and uncertainties which may have material and adverse effects on its reputation, performance and financial position. The directors have identified that the most significant risks facing the business are; |
1. External uncontrolled events that could impact aspects of the business i.e. market crashes/recession, Brexit, Ukraine war. Most noticeable is how the material supply market is affected by these events. Continuing price increases of plastics, timber and metals are still a risk to the financial performance of the business. Alongside this, where material shortages were experienced due to merchants shutting due to Covid, during 2021 we have seen the material shortages move from affecting initially niche products to now the lack of availability more mainstream products. |
2. The existing NHP contract with the MOD ended on September 20th 2021, although the new FDIS contract will not start until April 1st 2022. This has resulted in the company working via an extension to the NHP contract in the last quarter of 2021 and into 2022. Subject to successful negotiation there are a number of outcomes that have the potential to affect the Company |
- The company is unsuccessful and lose the work completely |
- The company is unsuccessful in some geographical area or aspect of the work |
- The company is successful but may choose to relinquish some aspects of the work that are knowingly of low profitability. Other opportunities in new areas may be part of this. |
- The company is successful and may keep all works and gain more. |
At time of writing, No. 3 was the outcome resulting in the strategic decision to jettison the South East element of the MOD work (high turnover/very low profit) in light of being awarded additional regions in Shropshire and the West Midlands. |
3. Skilled Labour shortages at reasonable market rates |
4. Client changes in service delivery |
5.The directors aim to ensure that financial and compliance risks to the business are minimised through effective management supported by business intelligence. This includes: |
- Monthly Divisional and overall Management accounts reviewed by senior management team and budget holders |
- Bi-Monthly senior management team review of performance and compliance |
- Internal quality audits weekly and monthly |
- External (outsourced) Bi-annual quality audit |
- Robust procurement practice including ongoing review of supplier's costs |
- Forward sales to ensure work flow continuity |
- Ensuring all assets are secure and adequately insured |
- Weekly and monthly compliance reporting |
- Employing qualified and competent colleagues |
- Robust financial processes and procedures |
On behalf of the board: |
13 September 2022 |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Report of the Directors |
for the year ended 31 December 2021 |
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
Dividends |
The total distribution of dividends for the year ended 31 December 2021 will be £990,266 (2020: £101,086). |
Directors |
The following directors were appointed on the 13th January 2020 and have held the office until present date. |
Mr Matthew Ernest Edwards |
Mr Christopher Greenall |
Mr Mark Albert Stedman |
Mr Shane Adams |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Auditors |
The auditors, Acre Accountancy Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
GB Electrical and Building Services Ltd |
Opinion |
We have audited the financial statements of GB Electrical and Building Services Ltd (the 'company') for the year ended 31 December 2021 which comprise the Profit and loss account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
GB Electrical and Building Services Ltd |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We enquired with management about the legal framework that the company operates in. We also enquired about the risk of fraud and whether they were aware of any instances of fraud. |
We communicated the outcome of this risk assessment with the audit team and planned our audit work accordingly. Our work in these areas is limited to analytical procedures and inspection of relevant documentation. Where a breach of operational regulations is not disclosed to us, or it is not evident from documentation that we receive during the audit, an audit will not detect that breach. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
GB Electrical and Building Services Ltd |
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 a Report of the Auditors 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. |
for and on behalf of |
Unit 2 Foley Works |
Foley Industrial Estate |
Hereford |
Herefordshire |
HR1 2SF |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Profit and loss account |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,248,994 | 424,534 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Balance Sheet |
31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Statement of Changes in Equity |
for the year ended 31 December 2021 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Issue of share capital | 398 | - | - | 398 |
Purchase of own shares | (300 | ) | (750,000 | ) | 300 | (750,000 | ) |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 December 2021 |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Cash Flow Statement |
for the year ended 31 December 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Bank loan repayments in year | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Share issue |
Share buyback | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
548,865 |
Cash and cash equivalents at end of year | 2 | 587,443 | 1,050,838 |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Cash Flow Statement |
for the year ended 31 December 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation |
Depreciation charges |
(Profit)/loss on disposal of fixed assets | ( |
) |
