Company registration number 08038492 (England and Wales)
GAVEL AUCTIONEERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
GAVEL AUCTIONEERS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
GAVEL AUCTIONEERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
260,639
188,407
Current assets
Stocks
64,000
36,673
Debtors
4
1,170,528
1,067,450
Cash at bank and in hand
13
13
1,234,541
1,104,136
Creditors: amounts falling due within one year
5
(476,307)
(506,155)
Net current assets
758,234
597,981
Total assets less current liabilities
1,018,873
786,388
Creditors: amounts falling due after more than one year
6
(235,832)
(270,046)
Provisions for liabilities
(28,713)
(26,308)
Net assets
754,328
490,034
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
754,228
489,934
Total equity
754,328
490,034
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 November 2023 and are signed on its behalf by:
Mr G Cole
Director
Company Registration No. 08038492
GAVEL AUCTIONEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Gavel Auctioneers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wernddu Court, Van Road, Caerphilly, CF83 3SG.
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. The principal accounting policies adopted are set out below.
1.2
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 auction sales is recognised over the period when, and to the extent that, the company obtains the right to consideration in exchange for services provided.
1.3
Tangible fixed assets
Tangible fixed assets are 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:
Leasehold improvements
- 20% reducing balance
Plant and equipment
- 20% reducing balance
Fixtures and fittings
- 20% reducing balance
Computers
- 20% reducing balance
Motor vehicles
- 20% reducing balance
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and 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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
GAVEL AUCTIONEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.5
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.
Debtors and creditors with no stated interest rate and recoverable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.6
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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GAVEL AUCTIONEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
13
8
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
83,000
34,465
3,765
7,227
135,105
263,562
Additions
91,795
18,023
1,362
5,208
2,470
118,858
Disposals
(2,329)
(3,216)
(5,545)
At 31 March 2023
174,795
52,488
2,798
12,435
134,359
376,875
Depreciation and impairment
At 1 April 2022
12,688
10
427
62,030
75,155
Depreciation charged in the year
18,150
6,928
513
1,763
14,209
41,563
Eliminated in respect of disposals
(482)
(482)
At 31 March 2023
18,150
19,616
523
2,190
75,757
116,236
Carrying amount
At 31 March 2023
156,645
32,872
2,275
10,245
58,602
260,639
At 31 March 2022
83,000
21,777
3,755
6,800
73,075
188,407
GAVEL AUCTIONEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
16,697
7,529
Amounts owed by group undertakings
1,126,483
1,059,568
Other debtors
218
Prepayments and accrued income
27,348
135
1,170,528
1,067,450
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
297,392
333,626
Obligations under finance leases
7,546
25,889
Trade creditors
75,449
29,842
Corporation tax
32,538
(16)
Other taxation and social security
57,899
28,908
Other creditors
406
Accruals and deferred income
5,483
87,500
476,307
506,155
Included in other creditors above are obligations under finance leases totaling £7,546 (2022 - £25,889) secured by a fixed charge over the assets they finance.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
235,832
262,499
Obligations under finance leases
7,547
235,832
270,046
Amounts included above which fall due after five years are as follows:
Payable by instalments
145,833
162,500
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
GAVEL AUCTIONEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
9
Parent company
Gavel Auctioneers Limited is a wholly owned subsidiary of Gavel Holdings Limited. The registered office address of Gavel Holdings Ltd is Unit 6a, Cwmtillery Industrial Estate, Cwmtillery, Abertillery, Wales, NP13 1LZ.