Company Registration No. 11623447 (England and Wales)
GSR Holdings Limited
Annual report and financial statements
For the year ended 30 June 2022
GSR HOLDINGS LIMITED
GSR Holdings Limited
COMPANY INFORMATION
Directors
G S Ritchie
T F Theron
R G Robinson
Company number
11623447
Registered office
5 Stratford Place
London
England
W1C 1AX
Auditor
Dixon Wilson Audit Services LLP
22 Chancery Lane
London
WC2A 1LS
GSR HOLDINGS LIMITED
GSR Holdings Limited
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 26
GSR HOLDINGS LIMITED
GSR Holdings Limited
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 1 -

The directors present the strategic report for the year ended 30 June 2022.

Fair review of the business

The group made a pre-tax profit of £9,474,390 (2021: £4,510,519 ) for the year. The principal activities of the group continued to be that of film directing and production, the design and sale of outdoor kitchen equipment and the development of a log cabin design, manufacturing and rental business.

Principal risks and uncertainties

The group's income to date mainly comes from film directing and producing. The principal risks and uncertainties are therefore primarily those inherent in the film industry. This is a well-established market which has historically continued to expand globally and the directors are very satisfied with the group's future trading prospects.

 

The group also continues to develop its Cashmere Caveman brand and group of products, including outdoor kitchens and log cabins. The principal risks and uncertainties in this respect are: those facing a new business trying to obtain a share of the market from established competitors; increasing costs for materials/products. The directors are aware of these risks and are overseeing the development of innovative, unique products to introduce to the market whilst ensuring that the group's financial position is closely monitored.

Key performance indicators

The directors monitor the performance of the business using various Key Performance Indicators ("KPIs"). The main KPIs were:

 

In the opinion of the directors, the group is in a strong position at the year end having generated significant profits in the current and previous accounting periods resulting in net assets of £9.6m at the year end.

Other information and explanations

Film directing and production turnover in any year is reflective of the stage of production a film reaches during the year and the success of the film once released. There will be occasions where this can lead to significant fluctuations in results across the Group's financial periods. The production of film is ongoing and the group is able to withstand these movements.

On behalf of the board

T F Theron
Director
24 October 2023
GSR HOLDINGS LIMITED
GSR Holdings Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2022
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2022.

Principal activities

The principal activities of the group continued to be that of film production, the design and sale of outdoor kitchen equipment and the development of a log cabin rental business.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £5,800,000. The directors do not recommend payment of a further dividend.

Directors

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

G S Ritchie
T F Theron
(Apponted 12 July 2023)
R G Robinson
(Apponted 12 July 2023)
Financial instruments

The group has a normal level of exposure to price, credit, foreign exchange and cash flow risk arising from trading activities which are conducted in Sterling and in US Dollars. The group does not enter into any lending transactions.

Liquidity risk

The directors monitor the monetary requirements of the company and group to ensure that sufficient funds are available to enable obligations to be met as they fall due.

Auditor

Dixon Wilson Audit Services LLP were appointed as auditor to the group 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.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
T F Theron
Director
24 October 2023
GSR HOLDINGS LIMITED
GSR Holdings Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2022
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GSR HOLDINGS LIMITED
GSR Holdings Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GSR HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of GSR Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

GSR HOLDINGS LIMITED
GSR Holdings Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GSR HOLDINGS LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 set out on page 3, 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 group's and the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and group by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company and group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law and UK tax legislation.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

GSR HOLDINGS LIMITED
GSR Holdings Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GSR HOLDINGS LIMITED
- 6 -

As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.

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.

Use of our report

This report is made solely to the parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Wakefield (Senior Statutory Auditor)
For and on behalf of Dixon Wilson Audit Services LLP, Statutory Auditor
22 Chancery Lane
London
WC2A 1LS
24 October 2023
GSR HOLDINGS LIMITED
GSR Holdings Limited
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
13,861,498
12,342,735
Cost of sales
(1,608,679)
(1,320,739)
Gross profit
12,252,819
11,021,996
Administrative expenses
(2,783,877)
(6,527,667)
Operating profit
4
9,468,942
4,494,329
Share of results of associates
(1)
-
Interest receivable and similar income
7
5,454
16,190
Interest payable and similar expenses
8
(5)
-
0
Profit before taxation
9,474,390
4,510,519
Tax on profit
9
(1,827,507)
(1,103,504)
Profit for the financial year
7,646,883
3,407,015
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GSR HOLDINGS LIMITED
GSR Holdings Limited
GROUP BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
12
201,771
-
0
Tangible assets
13
1,886,806
1,661,289
2,088,577
1,661,289
Current assets
Stocks
18
1,290,408
627,449
Debtors
19
6,425,220
4,359,614
Cash at bank and in hand
2,730,435
3,566,351
10,446,063
8,553,414
Creditors: amounts falling due within one year
20
(2,951,464)
(2,478,410)
Net current assets
7,494,599
6,075,004
Net assets
9,583,176
7,736,293
Capital and reserves
Called up share capital
24
201
201
Profit and loss reserves
9,582,975
7,736,092
Total equity
9,583,176
7,736,293
The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
24 October 2023
T F Theron
Director
GSR HOLDINGS LIMITED
GSR Holdings Limited
COMPANY BALANCE SHEET
AS AT 30 JUNE 2022
30 June 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
14
301
301
Current assets
Debtors
19
4,796,616
33,986
Cash at bank and in hand
19,569
2,155,149
4,816,185
2,189,135
Creditors: amounts falling due within one year
20
(1,651,262)
(390,101)
Net current assets
3,164,923
1,799,034
Net assets
3,165,224
1,799,335
Capital and reserves
Called up share capital
24
201
201
Profit and loss reserves
3,165,023
1,799,134
Total equity
3,165,224
1,799,335

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £7,165,890 (2021 - £10,212,964 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
24 October 2023
T F Theron
Director
Company Registration No. 11623447
GSR HOLDINGS LIMITED
GSR Holdings Limited
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2020
201
12,829,077
12,829,278
Year ended 30 June 2021:
Profit and total comprehensive income for the year
-
3,407,015
3,407,015
Dividends
10
-
(8,500,000)
(8,500,000)
Balance at 30 June 2021
201
7,736,092
7,736,293
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
7,646,883
7,646,883
Dividends
10
-
(5,800,000)
(5,800,000)
Balance at 30 June 2022
201
9,582,975
9,583,176
GSR HOLDINGS LIMITED
GSR Holdings Limited
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2020
201
86,170
86,371
Year ended 30 June 2021:
Profit and total comprehensive income for the year
-
10,212,964
10,212,964
Dividends
10
-
(8,500,000)
(8,500,000)
Balance at 30 June 2021
201
1,799,134
1,799,335
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
7,165,889
7,165,889
Dividends
10
-
(5,800,000)
(5,800,000)
Balance at 30 June 2022
201
3,165,023
3,165,224
GSR HOLDINGS LIMITED
GSR Holdings Limited
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
8,226,753
9,637,669
Interest paid
(5)
-
0
Income taxes paid
(1,827,508)
(2,409,114)
Net cash inflow from operating activities
6,399,240
7,228,555
Investing activities
Purchase of intangible assets
(210,275)
-
Purchase of tangible fixed assets
(921,319)
(1,762,983)
Proceeds on disposal of tangible fixed assets
14,250
-
Receipts arising from loans made
(883,870)
(860,809)
Interest received
5,453
16,190
Net cash used in investing activities
(1,995,761)
(2,607,602)
Financing activities
Proceeds from borrowings
554,257
(768,399)
Dividends paid to equity shareholders
(5,800,000)
(8,500,000)
Net cash used in financing activities
(5,245,743)
(9,268,399)
Net decrease in cash and cash equivalents
(842,264)
(4,647,446)
Cash and cash equivalents at beginning of year
3,561,381
8,208,827
Cash and cash equivalents at end of year
2,719,117
3,561,381
Relating to:
Cash at bank and in hand
2,730,435
3,566,351
Bank overdrafts included in creditors payable within one year
(11,318)
(4,970)
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
- 13 -
1
Accounting policies
Company information

GSR Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5 Stratford Place, London, United Kingdom, W1C 1AX.

 

The group consists of GSR Holdings Limited and all of its subsidiaries.

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, [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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company GSR Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. All associates are accounted for using the equity method whereby the group's investment in the associate is initially recognised at the transaction price and then adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

Turnover primarily represents the sale of services in the form of directing, producing and writing fees, profit participations and residuals receivable (net of Value Added Tax). It is also represented by the sale of services in the form of hiring out of mobile accommodation, which is recognised as and when the service is provided. Directing fees are recognised when the company is considered to have fulfilled its contracted delivery obligations. Profit participation income is recognised as income when receivable in respect of periods ending within the accounting year.

 

Turnover also represents amounts receivable from the sale of finished goods, and is shown net of VAT. 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).

1.5
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.

1.6
Intangible fixed assets other than goodwill

The group capitalises its internally generated intellectual property on a cost basis.

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:

Trademarks
10 years straight line
Patents
20 years straight line
Designs
25 years straight line
1.7
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 once the assets are substantially complete and in use by the company:

Leasehold land and buildings
Over the life of the lease
Plant and equipment
3-10 years straight line
Motor vehicles
5 years 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 recognised in the profit and loss account.

GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 15 -
1.8
Fixed asset investments

Interest 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 loses are recognised immediately in profit or loss.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

1.10
Stocks

Stocks are stated at the lower of cost and realisable value. Cost comprises finished goods stock and work in progress, Work in progress represents the cost of materials that will make up finished goods.

 

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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 16 -
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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price.

 

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.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.15
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.

 

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.

1.16
Retirement benefits

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

1.17
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 leased asset are consumed.

GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 17 -
1.18
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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
2022
2021
£
£
Turnover analysed by class of business
Film directing and production fees
13,077,268
12,273,803
Equipment rental income
116,946
44,407
Sale of goods
667,284
24,526
13,861,498
12,342,736
2022
2021
£
£
Other significant revenue
Interest income
5,454
16,190
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(418,640)
1,071,065
Research and development costs
358,882
277,934
Depreciation of owned tangible fixed assets
81,250
16,886
Impairment of owned tangible fixed assets
601,845
3,982,814
Profit on disposal of tangible fixed assets
(1,543)
-
Amortisation of intangible assets
8,504
-
Stocks impairment losses recognised or reversed
134,427
13,871
Operating lease charges
145,022
70,313
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 18 -
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,200
4,200
Audit of the financial statements of the company's subsidiaries
31,143
13,000
35,343
17,200
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
17
8
1
1

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
686,814
198,589
-
0
-
0
Social security costs
71,325
28,775
840
-
Pension costs
67,074
10,502
-
0
-
0
825,213
237,866
840
-
0
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
305
486
Other interest income
5,149
15,704
Total income
5,454
16,190
8
Interest payable and similar expenses
2022
2021
£
£
Other interest on financial liabilities
5
-
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 19 -
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,827,273
1,100,525
Adjustments in respect of prior periods
(3,420)
-
0
Total UK current tax
1,823,853
1,100,525
Foreign current tax on profits for the current period
3,654
2,979
Total current tax
1,827,507
1,103,504

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:

2022
2021
£
£
Profit before taxation
9,474,390
4,510,519
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,800,134
856,999
Tax effect of expenses that are not deductible in determining taxable profit
8,072
549,479
Tax effect of income not taxable in determining taxable profit
1,320,500
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
451,469
Unutilised tax losses carried forward
77,123
-
0
Group relief
-
0
(736,633)
Management expense relief
-
0
(3,707)
Consolidation adjustments
(1,320,500)
(134)
Capital allowances
(57,822)
(13,969)
Taxation charge
1,827,507
1,103,504
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
5,800,000
8,500,000
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 20 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2022
2021
Notes
£
£
In respect of:
Property, plant and equipment
13
601,845
3,982,814
Stocks
18
134,427
13,871
Recognised in:
Cost of sales
134,427
13,871
Administrative expenses
601,845
3,982,814

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

12
Intangible fixed assets
Group
Intellectual Property
£
Cost
At 1 July 2021
-
0
Additions
210,275
At 30 June 2022
210,275
Amortisation and impairment
At 1 July 2021
-
0
Amortisation charged for the year
8,504
At 30 June 2022
8,504
Carrying amount
At 30 June 2022
201,771
At 30 June 2021
-
0
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 21 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Other property, plant and equipment
Total
£
£
£
£
£
£
Cost
At 1 July 2021
13,118
133,957
356,154
41,521
5,119,814
5,664,564
Additions
10,324
187,043
10,282
123,374
590,296
921,319
Disposals
-
0
-
0
(3,431)
(14,375)
(172)
(17,978)
Transfers
-
0
-
0
6,505
-
0
(6,505)
-
0
At 30 June 2022
23,442
321,000
369,510
150,520
5,703,433
6,567,905
Depreciation and impairment
At 1 July 2021
2,186
10,902
-
0
7,373
3,982,814
4,003,275
Depreciation charged in the year
3,484
22,852
-
0
15,932
38,982
81,250
Impairment losses
-
0
-
0
18,226
-
0
583,619
601,845
Eliminated in respect of disposals
-
0
-
0
-
0
(5,271)
-
0
(5,271)
At 30 June 2022
5,670
33,754
18,226
18,034
4,605,415
4,681,099
Carrying amount
At 30 June 2022
17,772
287,246
351,284
132,486
1,098,018
1,886,806
At 30 June 2021
10,932
123,055
356,154
34,148
1,137,000
1,661,289
14
Fixed asset investments
Group
Group
Company
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
301
301
Company
Shares in group undertakings
£
Carrying amount
At 30 June 2022
301
At 30 June 2021
301
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 22 -
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Lore On The Lam Limited (Formerly Cashmere Caveman Company Limited)
55 Loudoun Road, St John's Wood, London, United Kingdom, NW8 0DL
Ordinary
100
Toff Guy Films Limited
5 Stratford Place, London, England, W1C 1AX
Ordinary
100
The Cashmere Caveman Co, Wild Kitchens Limited
5 Stratford Place, London, England, W1C 1AX
Ordinary
100
Ashgrove Farmhouse Limited
5 Stratford Place, London, England, W1C 1AX
Ordinary
100
16
Associates

Details of associates at 30 June 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Exit Light Productions Limited
Apartment 305, 4 Wood Crescent, London, England, W12 7GP
Ordinary
33
-
Interpreter Productions Limited
Apartment 305, 4 Wood Crescent, London, England, W12 7GP
Ordinary
-
33
The aggregate capital and reserves and the result for the period to 30 June 2022 of the associates noted above were as follows:
Name of undertaking
Capital and reserves
Profit/(Loss)
£
£
Exit Light Productions Limited
(1,213)
(1,216)
Interpreter Productions Limited
13,848
13,847
18
Stocks
Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£
Work in progress
429,398
242,149
-
-
Finished goods and goods for resale
861,010
385,300
-
0
-
0
1,290,408
627,449
-
-
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 23 -
19
Debtors
Group
Group
Company
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
174,189
695,203
-
0
-
0
Corporation tax recoverable
7,181
496,773
-
0
-
0
Amounts owed by group undertakings
-
-
3,912,683
33,902
Other debtors
1,875,054
2,742,514
883,871
-
0
Prepayments and accrued income
4,368,796
425,124
62
84
6,425,220
4,359,614
4,796,616
33,986
20
Creditors: amounts falling due within one year
Group
Group
Company
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
11,318
4,970
-
0
-
0
Trade creditors
361,758
366,350
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,613,541
-
0
Corporation tax payable
-
0
807
-
0
-
0
Other taxation and social security
394,247
127,167
-
-
Deferred income
22
120,737
-
0
-
0
-
0
Other creditors
1,553,018
1,672,606
-
0
373,277
Accruals and deferred income
510,386
306,510
37,721
16,824
2,951,464
2,478,410
1,651,262
390,101
21
Loans and overdrafts
Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£
Bank overdrafts
11,318
4,970
-
0
-
0
Payable within one year
11,318
4,970
-
0
-
0
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 24 -
22
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
120,737
-
-
-
23
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,074
10,502

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
201
201
201
201
25
Operating lease commitments
Lessee

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

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
152,245
80,674
-
-
Between two and five years
338,031
57,245
-
-
490,276
137,919
-
-
GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 25 -
26
Events after the reporting date

On 26 September 2022 the group acquired 50% of the share capital of Postmaster Productions Limited, a newly incorporated company which holds 100% of the share capital of MOUW Productions Limited. The group’s shares in Postmaster Productions Limited are subject to a fixed charge as third party security in relation to a bank loan facility available to Postmaster Productions Limited.

 

On 22 May 2023 the group acquired 50% of the share capital of Hacienda Productions Limited, a newly incorporated company which holds 100% of the share capital of Green Gold Productions Limited.

 

On 19 June 2023 the company became a member of Ashcombe Estates LLP.

 

On 18 July 2023 the subsidiary Lore On The Lam Limited was dissolved.

 

27
Related party transactions
Transactions with related parties

Interim dividends of £5,800,000 (2021: £8,500,000 ) were paid to the director in the year.

 

During the year the company advanced loans of £5,757,145 and subsidiary companies advanced loans of £8,438 to a director. The same director made repayments to the company during the year of £4,499,995 and repayments to subsidiary companies of £305,144. At the balance sheet date the group owed the director £627,683 (2021: £1,588,127). The amounts are unsecured, interest free and repayable on demand.

 

Other debtors includes an amount of £815,887 (2021: £1,446,716 ) due from Ashcombe Estates LLP, a related party.

 

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.

28
Controlling party

The ultimate controlling party was Mr G Ritchie, a director and shareholder of the company.

 

GSR HOLDINGS LIMITED
GSR Holdings Limited
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
- 26 -
29
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
7,646,883
3,407,015
Adjustments for:
Share of results of associates and joint ventures
1
-
Taxation charged
1,827,507
1,103,504
Finance costs
5
-
0
Investment income
(5,454)
(16,190)
Gain on disposal of tangible fixed assets
(1,543)
-
Amortisation and impairment of intangible assets
8,504
-
Depreciation and impairment of tangible fixed assets
683,095
3,999,700
Movements in working capital:
Increase in stocks
(607,599)
(560,273)
(Increase)/decrease in debtors
(1,867,920)
4,845,057
Increase/(decrease) in creditors
422,537
(3,141,144)
Increase in deferred income
120,737
-
Cash generated from operations
8,226,753
9,637,669
30
Analysis of changes in net funds - group
1 July 2021
Cash flows
30 June 2022
£
£
£
Cash at bank and in hand
3,566,351
(835,916)
2,730,435
Bank overdrafts
(4,970)
(6,348)
(11,318)
3,561,381
(842,264)
2,719,117
2022-06-302021-07-01falseCCH SoftwareCCH Accounts Production 2023.200Guy RitchieThomas TheronMr Rupert 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