Company Registration No. 2567171 (England and Wales)
GAMIT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
GAMIT LIMITED
CONTENTS
Page
Company information
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9 - 10
Statement of cash flows
11
Notes to the financial statements
12 - 28
GAMIT LIMITED
COMPANY INFORMATION
Directors
V Muhiddin
K Muhiddin
N Muhiddin
T Muhiddin
W Muhiddin
M Grossi
Secretary
V Muhiddin
Company number
2567171
Registered office
Buildings 21 & 22
M11 Business Link
Parsonage Lane
Stansted
Essex
CM24 8GF
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
GAMIT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The company has seen an upturn in trading during 2023 with new management coming on board focused on revenue growth. Revenues have increased by $10,512,135 (48%) to $32,414,336 from $21,902,201 in the prior year.

 

The reported gross profit decreased by $1,783,162 to $4,779,135 from $6,562,297 the prior year with a decrease of 15% in gross profit margin to 15%. The operating profit decreased by $3,130,928 to a profit of $751,457 compared to a profit of $3,882,385 the prior year.

 

The company's key financial and other performance indicators during the year were as follows:

Unit
2023
2022
Turnover
$
32,414,336
21,902,201
Gross Profit
%
15
20
Operating Profit
$
751,457
3,882,385
Price risk, credit risk, liquidity risk and cash flow risk

The business activities expose it primarily to the financial risks in foreign currency exchange risks. The business' principle financial instruments comprise bank balances, trade debtors, trade creditors and other loans. The main purpose of these instruments is to finance the business' operations. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

 

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Development and performance

The company will continue its policy of investment in research and development in order to retain a competitive position in the market and to expand its service offering.

On behalf of the board

N Muhiddin
Director
5 April 2024
GAMIT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of provision of consultancy and parts to the aircraft industry.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

V Muhiddin
K Muhiddin
N Muhiddin
T Muhiddin
W Muhiddin
M Grossi
B Schramm
(Resigned 8 January 2024)
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.

On behalf of the board
N Muhiddin
Director
5 April 2024
GAMIT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 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.

GAMIT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GAMIT LIMITED
- 4 -
Opinion

We have audited the financial statements of Gamit Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, 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 FRS 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.

GAMIT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GAMIT LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 and the directors' report.

 

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:

 

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

GAMIT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GAMIT LIMITED
- 6 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

GAMIT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GAMIT LIMITED
- 7 -
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.

John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
8 April 2024
Office: Peterborough
GAMIT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
$
$
Turnover
3
32,414,336
21,902,201
Cost of sales
(27,635,201)
(15,339,904)
Gross profit
4,779,135
6,562,297
Distribution costs
(615,645)
(464,093)
Administrative expenses
(3,691,338)
(2,485,537)
Other operating income
279,305
269,718
Operating profit
4
751,457
3,882,385
Interest receivable and similar income
7
359
28
Interest payable and similar expenses
8
-
0
(111,544)
Amounts written off investments
9
(160,851)
1,414,180
Profit before taxation
590,965
5,185,049
Tax on profit
10
(332,471)
(723,974)
Profit for the financial year
258,494
4,461,075
Retained earnings brought forward
7,186,140
2,725,065
Retained earnings carried forward
7,444,634
7,186,140

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

GAMIT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
$
$
$
$
Fixed assets
Intangible assets
11
5,920
6,414
Tangible assets
12
1,942,954
2,212,164
Investment properties
13
6,155,176
6,316,027
Investments
14
11
11
8,104,061
8,534,616
Current assets
Stocks
16
2,465,701
1,953,906
Debtors
17
15,397,239
8,425,790
Cash at bank and in hand
56,818
1,039,324
17,919,758
11,419,020
Creditors: amounts falling due within one year
18
(18,195,773)
(9,116,872)
Net current (liabilities)/assets
(276,015)
2,302,148
Total assets less current liabilities
7,828,046
10,836,764
Creditors: amounts falling due after more than one year
19
-
0
(3,500,000)
Provisions for liabilities
Deferred tax liability
21
381,428
148,640
(381,428)
(148,640)
Net assets
7,446,618
7,188,124
Capital and reserves
Called up share capital
23
1,984
1,984
Profit and loss reserves
24
7,444,634
7,186,140
Total equity
7,446,618
7,188,124
GAMIT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 5 April 2024 and are signed on its behalf by:
N Muhiddin
Director
Company Registration No. 2567171
GAMIT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
$
$
$
$
Cash flows from operating activities
Cash absorbed by operations
28
(6,179,167)
(3,067,763)
Interest paid
-
0
(111,544)
Income taxes paid
(598,883)
(217,975)
Net cash outflow from operating activities
(6,778,050)
(3,397,282)
Investing activities
Proceeds on disposal of tangible fixed assets
-
445,808
Interest received
359
28
Net cash generated from investing activities
359
445,836
Financing activities
Proceeds from borrowings
3,934,767
3,500,000
Net cash generated from financing activities
3,934,767
3,500,000
Net (decrease)/increase in cash and cash equivalents
(2,842,924)
548,554
Cash and cash equivalents at beginning of year
936,554
388,000
Cash and cash equivalents at end of year
(1,906,370)
936,554
Relating to:
Cash at bank and in hand
56,818
1,039,324
Bank overdrafts included in creditors payable within one year
(1,963,188)
(102,770)
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Gamit Limited is a private company limited by shares incorporated in England and Wales. The registered office is Buildings 21 & 22, M11 Business Link, Parsonage Lane, Stansted, Essex, CM24 8GF.

