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Registration number: 04227137

Giftworks Limited

Unaudited Financial Statements

for the Year Ended 31 December 2022

 

Giftworks Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

Giftworks Limited

Company Information

Directors

D J Grove

Mrs L C Binning

Registered office

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

Accountants

Four Fifty Partnership
Chartered Accountants
34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

 

Giftworks Limited

(Registration number: 04227137)
Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

4

1,752,166

1,749,212

Current assets

 

Stocks

6

3,006,199

2,109,828

Debtors

7

2,801,220

2,073,932

Other financial assets

5

412,541

472,405

Cash at bank and in hand

 

341,333

605,238

 

6,561,293

5,261,403

Creditors: Amounts falling due within one year

8

(2,177,262)

(2,574,243)

Net current assets

 

4,384,031

2,687,160

Total assets less current liabilities

 

6,136,197

4,436,372

Creditors: Amounts falling due after more than one year

8

(68,957)

(180,185)

Provisions for liabilities

(141,878)

(91,893)

Net assets

 

5,925,362

4,164,294

Capital and reserves

 

Called up share capital

14

100,000

100,000

Revaluation reserve

430,567

430,567

Retained earnings

5,394,795

3,633,727

Shareholders' funds

 

5,925,362

4,164,294

For the financial year ending 31 December 2022 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.

 

Giftworks Limited

(Registration number: 04227137)
Balance Sheet as at 31 December 2022

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.

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 Profit and Loss Account.

Approved and authorised by the Board on 27 September 2023 and signed on its behalf by:
 

.........................................
D J Grove
Director

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

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:
34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF
United Kingdom

The principal place of business is:
Unit 14
Cheddar Business Park
Wedmore Road
Cheddar
Somerset
BS27 3EB

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 financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These 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.

The presentation currency of the financial statements is Pound Sterling (£). All monetary amounts are rounded to the nearest pound.

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

2

Accounting policies (continued)

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 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

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.

Tangible assets

Tangible assets are stated in the balance sheet 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

Freehold property (included within land and buildings)

1% on cost

Land (included within land and buildings)

Not depreciated

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

2

Accounting policies (continued)

Plant and machinery

15% on reducing balance

Furniture, fittings and equipment

15% on reducing balance

Motor vehicles

25% on reducing balance

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 goods sold 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises the cost of goods and, where applicable, those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks 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.

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.

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

2

Accounting policies (continued)

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 profit and loss account 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.

Leases

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 balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account 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.

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.

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

2

Accounting policies (continued)

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 17 (2021 - 17).

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 January 2022

1,849,999

228,620

73,387

376,770

2,528,776

Additions

39,941

2,425

-

-

42,366

At 31 December 2022

1,889,940

231,045

73,387

376,770

2,571,142

Depreciation

At 1 January 2022

235,250

190,124

35,487

318,703

779,564

Charge for the year

15,088

6,139

9,475

8,710

39,412

At 31 December 2022

250,338

196,263

44,962

327,413

818,976

Carrying amount

At 31 December 2022

1,639,602

34,782

28,425

49,357

1,752,166

At 31 December 2021

1,614,749

38,496

37,900

58,067

1,749,212

Assets held under finance leases and hire purchase contracts

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

4

Tangible assets (continued)

The carrying amount of tangible assets includes £66,988 (2021: £82,959) in respect of assets held under finance leases and hire purchase contracts.

5

Other financial assets (current and non-current)

Derivatives used for hedging
£

Total
£

Current financial assets

Bills of exchange and forward contracts

412,541

412,541

At 31 December 2022

412,541

412,541

6

Stocks

2022
£

2021
£

Goods for resale

3,006,199

2,109,828

7

Debtors

Current

2022
£

2021
£

Trade debtors

375,240

556,769

Prepayments

226,359

151,138

Other debtors

2,199,621

1,366,025

 

2,801,220

2,073,932

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

8

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Bank loans and overdrafts

11

111,551

113,897

Trade creditors

 

138,164

258,485

Taxation and social security

 

132,724

135,752

Accruals and deferred income

 

121,020

220,384

Other creditors

 

87,014

219,035

Corporation tax

 

464,730

222,855

Trade loans

 

708,890

923,877

Bills of exchange payable and forward currency contracts

 

413,169

479,958

 

2,177,262

2,574,243

Creditors: amounts falling due after more than one year

Note

2022
£

2021
£

Due after one year

 

Loans and borrowings

11

68,957

180,185

Creditors includes bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £180,508 (2021 - £294,961).

The bank borrowings are secured by way of:
- a First Legal Mortgage dated 21 October 2013 over the freehold property of Giftworks Limited, known as Unit 14, Cheddar Business Park.
- a Debenture dated 31 October 2013 comprising fixed and floating charges over all the assets and undertakings of Giftworks Limited including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future.
- a Charge dated 1 November 2013 over contract monies given by Giftworks Limited.
- a General Pledge dated 1 November 2013 over documents and goods given by Giftworks Limited.
- A Guarantee dated 21 October 2013 given by Derrick John Grove to secure all liabilities of Giftworks Limited limited to £200,000.
- a Fixed Charge on Purchased Debts Which Fail to Vest dated 19 November 2013.

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

9

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 January 2022

91,893

91,893

Increase (decrease) in existing provisions

49,985

49,985

At 31 December 2022

141,878

141,878

10

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

21,884

20,537

Later than one year and not later than five years

28,085

20,537

49,969

41,074

11

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

38,686

124,903

Hire purchase contracts

30,271

55,282

68,957

180,185

2022
£

2021
£

Current loans and borrowings

Bank borrowings

86,540

88,886

HP and finance lease liabilities

25,011

25,011

111,551

113,897

Included in the loans and borrowings are the following amounts due after more than five years:

 

Giftworks Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022

11

Loans and borrowings (continued)

Borrowings due after five years

Hire purchase contracts of £375 (2021 - £3,245).

12

Related party transactions

Transactions with directors

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

D J Grove

Directors loan

(60,328)

251,241

(59,513)

131,400

         
       

 

2021

At 1 January 2021
£

Advances to director
£

Repayments by director
£

At 31 December 2021
£

D J Grove

Directors loan

(1,538)

59,223

(118,013)

(60,328)

         
       

 

Other transactions with directors

Loans to directors are repayable on demand and accrued interest at HM Revenue and Customs official rate of interest. Section 455 tax is paid on the loans not repaid within nine months of the year end.

13

Parent and ultimate parent undertaking

The company's immediate parent is Giftworks (Holdings) Limited, incorporated in United Kingdom.

 The ultimate controlling party is D J Grove.

14

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

100,000

100,000

100,000

100,000