Company registration number 00775059 (England and Wales)
G.B. FARRAR & CO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
G.B. FARRAR & CO LIMITED
COMPANY INFORMATION
Directors
Mr K Corderoy
Mr D Clack
Mr A Jacobs
Mr P Smith
Secretary
Mr K Corderoy
Company number
00775059
Registered office
182 Manor Lane
London
SE12 8LP
Auditor
Bryden Johnson Limited
1-4 Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
G.B. FARRAR & CO LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
G.B. FARRAR & CO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

The directors are pleased to report that despite a slight reduction in turnover of 10%, it has been another successful year for the business. We continue to benefit from having a consistent, long standing customer base. This in turn allows us to employ quality resources, both internal and external to deliver the expected high level of project delivery. A positive in the last 12 months has been the improvement in our gross margin to 24.9% (2022: 22.5%). We believe this is a result of having a loyal supplier base and being in a position to supply them with consistent levels of work. While the challenge to the business remains one of maintaining the required level and quality of resource to service our long-standing client base, we are hopeful that the inflationary pressures we have faced in the last 18 months will begin to ease. Our balance sheet remains in an excellent position with working capital at the year-end of £4.16m (2022: £4.13m) and a ratio of current assets to current liabilities of 1.78 (2022: 1.60). Our working capital levels allow us to comfortably support our business going forward and gives us the confidence that we can look to organically grow the business.

Principal risks and uncertainties

As we look to grow our business, our principal risk at the date of approving the financial statements is that of reliability and quality of resource we will require to support any growth. The impact of increasing inflation on both material and labour costs would appear to be easing, however we still believe that there is a general uncertainty surrounding the economy within the UK. With the strength of our balance sheet and our business model, we are confident that we can keep the ongoing impact of these challenges to a minimum.

Key performance indicators

Our key performance indicators are our sales and the margins achieved (please see above). Sales are monitored against our sales forecast, which is prepared on a monthly basis from work orders received and for at least three months forward. Our margin is monitored per project, ensuring that it is within expectations. If outside of these, we investigate any variance.

Future Developments

The Company’s focus in the coming year is to maintain the financial strength of the business to allow us to grow and add to our existing client base. In particular, we look to continue to secure sales, maintain our levels of performance with regards to margin, manage our fixed cost base and ensure our continued high standard of project delivery.

On behalf of the board

Mr A Jacobs
Director
18 January 2024
G.B. FARRAR & CO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company continued to be that of specialist refurbishment fitters.

Results and dividends

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

Ordinary dividends were paid amounting to £2,049,171. The directors do not recommend payment of a final dividend.

Directors

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

Mr K Corderoy
Mr L Baker
(Resigned 15 December 2023)
Mr D Clack
Mr A Jacobs
Mr P Smith
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A Jacobs
Director
18 January 2024
G.B. FARRAR & CO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED
- 4 -
Opinion

We have audited the financial statements of G.B. Farrar & Co Limited (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its 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, 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 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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included:

 

- Reviewing minutes of meetings of those charged with governance;

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias).

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 misrepresentation, or through collusion.

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.

G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED
- 6 -

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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jackie Wilding
Senior Statutory Auditor
For and on behalf of Bryden Johnson Limited
25 January 2024
2024-02-14
Chartered Accountants
Statutory Auditor
1-4 Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
G.B. FARRAR & CO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
21,467,730
23,878,563
Cost of sales
(16,119,526)
(18,513,940)
Gross profit
5,348,204
5,364,623
Administrative expenses
(2,660,500)
(2,428,368)
Operating profit
4
2,687,704
2,936,255
Interest receivable and similar income
7
81,068
6,290
Interest payable and similar expenses
8
(19,950)
(19,950)
Profit before taxation
2,748,822
2,922,595
Tax on profit
9
(599,470)
(537,423)
Profit for the financial year
2,149,352
2,385,172

The profit and loss account has been prepared on the basis that all operations are continuing operations.

G.B. FARRAR & CO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
2,149,352
2,385,172
Other comprehensive income
-
-
Total comprehensive income for the year
2,149,352
2,385,172
G.B. FARRAR & CO LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
400,285
328,915
Current assets
Stocks
11
174,477
93,597
Debtors
12
7,335,540
6,963,941
Cash at bank and in hand
1,952,365
3,954,083
9,462,382
11,011,621
Creditors: amounts falling due within one year
13
(5,306,191)
(6,884,241)
Net current assets
4,156,191
4,127,380
Total assets less current liabilities
4,556,476
4,456,295
Creditors: amounts falling due after more than one year
14
(570,000)
(570,000)
Net assets
3,986,476
3,886,295
Capital and reserves
Called up share capital
17
163,650
163,650
Capital redemption reserve
14,350
14,350
Profit and loss reserves
3,808,476
3,708,295
Total equity
3,986,476
3,886,295

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 18 January 2024 and are signed on its behalf by:
Mr K Corderoy
Mr A Jacobs
Director
Director
Company registration number 00775059 (England and Wales)
G.B. FARRAR & CO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
163,650
14,350
2,888,145
3,066,145
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
2,385,172
2,385,172
Dividends
-
-
(1,565,022)
(1,565,022)
Balance at 30 September 2022
163,650
14,350
3,708,295
3,886,295
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
2,149,352
2,149,352
Dividends
-
-
(2,049,171)
(2,049,171)
Balance at 30 September 2023
163,650
14,350
3,808,476
3,986,476
G.B. FARRAR & CO LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
946,466
3,604,735
Interest paid
(19,950)
(19,950)
Corporation tax paid
(790,002)
(483,158)
Net cash inflow from operating activities
136,514
3,101,627
Investing activities
Purchase of tangible fixed assets
(211,837)
(183,504)
Proceeds from disposal of tangible fixed assets
41,708
20,508
Interest received
81,068
6,290
Net cash used in investing activities
(89,061)
(156,706)
Financing activities
Dividends paid
(2,049,171)
(1,565,022)
Net cash used in financing activities
(2,049,171)
(1,565,022)
Net (decrease)/increase in cash and cash equivalents
(2,001,718)
1,379,899
Cash and cash equivalents at beginning of year
3,954,083
2,574,184
Cash and cash equivalents at end of year
1,952,365
3,954,083
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Accounting policies
Company information

G.B. Farrar & Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is 182 Manor Lane, London, SE12 8LP.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover represents amounts recoverable from clients for work performed during the year, and is stated net of VAT. Revenue is recognised when the amounts can be reliably measured and it is probable that future economic benefits will flow to the company.

 

In some circumstances the scope on projects will be altered after the initial contract is signed. Where the scope change is trivial, new contracts are not signed. For significant variations, a new project would be setup and turnover recognised on the basis of the new contract, separating out the existing and new projects in place.

1.4
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:

Leasehold land and buildings
Over remaining length of lease
Plant and machinery
25% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% reducing balance

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
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.

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.

1.7
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.

1.8
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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

1.9
Equity instruments

Equity instruments issued by the company 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 company.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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.

1.11
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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.

1.12
Retirement benefits

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

1.13
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 leases asset are consumed.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

Amounts recoverable on long term contract

Amounts recoverable on long term contract is recognised on a contract by contract basis and is reflected in the profit and loss account by turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for profit earned to date. Recoverable costs on contracts are carried less amounts received as progress payments on account. Amounts billed on account of contracts are included in creditors as deferred income to the extent that they exceed the value of the related amounts recoverable on long term contract. Full provision is also made for all known or expected losses on individual contracts.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Shop, gym and banking fittings
21,467,730
23,878,563
2023
2022
£
£
Turnover analysed by geographical market
UK
21,467,730
23,878,563
2023
2022
£
£
Other revenue
Interest income
81,068
6,290
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,200
19,300
Depreciation of owned tangible fixed assets
101,984
89,145
Profit on disposal of tangible fixed assets
(3,225)
(7,317)
Operating lease charges
118,179
117,880
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 16 -
5
Employees

