Company registration number 06041524 (England and Wales)
THE GREAT OUTDOOR GYM COMPANY
Annual Report And Unaudited Financial Statements
For The Year Ended 31 January 2023
Pages For Filing With Registrar
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Contents
Page
Directors' report
1 - 2
Balance sheet
3 - 4
Notes to the financial statements
5 - 10
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Directors' Report
For The Year Ended 31 January 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 January 2023.
The financial year 2022/23 saw forecasted billing in Q1 at £1.24m with a strong pipeline of sales. This positive start gave us the confidence to continue our commitment to investing in product development, our production capacity, the strength of our sales and maintenance team and TGO Activate.
Whilst actual revenue remained strong in this first quarter (£991k and with a net profit on £99k), by the start of Q2 we were starting to experience challenges caused by increased input prices (steel and energy), third-party manufacturing delays and a slowing of enquiries within the UK (increasing the ratio of lower margin overseas sales). This resulted in a required focus for the second half of the year on margin, repair, cost and cash control and tightening the focus on order. Our year-end results were as follows:
Turnover £2.871m - up from £2.554m in 2021/22
Gross Profit £694k (24.2%) – down from £778k (30.5%) in 2021/22
Overheads £778k – up from £558k in 2021/22 – representing additional expenditure on:
Product development £40k
Sales £30k
Maintenance £50k
Travel costs £55k
Marketing costs £20k
By the year end, we had seen an improvement in all KPIs with FY 2023/24 Q1 sales above our breakeven point. Despite a commercially challenging year, there are many reasons to celebrate, including:
Landmark projects with Southall and Spelthorne
The continued development of our Power Smart range
Improvements in our manufacturing drawings
Winning a contract to activate outdoor gyms in Tower Hamlets.
The market in the UK, is challenging but still offers great potential. We continue to grow our global market, building on the partners we have already cultivated and our position as an export champion for the Department of Business and Trade.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Delaney
Mrs G Delaney
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Directors' Report (Continued)
For The Year Ended 31 January 2023
- 2 -
Directors' responsibilities statement
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr M Delaney
Mrs G Delaney
Director
Director
6 October 2023
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Balance Sheet
As At 31 January 2023
31 January 2023
- 3 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
6,650
10,766
Tangible assets
4
25,984
32,739
32,634
43,505
Current assets
Stocks
141,426
13,010
Debtors
5
817,513
1,066,473
Cash at bank and in hand
1
65,044
958,940
1,144,527
Creditors: amounts falling due within one year
6
(692,016)
(722,282)
Net current assets
266,924
422,245
Total assets less current liabilities
299,558
465,750
Creditors: amounts falling due after more than one year
7
(41,667)
(91,667)
Net assets
257,891
374,083
Capital and reserves
Called up share capital
85
85
Profit and loss reserves
257,806
373,998
Total equity
257,891
374,083
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Balance Sheet (Continued)
As At 31 January 2023
31 January 2023
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
Mr M Delaney
Mrs G Delaney
Director
Director
Company Registration No. 06041524
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements
For The Year Ended 31 January 2023
- 5 -
1
Accounting policies
Company information
The Great Outdoor Gym Company is a private company limited by shares incorporated in England and Wales. The registered office is C/O Chavereys, The Goods Shed, Jubilee Way, Faversham, Kent, England, ME13 8GD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Intangible assets
Patents
25% straight line
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Gym equipment
25% straight line
Plant and machinery
25% straight line
Fixtures and fittings
25% straight line
Office equipment
25% straight line
Motor vehicles
25% straight line
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 6 -
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
1.7
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.
1.8
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.
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 7 -
1.9
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.
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.
1.10
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.
1.11
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.
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 8 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
13
11
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2023
- 9 -
3
Intangible fixed assets
Patents
£
Cost
At 1 February 2022 and 31 January 2023
16,465
Amortisation and impairment
At 1 February 2022
5,699
Amortisation charged for the year
4,116
At 31 January 2023
9,815
Carrying amount
At 31 January 2023
6,650
At 31 January 2022
10,766
4
Tangible fixed assets
Gym equipment
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2022
26,173
4,698
5,812
130,261
57,210
224,154
Additions
4,200
650
4,850
Disposals
(10,131)
(10,131)
At 31 January 2023
26,173
4,698
5,812
124,330
57,860
218,873
Depreciation and impairment
At 1 February 2022
26,173
3,404
5,812
122,286
33,740
191,415
Depreciation charged in the year
328
4,281
6,996
11,605
Eliminated in respect of disposals
(10,131)
(10,131)
At 31 January 2023
26,173
3,732
5,812
116,436
40,736
192,889
Carrying amount
At 31 January 2023
966
7,894
17,124
25,984
At 31 January 2022
1,294
7,975
23,470
32,739
The Great Outdoor Gym Company
THE GREAT OUTDOOR GYM COMPANY
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2023
- 10 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
340,359
695,306
Other debtors
477,154
371,167
817,513
1,066,473
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
67,392
50,000
Trade creditors
440,931
495,476
Taxation and social security
81,891
81,741
Other creditors
101,802
95,065
692,016
722,282
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
41,667
91,667