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REGISTERED NUMBER: 05392639 (England and Wales)















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: M E Edwards
S Adams
M A Stedman
C Greenall



Secretary: C Greenall



Registered office: Unit 21, Beech Business Park
Tillington Road
Hereford
HR4 9QJ



Registered number: 05392639 (England and Wales)



Senior statutory auditor: Robin Graham Mason FCCA



Auditors: Acre Accountancy Limited
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:





M E Edwards - Director


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:





C Greenall - Director


13 September 2022

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.




Robin Graham Mason FCCA (Senior Statutory Auditor)
for and on behalf of Acre Accountancy Limited
Unit 2 Foley Works
Foley Industrial Estate
Hereford
Herefordshire
HR1 2SF

13 September 2022

GB Electrical and Building Services Ltd (Registered number: 05392639)

Profit and loss account
for the year ended 31 December 2021

2021 2020
Notes £    £   

TURNOVER 21,927,056 17,778,286

Cost of sales (18,516,922 ) (15,098,774 )
GROSS PROFIT 3,410,134 2,679,512

Administrative expenses (2,161,140 ) (2,254,978 )
1,248,994 424,534

Other operating income 60,418 150,238
OPERATING PROFIT 5 1,309,412 574,772


Interest payable and similar expenses 6 (20,558 ) (56,279 )
PROFIT BEFORE TAXATION 1,288,854 518,493

Tax on profit 7 (273,645 ) (93,268 )
PROFIT FOR THE FINANCIAL YEAR 1,015,209 425,225

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,015,209

425,225

GB Electrical and Building Services Ltd (Registered number: 05392639)

Balance Sheet
31 December 2021

2021 2020
Notes £    £   
FIXED ASSETS
Tangible assets 9 403,501 541,153

CURRENT ASSETS
Stocks 10 127,775 185,054
Debtors 11 1,250,720 1,235,138
Cash at bank 587,443 1,050,838
1,965,938 2,471,030
CREDITORS
Amounts falling due within one year 12 (1,604,629 ) (2,239,060 )
NET CURRENT ASSETS 361,309 231,970
TOTAL ASSETS LESS CURRENT
LIABILITIES

764,810

773,123

CREDITORS
Amounts falling due after more than one
year

13

(66,832

)

(157,685

)

PROVISIONS FOR LIABILITIES 17 (97,518 ) (39,921 )
NET ASSETS 600,460 575,517

CAPITAL AND RESERVES
Called up share capital 18 100 100
Capital redemption reserve 19 300 300
Retained earnings 19 600,060 575,117
SHAREHOLDERS' FUNDS 600,460 575,517

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2022 and were signed on its behalf by:





M E Edwards - Director


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 2 1,000,978 - 1,000,980

Changes in equity
Issue of share capital 398 - - 398
Purchase of own shares (300 ) (750,000 ) 300 (750,000 )
Total comprehensive income - 425,225 - 425,225
Dividends - (101,086 ) - (101,086 )
Balance at 31 December 2020 100 575,117 300 575,517

Changes in equity
Total comprehensive income - 1,015,209 - 1,015,209
Dividends - (990,266 ) - (990,266 )
Balance at 31 December 2021 100 600,060 300 600,460

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 1 734,088 1,564,187
Interest paid (162 ) -
Interest element of hire purchase payments
paid

(20,396

)

(56,279

)
Net cash from operating activities 713,530 1,507,908

Cash flows from investing activities
Purchase of tangible fixed assets (12,635 ) (158,446 )
Sale of tangible fixed assets 9,136 900
Net cash from investing activities (3,499 ) (157,546 )

Cash flows from financing activities
New loans in year - 50,000
Bank loan repayments in year (2,500 ) -
Capital repayments in year (180,660 ) (47,701 )
Share issue - 398
Share buyback - (750,000 )
Equity dividends paid (990,266 ) (101,086 )
Net cash from financing activities (1,173,426 ) (848,389 )

(Decrease)/increase in cash and cash equivalents (463,395 ) 501,973
Cash and cash equivalents at beginning of
year

