Company registration number 03383475 (England and Wales)
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
97,637
102,990
Current assets
Debtors falling due after more than one year
5
409,609
376,270
Debtors falling due within one year
5
143,153
303,072
Cash at bank and in hand
44,629
29,253
597,391
708,595
Creditors: amounts falling due within one year
6
(380,853)
(559,286)
Net current assets
216,538
149,309
Net assets
314,175
252,299
Capital and reserves
Other reserves
154,641
122,213
Profit and loss reserves
159,534
130,086
Total equity
314,175
252,299
The directors of the company have elected not to include a copy of the Director's Report and the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 June 2023 and are signed on its behalf by:
Mr S A Waud
Director
Company Registration No. 03383475
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Funding reserve
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
181,032
100,581
281,613
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
29,505
29,505
Other movements
(58,819)
-
(58,819)
Balance at 31 March 2022
122,213
130,086
252,299
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
29,448
29,448
Other movements
32,428
-
32,428
Balance at 31 March 2023
154,641
159,534
314,175
The other movement included within funding reserve relates to equity accounting for impaired debts on the funding reserve, as described more fully in note 1.12.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Goole Development Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is City Hub, 9-11 Peckover Street, Little Germany, Bradford, BD1 5BD. The company is a single member company limited by guarantee, the liability of the member is £1.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of the ultimate parent company, West and North Yorkshire Chamber of Commerce and Industry. These consolidated financial statements are available from its registered office, Devere House, Vicar Lane, Little Germany, Bradford BD1 5AH.
The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group, on the grounds that those entities are related by virtue having the same control as defined by 33.11(b).
1.2
Going concern
The executive team is regularly monitoring the financial position of the company and the wider economic environment. There is a heightened risk of bad debts as a result of current economic pressure, however, the company benefits from guarantees on loans advanced through both the Enterprise Finance Guarantee Scheme (“EFGS”), a Government scheme which effectively underwrites 75% of loans, the Coronavirus Business Interruption Loan Scheme ("CBILS"), a Government scheme which effectively underwrites 80% of loans, and the Recovery Loan Scheme (RLS 1,2 & 3) operating on an 80%, 70%, and 70% cap respectively. The company has continued to review and update its bad debt provisioning to ensure there is an appropriate provision in existence for loans in default or at risk of default. true
The company continues to be profitable and budgets and cash flow projections indicate continued profitability and positive cash flows. The company’s capital is provided through both public and commercial sources and a significant proportion of loans are guaranteed by Government under EFGS, CBILS and RLS and will continue to be so for the next financial period.
Given the above, at 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 and not less than one year from the date of approval.
1.3
Turnover
Income represents contract income, earned interest and fees chargeable in respect of the provision of loan finance to customers. All turnover is shown net of VAT.
Income from interest and fees is calculated in line with the underlying agreement and recognised on an accruals basis.
Contract income is accrued when the underlying conditions of the contract are met and income is deemed to be receivable.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
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:
Freehold buildings
2-10% straight line
Fixtures and fittings
10-33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
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).
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
1.7
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.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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 and loans from fellow group companies, 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.
1.8
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.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Government grants
Government grants received for the purpose of providing loans in accordance with the company's principal activity are either credited to a deferral account or included within other loans and are released to the profit and loss account upon the fulfilment of various conditions relating to the grant.
Grants of a revenue nature are credited to income in the period in which the associated expenditure is incurred.
1.12
Other reserve - Funding reserve
Funding provided under Government/EU backed business support initiatives for the purpose of providing loans to individuals and businesses who would otherwise be excluded from mainstream finance is credited to the balance sheet. Where such funding has long term restrictions over its use and the probability of clawback is considered remote it is credited to a funding reserve within capital.
Where loans have been made using this funding, any losses arising are charged to the funding reserve.
Amounts held within the funding reserve are retained until such time as all terms and conditions of the funding have been met and funds are no longer being used for the original purpose.
