Company Registration No. SC310042 (Scotland)
Gael Force Fusion Limited
Financial statements
for the year ended 31 December 2022
Pages for filing with the registrar
Gael Force Fusion Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 12
Gael Force Fusion Limited
Balance sheet
As at 31 December 2022
31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
332,210
170,448
Tangible assets
4
451,561
641,940
783,771
812,388
Current assets
Stocks
5
1,147,772
1,435,246
Debtors
6
3,293,768
1,640,580
Cash at bank and in hand
256
52,465
4,441,796
3,128,291
Creditors: amounts falling due within one year
7
(2,305,927)
(1,158,163)
Net current assets
2,135,869
1,970,128
Total assets less current liabilities
2,919,640
2,782,516
Creditors: amounts falling due after more than one year
8
(249,234)
(443,582)
Provisions for liabilities
9
(74,031)
(131,990)
Net assets
2,596,375
2,206,944
Capital and reserves
Called up share capital
10
100,000
100,000
Other reserves
20,280
20,280
Profit and loss reserves
2,476,095
2,086,664
Total equity
2,596,375
2,206,944
The directors of the company have elected not to include a copy of 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.
Gael Force Fusion Limited
Balance sheet (continued)
As at 31 December 2022
31 December 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
R Foster
Director
Company Registration No. SC310042
Gael Force Fusion Limited
Notes to the financial statements
For the year ended 31 December 2022
Page 3
1
Accounting policies
Company information
Gael Force Fusion Limited is a private company limited by shares incorporated in Scotland. The registered office is 136 Anderson Street, Inverness, IV3 8DH.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
Gael Force Fusion Limited is a subsidiary of Gael Force Group Limited which itself is a wholly owned subsidiary of Gael Force Group Holdings Limited. The results of Gael Force Fusion Limited are included in the consolidated financial statements of Gael Force Group Holdings Limited which are publicly available.
1.2
Going concern
The group prepares projections which demonstrate their ability to continue to meet all liabilities as they fall due.
At the time of approving the financial statements, the directors have a reasonable expectation that the company and the group has adequate resources to continue in operational existence for the forseeable future. Thus, the directors consider to adopt the going concern basis of accounting in the preparation of 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 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.
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 4
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 it is probable will be recovered.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
10% to 20% straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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 land and buildings
2% straight line
Plant and equipment
10% to 25% straight line
Fixtures and fittings
5% to 25% straight line
Computers
25% straight line
Motor vehicles
25% 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.
1.6
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).
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 5
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to 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.
Cost is calculated using the weighted average method.
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
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 6
1.10
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. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
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.
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 7
Basic financial liabilities
Basic financial liabilities, including creditors 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.
1.11
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.
1.12
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 8
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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.
1.16
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.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 9
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
18
28
3
Intangible fixed assets
Development costs
£
Cost
At 1 January 2022
213,206
Additions - internally developed
190,865
Transfers
(6,205)
At 31 December 2022
397,866
Amortisation and impairment
At 1 January 2022
42,758
Amortisation charged for the year
24,656
Transfers
(1,758)
At 31 December 2022
65,656
Carrying amount
At 31 December 2022
332,210
At 31 December 2021
170,448
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 10
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
7,250
1,875,333
1,882,583
Additions
52,009
52,009
Transfers
(2,250)
(578,237)
(580,487)
At 31 December 2022
5,000
1,349,105
1,354,105
Depreciation and impairment
At 1 January 2022
1,240,643
1,240,643
Depreciation charged in the year
1,250
241,138
242,388
Transfers
2,500
(582,987)
(580,487)
At 31 December 2022
3,750
898,794
902,544
Carrying amount
At 31 December 2022
1,250
450,311
451,561
At 31 December 2021
7,250
634,690
641,940
5
Stocks
2022
2021
£
£
Work in progress
1,147,772
1,435,246
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
215,831
441,557
Corporation tax recoverable
57,268
23,236
Amounts owed by group undertakings
1,779,930
1,085,344
Other debtors
1,240,739
90,443
3,293,768
1,640,580
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 11
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
170,126
Trade creditors
864,730
221,413
Amounts owed to group undertakings
561,252
399,495
Taxation and social security
13,076
73,052
Other creditors
696,743
464,203
2,305,927
1,158,163
Other creditors include hire purchase agreements which are secured against the assets to which the agreements relate. The balance included within other creditors due within one year is £159,398 (2021 - £176,390).
