Company registration number 176198 (England and Wales)
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
420,788
109,404
Current assets
Stocks
814,865
884,486
Debtors
4
115,095
266,038
Cash at bank and in hand
505,304
771,071
1,435,264
1,921,595
Creditors: amounts falling due within one year
5
(1,330,504)
(1,505,843)
Net current assets
104,760
415,752
Total assets less current liabilities
525,548
525,156
Creditors: amounts falling due after more than one year
6
(15,833)
(25,833)
Net assets
509,715
499,323
Capital and reserves
Called up share capital
8
500
500
Profit and loss reserves
509,215
498,823
Total equity
509,715
499,323
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
Mr C P Brook
Mr D J Brook
Director
Director
Company Registration No. 176198
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
500
506,798
507,298
Year ended 31 October 2022:
Profit and total comprehensive income
-
92,025
92,025
Dividends
-
(100,000)
(100,000)
Balance at 31 October 2022
500
498,823
499,323
Year ended 31 October 2023:
Profit and total comprehensive income
-
10,392
10,392
Balance at 31 October 2023
500
509,215
509,715
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
1
Accounting policies
Company information
Brook & Churches Bros Limited is a private company limited by shares incorporated in England and Wales. The registered office is BCL House, Gatwick Road, Crawley, West Sussex, RH10 9AX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. true
At the time of approving the financial statements the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% Reducing balance
Fixtures, fittings & equipment
15% Reducing balance and 3 year straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
Impairment of financial assets
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.
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
31
32
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2022
169,571
Additions
329,289
At 31 October 2023
498,860
Depreciation and impairment
At 1 November 2022
60,167
Depreciation charged in the year
17,905
At 31 October 2023
78,072
Carrying amount
At 31 October 2023
420,788
At 31 October 2022
109,404
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
100,618
266,038
Other debtors
14,477
115,095
266,038
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
919,593
1,074,417
Amounts owed to group undertakings
106,511
135,549
Taxation and social security
32,660
99,373
Other creditors
261,740
186,504
1,330,504
1,505,843
The aggregate amount of secured liabilities was £359,860 (2022 - £423,874). Of which liabilities of £349,860 (2022 - £413,874) are secured over the stock of the company.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15,833
25,833
The aggregate amount of creditors for which security has been given amounted to £15,833 (2022 - £25,833).
7
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,772
40,824
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
BROOK & CHURCHES BROS LIMITED
TRADING AS "GATWICK GROUP"
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
J. Christopher Ketley FCA
Statutory Auditor:
Knill James LLP
Date of audit report:
28 March 2024
10
Financial commitments, guarantees and contingent liabilities
The company has entered into joint and several guarantees with Brook & Churches Limited in respect of that company's bank borrowings in favour of Lloyds Bank Plc for an amount of £250,000. The potential liability at the balance sheet date is £250,000 (2022 - £250,000).
The company has entered into cross guarantees with Brook & Churches Limited in respect of sums owed and consignment stock held by the company to Hyundai Capital UK Limited. The total amount outstanding (excluding the value of consignment stock) at the balance sheet date was £305,136 (2022 - £318,194). The value of consignment stock at the balance sheet date was £395,136 (2022 - £328,096).
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
552,500
722,500
12
Parent company
The company's parent company is Brook & Churches Limited, a company registered in England & Wales. The company is ultimately controlled by the directors, who own the entire issued share capital of the ultimate parent undertaking.
2023-10-312022-11-01false28 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr C P BrookD J BrookMr C P Brookfalse1761982022-11-012023-10-311761982023-10-311761982022-10-31176198core:OtherPropertyPlantEquipment2023-10-31176198core:OtherPropertyPlantEquipment2022-10-31176198core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-31176198core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-31176198core:CurrentFinancialInstruments2023-10-31176198core:CurrentFinancialInstruments2022-10-31176198core:Non-currentFinancialInstruments2023-10-31176198core:Non-currentFinancialInstruments2022-10-31176198core:ShareCapital2023-10-31176198core:ShareCapital2022-10-31176198core:RetainedEarningsAccumulatedLosses2023-10-31176198core:RetainedEarningsAccumulatedLosses2022-10-31176198core:ShareCapital2021-10-31176198core:RetainedEarningsAccumulatedLosses2021-10-31176198bus:CompanySecretaryDirector12022-11-012023-10-31176198bus:Director12022-11-012023-10-31176198core:RetainedEarningsAccumulatedLosses2021-11-012022-10-311761982021-11-012022-10-31176198core:RetainedEarningsAccumulatedLosses2022-11-012023-10-31176198core:PlantMachinery2022-11-012023-10-31176198core:FurnitureFittings2022-11-012023-10-31176198core:OtherPropertyPlantEquipment2022-10-31176198core:OtherPropertyPlantEquipment2022-11-012023-10-31176198core:WithinOneYear2023-10-31176198core:WithinOneYear2022-10-31176198bus:PrivateLimitedCompanyLtd2022-11-012023-10-31176198bus:SmallCompaniesRegimeForAccounts2022-11-012023-10-31176198bus:FRS1022022-11-012023-10-31176198bus:Audited2022-11-012023-10-31176198bus:Director22022-11-012023-10-31176198bus:CompanySecretary12022-11-012023-10-31176198bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP