REGISTERED NUMBER: 10840205 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
GRAND FIR LIMITED |
REGISTERED NUMBER: 10840205 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023 |
FOR |
GRAND FIR LIMITED |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 July 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
GRAND FIR LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 July 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 July 2023 |
The directors present their strategic report of the company and the group for the year ended 31 July 2023. |
REVIEW OF BUSINESS |
The business had a good financial performance showing EBITDA of £897,540 (2022 - £853,046) from sales of £10,959,370 (2022 - £9,190,732). This demonstrates the continuing strength of the business, which has net current assets of £2,345,241 (2022 - £1,871,266) and total equity of £3,655,991 (2022 - £3,413,928). |
The Homes England Framework for Estate Management Services incorporating Vacant Property Management is an important part of our work portfolio. The framework was due to end in March 2023 but was extended to March 2024 and a further extension is expected to last a minimum of 6 months while they re-tender the contract. The IT for a new framework is yet to be issued. The Environment Partnership (TEP) Limited has retained the framework since 1998 and is in a strong position across knowledge, skills, experience, performance and financial proposition to be successful again. |
We continue to market and promote services so that as long-running projects close we are well-placed to secure other opportunities to deploy staff. Over 900 projects were opened in the 2022-2023 financial year, during that period we worked for over 400 clients with c150 being new clients or ones we had not worked with for three years or more. We have also been successful on several new or retendered frameworks that will run for multiple years. The directors are confident that the performance and growth potential of the business will be fulfilled and consider that the business has a strong, stable financial footing. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Staff retention and recruitment, competition for the provision of environmental services and external economic factors are the key business risks for the company. The reducing but still high inflation and limited growth predicted in 2024 have the potential to affect our running costs and impact our client base. |
Staff retention is promoted through the provision of stimulating work, attention to personal development and competitive rewards. Senior management staff took up the opportunity to become shareholders. Recruitment, while challenging, continues to be successful with new appointments made across a variety of TEP offices, teams and grades. Salaries have been increased again this year in recognition of the effect of price increase on the individual household and to aid staff retention. Increased running costs including salaries have been factored into our budgets and targets. |
Our client base is varied including government, utilities, infrastructure, commercial and housebuilding clients and is therefore resilient to factors that might affect only specific sectors. We continue to focus on frameworks and have been successful in this arena. These are an important source of work not least because competition is greatly reduced, and this is borne out by the framework-related commissions on our books. Notwithstanding our high quality work, market conditions may yet adversely affect financial performance and this has been considered in the targets set for the 2023-2024 financial year. Overall, the market currently is buoyant, client retention is high, the pipeline of long running projects runs beyond this financial year and the company continues to foster new relationships and attract new clients. |
DEVELOPMENT AND PERFORMANCE |
The directors' future plans are to retain the core business focus on environmental consultancy and landscape architecture and related services, supporting a wide range of clients in chosen markets. We will continue to look for opportunities to grow the business and consolidate markets showing continued high demand. Most recently this has included expansion of services in the arena of water security, soils, environmental net gain and nature recovery. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 July 2023 |
KEY PERFORMANCE INDICATORS |
Internal KPIs relate to percentage of submissions converted to commissions, achievement of financial targets (monitored monthly), employee involvement and incident-free targets in respect of health, quality, safety, environmental performance. The directors and senior managers monitor client satisfaction with our performance on other projects. We continue to sustain external accreditations in respect of Quality, Health and Safety, Environmental Management, Carbon Neutrality, Investors in People (Gold) and Cyber Essentials. This year we achieved full recertification for ISO 9001, 45001 and 14001. The climate and ecological emergencies that have been declared by the UK parliament and many of our public sector clients remind us of the need to plan for, and respond to, environmental decline. We have a carbon management plan which has benefitted our business through reducing our waste generation, and use of energy and fossil fuels. Our bank (Handelsbanken) is a signatory of the Principles of Responsible Banking promoted by the UN Environment Programme's Finance Initiative. The company pension scheme includes ethically based investment options. We will continue to work with all parties in our supply-chain "ecosystem" to promote sustainability in our business activity. |
ON BEHALF OF THE BOARD: |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 July 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023. |
DIVIDENDS |
During the period ordinary dividends were paid amounting to £134,493, relating to the dividends voted for 2022. This year, the directors are recommending a dividend of £159,711. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 July 2023 |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR LIMITED |
Opinion |
We have audited the financial statements of Grand Fir Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Profit and Loss Account, 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 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 31 July 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 |
GRAND FIR 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 Statement of Directors' Responsibilities set out on page four, 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 |
GRAND FIR 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 have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have 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 areas: timing of recognition of income, onerous contract valuation, going concern and value of amounts recoverable on contracts. 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 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 UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
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; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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. |
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 |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 10,959,370 | 9,190,732 |
Cost of sales | 8,017,926 | 6,610,757 |
GROSS PROFIT | 2,941,444 | 2,579,975 |
Administrative expenses | 2,378,704 | 2,040,563 |
562,740 | 539,412 |
Other operating income | 25,767 | 2,770 |
OPERATING PROFIT | 6 | 588,507 | 542,182 |
Interest receivable and similar income | 3,418 | - |
591,925 | 542,182 |
Interest payable and similar expenses | 7 | 2,182 | 13,168 |
PROFIT BEFORE TAXATION | 589,743 | 529,014 |
Tax on profit | 8 | 187,970 | 152,561 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
401,773 |
376,453 |
Profit attributable to: |
Owners of the parent | 401,773 | 376,453 |
Total comprehensive income attributable to: |
Owners of the parent | 401,773 | 376,453 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
CONSOLIDATED BALANCE SHEET |
31 July 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 1,184,817 | 1,458,237 |
Tangible assets | 12 | 151,812 | 111,463 |
Investments | 13 | - | - |
1,336,629 | 1,569,700 |
CURRENT ASSETS |
Debtors | 14 | 3,490,035 | 3,142,845 |
Cash at bank | 559,294 | 297,822 |
4,049,329 | 3,440,667 |
CREDITORS |
Amounts falling due within one year | 15 | 1,704,088 | 1,569,401 |
NET CURRENT ASSETS | 2,345,241 | 1,871,266 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 3,681,870 | 3,440,966 |
PROVISIONS FOR LIABILITIES | 18 | 25,879 | 27,038 |
NET ASSETS | 3,655,991 | 3,413,928 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 420,290 | 420,290 |
Share premium | 20 | 1,741,028 | 1,741,028 |
Capital redemption reserve | 20 | 34,154 | 34,154 |
Retained earnings | 20 | 1,460,519 | 1,218,456 |
SHAREHOLDERS' FUNDS | 3,655,991 | 3,413,928 |
The financial statements were approved by the Board of Directors and authorised for issue on 11 April 2024 and were signed on its behalf by: |
Ms E J Seal - Director |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
COMPANY BALANCE SHEET |
31 July 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 118,804 | 677,225 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 July 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2021 | 436,444 | 1,060,434 | 1,741,028 | 18,000 | 3,255,906 |
Profit for the year | - | 376,453 | - | - | 376,453 |
Total comprehensive income | - | 376,453 | - | - | 376,453 |
Dividends | - | (134,493 | ) | - | - | (134,493 | ) |
Share buyback | (16,154 | ) | (83,938 | ) | - | 16,154 | (83,938 | ) |
Balance at 31 July 2022 | 420,290 | 1,218,456 | 1,741,028 | 34,154 | 3,413,928 |
Profit for the year | - | 401,773 | - | - | 401,773 |
Total comprehensive income | - | 401,773 | - | - | 401,773 |
Dividends | - | (159,710 | ) | - | - | (159,710 | ) |
Balance at 31 July 2023 | 420,290 | 1,460,519 | 1,741,028 | 34,154 | 3,655,991 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 July 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2021 |
Profit for the year | - | 677,225 | - | - | 677,225 |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Share buyback | (16,154 | ) | (83,938 | ) | - | 16,154 | (83,938 | ) |
Balance at 31 July 2022 |
Profit for the year | - | 118,804 | - | - | 118,804 |
Total comprehensive income | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 July 2023 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 July 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | 801,081 | 618,962 |
Interest paid | (2,182 | ) | (13,168 | ) |
Tax paid | (143,615 | ) | (231,717 | ) |
Net cash from operating activities | 655,284 | 374,077 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (85,598 | ) | (63,930 | ) |
Sale of tangible fixed assets | - | 18,923 |
Interest received | 3,418 | - |
Net cash from investing activities | (82,180 | ) | (45,007 | ) |
Cash flows from financing activities |
Share buyback | - | (83,938 | ) |
Shareholder loan repayments in the year | (177,139 | ) | (354,288 | ) |
Equity dividends paid | (134,493 | ) | (243,377 | ) |
Net cash from financing activities | (311,632 | ) | (681,603 | ) |
Increase/(decrease) in cash and cash equivalents | 261,472 | (352,533 | ) |
Cash and cash equivalents at beginning of year |
24 |
297,822 |
650,355 |
Cash and cash equivalents at end of year | 24 | 559,294 | 297,822 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 July 2023 |
1. | STATUTORY INFORMATION |
Grand Fir Limited is a private company limited by share capital, incorporated in England and Wales, registration number 10840205. The addresses of its registered office and the principal place of business is 401 Faraday Street, Birchwood, Warrington, England, WA3 6GA. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 £. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31st July 2023. A subsidiary entity that is controlled by the parent. The results of the subsidiary undertakings are included in the profit or loss and other comprehensive income from the date that control commences until the date that control ceases. Control is established when the company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential voting rights that currently exercisable. |
In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents amounts recognised by the company in respect of services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of income relating to the provision of environmental consultancy services which are recognised at the point of which the services are provided. |
Revenue from contracts for the provision of consultancy 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. |
Goodwill |
Goodwill is the difference between amounts paid on acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life which is currently 10 years. |
At each reporting date, the company reviews the carrying amounts to determine whether there is any indication of an impairment loss. If any such exists, the recoverable amount is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount is estimated to be less than its carrying amount, an impairment loss is recognised as an expense immediately. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Leasehold property improvements | over the term of the lease |
Fixtures, fittings and equipment | 25% reducing balance |
Computer equipment | 33% reducing balance |
Tangible fixed assets are depreciated from the date they are utilised in generating income. |
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
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 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 trade and other debtors, gross amounts owed buy contract customers, amounts owed by group undertakings 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
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 occured 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 occuring 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, which include trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transition, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividend payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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. |
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. |