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.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provisioning against loan book recoverability
The company’s trade is the provision of finance to organisations who are largely unable to obtain finance from alternative sources. Consequently there is an increased risk of debts becoming irrecoverable. The company’s policy on loan receivables is to pursue all available methods to recover the balance outstanding. Once all methods have been exhausted, the balance is written off in full to the profit and loss account or taken to the funding reserve as detailed at 1.12 above. A detailed layered review approach has been adopted for provisioning, considering payment profiles, security held (including government underwriting on certain loans), industry/sector information and financial information of the debtor. If at this stage there is no evidence of recoverability, the loan is provided to the extent it is unsecured.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
4
4
Tangible fixed assets
Freehold buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
148,237
66,169
214,406
Depreciation and impairment
At 1 April 2022
52,526
58,890
111,416
Depreciation charged in the year
2,634
2,719
5,353
At 31 March 2023
55,160
61,609
116,769
Carrying amount
At 31 March 2023
93,077
4,560
97,637
At 31 March 2022
95,711
7,279
102,990
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
202
Amounts due from group undertakings
8,556
21,291
Other debtors
134,597
281,579
143,153
303,072
Amounts falling due after more than one year:
Other debtors
409,609
376,270
Total debtors
552,762
679,342
Other debtors include £504,609 (2022 - £613,665) of loans which are made on a commercial basis. These loans are recognised net of unearned interest on the basis that borrowers can repay their funding early, with no financial penalty being incurred.
The loans included within other debtors are net of a bad debt provision totalling £124,165 (2022 - £153,651).
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
92
Amounts owed to group undertakings
375,000
553,000
Other creditors
5,853
6,194
380,853
559,286
7
Parent company
The immediate parent company is Business & Enterprise Finance Limited ("BEF") by virtue of its single member guarantee.
By virtue of its single member guarantee in BEF, the ultimate parent company is West and North Yorkshire Chamber of Commerce and Industry ("WNYCC"), a company registered in England and Wales, the registered office of which is Devere House, Vicar Lane, Little Germany, Bradford BD1 5AH.
The financial statements of the company are consolidated into the financial statements of WNYCC. Copies of the group financial statements are available from WNYCC's registered office. WNYCC is the only group into which Goole Development Trust is consolidated.
GOOLE DEVELOPMENT TRUST
(A COMPANY LIMITED BY GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Alan Sidebottom.
The auditor was Azets Audit Services Limited.
The audit report was signed on 19 June 2023
2023-03-312022-04-01false19 June 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedMr S A WaudMr S M JacksonMr M J Lynch033834752022-04-012023-03-31033834752023-03-31033834752022-03-3103383475core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3103383475core:FurnitureFittings2023-03-3103383475core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3103383475core:FurnitureFittings2022-03-3103383475core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3103383475core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3103383475core:WithinOneYear2023-03-3103383475core:WithinOneYear2022-03-3103383475core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3103383475core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3103383475core:CurrentFinancialInstruments2023-03-3103383475core:CurrentFinancialInstruments2022-03-3103383475core:OtherMiscellaneousReserve2023-03-3103383475core:OtherMiscellaneousReserve2022-03-3103383475core:RetainedEarningsAccumulatedLosses2023-03-3103383475core:RetainedEarningsAccumulatedLosses2022-03-3103383475core:OtherMiscellaneousReserve2021-03-3103383475core:RetainedEarningsAccumulatedLosses2021-03-31033834752021-03-3103383475bus:Director12022-04-012023-03-3103383475core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31033834752021-04-012022-03-3103383475core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3103383475core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3103383475core:FurnitureFittings2022-04-012023-03-3103383475core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3103383475core:FurnitureFittings2022-03-31033834752022-03-3103383475core:Non-currentFinancialInstruments2023-03-3103383475core:Non-currentFinancialInstruments2022-03-3103383475bus:PrivateLimitedCompanyLtd2022-04-012023-03-3103383475bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3103383475bus:FRS1022022-04-012023-03-3103383475bus:Audited2022-04-012023-03-3103383475bus:Director22022-04-012023-03-3103383475bus:Director32022-04-012023-03-3103383475bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP