REGISTERED NUMBER: 02302371 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 28th February 2023 |
for |
GAINPEAK LIMITED |
REGISTERED NUMBER: 02302371 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 28th February 2023 |
for |
GAINPEAK LIMITED |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Contents of the Consolidated Financial Statements |
for the Year Ended 28th February 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
GAINPEAK LIMITED |
Company Information |
for the Year Ended 28th February 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Simon Ellingham BA FCA DChA |
AUDITORS: |
Windover House |
St Ann Street |
Salisbury |
Wiltshire |
SP1 2DR |
BANKERS: | Barclays |
1 Churchill Place |
Canary Wharf |
London |
E14 5HP |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Group Strategic Report |
for the Year Ended 28th February 2023 |
The directors present their strategic report of the company and the group for the year ended 28th February 2023. |
REVIEW OF BUSINESS |
During the year to February 2023 the group was able to increase its turnover in both the software and services areas. The pressure on salaries in India, together with an unfavourable exchange rate in the Autumn of 2022 and the necessity of providing against historical issues, leading to a Director being relieved of his executive duties, meant that the result in India was disappointing and the resulting loss had an impact on the overall Group profitability |
The restructuring of the Services activity that had started in 2021 continued during the year, with the focus on obtaining more UK based turnover rather than less profitable work in other locations. However, the Group was able to benefit from increased software sales in India, a market which had underperformed for many years under previous leadership. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The prospect of a recession in the UK appears to have receded somewhat but risks remain due to the high level of inflation experienced during the last two years. Activity in the Construction industry continues to be robust and hasn't affected the Group turnover. Nevertheless, the main costs continue to be salary related, running at over 50% of turnover, and the Directors are committed to assisting all employees in combatting any reduction in the real level of wages caused by inflationary pressures, even if this does result in a reduced level of overall profitability in the short term, as they believe that the retention of key staff will reap benefits over the longer term.. |
The increase in "home working" particularly in India, has seen many new businesses being established and the competition from these has threatened to reduce prices below those that at which established Companies, such as CADS, can operate profitably. However, whilst CADS is committed to retaining flexibility over working arrangements, a greater return tn the office by staff has generally reassured customers over the quality of work, as against that offered by competitors based sole on price. |
FINANCIAL INSTRUMENTS |
The group maintains a very low level of external borrowings and, due to difficulties experienced in the past in obtaining support from its bankers, there are no plans to change this in the foreseeable future. The Directors' policy is to avoid any reliance on external funding in order to retain control over the Group's activities, which they feel they are best placed to accomplish rather than being influenced by outside parties. The Group's budgets and business plans indicate that it has sufficient cash reserves to meet any anticipated finance requirements in the medium term. |
RESEARCH AND DEVELOPMENT |
The Group continues to invest significant amounts in the ongoing development of its software and it is committed to maintaining its position as one of the leading providers of software to the UK scaffolding and reinforced concrete sectors. The current focus remains on the provision of 3D solutions which are increasingly being demanded by customers. The Directors remain committed to building a team with the necessary expertise to fulfil these requirements and prioritising the longer term stability of the Group and ongoing benefit to its employees both in the UK and in India. |
ON BEHALF OF THE BOARD: |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Report of the Directors |
for the Year Ended 28th February 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 28th February 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 28th February 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st March 2022 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the Company made charitable donations of £3,000. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Fawcetts LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Gainpeak Limited |
Opinion |
We have audited the financial statements of Gainpeak Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28th February 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Financial Reporting Standard 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 28th February 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. |
Report of the Independent Auditors to the Members of |
Gainpeak Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page three, 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 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Gainpeak Limited |
Auditors' 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 a Report of the Auditors 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: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations we consider the following: |
• the nature of the industry and sector, control environment and business performance; |
• results of our enquiries of management about their own identification and assessment of the risks of |
irregularities; |
• any matters we identified having obtained and reviewed the company's documentation of their policies and |
procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any |
instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, |
suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations |
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the |
financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: revenue and profit recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. |
Audit response to risks identified |
As a result of performing the above, we identified revenue and profit recognition a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following: |
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance |
with provisions of relevant laws and regulations described as having a direct effect on the financial |
statements; |
• enquiring of management concerning actual and potential litigation and claims; |
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks |
of material misstatement due to fraud; |
• in addressing the risk of fraud through management override of controls, testing the appropriateness of |
journal entries and other adjustments; assessing whether the judgements made in making accounting |
estimates are indicative of a potential bias; and evaluating the business rationale of any significant |
transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Gainpeak Limited |
Use of our report |
This report is made solely to the 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Windover House |
St Ann Street |
Salisbury |
Wiltshire |
SP1 2DR |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Consolidated |
Income Statement |
for the Year Ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 8,704,905 | 7,875,427 |
Cost of sales | 219,778 | 216,053 |
GROSS PROFIT | 8,485,127 | 7,659,374 |
Administrative expenses | 8,406,908 | 7,371,379 |
78,219 | 287,995 |
Other operating income | 54,886 | 129,407 |
OPERATING PROFIT | 5 | 133,105 | 417,402 |
Interest receivable and similar income | 28,189 | 1,302 |
161,294 | 418,704 |
Interest payable and similar expenses | 6 | 601 | 2,684 |
PROFIT BEFORE TAXATION | 160,693 | 416,020 |
Tax on profit | 7 | (61,802 | ) | 25,206 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 296,078 | 365,517 |
Non-controlling interests | (73,583 | ) | 25,297 |
222,495 | 390,814 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 222,495 | 390,814 |
OTHER COMPREHENSIVE INCOME |
Exchange movements | 70,356 | (25,392 | ) |
Purchase of own shares | (320,000 | ) | - |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(249,644 |
) |
(25,392 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(27,149 |
) |
365,422 |
Total comprehensive income attributable to: |
Owners of the parent | 46,434 | 340,125 |
Non-controlling interests | (73,583 | ) | 25,297 |
(27,149 | ) | 365,422 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Consolidated Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 51,111 | 39,715 |
Tangible assets | 10 | 559,642 | 647,099 |
Investments | 11 | - | - |
610,753 | 686,814 |
CURRENT ASSETS |
Debtors | 12 | 3,280,383 | 2,483,542 |
Cash at bank and in hand | 3,636,830 | 4,020,404 |
6,917,213 | 6,503,946 |
CREDITORS |
Amounts falling due within one year | 13 | 3,326,159 | 2,973,462 |
NET CURRENT ASSETS | 3,591,054 | 3,530,484 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,201,807 |
4,217,298 |
PROVISIONS FOR LIABILITIES | 16 | 158,176 | 146,498 |
NET ASSETS | 4,043,631 | 4,070,800 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 80 | 100 |
Capital redemption reserve | 18 | 20 | - |
Retained earnings | 18 | 3,538,583 | 3,492,169 |
SHAREHOLDERS' FUNDS | 3,538,683 | 3,492,269 |
NON-CONTROLLING INTERESTS | 19 | 504,948 | 578,531 |
TOTAL EQUITY | 4,043,631 | 4,070,800 |
The financial statements were approved by the Board of Directors and authorised for issue on 20th November 2023 and were signed on its behalf by: |
J W P Fryett - Director |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Company Balance Sheet |
28th February 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 77,009 | 70,575 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Consolidated Statement of Changes in Equity |
for the Year Ended 28th February 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1st March 2021 | 100 | 3,152,044 | - |
Changes in equity |
Total comprehensive income | - | 340,125 | - |
Balance at 28th February 2022 | 100 | 3,492,169 | - |
Changes in equity |
Issue of share capital | (20 | ) | - | - |
Total comprehensive income | - | 46,414 | 20 |
Balance at 28th February 2023 | 80 | 3,538,583 | 20 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1st March 2021 | 3,152,144 | 553,234 | 3,705,378 |
Changes in equity |
Total comprehensive income | 340,125 | 25,297 | 365,422 |
Balance at 28th February 2022 | 3,492,269 | 578,531 | 4,070,800 |
Changes in equity |
Issue of share capital | (20 | ) | - | (20 | ) |
Total comprehensive income | 46,434 | (73,583 | ) | (27,149 | ) |
Balance at 28th February 2023 | 3,538,683 | 504,948 | 4,043,631 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Company Statement of Changes in Equity |
for the Year Ended 28th February 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st March 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 28th February 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 28th February 2023 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Consolidated Cash Flow Statement |
for the Year Ended 28th February 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (212,566 | ) | 888,803 |
Interest paid | (42 | ) | (10 | ) |
Interest element of hire purchase payments paid |
(559 |
) |
(2,674 |
) |
Tax paid | (190,947 | ) | (3,541 | ) |
Net cash from operating activities | (404,114 | ) | 882,578 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (13,073 | ) | - |
Purchase of tangible fixed assets | (44,544 | ) | (8,798 | ) |
Sale of tangible fixed assets | (229 | ) | 6,180 |
Interest received | 28,189 | 1,302 |
Net cash from investing activities | (29,657 | ) | (1,316 | ) |
Cash flows from financing activities |
New loans in year | 89,790 | - |
Loan repayments in year | (31,949 | ) | (50,796 | ) |
Capital repayments in year | (19,528 | ) | (24,847 | ) |
Share issue | (20 | ) | - |
Share buyback | (319,980 | ) | - |
Advance payments | 331,884 | 278,318 |
Net cash from financing activities | 50,197 | 202,675 |
(Decrease)/increase in cash and cash equivalents | (383,574 | ) | 1,083,937 |
Cash and cash equivalents at beginning of year |
2 |
4,020,404 |
2,936,467 |
Cash and cash equivalents at end of year |
2 |
3,636,830 |
4,020,404 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 28th February 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 160,693 | 416,020 |
Depreciation charges | 133,242 | 142,982 |
Loss on disposal of fixed assets | 665 | 2,770 |
Exchange movements | 70,356 | (25,392 | ) |
Finance costs | 601 | 2,684 |
Finance income | (28,189 | ) | (1,302 | ) |
337,368 | 537,762 |
(Increase)/decrease in trade and other debtors | (523,984 | ) | 248,877 |
(Decrease)/increase in trade and other creditors | (25,950 | ) | 102,164 |
Cash generated from operations | (212,566 | ) | 888,803 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28th February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 3,636,830 | 4,020,404 |
Year ended 28th February 2022 |
28.2.22 | 1.3.21 |
£ | £ |
Cash and cash equivalents | 4,020,404 | 2,936,467 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.22 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,020,404 | (383,574 | ) | 3,636,830 |
4,020,404 | (383,574 | ) | 3,636,830 |
Debt |
Finance leases | (19,528 | ) | 19,528 | - |
Debts falling due within 1 year | (22,159 | ) | (57,841 | ) | (80,000 | ) |
(41,687 | ) | (38,313 | ) | (80,000 | ) |
Total | 3,978,717 | (421,887 | ) | 3,556,830 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements |
for the Year Ended 28th February 2023 |
1. | STATUTORY INFORMATION |
Gainpeak Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis. The financial statements are presented in sterling which is the functional currency of the company. |
The significant accounting policies applied in the preparation of these financial statements are set out below. |
Turnover |
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Where services such as maintenance contracts are supplied in a period following the year end the relevant invoiced amount is treated as maintenance in advance. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 5,907,891 | 5,680,233 |
Europe | 396,152 | 326,846 |
Rest of the World | 2,400,862 | 1,868,348 |
8,704,905 | 7,875,427 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,979,659 | 4,389,319 |
Social security costs | 308,414 | 275,284 |
Other pension costs | 102,395 | 132,188 |
5,390,468 | 4,796,791 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and development | 87 | 86 |
Services and support | 282 | 296 |
Office and management | 38 | 40 |
The average number of employees by undertakings that were proportionately consolidated during the year was 407 (2022 - 422 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 405,778 | 379,571 |
Directors' pension contributions to money purchase schemes | 24,335 | 64,122 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 302,733 | 298,602 |
Pension contributions to money purchase schemes | 24,335 | 24,122 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 7,918 | 14,320 |
Other operating leases | 263,574 | 259,425 |
Depreciation - owned assets | 131,565 | 126,869 |
Depreciation - assets on hire purchase contracts | - | 15,681 |
Loss on disposal of fixed assets | 665 | 2,770 |
Computer software amortisation | 1,677 | 433 |
Audit fees | 12,500 | 12,000 |
Foreign exchange differences | 175,628 | (7,234 | ) |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Other Interest | 42 | 10 |
Hire purchase | 559 | 2,674 |
601 | 2,684 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 56,051 | 63,418 |
Deferred tax | (117,853 | ) | (38,212 | ) |
Tax on profit | (61,802 | ) | 25,206 |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 160,693 | 416,020 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
30,532 |
79,044 |
Effects of: |
Expenses not deductible for tax purposes | (1,116 | ) | (4,756 | ) |
Capital allowances in excess of depreciation | (34,043 | ) | (30,924 | ) |
Utilisation of tax losses | - | (23,620 | ) |
Exchange movements | (13,378 | ) | 1,454 |
Effect of tax rates for foreign group companies | (10,592 | ) | 4,008 |
Deferred tax - other timing differences | (5,864 | ) | - |
Losses carried forward | (27,341 | ) | - |
Total tax (credit)/charge | (61,802 | ) | 25,206 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Exchange movements | 70,356 | - | 70,356 |
Purchase of own shares | (320,000 | ) | - | (320,000 | ) |
(249,644 | ) | - | (249,644 | ) |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
7. | TAXATION - continued |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Exchange movements | (25,392 | ) | - | (25,392 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1st March 2022 | 515,803 |
Additions | 13,073 |
At 28th February 2023 | 528,876 |
AMORTISATION |
At 1st March 2022 | 476,088 |
Amortisation for year | 1,677 |
At 28th February 2023 | 477,765 |
NET BOOK VALUE |
At 28th February 2023 | 51,111 |
At 28th February 2022 | 39,715 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Short | and |
property | leasehold | fittings |
£ | £ | £ |
COST |
At 1st March 2022 | 214,079 | 21,615 | 230,869 |
Additions | - | - | - |
Disposals | - | - | - |
At 28th February 2023 | 214,079 | 21,615 | 230,869 |
DEPRECIATION |
At 1st March 2022 | 90,925 | 21,287 | 182,819 |
Charge for year | 2,796 | 328 | 12,831 |
Eliminated on disposal | - | - | - |
At 28th February 2023 | 93,721 | 21,615 | 195,650 |
NET BOOK VALUE |
At 28th February 2023 | 120,358 | - | 35,219 |
At 28th February 2022 | 123,154 | 328 | 48,050 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st March 2022 | 224,975 | 1,611,010 | 2,302,548 |
Additions | - | 44,544 | 44,544 |
Disposals | - | (1,450 | ) | (1,450 | ) |
At 28th February 2023 | 224,975 | 1,654,104 | 2,345,642 |
DEPRECIATION |
At 1st March 2022 | 115,255 | 1,245,163 | 1,655,449 |
Charge for year | 18,861 | 96,749 | 131,565 |
Eliminated on disposal | - | (1,014 | ) | (1,014 | ) |
At 28th February 2023 | 134,116 | 1,340,898 | 1,786,000 |
NET BOOK VALUE |
At 28th February 2023 | 90,859 | 313,206 | 559,642 |
At 28th February 2022 | 109,720 | 365,847 | 647,099 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1st March 2022 | 125,196 |
Transfer to ownership | (125,196 | ) |
At 28th February 2023 | - |
DEPRECIATION |
At 1st March 2022 | 33,686 |
Transfer to ownership | (33,686 | ) |
At 28th February 2023 | - |
NET BOOK VALUE |
At 28th February 2023 | - |
At 28th February 2022 | 91,510 |
Company |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st March 2022 |
and 28th February 2023 |
DEPRECIATION |
At 1st March 2022 |
Charge for year |
At 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st March 2022 |
and 28th February 2023 |
NET BOOK VALUE |
At 28th February 2023 |
At 28th February 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
The Group also held a 51% interest in the Ordinary share capital of CADS Software India Private Limited, suppliers of software and construction services registered in India. As required under company law in India, CADS Software India Private Limited prepares financial statements to 31st March each year. The financial statements for the years ended 31st March 2022 and 2023 have been subject to statutory audit in India. |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,307,789 | 1,897,871 |
Amounts owed by group undertakings | - | - |
Other debtors | 382,664 | 288,995 |
Tax | 167,624 | - |
Deferred tax asset | 132,298 | 27,065 | - | - |
Prepayments | 290,008 | 269,611 |
3,280,383 | 2,483,542 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Accelerated capital allowances | 12,501 | (6,741 | ) |
Tax losses carried forward | 80,127 | - |
Other timing differences | 39,670 | 33,806 | - | - |
132,298 | 27,065 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 80,000 | 22,159 |
Hire purchase contracts (see note 15) | - | 19,528 |
Advance payments | 1,796,560 | 1,464,676 |
Trade creditors | 266,025 | 215,077 |
Amounts owed to group undertakings | - | - |
Tax | 20,541 | 12,091 |
Social security and other taxes | 74,319 | 58,863 |
VAT | 64,210 | 119,811 | - | - |
Other creditors | 395,877 | 420,641 |
Accruals and deferred income | 628,627 | 640,616 |
3,326,159 | 2,973,462 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 80,000 | 22,159 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 19,528 |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
15. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 18,834 | 4,810 |
Between one and five years | 267,531 | 504,183 |
In more than five years | 266,667 | 316,667 |
553,032 | 825,660 |
16. | PROVISIONS FOR LIABILITIES |
Company |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other provisions | - | - |
Aggregate amounts | - | 793 |
Group |
Deferred |
tax | Gratuities |
£ | £ |
Balance at 1st March 2022 | (27,065 | ) | 146,898 |
Provided during year | (105,233 | ) | 27,809 |
Balance at 28th February 2023 | (132,298 | ) | 174,707 |
Company |
Deferred |
tax |
£ |
Balance at 1st March 2022 |
Balance at 28th February 2023 |
The provision for Gratuities relates to amounts payable by CADS Software India Private Limited (CSI), under the Payment of Gratuity Act 1972, to employees and former employees in respect of their service to CSI. Such amounts are payable upon leaving the company and are allowable as a tax deduction in computing the Company's profit when paid. |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
'A' Ordinary | £1 | 60 | 60 |
'B' Ordinary | £1 | 20 | 20 |
NIL | 'C' Ordinary | £1 | - | 20 |
(2022 - 20 ) |
80 | 100 |
On 4th November 2022 the company purchased 20 £1 Ordinary Shares for a consideration of £320,000. |
18. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st March 2022 | 3,492,169 | - | 3,492,169 |
Profit for the year | 296,078 | 296,078 |
Purchase of own shares | (320,000 | ) | 20 | (319,980 | ) |
Exchange movements | 70,336 | - | 70,336 |
At 28th February 2023 | 3,538,583 | 20 | 3,538,603 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st March 2022 | 951,678 |
Profit for the year |
Purchase of own shares | (320,000 | ) | 20 | (319,980 | ) |
At 28th February 2023 | 708,707 |
19. | NON-CONTROLLING INTERESTS |
The Minority Interests consist of a 49% equity interest in the shares of CADS Software India Private Limited |
20. | RELATED PARTY DISCLOSURES |
GAINPEAK LIMITED (REGISTERED NUMBER: 02302371) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 28th February 2023 |
20. | RELATED PARTY DISCLOSURES - continued |
Entities over which the entity has control, joint control or significant influence |
2023 | 2022 |
£ | £ |
Sales of software | 706,551 | 460,216 |
Software development and other services purchased | 3,257,692 | 2,680,198 |
Amount due from related party | 169,717 | 167,276 |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Sales | 1,146,679 | 818,745 |
Purchases | 784,577 | 767,814 |
Consultancy and other services | 184,721 | 23,434 |
Key management personnel compensation | 354,302 | 375,749 |
Amount due from related parties | 471,454 | 418,858 |
Amount due to related party | 376,110 | 265,640 |
The key management personnel are considered to be the directors of Gainpeak Ltd. |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is J W P Fryett. |