2

1,050,838

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 1,288,854 518,493
Depreciation charges 144,287 191,189
(Profit)/loss on disposal of fixed assets (3,136 ) 7,054
Finance costs 20,558 56,279
1,450,563 773,015
Decrease/(increase) in stocks 57,279 (34,326 )
(Increase)/decrease in trade and other debtors (15,581 ) 225,696
(Decrease)/increase in trade and other creditors (758,173 ) 599,802
Cash generated from operations 734,088 1,564,187

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 (463,395 ) 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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the the company. Monetary amounts in these financial statements are rounded to the nearest £.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Short leasehold - Over the period of the lease
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance

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 4,311,923 4,367,928
Social security costs 386,700 384,887
Other pension costs 95,377 91,166
4,794,000 4,843,981

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
160 156

2021 2020
£    £   
Directors' remuneration 35,112 198,232
Directors' pension contributions to money purchase schemes 249 2,875

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021 2020
£    £   
Other operating leases 14,246 11,754
Depreciation - owned assets 144,287 191,189
(Profit)/loss on disposal of fixed assets (3,136 ) 7,054
Auditors' remuneration 15,000 -
Directors' remuneration and other benefits etc. 35,361 223,307

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 162 -
Hire purchase 20,396 56,279
20,558 56,279

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 216,049 -

Deferred tax 57,596 93,268
Tax on profit 273,645 93,268

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 1,288,854 518,493
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

244,882

98,514

Effects of:
Expenses not deductible for tax purposes 76 732
Depreciation in excess of capital allowances - 3,759
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:20212020
££
Interim dividends:
Ordinary B shares of £1 each125,58930,826
Ordinary C shares of £1 each97,85325,110
Ordinary D shares of £1 each94,67722,750
Ordinary E shares of £1 each94,14722,400
412,266101,086

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 17,428 22,912 73,499 1,039,158 1,152,997
Additions - - 3,142 9,493 12,635
Disposals - - - (8,000 ) (8,000 )
At 31 December 2021 17,428 22,912 76,641 1,040,651 1,157,632
Depreciation
At 1 January 2021 6,171 4,585 72,897 528,191 611,844
Charge for year 11,257 3,662 749 128,619 144,287
Eliminated on disposal - - - (2,000 ) (2,000 )
At 31 December 2021 17,428 8,247 73,646 654,810 754,131
Net book value
At 31 December 2021 - 14,665 2,995 385,841 403,501
At 31 December 2020 11,257 18,327 602 510,967 541,153

10. STOCKS
2021 2020
£    £   
Stocks 127,775 185,054

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 138,856 198,741
Amounts owed by group undertakings 421,476 -
Other debtors 2,284 2,797
VAT 119,356 -
Prepayments and accrued income 568,748 1,033,600
1,250,720 1,235,138

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 14) 10,000 2,662
Hire purchase contracts (see note 15) 93,117 192,762
Trade creditors 825,433 1,388,943
Tax 216,049 -
Social security and other taxes 165,787 155,057
VAT - 229,521
Other creditors 1,446 -
Natwest credit cards 8,016 4,043
Accruals and deferred income 284,781 266,072
1,604,629 2,239,060

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2021 2020
£    £   
Bank loans (see note 14) 37,500 47,338
Hire purchase contracts (see note 15) 29,332 110,347
66,832 157,685

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 10,000 2,662

Amounts falling due between two and five years:
Bank loans - 2-5 years 37,500 42,594

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 93,117 192,762
Between one and five years 29,332 110,347
122,449 303,109

Non-cancellable operating leases
2021 2020
£    £   
Within one year 3,039 12,500
Between one and five years - 3,000
3,039 15,500

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 39,921
Charge to Profit and loss account during year 34,193
Tax rate adjustment 23,404
Balance at 31 December 2021 97,518

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 575,117 300 575,417
Profit for the year 1,015,209 1,015,209
Dividends (990,266 ) (990,266 )
At 31 December 2021 600,060 300 600,360

20. PENSION COMMITMENTS

Defined contribution schemes
20212020
££
Charge to profit or loss in respect of defined contribution schemes 95,37793,474

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.