Finance costs | 20,558 | 56,279 |
1,450,563 | 773,015 |
Decrease/(increase) in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 587,443 | 1,050,838 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 1,050,838 | 548,865 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 1,050,838 | (463,395 | ) | 587,443 |
1,050,838 | ( |
) | 587,443 |
Debt |
Finance leases | (303,109 | ) | 180,660 | (122,449 | ) |
Debts falling due within 1 year | (2,662 | ) | (7,338 | ) | (10,000 | ) |
Debts falling due after 1 year | (47,338 | ) | 9,838 | (37,500 | ) |
(353,109 | ) | 183,160 | (169,949 | ) |
Total | 697,729 | (280,235 | ) | 417,494 |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements |
for the year ended 31 December 2021 |
1. | STATUTORY INFORMATION |
GB Electrical and Building Services Ltd is a |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. |
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 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 are recoverable. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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: |
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. |
Impairment of Fixed Assets |
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. |
Government grants |
Government grants, where revenue in nature, are recognised as income in the profit and loss account in the same period in which the related expenditure is recognised. |
Grants related to assets are initially credited to a deferral account in creditors and are released to the profit and loss account as the related asset is depreciated. |
The COVID-19 pandemic prompted a number of revenue grants that are intended to subsidise expenditure and losses incurred. These have been recognised as other operating income. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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. |
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. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Leases |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed. |
Retirement benefits |
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. |
The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. |
Cash at bank and in hand |
Cash at bank and in hand 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. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
3. | ACCOUNTING POLICIES - continued |
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. |
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. |
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. |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Directors | 4 | 4 |
Management | 15 | 15 |
Admin | 19 | 17 |
Other | 122 | 120 |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Directors' remuneration and other benefits etc. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank loan interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2020. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances | - |
Accelerated capital allowances | - | (9,737 | ) |
Enhanced taxation deduction arising from super deduction | (98 | ) | - |
Under/(over) provision of deferred tax | 5,381 | - |
Deferred tax rate adjustment | 23,404 | - |
Total tax charge | 273,645 | 93,268 |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
8. | DIVIDENDS |
Class: | 2021 | 2020 |
£ | £ |
Interim dividends: |
Ordinary B shares of £1 each | 125,589 | 30,826 |
Ordinary C shares of £1 each | 97,853 | 25,110 |
Ordinary D shares of £1 each | 94,677 | 22,750 |
Ordinary E shares of £1 each | 94,147 | 22,400 |
412,266 | 101,086 |
During the year, £52,221 of dividends were paid to the directors of the company (2020: £101,086). |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
Depreciation |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
Net book value |
At 31 December 2021 |
At 31 December 2020 |
10. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | - | 229,521 |
Other creditors |
Natwest credit cards | 8,016 | 4,043 |
Accruals and deferred income |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 14) |
Hire purchase contracts (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
14. | LOANS - continued |
2021 | 2020 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans payable after more than 5 years by instalments |
- |
4,744 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The company's borrowings are secured by an unlimited debenture over the company's assets. |
17. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax | 97,518 | 39,921 |
Deferred |
tax |
£ |
Balance at 1 January 2021 |
Charge to Profit and loss account during year |
Tax rate adjustment | 23,404 |
Balance at 31 December 2021 |
Following the enacted increase in Corporation Tax rate to 25% from 1 April 2023, the company has provided additional deferred tax on accelerated capital allowances as it is expected that any reversal of this provision will be at a time when the increased rates will apply. |
GB Electrical and Building Services Ltd (Registered number: 05392639) |
Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
Value: | £ | £ |
61 | Ordinary B | £1 | 61 | 61 |
13 | Ordinary C | £1 | 13 | 13 |
13 | Ordinary D | £1 | 13 | 13 |
13 | Ordinary E | £1 | 13 | 13 |
100 | 100 |
19. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2021 | 575,417 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2021 | 600,360 |
20. | PENSION COMMITMENTS |
Defined contribution schemes |
2021 | 2020 |
£ | £ |
Charge to profit or loss in respect of defined contribution schemes | 95,377 | 93,474 |
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. |
At the year end the company had a pension liability of £1,663 (2020 - £18,949). |
21. | ULTIMATE CONTROLLING PARTY |
GB Electrical and Building Services Limited is a 100% subsidiary of GB Corporate Holdings Limited, a company incorporated in the United Kingdom. |