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. |
Pension costs and other post-retirement benefits |
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
2. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
Interest bearing loans and borrowings |
All interest bearing loans and borrowings are initially recognised at net proceeds. After initial recognition, debt is increased by the finance cost in respect of the reporting period and reduced by repayments made in the year. Finance costs of debt are allocated over the term of the debt at a constant rate on the carrying amount. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
3. | CRITICAL ACCOUNTING 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. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Categorisation of leases |
In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee. |
Revenue recognition - stage of completion |
In determining the revenue and costs to be recognised in relation to work completed on long term contracts management must make judgements regarding the stage of completion of the work being undertaken. This judgement is based around the level of costs incurred on a particular job, in comparison to the total expected costs to complete the work. A significant deviation in the estimated costs to complete could have a significant impact on the level of revenue recognised. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Useful life of fixed assets |
In making decisions regarding the depreciation of fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in each year. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Environmental consultancy | 10,959,370 | 9,190,732 |
10,959,370 | 9,190,732 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 10,959,370 | 9,190,732 |
10,959,370 | 9,190,732 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 5,193,916 | 4,628,122 |
Social security costs | 513,571 | 453,726 |
Other pension costs | 295,888 | 268,800 |
6,003,375 | 5,350,648 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 31 | 31 |
Administration | 16 | 16 |
Consultancy | 111 | 102 |
The average number of employees by undertakings that were proportionately consolidated during the year was 158 (2022 - 149 ) . |
Details of amounts paid to the highest paid director are shown below: |
2022£ | 2022£ |
Remuneration for qualifying services | 67,518 | 63,263 |
Company pension contributions to defined contribution schemes | 5,728 | 4,428 |
73,246 | 67,691 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 35,613 | 37,444 |
Loss/(profit) on disposal of fixed assets | 9,637 | (3,581 | ) |
Goodwill amortisation | 273,420 | 273,420 |
Auditors' remuneration | 17,500 | 15,000 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 74 | - |
Loan note interest | 2,108 | 13,168 |
2,182 | 13,168 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 189,129 | 143,615 |
Deferred tax | (1,159 | ) | 8,946 |
Tax on profit | 187,970 | 152,561 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 589,743 | 529,014 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.920 % (2022 - 19 %) |
123,374 |
100,513 |
Effects of: |
Expenses not deductible for tax purposes | 6,856 | 453 |
Changes in tax rates | (1,475 | ) | 325 |
(Profit)/ loss on disposal of fixed assets | 2,016 | (680 | ) |
Amortisation on assets not qualifying for tax allowances | 57,199 | 51,950 |
Total tax charge | 187,970 | 152,561 |
In the Spring Budget 2021 the government announced that from 1 April 2023 the rate of corporation tax will be 25% for companies with annual profits over £250,000. For companies with annual profits below £50,000 the rate will remain at 19%. Marginal relief provisions will be introduced so that, where a company's profits fall between the lower (£50,000) and upper (£250,000) limits, it will be able to claim an amount of marginal relief that bridges the gap between the lower and upper limits providing a gradual increase in the corporation tax rate. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
9. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
A Ordinary shares of £1 each |
Dividends | 159,710 | 134,493 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 August 2022 |
and 31 July 2023 | 2,734,197 |
AMORTISATION |
At 1 August 2022 | 1,275,960 |
Amortisation for year | 273,420 |
At 31 July 2023 | 1,549,380 |
NET BOOK VALUE |
At 31 July 2023 | 1,184,817 |
At 31 July 2022 | 1,458,237 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures, |
Leasehold | fittings |
property | and | Computer |
improvements | equipment | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2022 | 57,583 | 207,418 | 316,640 | 581,641 |
Additions | 45,580 | 23,490 | 16,528 | 85,598 |
Disposals | (26,296 | ) | (181,942 | ) | (4,471 | ) | (212,709 | ) |
