REGISTERED NUMBER: 04607857 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended 30 June 2023 |
for |
Galebreaker Group Ltd |
REGISTERED NUMBER: 04607857 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended 30 June 2023 |
for |
Galebreaker Group Ltd |
Galebreaker Group Ltd (Registered number: 04607857) |
Contents of the Consolidated Financial Statements |
For The Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 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 Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Galebreaker Group Ltd |
Company Information |
For The Year Ended 30 June 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
Galebreaker Group Ltd (Registered number: 04607857) |
Group Strategic Report |
For The Year Ended 30 June 2023 |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
In the opinion of the directors, the general performance and development of the company and the group during the year ended 30 June 2023 and its financial position as at that date were satisfactory and there have been no important events affecting the company since that date. |
The company and its subsidiaries have continued to trade in their respective activities and the directors look forward to ensuring the continued stability of the company and the group by developing and reinforcing its position in its chosen business sectors. |
REVIEW OF BUSINESS |
The key financial highlights of the group are as follows: |
2023 | 2022 |
Turnover movement | -1% | +6% |
Gross profit movement | +23% | -5% |
Profit before taxation | £662k | £223k |
Turnover has marginally decreased during the year however due to a change in sales mix, gross profit has improved compared to the previous financial year. |
In Galebreaker Limited, Natural Ventilation sales have decreased in 2023 however turnover in respect of Windshields for Power and Debris Filter Solutions have significantly grown. This is expected to continue into 2024 along with the continuous research and development efforts made by the group. |
Galebreaker Europe SP. Z.O.O, the groups entity located in Poland, ceased to trade post year end and is in the process of being dissolved. |
The directors are confident that current plans will support the group's future growth and profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties relate to the trading subsidiaries which are principally focused on solutions to the agriculture and industrial business sectors. |
Products and services are developed and manufactured by the company to meet customers current and future needs. |
The group also aims to continually maintain and improve its performance regarding Health & Safety, the environment, employee conditions and development, and relevant compliance. |
ON BEHALF OF THE BOARD: |
Galebreaker Group Ltd (Registered number: 04607857) |
Report of the Directors |
For The Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2023 will be £281,000. |
RESEARCH AND DEVELOPMENT |
The group continually seek to develop improved processes for sale and production. The group's accounting policy in respect of research and development expenditure is set out in note 2 to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 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). 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. |
Galebreaker Group Ltd (Registered number: 04607857) |
Report of the Directors |
For The Year Ended 30 June 2023 |
AUDITORS |
The auditors, Kingscott Dix Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Galebreaker Group Ltd |
Qualified Opinion |
We have audited the financial statements of Galebreaker Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the group's and parent company's affairs as at 30 June 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 qualified opinion |
This is the first financial year that the group required an audit, therefore, we were not appointed auditors until after 30 June 2022 and thus did not observe the counting of any physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities of £1,409,874 held at 30 June 2022 by using other audit procedures. |
Consequently, we were unable to determine whether any adjustment to this amount as at 30 June 2022 was necessary or whether there was any consequential effect on the cost of sales for the year ended 30 June 2023. |
We conducted our audit in accordance with International Standard 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 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 qualified 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. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
Report of the Independent Auditors to the Members of |
Galebreaker Group Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the group's 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £1,409,874 held as at 30 June 2022. We have concluded that where the other information refers to the inventory balance or related balances such as costs of sales, it may be materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effect of the matter described in the basis for qualified opinion section of our report, In our opinion, based on the work undertaken in the course of the audit: |
- the information given in the group's 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's 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 |
Except for the matter described in the basis for qualified opinion section of our report, 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 group's Strategic Report and 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Galebreaker Group Ltd |
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: |
In assigning the audit engagement team we ensured that collectively they had the appropriate competence and capabilities to identify non-compliance with laws and regulations, highlight areas of the financial statements particularly susceptible to fraud and conduct appropriate additional enquiries where suspicions or weaknesses became evident. |
At the planning stage, we assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. This involved preliminary planning discussions with management to obtain their assessment of fraud risk, to identify any incidences of fraud during the year and understand the measures and controls they had taken to combat the possibility of fraud. |
Our transaction testing and assessment of controls during the audit provided further evidence as to the validity of this initial assessment with regard to material misstatement and fraud. |
We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the Directors, and inspection of the Company's regulatory and legal correspondence. The team were briefed with regard to laws and regulations and remained alert to any indication of non-compliance throughout the audit. |
The group is subject to laws and regulations that directly affect the financial statements including legislation covering financial reporting including related companies, distributable profits and taxation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In assessing this compliance, we evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates in the measurement and presentation of profit within the financial statements. |
The group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety including COSHH, workplace transport safety, PUWER, LOLE, employment laws, GDPR, environmental laws and regulations recognising the nature of the company's activities. Audit procedures designed to identify non-compliance with these laws and regulations included enquiry of the Directors and other management and inspection of regulatory and legal correspondence. None of the procedures applied identified actual or suspected non-compliance. |
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. Where an irregularity is non-financial or has not reached a stage where its impact is financial, it is less likely to be identified by auditing procedures. In addition, to the extent that an irregularity involves collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls, there remains a high risk of non-detection. We are not responsible for detecting all instances of non-compliance with laws and regulations and cannot be expected to do so. |
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. |
Other matters which we are required to address |
We were appointed auditors by the board of directors in May 2023. As such, the comparative figures shown within the financial statements are unaudited. |
Report of the Independent Auditors to the Members of |
Galebreaker Group Ltd |
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 |
Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
Galebreaker Group Ltd (Registered number: 04607857) |
Consolidated |
Income Statement |
For The Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 9,475,914 | 9,588,141 |
Cost of sales | 5,755,690 | 6,551,100 |
GROSS PROFIT | 3,720,224 | 3,037,041 |
Administrative expenses | 3,069,650 | 2,838,027 |
650,574 | 199,014 |
Other operating income | 84,854 | 43,672 |
OPERATING PROFIT | 4 | 735,428 | 242,686 |
Interest payable and similar expenses | 5 | 73,305 | 19,837 |
PROFIT BEFORE TAXATION | 662,123 | 222,849 |
Tax on profit | 6 | 93,499 | 348 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 568,624 | 222,501 |
Galebreaker Group Ltd (Registered number: 04607857) |
Consolidated |
Other Comprehensive Income |
For The Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 568,624 | 222,501 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
568,624 |
222,501 |
Total comprehensive income attributable to: |
Owners of the parent | 568,624 | 222,501 |
Galebreaker Group Ltd (Registered number: 04607857) |
Consolidated Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 24,811 | 27,293 |
Tangible assets | 10 | 1,648,960 | 1,757,102 |
Investments | 11 | - | - |
1,673,771 | 1,784,395 |
CURRENT ASSETS |
Stocks | 12 | 1,291,485 | 1,409,874 |
Debtors | 13 | 1,529,729 | 1,553,542 |
Cash at bank and in hand | 390,033 | 376,571 |
3,211,247 | 3,339,987 |
CREDITORS |
Amounts falling due within one year | 14 | 1,800,187 | 2,335,614 |
NET CURRENT ASSETS | 1,411,060 | 1,004,373 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,084,831 |
2,788,768 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(243,362 |
) |
(267,243 |
) |
PROVISIONS FOR LIABILITIES | 19 | (102,914 | ) | (70,594 | ) |
NET ASSETS | 2,738,555 | 2,450,931 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 500,500 | 500,500 |
Retained earnings | 21 | 2,238,055 | 1,950,431 |
SHAREHOLDERS' FUNDS | 2,738,555 | 2,450,931 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 January 2024 and were signed on its behalf by: |
J P Scudamore - Director |
Galebreaker Group Ltd (Registered number: 04607857) |
Company Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 335,573 | 244,058 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Galebreaker Group Ltd (Registered number: 04607857) |
Consolidated Statement of Changes in Equity |
For The Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 | 500,500 | 1,939,930 | 2,440,430 |
Changes in equity |
Dividends | - | (212,000 | ) | (212,000 | ) |
Total comprehensive income | - | 222,501 | 222,501 |
Balance at 30 June 2022 | 500,500 | 1,950,431 | 2,450,931 |
Changes in equity |
Dividends | - | (281,000 | ) | (281,000 | ) |
Total comprehensive income | - | 568,624 | 568,624 |
Balance at 30 June 2023 | 500,500 | 2,238,055 | 2,738,555 |
Galebreaker Group Ltd (Registered number: 04607857) |
Company Statement of Changes in Equity |
For The Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Galebreaker Group Ltd (Registered number: 04607857) |
Consolidated Cash Flow Statement |
For The Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,573,132 | (142,071 | ) |
Interest paid | (70,477 | ) | (18,846 | ) |
Interest element of hire purchase payments paid |
(2,828 |
) |
(1,055 |
) |
Tax paid | - | (6,894 | ) |
Net cash from operating activities | 1,499,827 | (168,866 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (114,899 | ) | (279,508 | ) |
Sale of tangible fixed assets | 5,286 | 74,862 |
Net cash from investing activities | (109,613 | ) | (204,646 | ) |
Cash flows from financing activities |
New loans in year | 32,000 | 25,001 |
Loan repayments in year | (110,810 | ) | (80,170 | ) |
New hire purchase loans in year | 83,034 | 53,000 |
Capital repayments in year | (42,520 | ) | (45,633 | ) |
Amount introduced by directors | 104 | - |
Amount withdrawn by directors | (100 | ) | (13,349 | ) |
Equity dividends paid | (281,000 | ) | (212,000 | ) |
Net cash from financing activities | (319,292 | ) | (273,151 | ) |
Increase/(decrease) in cash and cash equivalents | 1,070,922 | (646,663 | ) |
Cash and cash equivalents at beginning of year |
2 |
(680,889 |
) |
(34,226 |
) |
Cash and cash equivalents at end of year | 2 | 390,033 | (680,889 | ) |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Cash Flow Statement |
For The Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit before taxation | 662,123 | 222,849 |
Depreciation charges | 221,105 | 208,279 |
Profit on disposal of fixed assets | (868 | ) | (36,249 | ) |
Finance costs | 73,305 | 19,837 |
955,665 | 414,716 |
Decrease/(increase) in stocks | 118,389 | (160,936 | ) |
Decrease/(increase) in trade and other debtors | 23,813 | (96,533 | ) |
Increase/(decrease) in trade and other creditors | 475,265 | (299,318 | ) |
Cash generated from operations | 1,573,132 | (142,071 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 390,033 | 376,571 |
Bank overdrafts | - | (1,057,460 | ) |
390,033 | (680,889 | ) |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 376,571 | 215,237 |
Bank overdrafts | (1,057,460 | ) | (249,463 | ) |
(680,889 | ) | (34,226 | ) |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Cash Flow Statement |
For The Year Ended 30 June 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 376,571 | 13,462 | 390,033 |
Bank overdrafts | (1,057,460 | ) | 1,057,460 | - |
(680,889 | ) | 1,070,922 | 390,033 |
Debt |
Finance leases | (75,225 | ) | (40,514 | ) | (115,739 | ) |
Debts falling due within 1 year | (108,727 | ) | 39,321 | (69,406 | ) |
Debts falling due after 1 year | (210,209 | ) | 39,489 | (170,720 | ) |
(394,161 | ) | 38,296 | (355,865 | ) |
Total | (1,075,050 | ) | 1,109,218 | 34,168 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements |
For The Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Galebreaker Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements have been prepared by consolidating the financial statements of the holding company and its subsidiary undertakings at 30 June 2023. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Revenue from 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. |
Goodwill |
Historic goodwill arising on business acquisitions have been amortised over their estimated useful lives of three years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their useful life of 15 years. |
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 of valuation of assets less their residual values over their useful lives on the following bases: |
Freehold property | - No depreciation |
Property improvements | - 10% - 20% on cost |
Plant and machinery | - 10% - 33% on cost |
Motor vehicles | - 25% on cost |
Fixtures and fittings | - 20% - 33% on cost |
Computer equipment | - 33% on cost |
No depreciation is provided on freehold property on the basis the directors estimate it's residual value to be greater than carrying value in the financial statements. |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised on an accruals basis and are measured at the fair value of the asset received or receivable. Grants are classified as relating to either revenue or assets. Grants relating to revenue are recognised as income in the period in which the related costs are incurred. Grants relating to assets are recognised over the expected useful life of the asset. The element of a grant that is deferred to future periods is presented in as deferred income on the balance sheet. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
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 trade and other 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. |
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. The impairment loss 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 when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. |
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 trade and other creditors, bank loans, loans from fellow group companies 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their useful economic lives. Those held under finance leases are depreciated over their useful economic lives or the lease term, which ever is shorter. |
The interest element of these obligations is charge to the profit and loss account over the relevant |
period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charger to the profit and loss account on a straight line basis over the period of the lease |
3. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries | 1,849,237 | 1,745,766 |
Social security costs | 189,088 | 189,085 |
Other pension costs | 132,333 | 87,494 |
2,170,658 | 2,022,345 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Admin | 11 | 10 |
Sales | 4 | 5 |
Production | 34 | 36 |
Directors | 6 | 6 |
The average number of employees by undertakings that were proportionately consolidated during the year was 55 (2022 - 57 ) . |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration | 364,376 | 348,602 |
Directors' pension contributions to money purchase schemes | 106,964 | 57,884 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 5 | 5 |
Information regarding the highest paid director is as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Emoluments etc | 142,285 | 109,551 |
Pension contributions to money purchase schemes | 31,377 | 11,380 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Depreciation - owned assets | 218,623 | 205,798 |
Profit on disposal of fixed assets | (868 | ) | (36,249 | ) |
Patents and licences amortisation | 2,482 | 2,481 |
Auditors' remuneration | 16,800 | - |
Research and development costs | 272,278 | 261,054 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Bank interest paid | 25,681 | 23,146 |
Bank charges | 14,129 | 10,234 |
Loss/(profit) on foreign |
currency | 13,391 | (17,878 | ) |
Loan interest paid | 17,276 | 3,344 |
Interest on hire purchase | 2,828 | 991 |
73,305 | 19,837 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax | 61,179 | - |
(Over)/Underprovision in |
respect of previous year | - | (4,088 | ) |
Total current tax | 61,179 | (4,088 | ) |
Deferred tax | 32,320 | 4,436 |
Tax on profit | 93,499 | 348 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax | 662,123 | 222,849 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
125,803 |
42,341 |
Effects of: |
Expenses not deductible for tax purposes | 5,269 | 4,601 |
Capital allowances in excess of depreciation | - | (18,933 | ) |
Depreciation in excess of capital allowances | 2,543 | - |
Adjustments to tax charge in respect of previous periods | - | (4,088 | ) |
R&D enhanced expenditure | (61,562 | ) | (46,019 | ) |
Non UK company losses | 15,181 | 4,330 |
Change in tax rate effect | 28,981 | - |
Foreign exchange | - | 160 |
Tax losses carried forward | - | 15,191 |
Pension creditor adjustment | 7,028 | 2,765 |
Loss on disposal of investment | (29,744 | ) | - |
Total tax charge | 93,499 | 348 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Ordinary shares of 1 each |
Interim | 281,000 | 212,000 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 | 172,000 | 37,217 | 209,217 |
AMORTISATION |
At 1 July 2022 | 172,000 | 9,924 | 181,924 |
Amortisation for year | - | 2,482 | 2,482 |
At 30 June 2023 | 172,000 | 12,406 | 184,406 |
NET BOOK VALUE |
At 30 June 2023 | - | 24,811 | 24,811 |
At 30 June 2022 | - | 27,293 | 27,293 |
Company |
Patents |
and |
licences |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
Amortisation for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 July 2022 | 965,806 | 491,106 | 1,208,243 |
Additions | - | - | 13,995 |
Disposals | - | - | (93,336 | ) |
At 30 June 2023 | 965,806 | 491,106 | 1,128,902 |
DEPRECIATION |
At 1 July 2022 | - | 276,580 | 887,717 |
Charge for year | - | 43,120 | 56,120 |
Eliminated on disposal | - | - | (92,454 | ) |
At 30 June 2023 | - | 319,700 | 851,383 |
NET BOOK VALUE |
At 30 June 2023 | 965,806 | 171,406 | 277,519 |
At 30 June 2022 | 965,806 | 214,526 | 320,526 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2022 | 57,370 | 360,193 | 173,634 | 3,256,352 |
Additions | - | 68,115 | 29,586 | 111,696 |
Disposals | (6,577 | ) | (3,137 | ) | (3,200 | ) | (106,250 | ) |
At 30 June 2023 | 50,793 | 425,171 | 200,020 | 3,261,798 |
DEPRECIATION |
At 1 July 2022 | 40,048 | 162,409 | 132,496 | 1,499,250 |
Charge for year | 6,750 | 79,122 | 33,511 | 218,623 |
Eliminated on disposal | (6,577 | ) | (3,137 | ) | (2,867 | ) | (105,035 | ) |
At 30 June 2023 | 40,221 | 238,394 | 163,140 | 1,612,838 |
NET BOOK VALUE |
At 30 June 2023 | 10,572 | 186,777 | 36,880 | 1,648,960 |
At 30 June 2022 | 17,322 | 197,784 | 41,138 | 1,757,102 |
Included within tangible assets are assets subject to hire purchase agreements as at 30 June 2023 with a net book value totalling £137,910 (2022: £145,148). Depreciation on these assets for the year totalled £44,396 (2022: £32,297). |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold |
property |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
Disposals | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
12. | STOCKS |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Stocks | 1,147,512 | 1,340,082 |
Work-in-progress | 143,973 | 69,792 |
1,291,485 | 1,409,874 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Trade debtors | 1,111,283 | 1,246,094 |
Amounts owed by group undertakings | - | - |
Other debtors | 251,437 | 200,111 |
Prepayments | 167,009 | 107,337 |
1,529,729 | 1,553,542 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 69,406 | 1,166,187 |
Hire purchase contracts (see note 17) | 43,097 | 29,856 |
Trade creditors | 1,159,556 | 825,980 |
Amounts owed to group undertakings | - | - |
Corporation tax | 61,179 | - |
Social security and other taxes | 68,443 | 45,844 |
Other creditors | 51,150 | 32,410 | - | - |
Directors' current accounts | 2,262 | 2,258 | 2,262 | 2,258 |
Accrued expenses | 345,094 | 233,079 |
1,800,187 | 2,335,614 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Bank loans (see note 16) | 170,720 | 210,209 |
Hire purchase contracts (see note 17) | 72,642 | 45,369 |
Accruals and deferred income | - | 11,665 |
243,362 | 267,243 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | 1,057,460 |
Bank loans | 69,406 | 108,727 |
69,406 | 1,166,187 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 62,720 | 58,739 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 108,000 | 151,470 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year | 43,097 | 29,856 |
Between one and five years | 72,642 | 45,369 |
115,739 | 75,225 |
Company |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year | 15,846 | 15,846 |
Between one and five years | 14,669 | 28,640 |
30,515 | 44,486 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Bank overdraft | - | 1,057,460 |
Bank loans | - | - |
Hire purchase contracts | 115,739 | 75,225 | 8,930 | 25,538 |
115,739 | 1,132,685 |
Banking facilities are secured by a fixed and floating charge over the assets of the company. |
Hire purchase liabilities are secured over the asset to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax | 102,914 | 70,594 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 70,594 |
Provided during year | 32,320 |
Balance at 30 June 2023 | 102,914 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | 1 | 500,500 | 500,500 |
Galebreaker Group Ltd (Registered number: 04607857) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 30 June 2023 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2022 | 1,950,431 |
Profit for the year | 568,624 |
Dividends | (281,000 | ) |
At 30 June 2023 | 2,238,055 |
22. | RELATED PARTY DISCLOSURES |
Related parties over which Mr J P Scudamore has significant influence: |
30.6.23 | 30.6.22 |
£ | £ |
Rent paid | 64,406 | 55,125 |
Amounts due from related party | 179,182 | 152,081 |
The amounts due from related party are included within other debtors. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is J P Scudamore. |