Company registration number 06931626 (England and Wales)
GEM PARTNERSHIP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
GEM PARTNERSHIP LIMITED
COMPANY INFORMATION
Directors
Mr RA Dunbar
Mr LJ Rankin
Mr I Miller
Mrs M Miller
Company number
06931626
Registered office
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
United Kingdom
NE2 1TJ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
Business address
Generator Studios
Trafalgar Street
Newcastle upon Tyne
Tyne and Wear
NE1  2LA
Bankers
Barclays Bank Plc
PO Box 378
71 Grey Street
Newcastle upon Tyne
Tyne & Wear
NE99 1JP
GEM PARTNERSHIP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
GEM PARTNERSHIP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

As a recruitment business we have operated within the temporary and permanent sectors within our core market since 2009. As a training business we have operated within apprenticeship training delivery via the apprenticeship levy fund, other government funded training, and commercial training since 2017.

 

Our detailed results for the 12 months to 31 March 2023 can be found in our Income Statement on page 8. The directors consider the top line results this year to be in line with general market and sector conditions.

 

Top line sales are approx 37% ahead of last year.

 

 

 

2023

2022

 

£

£

Turnover

29,031,947

21,150,745

Cost of sales

25,458,441

18,646,261

Gross profit

3,573,506

2,504,484

Administrative expenses

2,093,336

1,595,779

Other operating profit

103,956

65,987

Operating profit

1,594,126

974,692

 

Principal risks and uncertainties

The principal risks to the business are potential changes to the UK employment legislation and generally external via competition and the general state of the UK and regional economy, in particular the state of the employment market.

On behalf of the board

Mrs M Miller
Director
4 October 2023
GEM PARTNERSHIP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of a recruitment business.

Results and dividends

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

Dividends of £739,442 were paid during the year.

Directors

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

Mr RA Dunbar
Mr LJ Rankin
Mr I Miller
Mrs M Miller
Financial instruments

The company has an invoice discounting facility in place to mitigate the company's exposure to liquidity and cash flow risks.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

Robson Laidler Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

GEM PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mrs M Miller
Director
4 October 2023
GEM PARTNERSHIP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 5 -
Opinion

We have audited the financial statements of Gem Partnership Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

 

The laws and regulations which are considered to be significant to the entity relate to employment law. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.

 

The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.

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

GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
5 October 2023
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
GEM PARTNERSHIP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
29,031,947
21,150,745
Cost of sales
(25,448,441)
(18,646,261)
Gross profit
3,583,506
2,504,484
Administrative expenses
(2,093,336)
(1,595,779)
Other operating income
103,956
65,987
Operating profit
4
1,594,126
974,692
Interest receivable and similar income
8
-
0
75,988
Profit before taxation
1,594,126
1,050,680
Tax on profit
9
(309,258)
(190,179)
Profit for the financial year
1,284,868
860,501

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

GEM PARTNERSHIP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
54,980
47,027
Investments
12
100
100
55,080
47,127
Current assets
Stocks
14
2,614
3,256
Debtors
15
4,072,948
2,843,019
Cash at bank and in hand
406,329
437,628
4,481,891
3,283,903
Creditors: amounts falling due within one year
16
(3,235,079)
(2,576,580)
Net current assets
1,246,812
707,323
Total assets less current liabilities
1,301,892
754,450
Provisions for liabilities
Deferred tax liability
18
13,660
11,644
(13,660)
(11,644)
Net assets
1,288,232
742,806
Capital and reserves
Called up share capital
19
551
551
Capital redemption reserve
552
552
Profit and loss reserves
1,287,129
741,703
Total equity
1,288,232
742,806
The financial statements were approved by the board of directors and authorised for issue on 4 October 2023 and are signed on its behalf by:
Mrs M Miller
Director
Company Registration No. 06931626
GEM PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
551
552
616,787
617,890
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
860,501
860,501
Dividends
10
-
-
(735,585)
(735,585)
Balance at 31 March 2022
551
552
741,703
742,806
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,284,868
1,284,868
Dividends
10
-
-
(739,442)
(739,442)
Balance at 31 March 2023
551
552
1,287,129
1,288,232
GEM PARTNERSHIP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,041,727
195,846
Income taxes paid
(185,823)
(155,576)
Net cash inflow from operating activities
855,904
40,270
Investing activities
Purchase of tangible fixed assets
(29,646)
(26,606)
Dividends received
-
0
75,988
Net cash (used in)/generated from investing activities
(29,646)
49,382
Financing activities
Repayment of bank loans
-
0
(150,000)
Dividends paid
(739,442)
(735,585)
Net cash used in financing activities
(739,442)
(885,585)
Net increase/(decrease) in cash and cash equivalents
86,816
(795,933)
Cash and cash equivalents at beginning of year
319,513
1,115,446
Cash and cash equivalents at end of year
406,329
319,513
Relating to:
Cash at bank and in hand
406,329
437,628
Bank overdrafts included in creditors payable within one year
-
0
(118,115)
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Gem Partnership Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne, United Kingdom, NE2 1TJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As the company's only subsidiary company has been dormant throughout the current and preceding accounting period, and the assets of the subsidiary company are not material to the group, group accounts have not been prepared. The financial statements relate to the activities of the holding company only.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

 

Services provided are those of processing payroll, providing agency workers to various companies and recruitment fees.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
25% reducing balance
Fixtures and fittings
33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
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.

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.

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.

1.9
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.

 

1.10
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.

GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits

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

1.12
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.

1.13
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.

1.14

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
29,031,947
21,150,745
2023
2022
£
£
Other revenue
Dividends received
-
75,988
Grants received
-
53,257
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(53,257)
Depreciation of owned tangible fixed assets
21,693
18,541
Operating lease charges
45,871
41,977
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,570
7,300
6
Employees

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

2023
2022
Number
Number
Directors
4
4
Head office
31
28
Commercial/industrial/professional
1,171
822
Total
1,206
854

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
24,378,287
17,888,218
Social security costs
1,742,774
1,222,580
Pension costs
469,960
430,966
26,591,021
19,541,764
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
71,435
35,376
Company pension contributions to defined contribution schemes
244,980
238,833
316,415
274,209
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 16 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

8
Interest receivable and similar income
2023
2022
£
£
Income from fixed asset investments
Income from shares in group undertakings
-
0
75,988
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
307,242
185,823
Deferred tax
Origination and reversal of timing differences
2,016
4,356
Total tax charge
309,258
190,179

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,594,126
1,050,680
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
302,884
199,629
Tax effect of expenses that are not deductible in determining taxable profit
7,556
3,678
Tax effect of income not taxable in determining taxable profit
-
0
(14,435)
Deferred tax charge
2,016
4,356
Capital allowances in excess of depreciation
(3,203)
(3,049)
Taxation charge for the year
309,253
190,179
Taxation charge in the financial statements
309,258
190,179
Reconciliation - the current year tax charge does not reconcile to the above analysis.  Please review figures in the database.
(5)
-
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
10
Dividends
2023
2022
£
£
Interim paid
739,442
735,585
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2022
2,861
164,776
167,637
Additions
-
0
29,646
29,646
At 31 March 2023
2,861
194,422
197,283
Depreciation and impairment
At 1 April 2022
2,408
118,202
120,610
Depreciation charged in the year
113
21,580
21,693
At 31 March 2023
2,521
139,782
142,303
Carrying amount
At 31 March 2023
340
54,640
54,980
At 31 March 2022
453
46,574
47,027
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
100
100
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
GEM Training Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
GEM Training Limited
100
-
0
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
14
Stocks
2023
2022
£
£
Raw materials and consumables
2,614
3,256
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,987,631
2,746,778
Other debtors
22,725
27,673
Prepayments and accrued income
57,592
63,568
4,067,948
2,838,019
2023
2022
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
5,000
5,000
Total debtors
4,072,948
2,843,019

Included within trade debtors are balances totaling £2,867,846 (2022: £2,111,016 ) that are subject to an invoice discounting facility. The trade debtor balances have been transferred to the counterparty although the transaction does not qualify for de-recognition on the basis the credit risk is retained by the company. The associated liability recognised in creditors is £nil (2022: £118,115).

16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
-
0
118,115
Trade creditors
62,821
32,679
Corporation tax
307,242
185,823
Other taxation and social security
1,768,929
1,186,007
Other creditors
515,746
611,956
Accruals and deferred income
580,341
442,000
3,235,079
2,576,580

 

GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
17
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
-
0
118,115
Payable within one year
-
0
118,115

Secured debts

 

Bank overdrafts due within one year relates to a balance in relation to invoice discounting.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
13,660
11,644
2023
Movements in the year:
£
Liability at 1 April 2022
11,644
Charge to profit or loss
2,016
Liability at 31 March 2023
13,660

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
551
551
551
551
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
87,039
35,538
Between two and five years
77,981
-
0
In over five years
37,614
-
0
202,634
35,538
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Name of related party
Nature of relationship
Key management personnel
Other related parties
Description of
Income
Payments
transaction
2023
2022
2023
2022
£
£
£
£
Key management personnel
Dividends paid
-
0
-
0
540,826
538,005
Other related parties
Dividends paid
-
0
-
0
198,616
197,580
Other information

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
22
Directors' transactions

Dividends totalling £540,826 (2022 - £538,005) were paid in the year in respect of shares held by the company's directors.

Interest is not charged on the below loans.

The following advances and credits to directors subsisted during the year ended 31 March 2022 and the period ended 31 March 2021.

Description
% Rate
Opening balance
Closing balance
£
£
Mr RA Dunbar - Directors' loan
-
5,000
5,000
Mr LJ Rankin - Directors' loan
-
5,000
5,000
Mr I Miller - Directors' loan
-
5,000
5,000
Mrs M Miller - Directors' loan
-
5,000
5,000
20,000
20,000
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,284,868
860,501
Adjustments for:
Taxation charged
309,258
190,179
Investment income
-
0
(75,988)
Depreciation and impairment of tangible fixed assets
21,693
18,541
Movements in working capital:
Decrease/(increase) in stocks
642
(1,833)
Increase in debtors
(1,229,929)
(883,900)
Increase in creditors
655,195
88,346
Cash generated from operations
1,041,727
195,846
24
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
437,628
(31,299)
406,329
Bank overdrafts
(118,115)
118,115
-
0
319,513
86,816
406,329
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