REGISTERED NUMBER: 07900574 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 |
FOR |
GARESH HOLDINGS LIMITED |
REGISTERED NUMBER: 07900574 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 MARCH 2023 |
FOR |
GARESH HOLDINGS LIMITED |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
GARESH HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 30 March 2023. |
REVIEW OF BUSINESS |
During the year ended 30 March 2023 the group generated sales of £14.0m which were 7.4% lower than the £15.1m in the previous financial year. In 2023, the loss before taxation was £1.0m compared to profit before taxation of £1.3m in the previous financial year. |
The group monitors its financial performance through key performance indicators, which are as follows: |
2023 | 2022 |
Turnover (£) | 13,956,447 | 15,074,404 |
Operating (loss)/ profit (£) | (928,978) | 1,319,133 |
(Loss)/ profit before taxation (£) | (1,001,248) | 1,271,686 |
Gross profit (%) | 3.1 | 14.0 |
Net (loss)/ profit (%) | (5.9) | 6.9 |
After the year end, a group of customers went into liquidation. At year end, these companies owed CS2 Transport Limited £458,738, of which only £77,860 was received after year end. |
As such, the trade debtor book value has been reduced by £380,878, and a bad debt of £317,399 recognised in these accounts. |
This along with rising costs of fuel and utilities has contributed to the results for the year, along with impact of consumer buying habits as a result of the cost of living crisis. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key business risks and uncertainties affecting the group are considered to be competition, consumer demand, and operating costs. CS2 Transport have worked hard to build and maintain relationships with customers, and are continuing to actively expand supply. The cost of living crisis has changed consumer buying habits, especially in a decrease in quantity of goods bought. This has resulted in a reducing in revenue in the year ended 30 March 2023. High increases in fuel and energy costs, especially impacting transport and freezer storage, has impacted the business as these costs were not initially passed on. We have now implemented changes to reduce and control overheads, and pass on the costs of fuel. |
SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS |
Since the year end, CS2 Transport Limited have restructured to reduce overheads and operating costs, and also pass on the rising costs to customers. We are also looking to continue to grow our customer base and market share. This has resulted in an improvement in results and cashflow in the operation, and the Directors are confident CS2 Transport Limited will return to profitable trade and expect to continue operating as a going concern. |
ON BEHALF OF THE BOARD: |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 March 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 March 2023 will be £ 79,000 . |
An interim dividend of £790 per ordinary share was paid on 30 March 2023. The directors recommended that no final dividend would be paid. These dividends are paid to the directors. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 31 March 2022 to the date of this report. |
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. |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 MARCH 2023 |
AUDITORS |
The auditors, Sutton McGrath Hartley, 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 |
GARESH HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Garesh Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 March 2023 and of the group's loss 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. |
Emphasis of matter |
Further to note 3 to the accounts regarding going concern, we have reviewed forecasts for the next 12 months and believe the group's use of the going concern basis to be appropriate. |
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 |
GARESH HOLDINGS 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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report. |
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. |
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: |
Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based |
approach. |
In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom |
Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance |
regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GARESH HOLDINGS LIMITED |
Policies and controls relating to the risk of material misstatement as a result of fraud are also considered. These are |
assessed by obtaining an understanding of the company's operations and control environment. The policies and |
controls have been reviewed by discussion, review and sample testing of accounting entries, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and cut off, along with the going concern assumption is also completed. |
We have ensured that the engagement team have appropriate levels of competence and experience to effectively |
monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity. |
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 |
The comparative figures have not been audited as the audit exemption was taken. As far as we are aware, there is no material misstatement in those figures. |
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 |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 MARCH 2023 |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
Notes | £ | £ |
TURNOVER | 4 | 13,956,447 | 15,074,404 |
Cost of sales | (13,471,867 | ) | (12,878,539 | ) |
GROSS PROFIT | 484,580 | 2,195,865 |
Administrative expenses | (1,413,558 | ) | (879,576 | ) |
(928,978 | ) | 1,316,289 |
Other operating income | - | 2,844 |
OPERATING (LOSS)/PROFIT | 6 | (928,978 | ) | 1,319,133 |
Interest receivable and similar income | 1,523 | 22 |
(927,455 | ) | 1,319,155 |
Interest payable and similar expenses | 7 | (73,793 | ) | (47,469 | ) |
(LOSS)/PROFIT BEFORE TAXATION | (1,001,248 | ) | 1,271,686 |
Tax on (loss)/profit | 8 | 184,537 | (246,092 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (816,711 | ) | 1,025,594 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 MARCH 2023 |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (816,711 | ) | 1,025,594 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(816,711 |
) |
1,025,594 |
Total comprehensive income attributable to: |
Owners of the parent | (816,711 | ) | 1,025,594 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONSOLIDATED BALANCE SHEET |
30 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 2,201,090 | 2,095,348 |
Investments | 13 | - | - |
2,201,090 | 2,095,348 |
CURRENT ASSETS |
Debtors | 14 | 770,862 | 1,683,953 |
Cash at bank | 328,114 | 901,121 |
1,098,976 | 2,585,074 |
CREDITORS |
Amounts falling due within one year | 15 | (1,241,071 | ) | (1,654,163 | ) |
NET CURRENT (LIABILITIES)/ASSETS | (142,095 | ) | 930,911 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,058,995 | 3,026,259 |
CREDITORS |
Amounts falling due after more than one year | 16 | (1,181,807 | ) | (1,262,308 | ) |
PROVISIONS FOR LIABILITIES | 21 | (67,755 | ) | (58,807 | ) |
NET ASSETS | 809,433 | 1,705,144 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 100 | 100 |
Retained earnings | 809,333 | 1,705,044 |
SHAREHOLDERS' FUNDS | 809,433 | 1,705,144 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 December 2023 and were signed on its behalf by: |
Mr G Turney - Director |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
COMPANY BALANCE SHEET |
30 MARCH 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 | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 78,898 | 39,437 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | 100 | 718,950 | 719,050 |
Changes in equity |
Dividends | - | (39,500 | ) | (39,500 | ) |
Total comprehensive income | - | 1,025,594 | 1,025,594 |
Balance at 30 March 2022 | 100 | 1,705,044 | 1,705,144 |
Changes in equity |
Dividends | - | (79,000 | ) | (79,000 | ) |
Total comprehensive income | - | (816,711 | ) | (816,711 | ) |
Balance at 30 March 2023 | 100 | 809,333 | 809,433 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 March 2023 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 MARCH 2023 |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 61,651 | 752,578 |
Interest paid | (55,987 | ) | (46,120 | ) |
Interest element of hire purchase payments paid |
(17,806 |
) |
(1,349 |
) |
Tax paid | (105,001 | ) | - |
Net cash from operating activities | (117,143 | ) | 705,109 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (260,258 | ) | (78,343 | ) |
Interest received | 1,523 | 22 |
Net cash from investing activities | (258,735 | ) | (78,321 | ) |
Cash flows from financing activities |
New loans in year | 80,773 | - |
Loan repayments in year | (176,769 | ) | (95,335 | ) |
Capital repayments in year | (8,851 | ) | (7,496 | ) |
Amount withdrawn by directors | (13,282 | ) | 12,920 |
Share issue | - | 110 |
Equity dividends paid | (79,000 | ) | (39,500 | ) |
Net cash from financing activities | (197,129 | ) | (129,301 | ) |
(Decrease)/increase in cash and cash equivalents | (573,007 | ) | 497,487 |
Cash and cash equivalents at beginning of year |
2 |
901,121 |
403,634 |
Cash and cash equivalents at end of year | 2 | 328,114 | 901,121 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 MARCH 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
(Loss)/profit before taxation | (1,001,248 | ) | 1,271,686 |
Depreciation charges | 154,516 | 144,887 |
Finance costs | 73,793 | 47,469 |
Finance income | (1,523 | ) | (22 | ) |
(774,462 | ) | 1,464,020 |
Decrease in trade and other debtors | 960,415 | 14,689 |
Decrease in trade and other creditors | (124,302 | ) | (726,131 | ) |
Cash generated from operations | 61,651 | 752,578 |
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 March 2023 |
30/3/23 | 31/3/22 |
£ | £ |
Cash and cash equivalents | 328,114 | 901,121 |
Period ended 30 March 2022 |
30/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 901,121 | 403,634 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 MARCH 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 31/3/22 | Cash flow | At 30/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 901,121 | (573,007 | ) | 328,114 |
901,121 | (573,007 | ) | 328,114 |
Debt |
Finance leases | (1,884 | ) | (71,922 | ) | (73,806 | ) |
Debts falling due within 1 year | (93,487 | ) | 38,600 | (54,887 | ) |
Debts falling due after 1 year | (1,262,308 | ) | 138,169 | (1,124,139 | ) |
(1,357,679 | ) | 104,847 | (1,252,832 | ) |
Total | (456,558 | ) | (468,160 | ) | (924,718 | ) |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 MARCH 2023 |
1. | STATUTORY INFORMATION |
Garesh Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements incorporate the financial statements of the company and all group undertakings made up to 30 March 2023. |
A subsidiary is an entity controlled by the company. Control exists where the company has power, directly or indirectly to govern the operating policies of the entity so as to derive benefits from its activities. |
The consolidation of the subsidiary companies has been accounted for using the merger method of accounting following a group reorganisation in previous years as permitted by FRS 102. Assets and liabilities of the parties to the combination were not required to be adjusted to fair value. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, has been amortised evenly over its estimated useful life of ten 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. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 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 in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. |
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. |
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. |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | GOING CONCERN |
Further to the disclosure made in the Strategic Report, we have reviewed forecasts and cashflow for the next 12 months and due to the changes implemented and a more robust review of customer credit, the Directors believe the going concern basis uses to be appropriate. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Transport | 12,234,467 | 14,377,260 |
Fuel surcharge | 921,424 | 15,818 |
Storage and other | 800,556 | 681,326 |
13,956,447 | 15,074,404 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
4. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
United Kingdom | 13,956,447 | 15,074,404 |
13,956,447 | 15,074,404 |
5. | EMPLOYEES AND DIRECTORS |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Wages and salaries | 6,158,149 | 6,395,912 |
Social security costs | 476,362 | 419,129 |
Other pension costs | 88,699 | 77,131 |
6,723,210 | 6,892,172 |
The average number of employees during the year was as follows: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
Management | 15 | 17 |
Drivers | 102 | 125 |
Support staff | 29 | 27 |
The average number of employees by undertakings that were proportionately consolidated during the year was 2 (2022 - 2 ) . |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Directors' remuneration | 69,586 | 104,500 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Other operating leases | 6,089 | 3,300 |
Depreciation - owned assets | 132,432 | 129,453 |
Depreciation - assets on hire purchase contracts | 22,084 | 8,983 |
Goodwill amortisation | - | 15,434 |
Auditors' remuneration | 6,000 | - |
Foreign exchange differences | 1,543 | - |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Bank interest | - | 567 |
Bank loan interest | 55,987 | 45,553 |
Hire purchase | 17,806 | 1,349 |
73,793 | 47,469 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Current tax: |
UK corporation tax | - | 251,162 |
Corp tax loss carry back | (193,486 | ) | - |
Total current tax | (193,486 | ) | 251,162 |
Deferred tax | 8,949 | (5,070 | ) |
Tax on (loss)/profit | (184,537 | ) | 246,092 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/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: |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
(Loss)/profit before tax | (1,001,248 | ) | 1,271,686 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(190,237 |
) |
241,620 |
Effects of: |
Expenses not deductible for tax purposes | 490 | 321 |
Depreciation in excess of capital allowances | 5,191 | 4,151 |
Utilisation of tax losses | 19 | - |
Total tax (credit)/charge | (184,537 | ) | 246,092 |
9. | 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. |
10. | DIVIDENDS |
PERIOD |
1/4/21 |
YEAR ENDED | TO |
30/3/23 | 30/3/22 |
£ | £ |
Interim | 79,000 | 39,500 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 31 March 2022 |
and 30 March 2023 | 181,721 |
AMORTISATION |
At 31 March 2022 |
and 30 March 2023 | 181,721 |
NET BOOK VALUE |
At 30 March 2023 | - |
At 30 March 2022 | - |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 31 March 2022 | 1,838,105 | 37,219 | 293,302 |
Additions | - | - | 69,665 |
At 30 March 2023 | 1,838,105 | 37,219 | 362,967 |
DEPRECIATION |
At 31 March 2022 | 110,286 | 22,146 | 85,223 |
Charge for year | 36,762 | 1,507 | 52,104 |
At 30 March 2023 | 147,048 | 23,653 | 137,327 |
NET BOOK VALUE |
At 30 March 2023 | 1,691,057 | 13,566 | 225,640 |
At 30 March 2022 | 1,727,819 | 15,073 | 208,079 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 31 March 2022 | 204,104 | 62,794 | 15,527 | 2,451,051 |
Additions | 26,446 | 154,273 | 9,874 | 260,258 |
At 30 March 2023 | 230,550 | 217,067 | 25,401 | 2,711,309 |
DEPRECIATION |
At 31 March 2022 | 90,591 | 44,441 | 3,016 | 355,703 |
Charge for year | 23,506 | 37,099 | 3,538 | 154,516 |
At 30 March 2023 | 114,097 | 81,540 | 6,554 | 510,219 |
NET BOOK VALUE |
At 30 March 2023 | 116,453 | 135,527 | 18,847 | 2,201,090 |
At 30 March 2022 | 113,513 | 18,353 | 12,511 | 2,095,348 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 31 March 2022 | 16,545 |
Additions | 80,773 |
Transfer to ownership | (16,545 | ) |
At 30 March 2023 | 80,773 |
DEPRECIATION |
At 31 March 2022 | 8,983 |
Charge for year | 22,084 |
Transfer to ownership | (10,874 | ) |
At 30 March 2023 | 20,193 |
NET BOOK VALUE |
At 30 March 2023 | 60,580 |
At 30 March 2022 | 7,562 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 31 March 2022 |
and 30 March 2023 |
NET BOOK VALUE |
At 30 March 2023 |
At 30 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
CS2 Transport Limited |
Registered office: Cs2 Transport Holmewood Industrial Park, Holmewood, Chesterfield, England, S42 5UY |
Nature of business: Freight transport by road |
Class of shares: % holding |
Ordinary 100.00 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 383,150 | 1,351,983 |
Tax | 96,796 | 49,472 |
Prepayments and accrued income | 290,916 | 282,498 |
770,862 | 1,683,953 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 54,887 | 93,487 |
Hire purchase contracts (see note 18) | 16,138 | 1,884 |
Trade creditors | 710,207 | 673,094 |
Amounts owed to group undertakings | - | - |
Tax | - | 251,162 |
Social security and other taxes | 210,627 | 107,826 |
VAT | 113,600 | 330,350 | - | - |
Other creditors | 16,411 | 135,896 |
Directors' current accounts | 614 | 13,896 | - | - |
Accruals and deferred income | 118,587 | 46,568 |
1,241,071 | 1,654,163 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) | 1,124,139 | 1,262,308 |
Hire purchase contracts (see note 18) | 57,668 | - |
1,181,807 | 1,262,308 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 54,887 | 93,487 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 161,294 | 249,081 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 962,845 | 1,013,227 |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 16,138 | 1,884 |
Between one and five years | 57,668 | - |
73,806 | 1,884 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 625,237 | 449,677 |
Between one and five years | 547,232 | 907,649 |
1,172,469 | 1,357,326 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Bank loans | 1,179,026 | 1,355,795 |
Hire purchase contracts | 73,806 | - |
1,252,832 | 1,355,795 |
Bank loans are secured by a legal charge over the freehold property and fixed and floating charges over all other assets of the company. |
Hire purchase contracts are secured against the assets to which they relate. |
20. | FINANCIAL INSTRUMENTS |
The carrying amount of the group's financial instruments are: |
Financial assets - Debt instruments measured at amortised cost of £383,150 (2022: £1,351,983) |
Financial assets - Debt instruments measured at fair value of £328,114 (2022: £901,121) |
Financial liabilities - Measured at amortised cost of £2,185,633 (2022: £2,772,106) |
GARESH HOLDINGS LIMITED (REGISTERED NUMBER: 07900574) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 MARCH 2023 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 67,755 | 58,807 |
Group |
Deferred |
tax |
£ |
Balance at 31 March 2022 | 58,807 |
Provided during year | 8,948 |
Balance at 30 March 2023 | 67,755 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
23. | RELATED PARTY DISCLOSURES |
The directors regard themselves as the key management personnel. Their remuneration is included in note 5 to the financial statements. |
24. | POST BALANCE SHEET EVENTS |
In June 2023 a group of customers went into liquidation. As at 31st March 2023 these companies owed CS2 Transport Limited £458,738 of which only £77,860 was received by CS2 Transport Limited after the year end. As such the Trade Debtor book value has been reduced by £380,878 and a bad debt of £317,399 recognised in these accounts. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mr G Turney. |