Company registration number 10528593 (England and Wales)
GALLOWGATE DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
GALLOWGATE DEVELOPMENTS LIMITED
COMPANY INFORMATION
Directors
Mr I D Lawson
Mr L J Lawson
Miss H Rochester
Company number
10528593
Registered office
1 Kitching Road
North West Industrial Estate
Peterlee
Durham
SR8 2HP
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
GALLOWGATE DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
GALLOWGATE DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Review of the business

The group's subsidiary trades as NFS 360 Connect which started business as Northern Freight Services in 1978. It is a family business with family values. It is based in Peterlee, and offers 250,000sq ft of state of the art internal warehousing and nine acres of external storage space. ​It offers 24/7 security across all sites with guard-controlled access and CCTV coverage.

 

We also operate an extensive fleet of modern vehicles we are ideally equipped to fulfil all distribution needs.

We passionately believe in delivering the ultimate service to our customers. Whether this is transporting and storing goods or proactively supplying innovative solutions to the problems our customers face on a daily basis.

Principal risks and uncertainties

The principal risks faced by the group are set out below:

The ongoing national staff shortages continue to impact on staff availability and salary expectations. In addition, staff costs are also impacted by the ongoing increases in the National Minimum Wage.

Impact of inflation

Due to the significant increase in the Consumer Price Index the management have increased its focus on the cost base of the company and continually reviewed charges to customers.

Liquidity risk

The group continues to be funded by internal resources which were greater enhanced by the sale of the group property in Cook Way. It has invested some of these proceeds in buying the adjacent compound which it had previously rented.

Credit risk

The group has procedures in place for dealing with aged debt and adequate provisions have been included in the financial statements.

Data protection risk

The risk continues to be controlled through the data protection polices and privacy notices that are in place. Internal data protection activities are well managed and all responses to data requests are provided ensuring compliance with ICO guidance. Awareness continues to be raised with staff of data protection issues through updates and training.

Development and performance

The Statement of Comprehensive Income shows the results for year ended 30 September 2023. The group's turnover for the year was £11.24m representing a 2.8% increase on the previous year (2022: £10.93m). The group's operating profit for year ended 30 September 2023 amounted to £554,158 (2022: £1,230,077).

As at 30 September 2023 the group had net assets of £3.52m (2022: £2.83m).

Key Performance Indicators

Two of the principal Key Performance Indicators (KPls) used by the company to measure its own level of ongoing performance is shown below:

Transport as a percentage of turnover 64% (2022: 64%)

Warehouse utilisation 85% (2022: 81%)

GALLOWGATE DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

On behalf of the board

Mr L J Lawson
Director
25 March 2024
GALLOWGATE DEVELOPMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of group continued to be that of supplying logistical solutions to its customers.

Results and dividends

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

Ordinary dividends were paid amounting to £11,400. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr I D Lawson
Mr L J Lawson
Miss H Rochester
Auditor

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

GALLOWGATE DEVELOPMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
On behalf of the board
Mr L J Lawson
Director
25 March 2024
GALLOWGATE DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GALLOWGATE DEVELOPMENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Gallowgate Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other matter

The comparative figures are unaudited.

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 parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

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

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

GALLOWGATE DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GALLOWGATE DEVELOPMENTS LIMITED
- 7 -

Based on our understanding of the group, we identified that there were no principal risks of non-compliance with laws and regulations central to the group's operations as it does not have to report to a regulatory body and there is no supervisory body which monitors its operations. We also considered those laws and regulations that have a direct impact on the financial statements of the company such as the Companies Act 2006 and UK tax legislation.

 

Audit procedures performed by the engagement team included:

 

Discussions with directors and key management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

 

Inspection of relevant certificates and compliance reports;

 

Reviewing relevant meeting minutes;

 

Evaluation and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

 

Identifying and testing journal entries based on risk criteria;

 

Testing transactions entered into outside of the company's normal course of business.

 

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Charles BSc FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
5 April 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
GALLOWGATE DEVELOPMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
11,245,896
10,936,764
Cost of sales
(4,765,238)
(5,110,776)
Gross profit
6,480,658
5,825,988
Administrative expenses
(5,926,500)
(4,595,911)
Operating profit
4
554,158
1,230,077
Interest receivable and similar income
8
100
-
0
Interest payable and similar expenses
9
(3,081)
(19,634)
Profit/(loss) on sale of fixed assets
382,771
-
Profit before taxation
933,948
1,210,443
Tax on profit
10
(233,477)
(219,809)
Profit for the financial year
24
700,471
990,634
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GALLOWGATE DEVELOPMENTS LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
394,681
2,086,028
Current assets
Stocks
15
5,875
17,940
Debtors
16
4,668,726
2,530,971
Cash at bank and in hand
357,065
144,490
5,031,666
2,693,401
Creditors: amounts falling due within one year
17
(1,789,902)
(1,770,275)
Net current assets
3,241,764
923,126
Total assets less current liabilities
3,636,445
3,009,154
Creditors: amounts falling due after more than one year
18
(17,088)
(82,774)
Provisions for liabilities
Deferred tax liability
21
94,168
90,262
(94,168)
(90,262)
Net assets
3,525,189
2,836,118
Capital and reserves
Called up share capital
23
250
250
Profit and loss reserves
24
3,524,939
2,835,868
Total equity
3,525,189
2,836,118

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 25 March 2024 and are signed on its behalf by:
25 March 2024
Mr L J Lawson
Director
Company registration number 10528593 (England and Wales)
GALLOWGATE DEVELOPMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
-
0
1,592,229
Investments
13
100
100
100
1,592,329
Current assets
Debtors
16
1,977,850
150
Cash at bank and in hand
16,676
19,376
1,994,526
19,526
Creditors: amounts falling due within one year
17
(84,241)
-
Net current assets
1,910,285
19,526
Net assets
1,910,385
1,611,855
Capital and reserves
Called up share capital
23
250
250
Profit and loss reserves
24
1,910,135
1,611,605
Total equity
1,910,385
1,611,855

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £309,930 (2022 - £602,658 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 March 2024 and are signed on its behalf by:
25 March 2024
Mr L J Lawson
Director
Company registration number 10528593 (England and Wales)
GALLOWGATE DEVELOPMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
250
1,856,634
1,856,884
Year ended 30 September 2022:
Profit and total comprehensive income
-
990,634
990,634
Dividends
11
-
(11,400)
(11,400)
Balance at 30 September 2022
250
2,835,868
2,836,118
Year ended 30 September 2023:
Profit and total comprehensive income
-
700,471
700,471
Dividends
11
-
(11,400)
(11,400)
Balance at 30 September 2023
250
3,524,939
3,525,189
GALLOWGATE DEVELOPMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
250
1,020,347
1,020,597
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
602,658
602,658
Dividends
11
-
(11,400)
(11,400)
Balance at 30 September 2022
250
1,611,605
1,611,855
Year ended 30 September 2023:
Profit and total comprehensive income
-
309,930
309,930
Dividends
11
-
(11,400)
(11,400)
Balance at 30 September 2023
250
1,910,135
1,910,385
GALLOWGATE DEVELOPMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(1,404,882)
418,919
Interest paid
(3,081)
(19,634)
Income taxes paid
(168,759)
(75,173)
Net cash (outflow)/inflow from operating activities
(1,576,722)
324,112
Investing activities
Purchase of tangible fixed assets
(7,700)
(218,296)
Proceeds from disposal of tangible fixed assets
1,980,500
16,899
Interest received
100
-
0
Net cash generated from/(used in) investing activities
1,972,900
(201,397)
Financing activities
Repayment of bank loans
(131,995)
(259,044)
Payment of finance leases obligations
(40,208)
(51,368)
Dividends paid to equity shareholders
(11,400)
(11,400)
Net cash used in financing activities
(183,603)
(321,812)
Net increase/(decrease) in cash and cash equivalents
212,575
(199,097)
Cash and cash equivalents at beginning of year
144,490
343,587
Cash and cash equivalents at end of year
357,065
144,490
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

Gallowgate Developments Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is 1 Kitching Road, North West Industrial Estate, Peterlee, Durham, SR8 2HP.

 

The group consists of Gallowgate Developments Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in UK sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting statndards. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The results of all subsidiaries are included in the group profit and loss account from the date of acquisition.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

 

Turnover from the sale of products and equipment is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of goods.

Sale of services

 

Revenue from contracts for the provision of warehousing and freight transport services is recognised by reference to the stage of completion of the contract when this can be estimated reliably.

GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
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:

Freehold land and buildings
Not depreciated
Plant and equipment
20% reducing balance
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Fixed asset investments are initially measured at cost but are carried in the balance sheet at no more than their recoverable amount.

1.7
Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

1.8
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.

1.9
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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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, 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current and deferred taxation assets and liabilities are not discounted.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax 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.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.                        

1.17

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortized at cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.                    

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements. If, in the future, such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and judgements will be modified as appropriate in the year in which the circumstances change.

 

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

 

The estimated useful lives of tangible fixed assets

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Warehousing
4,008,016
3,937,235
Freight transport
7,237,880
6,999,529
11,245,896
10,936,764
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
3
Turnover and other revenue
(Continued)
- 19 -
2023
2022
£
£
Other revenue
Interest income
100
-
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
76,649
69,238
Depreciation of tangible fixed assets held under finance leases
20,712
26,464
Loss on disposal of tangible fixed assets
3,957
15,530
Operating lease charges
912,052
698,037
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,500
-
Audit of the financial statements of the company's subsidiaries
8,500
-
10,000
-
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Warehousing
23
22
-
-
Freight transport
54
51
-
-
Finance and administration
8
9
-
-
Total
85
82
-
0
-
0
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,880,068
2,263,085
-
0
-
0
Social security costs
269,784
210,132
-
-
Pension costs
244,678
170,931
-
0
-
0
3,394,530
2,644,148
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
260,444
272,266
Company pension contributions to defined contribution schemes
241,170
129,638
501,614
401,904

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
131,773
133,090
Company pension contributions to defined contribution schemes
73,321
41,347
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
100
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
18,146
Interest on finance leases and hire purchase contracts
3,081
1,488
Total finance costs
3,081
19,634
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
243,447
182,635
Adjustments in respect of prior periods
(13,876)
-
0
Total current tax
229,571
182,635
Deferred tax
Origination and reversal of timing differences
(18,614)
37,174
Changes in tax rates
22,520
-
0
Total deferred tax
3,906
37,174
Total tax charge
233,477
219,809

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
933,948
1,210,443
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
233,487
229,984
Tax effect of expenses that are not deductible in determining taxable profit
18,563
2,185
Adjustments in respect of prior years
(13,876)
8,549
Effect of change in corporation tax rate
(33,095)
-
Capital allowances in excess/(deficit) of depreciation
24,492
(58,083)
Deferred tax
3,906
37,174
Taxation charge
233,477
219,809
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
11,400
11,400
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2022
1,592,229
695,101
357,241
2,644,571
Additions
-
0
6,500
1,200
7,700
Disposals
(1,592,229)
(189,926)
(38,400)
(1,820,555)
At 30 September 2023
-
0
511,675
320,041
831,716
Depreciation and impairment
At 1 October 2022
-
0
326,435
232,108
558,543
Depreciation charged in the year
-
0
68,508
28,853
97,361
Eliminated in respect of disposals
-
0
(183,890)
(34,979)
(218,869)
At 30 September 2023
-
0
211,053
225,982
437,035
Carrying amount
At 30 September 2023
-
0
300,622
94,059
394,681
At 30 September 2022
1,592,229
368,666
125,133
2,086,028
Company
Freehold land and buildings
£
Cost
At 1 October 2022
1,592,229
Disposals
(1,592,229)
At 30 September 2023
-
0
Depreciation and impairment
At 1 October 2022 and 30 September 2023
-
0
Carrying amount
At 30 September 2023
-
0
At 30 September 2022
1,592,229
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Tangible fixed assets
(Continued)
- 23 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
60,864
74,678
-
0
-
0
Motor vehicles
22,860
29,758
-
0
-
0
83,724
104,436
-
-
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
100
Carrying amount
At 30 September 2023
100
At 30 September 2022
100
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Abletransfer Limited
England and Wales
Logistical solutions
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Abletransfer Limited
1,614,904
401,941
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
5,875
17,940
-
0
-
0
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,093,483
2,073,832
-
0
-
0
Amounts owed by group undertakings
-
-
2,700
-
Other debtors
2,063,918
9,838
1,975,150
150
Prepayments and accrued income
511,325
447,301
-
0
-
0
4,668,726
2,530,971
1,977,850
150

Included in trade debtors are factored debts of £162,526 (2022: £294,521).

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
162,526
294,521
-
0
-
0
Obligations under finance leases
20
25,478
-
0
-
0
-
0
Trade creditors
928,839
793,128
-
0
-
0
Corporation tax payable
243,447
182,635
84,241
-
0
Other taxation and social security
286,044
311,544
-
-
Other creditors
51,577
74,234
-
0
-
0
Accruals and deferred income
91,991
114,213
-
0
-
0
1,789,902
1,770,275
84,241
-
0
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
17,088
82,774
-
0
-
0
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
162,526
294,521
-
0
-
0
Payable within one year
162,526
294,521
-
0
-
0

The company's debt factoring liability is secured by a debenture and legal charges over all property and assets of the company together with a third party guarantee.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
28,251
43,289
-
0
-
0
In two to five years
18,835
47,086
-
0
-
0
47,086
90,375
-
-
Less: future finance charges
(4,520)
(7,601)
-
0
-
0
42,566
82,774
-
0
-
0

The finance leases are secured on the assets being financed.

21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
94,168
90,262
The company has no deferred tax assets or liabilities.
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
21
Deferred taxation
(Continued)
- 26 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
90,262
-
Charge to profit or loss
3,906
-
Liability at 30 September 2023
94,168
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
244,678
170,931

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
Ordinary A of £1 each
150
150
150
150
250
250
250
250
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
2,835,868
1,856,634
1,611,605
1,020,347
Profit for the year
700,471
990,634
309,930
602,658
Dividends
(11,400)
(11,400)
(11,400)
(11,400)
At the end of the year
3,524,939
2,835,868
1,910,135
1,611,605
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 27 -
25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
920,500
625,500
-
-
Between two and five years
2,900,381
2,112,881
-
-
In over five years
4,034,500
1,317,500
-
-
7,855,381
4,055,881
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
850,000
-
-
-
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
£
£
Group
Key management personnel
9,533
11,292
Rent payable
Sale of freehold property
2023
2022
2023
2022
£
£
£
£
Group
Key management personnel
436,800
436,800
-
-
Other related parties
-
-
1,975,000
-
Company
Other related parties
-
-
1,975,000
-
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
27
Related party transactions
(Continued)
- 28 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Key management personnel
35,840
51,271
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
2,063,768
-
Company
Other related parties
1,975,000
-

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

2023
2022
£
£
Group
Key management personnel
15,400
-
28
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
700,471
990,634
Adjustments for:
Taxation charged
233,477
219,809
Finance costs
3,081
19,634
Investment income
(100)
-
0
Loss on disposal of tangible fixed assets
3,957
15,530
Depreciation and impairment of tangible fixed assets
97,361
95,702
Other gains and losses
(382,771)
-
Movements in working capital:
Decrease in stocks
12,065
-
Increase in debtors
(2,137,755)
(469,550)
Increase/(decrease) in creditors
65,332
(452,840)
Cash (absorbed by)/generated from operations
(1,404,882)
418,919
GALLOWGATE DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
29
Analysis of changes in net funds/(debt) - group
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
144,490
212,575
357,065
Borrowings excluding overdrafts
(294,521)
131,995
(162,526)
Obligations under finance leases
(82,774)
40,208
(42,566)
(232,805)
384,778
151,973
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