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
249,234
443,582
Other creditors include hire purchase agreements which are secured against the assets to which the agreements relate. The balance included within other creditors due after one year is £21,246 (2021 - £180,643).
9
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
74,031
131,990
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" class shares of £1 each
75,000
75,000
75,000
75,000
Ordinary "B" class shares of £1 each
16,776
16,776
16,776
16,776
Ordinary "C" class shares of £1 each
8,224
8,224
8,224
8,224
100,000
100,000
100,000
100,000
Gael Force Fusion Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 12
11
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.
Senior Statutory Auditor:
Eunice McAdam
Statutory Auditors:
Saffery LLP
12
Financial commitments, guarantees and contingent liabilities
There is a cross corporate guarantee in place between Gael Force Fusion Limited and other group companies.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
11,736
15
Parent company
The immediate parent company and the smallest group into which the company is consolidated is Gael Force Group Limited.
The ultimate parent company is Gael Force Group Holdings Limited and the registered office is 136 Anderson Street, Inverness, IV3 8DH.
2022-12-312022-01-01false13 October 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedRobert FosterStewart GrahamStephen OffordJames YoungR FosterSC3100422022-01-012022-12-31SC3100422022-12-31SC3100422021-12-31SC310042core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31SC310042core:DevelopmentCostsCapitalisedDevelopmentExpenditure2021-12-31SC310042core:LandBuildings2022-12-31SC310042core:OtherPropertyPlantEquipment2022-12-31SC310042core:LandBuildings2021-12-31SC310042core:OtherPropertyPlantEquipment2021-12-31SC310042core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC310042core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-31SC310042core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC310042core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-31SC310042core:CurrentFinancialInstruments2022-12-31SC310042core:CurrentFinancialInstruments2021-12-31SC310042core:ShareCapital2022-12-31SC310042core:ShareCapital2021-12-31SC310042core:OtherMiscellaneousReserve2022-12-31SC310042core:OtherMiscellaneousReserve2021-12-31SC310042core:RetainedEarningsAccumulatedLosses2022-12-31SC310042core:RetainedEarningsAccumulatedLosses2021-12-31SC310042core:ShareCapitalOrdinaryShares2022-12-31SC310042core:ShareCapitalOrdinaryShares2021-12-31SC310042bus:CompanySecretaryDirector12022-01-012022-12-31SC310042core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-31SC310042core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-01-012022-12-31SC310042core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-31SC310042core:PlantMachinery2022-01-012022-12-31SC310042core:FurnitureFittings2022-01-012022-12-31SC310042core:ComputerEquipment2022-01-012022-12-31SC310042core:MotorVehicles2022-01-012022-12-31SC3100422021-01-012021-12-31SC310042core:DevelopmentCostsCapitalisedDevelopmentExpenditure2021-12-31SC310042core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:InternallyGeneratedIntangibleAssets2022-01-012022-12-31SC310042core:LandBuildings2021-12-31SC310042core:OtherPropertyPlantEquipment2021-12-31SC3100422021-12-31SC310042core:LandBuildings2022-01-012022-12-31SC310042core:OtherPropertyPlantEquipment2022-01-012022-12-31SC310042core:WithinOneYear2022-12-31SC310042core:WithinOneYear2021-12-31SC310042core:Non-currentFinancialInstruments2022-12-31SC310042core:Non-currentFinancialInstruments2021-12-31SC310042bus:PrivateLimitedCompanyLtd2022-01-012022-12-31SC310042bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-31SC310042bus:FRS1022022-01-012022-12-31SC310042bus:Audited2022-01-012022-12-31SC310042bus:Director12022-01-012022-12-31SC310042bus:Director22022-01-012022-12-31SC310042bus:Director32022-01-012022-12-31SC310042bus:Director42022-01-012022-12-31SC310042bus:CompanySecretary12022-01-012022-12-31SC310042bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP