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Registration number: 07358754

GMS Plumbing & Heating Supplies Limited

Annual Report and Unaudited Abridged Financial Statements

for the Year Ended 30 June 2023

 

GMS Plumbing & Heating Supplies Limited

Contents

Abridged Statement of Financial Position

1 to 2

Notes to the Unaudited Abridged Financial Statements

3 to 8

 

GMS Plumbing & Heating Supplies Limited

(Registration number: 07358754)
Abridged Statement of Financial Position as at 30 June 2023

Note

2023

2022

   

£

£

£

£

Fixed assets

   

 

Tangible assets

4

 

38,635

 

36,511

Current assets

   

 

Inventories

5

601,897

 

553,515

 

Debtors

6

796,785

 

787,832

 

Cash at bank and in hand

 

1,201

 

1,033

 

 

1,399,883

 

1,342,380

 

Prepayments and accrued income

 

16,788

 

20,963

 

Creditors: Amounts falling due within one year

(677,940)

 

(731,232)

 

Net current assets

   

738,731

 

632,111

Total assets less current liabilities

   

777,366

 

668,622

Creditors: Amounts falling due after more than one year

 

(19,167)

 

(29,167)

Provisions for liabilities

 

(4,737)

 

(4,436)

Net assets

   

753,462

 

635,019

Capital and reserves

   

 

Called up share capital

100

 

100

 

Profit and loss account

753,362

 

634,919

 

Shareholders funds

   

753,462

 

635,019

 

GMS Plumbing & Heating Supplies Limited

(Registration number: 07358754)
Abridged Statement of Financial Position as at 30 June 2023

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

All of the company’s members have consented to the preparation of an Abridged Statement of Financial Position in accordance with Section 444(2A) of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................
Mr S D Etherington
Director

.........................................
Mr M R Sparks
Director

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
McKay Close
Lynch Lane
Weymouth
Dorset
DT4 9DN
England

These financial statements were authorised for issue by the Board on 17 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102') and the Companies Act 2006.

The presentation currency is (£) sterling.

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Current and deferred tax assets and liabilities are not discounted.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

15% reducing balance

Motor vehicles

25% reducing balance

Office and computer equipment

33% straight line

Leasehold property improvements

10% straight line and 1 year for display costs

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, inventories are assessed for impairment. If inventories are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 20 (2022 - 20).

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

78,411

114,380

11,290

204,081

Additions

2,812

3,471

10,995

17,278

Disposals

-

-

(3,790)

(3,790)

At 30 June 2023

81,223

117,851

18,495

217,569

Depreciation

At 1 July 2022

64,311

97,956

5,303

167,570

Charge for the year

6,797

4,433

3,334

14,564

Eliminated on disposal

-

-

(3,200)

(3,200)

At 30 June 2023

71,108

102,389

5,437

178,934

Carrying amount

At 30 June 2023

10,115

15,462

13,058

38,635

At 30 June 2022

14,100

16,424

5,987

36,511

Included within the net book value of land and buildings above is £10,115 (2022 - £14,099) in respect of freehold land and buildings.
 

5

Inventories

2023
£

2022
£

Other inventories

601,897

553,515

6

Debtors

2023
£

2022
£

Trade debtors

711,785

752,869

Other debtors

85,435

35,083

797,220

787,952

 

GMS Plumbing & Heating Supplies Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 30 June 2023

7

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

         

8

Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments not included in the statement of financial position is £357,567 (2022 - £400,867). Included within the commitments figure are two, ten year property lease agreements which expire in June 2031 and December 2031 respectively.

Amounts disclosed in the statement of financial position

Included within bank loans and overdrafts is an amount owed to Lloyds TSB Commercial Finance Limited of £0 (2022: £194,514) and an amount owed to RBS Invoice Finance Ltd of £109,318 (2022: £0) which are secured by an all assets debenture dated 13th September 2021 and 18th October 2022 respectively. The bank overdraft with National Westminster Bank PLC is also secured by a charge dated 6th November 2020.

9

Related party transactions

Transactions with directors

2023

At 1 July 2022
£

Repayments by director
£

Other payments made to company by director
£

At 30 June 2023
£

Mr S D Etherington

Directors loan account

9,963

(10,000)

7

(30)

         
       

 

During the year Mr S D Etherington maintained a loan account with the company. The balance owed to the company at 30 June 2022 was £9,963 (2021: £67 owed by the company). The maximum amount outstanding to the company during the year was £14,500 (2021: £0). Beneficial loan interest has been charged at HMRC's office rate for periods when the account has been overdrawn. There are no fixed repayment terms and this loan is included in other debtors due within one year at the year end.