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 dollars, 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
5% Straight Line
1.6
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. During the year the company conducted a comprehensive reassessment of the useful lives and residual values of tangible fixed assets to align accounting estimates with the other entities in the group. This adjustment aligns the company's accounting policies with the group's standards and ensures a more accurate reflection of the consumption pattern of the economic benefits embodied in these assets. The revised depreciation rates, reflective of this assessment are as follows:

 

Freehold land and buildings        2% Straight Line (Unchanged)

Short leasehold property        6.67% Straight Line (Unchanged)

Furniture, fittings and equipment    12.5 Straight Line (Previously 15% Reducing Balance

Motor Vehicles            25% Straight Line (Previously 15% Reducing Balance)

 

The change in accounting estimate has been applied prospectively from the beginning of this year. Consequently, the depreciation expense for the current fiscal year reflects the updated rates, while the comparative figures presented in the financial statements are based on the previous estimates.

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.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
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.

1.11
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.

1.12
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
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.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

The directors apply judgement when reviewing the stock values at the year end, aviation part values fluctuate due to supply and demand and therefore the directors apply a provision to write down the value of stock if overstated. The provision is based on a review of the market price for these stock items.

 

Investment properties are valued at open market value. This is based on the opinion of the director at year end.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue
2023
2022
$
$
Turnover analysed by class of business
Sale of Goods
32,128,964
18,122,191
Rendering of Services
285,372
3,780,010
32,414,336
21,902,201
2023
2022
$
$
Other significant revenue
Interest income
359
28
Rental income
279,305
269,718
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
$
$
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
70,484
(73,439)
Research and development costs
356,147
339,049
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
20,000
Depreciation of owned tangible fixed assets
269,210
83,754
Profit on disposal of tangible fixed assets
-
(397,216)
Amortisation of intangible assets
494
494
5
Employees

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

2023
2022
Number
Number
Administration and support
25
19
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2023
2022
$
$
Wages and salaries
1,137,448
680,856
Social security costs
119,716
69,916
Pension costs
253,582
454,424
1,510,746
1,205,196
6
Directors' remuneration
2023
2022
$
$
Remuneration for qualifying services
99,150
109,996
Company pension contributions to defined contribution schemes
224,000
431,862
323,150
541,858
7
Interest receivable and similar income
2023
2022
$
$
Interest income
Interest on bank deposits
359
28
8
Interest payable and similar expenses
2023
2022
$
$
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
111,544
9
Amounts written off investments
2023
2022
$
$
Changes in the fair value of investment properties
(160,851)
1,414,180
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Taxation
2023
2022
$
$
Current tax
UK corporation tax on profits for the current period
99,683
598,883
Deferred tax
Origination and reversal of timing differences
232,788
125,091
Total tax charge
332,471
723,974

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
590,965
5,185,049
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
138,877
985,159
Tax effect of expenses that are not deductible in determining taxable profit
13,340
32,275
Effect of change in corporation tax rate
(35,521)
-
0
Depreciation on assets not qualifying for tax allowances
55,286
7,155
Research and development tax credit
(91,361)
(76,103)
Other permanent differences
(4,187)
(13,113)
Deferred tax adjustments in respect of prior years
256,037
(211,399)
Taxation charge for the year
332,471
723,974
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Intangible fixed assets
Patents & licences
$
Cost
At 1 January 2023 and 31 December 2023
9,872
Amortisation and impairment
At 1 January 2023
3,458
Amortisation charged for the year
494
At 31 December 2023
3,952
Carrying amount
At 31 December 2023
5,920
At 31 December 2022
6,414

The aggregate amount of research and development expenditure recognised as an expense during the period is $356,147 (2022 - $339,049)

12
Tangible fixed assets
Freehold land and buildings
Short leasehold property
Furniture, fittings and equipment
Motor vehicles
Total
$
$
$
$
$
Cost
At 1 January 2023 and 31 December 2023
2,487,292
30,064
1,700,559
73,386
4,291,301
Depreciation and impairment
At 1 January 2023
509,229
22,056
1,477,947
69,905
2,079,137
Depreciation charged in the year
49,746
2,005
213,978
3,481
269,210
At 31 December 2023
558,975
24,061
1,691,925
73,386
2,348,347
Carrying amount
At 31 December 2023
1,928,317
6,003
8,634
-
0
1,942,954
At 31 December 2022
1,978,063
8,008
222,612
3,481
2,212,164

 

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
13
Investment property
2023
$
Fair value
At 1 January 2023
6,316,027
Net gains or losses through fair value adjustments
(160,851)
At 31 December 2023
6,155,176

Revaluation

One of the investment properties was revalued on 14 April 2023 and the remaining properties were revalued on 12 July 2023 by Taylor Chartered Surveyors, who are external to the company. The basis of this valuation was on an existing use basis. The directors have considered the market value of these investment properties and consider there to be no change since the valuation undertaken on 14 April 2023 and 12 July 2023. This class of assets has a current value of $6,155,176. (2022 - $6,316,027) and a carrying amount at historical cost of $4,901,847(2022 - $4,901,847).

 

14
Fixed asset investments
2023
2022
Notes
$
$
Investments in associates
15
11
11
15
Associates

Details of the company's associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Site A M11 Business Link Management Company Limited
150 High Street, Huntingdon, Cambridgeshire, PE18 6TF, England & Wales
Ordinary shares
44.00
Site B M11 Business Link Management Company Limited
150 High Street, Huntingdon, Cambridgeshire, United Kingdom, PE29 3YH
Ordinary Shares
8.69
16
Stocks
2023
2022
$
$
Inventories
2,465,701
1,953,906

 

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Debtors
2023
2022
Amounts falling due within one year:
$
$
Trade debtors
15,157,407
8,190,304
Other debtors
88,123
84,873
Prepayments and accrued income
151,709
150,613
15,397,239
8,425,790
18
Creditors: amounts falling due within one year
2023
2022
Notes
$
$
Bank loans and overdrafts
20
1,963,188
102,770
Other borrowings
20
7,434,767
-
0
Trade creditors
4,222,450
633,843
Corporation tax
99,683
598,883
Other taxation and social security
66,582
28,779
Deferred income
68,914
66,871
Other creditors
1,022,464
4,887,307
Accruals
3,317,725
2,798,419
18,195,773
9,116,872
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
$
$
Other borrowings
20
-
0
3,500,000
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
20
Loans and overdrafts
2023
2022
$
$
Bank overdrafts
1,963,188
102,770
Other loans
7,434,767
3,500,000
9,397,955
3,602,770
Payable within one year
9,397,955
102,770
Payable after one year
-
0
3,500,000
The company has obtained a loan from a related party of $7,434,767 (2022: $3,500,000) and till 2022, the related party is charging an interest of 2% above the BOE base rate. However, to support, the related party has elected to waived the interest on the loan for 2023 and as a result the company has not recognised the interest in its financial statements.
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
$
$
Accelerated capital allowances
68,095
91,347
Investment property
313,333
57,293
381,428
148,640
2023
Movements in the year:
$
Liability at 1 January 2023
148,640
Charge to profit or loss
232,788
Liability at 31 December 2023
381,428
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
$
$
Charge to profit or loss in respect of defined contribution schemes
253,582
454,424

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.

23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
$
$
Issued and fully paid
Ordinary Shares of $1.984 each
1,000
1,000
1,984
1,984
24
Reserves

Share capital

Represents the nominal value of shares that have been issued.

 

Profit and loss account

Includes all current and prior period retained profits and losses, inclusive of cumulative unrealised gains and losses for assets shown at fair value at the business date.

25
Operating lease commitments

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
245,180
245,180
Between two and five years
478,740
720,320
723,920
965,500
26
Related party transactions
Remuneration of key management personnel

The directors and key management are the same personnel. At the balance sheet date the amount outstanding to key management was $1,006,763 (2022 - $4,863,207). During the year the company has repaid $3,856,444 (2022 - $5,070,344) to the key management personnel.

GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
26
Related party transactions
(Continued)
- 27 -
Summary of transactions with entities with joint control or significant interest

During the year the company made sales to entities with joint control or significant interest of $26,175,613 (2022 - $18,169,100). The entities with joint control or significant interest made sales to the company of $2,603,133 (2022 - $459,004).