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

2023
2022
Number
Number
Administration
18
15
Directors
5
5
Fitters
21
24
Total
44
44

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,676,172
2,549,990
Social security costs
323,374
309,566
Pension costs
47,416
46,705
3,046,962
2,906,261
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
532,645
504,737
Company pension contributions to defined contribution schemes
5,432
5,403
538,077
510,140
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
201,835
154,863
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
81,068
6,290
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
7
Interest receivable and similar income
(Continued)
- 17 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
81,068
6,290
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Dividends on preference shares not classified as equity
19,950
19,950
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
599,470
537,423

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:

2023
2022
£
£
Profit before taxation
2,748,822
2,922,595
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
605,016
555,293
Tax effect of expenses that are not deductible in determining taxable profit
2,993
2,601
Permanent capital allowances in excess of depreciation
(505)
-
0
Depreciation in excess of capital allowances
-
0
561
Movement in deferred tax not recognised
7,372
(24,832)
General provisions
(15,406)
3,800
Taxation charge for the year
599,470
537,423
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
13,479
61,967
44,604
681,345
801,395
Additions
-
0
-
0
15,350
196,487
211,837
Disposals
-
0
-
0
-
0
(214,565)
(214,565)
At 30 September 2023
13,479
61,967
59,954
663,267
798,667
Depreciation and impairment
At 1 October 2022
13,479
58,080
24,410
376,511
472,480
Depreciation charged in the year
-
0
3,592
8,035
90,357
101,984
Eliminated in respect of disposals
-
0
-
0
-
0
(176,082)
(176,082)
At 30 September 2023
13,479
61,672
32,445
290,786
398,382
Carrying amount
At 30 September 2023
-
0
295
27,509
372,481
400,285
At 30 September 2022
-
0
3,887
20,194
304,834
328,915
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,000
1,000
Work in progress
173,477
92,597
174,477
93,597
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,375,950
6,332,236
Gross amounts owed by contract customers
867,775
550,070
Prepayments and accrued income
91,815
81,635
7,335,540
6,963,941
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,730,853
3,272,783
Corporation tax
346,891
537,423
Other taxation and social security
976,872
1,213,535
Dividends payable
19,950
19,950
Other creditors
32,872
19,961
Accruals and deferred income
1,198,753
1,820,589
5,306,191
6,884,241
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
570,000
570,000
15
Loans and overdrafts
2023
2022
£
£
Preference shares
570,000
570,000
Payable after one year
570,000
570,000

The preference shares shown above pay an annual dividend of 3.5%.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,416
46,705

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

The amount of unpaid contributions at year end in respect to the defined contribution scheme was £NIL (2022 : £1,534).

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
22,000
22,000
22,000
22,000
Ordinary A shares of £1 each
120,401
120,401
120,401
120,401
Ordinary B shares of £1 each
7,083
7,083
7,083
7,083
Ordinary C shares of £1 each
7,083
7,083
7,083
7,083
Ordinary D shares of £1 each
7,083
7,083
7,083
7,083
163,650
163,650
163,650
163,650
18
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
106,250
104,000
Between two and five years
217,666
282,666
323,916
386,666
19
Ultimate controlling party

The ultimate controlling party of the company is J.M Jacobs by virtue of his shareholding in the company.

20
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,149,352
2,385,172
Adjustments for:
Taxation charged
599,470
537,423
Finance costs
19,950
19,950
Investment income
(81,068)
(6,290)
Gain on disposal of tangible fixed assets
(3,225)
(7,317)
Depreciation and impairment of tangible fixed assets
101,984
89,145
Movements in working capital:
(Increase)/decrease in stocks
(80,880)
194,580
Increase in debtors
(371,599)
(2,433,588)
(Decrease)/increase in creditors
(1,387,518)
2,825,660
Cash generated from operations
946,466
3,604,735
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
21
Analysis of changes in net funds
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
3,954,083
(2,001,718)
1,952,365
Borrowings excluding overdrafts
(570,000)
-
(570,000)
3,384,083
(2,001,718)
1,382,365
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