Reclassification/transfer | (31,287 | ) | 31,287 | - | - |
At 31 July 2023 | 45,580 | 80,253 | 328,697 | 454,530 |
DEPRECIATION |
At 1 August 2022 | 50,290 | 182,867 | 237,021 | 470,178 |
Charge for year | 1,021 | 7,175 | 27,417 | 35,613 |
Eliminated on disposal | (23,392 | ) | (175,505 | ) | (4,176 | ) | (203,073 | ) |
Reclassification/transfer | (27,919 | ) | 27,919 | - | - |
At 31 July 2023 | - | 42,456 | 260,262 | 302,718 |
NET BOOK VALUE |
At 31 July 2023 | 45,580 | 37,797 | 68,435 | 151,812 |
At 31 July 2022 | 7,293 | 24,551 | 79,619 | 111,463 |
13. | FIXED ASSET INVESTMENTS |
The following are subsidiary undertakings of the company and are included in these financial statements: |
Name |
Country of incorporation |
Class of shares |
Holding |
Principal Activity |
The Environment Partnership (TEP) Limited |
England | Ordinary | 100% | Environmental consultancy |
The registered office of the subsidiary is 401 Faraday Street, Birchwood, Warrington, WA3 6GA. |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 2,740,769 | 2,296,521 |
Amounts recoverable on contracts | 440,593 | 620,298 |
Other debtors | 551 | 25 |
Prepayments | 308,122 | 226,001 |
3,490,035 | 3,142,845 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Shareholder loans (see note 16) | - | 177,139 |
Trade creditors | 385,427 | 341,288 |
Amounts owed to group undertakings | - | - |
Tax | 189,129 | 143,615 |
Social security and other taxes | 120,700 | 106,171 |
VAT | 414,344 | 338,284 | - | - |
Other creditors | 4,002 | 2,757 |
Dividends payable | 159,710 | 134,493 |
Accrued expenses | 430,776 | 325,654 |
1,704,088 | 1,569,401 |
16. | LOANS |
Included within creditors are loan notes amounting to £Nil (2022: £177,139). Interest on these loan notes is set at 3.5% above base rate. During the year the company was charged loan note interest of £2,182 (2022: £13,168). |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 187,518 | 171,750 |
Between one and five years | 196,185 | 66,446 |
In more than five years | 390,677 | 56,333 |
774,380 | 294,529 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 25,879 | 27,038 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 27,038 |
Utilised during year | (1,159 | ) |
Balance at 31 July 2023 | 25,879 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 162,000 | 162,000 |
B Ordinary | £1 | 258,290 | 258,290 |
420,290 | 420,290 |
20. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2022 | 1,218,456 | 1,741,028 | 34,154 | 2,993,638 |
Profit for the year | 401,773 | 401,773 |
Dividends | (159,710 | ) | (159,710 | ) |
At 31 July 2023 | 1,460,519 | 1,741,028 | 34,154 | 3,235,701 |
Share premium |
Consideration received for shares issued above their nominal value net of transaction costs. |
Capital redemption reserve |
Non distributable reserves into which amounts are transferred following the redemption of the companies own shares. |
Profit and loss reserves |
Cumulative profit and loss net of distributions to owners |
21. | ULTIMATE CONTROLLING PARTY |
No individual shareholder holds more than 50% of the issued share capital, therefore, there is no ultimate controlling party. |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
22. | SHARE-BASED PAYMENT TRANSACTIONS |
During the year ended 31 July 2018, 51,328 options over additional B shares were granted to certain employees of The Environment Partnership (TEP) Limited. no options lapsed during the current year or prior year. The options vest based on a set of agreed conditions. No share based payment expense has been recognised during the year as the remaining options are not expected to vest. |
23. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit for the financial year | 401,773 | 376,453 |
Depreciation charges | 35,613 | 37,444 |
Loss/(profit) on disposal of fixed assets | 9,637 | (3,581 | ) |
Amortisation | 273,420 | 273,420 |
Finance costs | 2,182 | 13,168 |
Finance income | (3,418 | ) | - |
Taxation | 187,970 | 152,561 |
907,177 | 849,465 |
Increase in trade and other debtors | (347,191 | ) | (225,410 | ) |
Increase/(decrease) in trade and other creditors | 241,095 | (5,093 | ) |
Cash generated from operations | 801,081 | 618,962 |
24. | 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 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 559,294 | 297,822 |
Year ended 31 July 2022 |
31.7.22 | 1.8.21 |
£ | £ |
Cash and cash equivalents | 297,822 | 650,355 |
GRAND FIR LIMITED (REGISTERED NUMBER: 10840205) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2023 |
25. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.8.22 | Cash flow | At 31.7.23 |
£ | £ | £ |
Net cash |
Cash at bank | 297,822 | 261,472 | 559,294 |
297,822 | 261,472 | 559,294 |
Debt |
Debts falling due within 1 year | (177,139 | ) | 177,139 | - |
(177,139 | ) | 177,139 | - |
Total | 120,683 | 438,611 | 559,294 |