 

At the year end debtors included $8,295,837 (2022 - $5,336,493) and creditors included $2,303,302 (2022 - $105,374) in respect of entities with joint control or significant interest. All business with entities with joint control or significant interest is transacted on commercial terms.

 

During the year, the company was given further loan of $3,934,767 (2022: $3,500,000) by an entity with joint control or significant interest, the interest charged on this loan is till 2022 was 2% over the BOE base rate and it is due for repayment on 31 December 2024. The related party has waived off the interest of loan for 2023 in a gesture of support.

27
Ultimate controlling party

The ultimate controlling party is Kadri Muhiddin.

28
Cash absorbed by operations
2023
2022
$
$
Profit for the year after tax
258,494
4,461,075
Adjustments for:
Taxation charged
332,471
723,974
Finance costs
-
0
111,544
Investment income
(359)
(28)
Gain on disposal of tangible fixed assets
-
(397,216)
Amortisation and impairment of intangible assets
494
494
Depreciation and impairment of tangible fixed assets
269,210
83,754
Other gains and losses
160,851
(1,414,180)
Movements in working capital:
Increase in stocks
(511,795)
(254,953)
Increase in debtors
(6,971,449)
(1,518,904)
Increase/(decrease) in creditors
280,873
(4,872,035)
Increase in deferred income
2,043
8,712
Cash absorbed by operations
(6,179,167)
(3,067,763)
GAMIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
29
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
$
$
$
Cash at bank and in hand
1,039,324
(982,506)
56,818
Bank overdrafts
(102,770)
(1,860,418)
(1,963,188)
936,554
(2,842,924)
(1,906,370)
Borrowings excluding overdrafts
(3,500,000)
(3,934,767)
(7,434,767)
(2,563,446)
(6,777,691)
(9,341,137)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2023.300K MuhiddinN MuhiddinT MuhiddinW MuhiddinM GrossiB SchrammB SchrammV Muhiddinfalse25671712023-01-012023-12-312567171bus:CompanySecretaryDirector12023-01-012023-12-312567171bus:Director12023-01-012023-12-312567171bus:Director22023-01-012023-12-312567171bus:Director32023-01-012023-12-312567171bus:Director42023-01-012023-12-312567171bus:Director52023-01-012023-12-312567171bus:CompanySecretary12023-01-012023-12-312567171bus:Director62023-01-012023-12-312567171bus:Director72023-01-012023-12-312567171bus:RegisteredOffice2023-01-012023-12-3125671712023-12-3125671712022-01-012022-12-312567171core:RetainedEarningsAccumulatedLosses2022-12-312567171core:RetainedEarningsAccumulatedLosses2021-12-312567171core:RetainedEarningsAccumulatedLosses2023-12-312567171core:RetainedEarningsAccumulatedLosses2022-12-312567171core:ShareCapital2023-12-312567171core:ShareCapital2022-12-3125671712022-12-312567171core:OtherResidualIntangibleAssets2023-12-312567171core:OtherResidualIntangibleAssets2022-12-312567171core:PatentsTrademarksLicencesConcessionsSimilar2023-12-312567171core:PatentsTrademarksLicencesConcessionsSimilar2022-12-312567171core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-312567171core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-312567171core:FurnitureFittings2023-12-312567171core:MotorVehicles2023-12-312567171core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-312567171core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-312567171core:FurnitureFittings2022-12-312567171core:MotorVehicles2022-12-312567171core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-312567171core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-312567171core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-312567171core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-312567171core:CurrentFinancialInstruments2023-12-312567171core:CurrentFinancialInstruments2022-12-3125671712022-12-3125671712021-12-312567171core:WithinOneYear2023-12-312567171core:WithinOneYear2022-12-312567171core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-312567171core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-312567171core:UKTax2023-01-012023-12-312567171core:UKTax2022-01-012022-12-31256717112023-01-012023-12-31256717112022-01-012022-12-31256717122023-01-012023-12-31256717122022-01-012022-12-312567171core:PatentsTrademarksLicencesConcessionsSimilar2022-12-312567171core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-312567171core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-312567171core:FurnitureFittings2022-12-312567171core:MotorVehicles2022-12-312567171core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-312567171core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-312567171core:FurnitureFittings2023-01-012023-12-312567171core:MotorVehicles2023-01-012023-12-312567171core:Non-currentFinancialInstruments2023-12-312567171core:Non-currentFinancialInstruments2022-12-312567171core:BetweenTwoFiveYears2023-12-312567171core:BetweenTwoFiveYears2022-12-312567171bus:PrivateLimitedCompanyLtd2023-01-012023-12-312567171bus:FRS1022023-01-012023-12-312567171bus:Audited2023-01-012023-12-312567171bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP