Company registration number 05977712 (England and Wales)
GADBROOK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
GADBROOK HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr A Macnaughtan
Secretary
Ms A Macnaughtan
Company number
05977712
Registered office
Trident House
105 Derby Road
Liverpool
L20 8LZ
Auditor
Whitnalls
Trident House
105 Derby Road
Liverpool
L20 8LZ
Bankers
The Royal Bank Of Scotland plc
33 Old Broad Street
London
EC2N 1HW
GADBROOK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Group statement of income and retained earnings
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 33
GADBROOK HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents the strategic report for the year ended 31 December 2022.

Principal activities

The principal activity of the company is that of an investment company.

The principal activity of the group continued to be that of canal boat building and the provision of marina services.

Review of the business

Gadbrook Holdings Limited is the parent company to Collingwood Boat Builders Ltd, Orchard Marina Ltd, Park Farm Marina Ltd and Orchard Marina & Boat Builders Ltd. As shown in the group's statement of income and retained earnings, turnover and gross profit margins have increased over the previous year.

 

There have been no significant events since the balance sheet date that materially affect the company or the group.

 

The group's key financial and other performance indicators during the year were as follows:

 

 

£'000

2022

2021

2020

Turnover

 

14,148

15,407

18,852

Profit/(loss) before tax

 

539

1,515

2,497

Total Equity

 

7,827

7,453

6,483

Fixed Assets

 

8,523

8,728

8,353

 

Principal risks and uncertainties

The principal risks and uncertainties that the company faces, through the group, have been identified as a loss of turnover in the trading companies as a result of market uncertainties, especially regarding the manner of the UK's departure from the European Union. Any impact on trade could have a subsequent affect on the rents achieved in the holding company.

The director of the company, as a part o the group, has considered the nature and extent of risks and uncertainties arising from the above and potential impact on the future performance and position of the company and group. After due consideration, the director believes that the impact of Brexit on the group, and the company, will not materially affect the future trading position.

Key performance indicators

The Board uses a range of KPI's to monitor the group's performance and progress towards its strategies and objectives. The principal KPI's include sales growth, margins, working capital, total equity and current asset ratios. The group's balance sheet shows a strong position at year end with total equity of £7,826,554.

On behalf of the board

Mr A Macnaughtan
Director
1 May 2024
GADBROOK HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Results and dividends

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

Ordinary dividends were paid amounting to £36,000. The director does not recommend payment of a further dividend.

Director

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

Mr A Macnaughtan
Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

GADBROOK HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
On behalf of the board
Mr A Macnaughtan
Director
1 May 2024
GADBROOK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GADBROOK HOLDINGS LIMITED
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of Gadbrook Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group statement of income and retained earnings, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of cash flows, the company 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

In our audit of the Gadbrook Holdings Limited, financial statements for the year ended 31 December 2022, we were unable to obtain sufficient appropriate audit evidence in relation to the valuation of properties held for investment with a carrying value of £1,537,919 in line with the requirements of Financial Reporting Standard 102.

In the audit of Collingwood Boat Builders Limited and Orchard Marina Limited, subsidiary companies, we were unable to obtain sufficient appropriate audit evidence regarding the valuation and accuracy of work in progress (WIP) as at the year end. The company’s WIP was estimated at the year ended 31 December 2022 by the director of Gadbrook Holdings Limited. The company’s WIP was counted on 5 January 2023, and we were able to perform necessary audit procedures to verify its existence and completeness as at 31 December 2022. However, we were unable to determine and quantify, the stock values as at 31 December 2022 due to insufficient records. As a result of this limitation in scope, the possible effects on the financial statements are material. The company’s stock valuation as at 31 December 2022, included within its balance sheet, amounted to £855,285.

In the audit of the financial statements to 31 December 2022 of both Collingwood Boat Builders Limited and Orchard Marina Limited the audit reports include a limitation of scope relating to creditors’ balances payable amounting to £2,263,844. Following an extensive review process we have not been able to verify the completeness of the year end balances, or transactions with each entity, with regards to cut-off and quantification.

In addition, where any adjustments to the valuation of properties, work in progress or trade creditors balances were required, there would be an impact on the profit and loss, and the strategic report would also need to be amended.

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 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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

GADBROOK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GADBROOK HOLDINGS LIMITED
- 5 -

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 director is 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.

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the valuation of properties, valuation of work in progress in the financial statements, or the completeness of trade creditors as at 31 December 2022. We have concluded that where the other information refers to the valuation of properties, work in progress balance or trade Creditors balance or related balances such as costs, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the matter described in the basis for qualified opinion section of our report, In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to investment properties, stock and trade creditors, described above:

 

Except for the matters described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

Arising solely from the limitation of scope of our work relating to investment properties, work in progress and trade creditors, referred to above:

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:

 

GADBROOK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GADBROOK HOLDINGS LIMITED
- 6 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

GADBROOK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GADBROOK HOLDINGS LIMITED
- 7 -

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition, (iii) understatement of creditors and (iv) the valuation and impairment of stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Audit response to risks identfied

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Louise Casey (Senior Statutory Auditor)
For and on behalf of Whitnalls
1 May 2024
ACA
Statutory Auditor
Trident House
105 Derby Road
Liverpool
L20 8LZ
GADBROOK HOLDINGS LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
as restated
Notes
£
£
Turnover
3
14,147,681
15,407,594
Cost of sales
(12,301,890)
(11,988,636)
Gross profit
1,845,791
3,418,958
Administrative expenses
(1,296,469)
(1,508,602)
Other operating expenses
-
(305,128)
Operating profit
4
549,322
1,605,228
Interest receivable and similar income
7
16,202
981
Interest payable and similar expenses
8
(26,440)
(91,256)
Profit before taxation
539,084
1,514,953
Tax on profit
9
(129,425)
(311,532)
Profit for the financial year
409,659
1,203,421
Retained earnings brought forward as previously reported
7,659,952
6,482,531
Effect of change in accounting policy
(207,058)
(207,058)
As restated
7,452,894
6,275,473
Dividends
(36,000)
(26,000)
Retained earnings carried forward
7,826,553
7,452,894
Profit for the financial year is all attributable to the owners of the parent company.
GADBROOK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
as restated
£
£
Profit for the year
409,659
1,203,421
Other comprehensive income
-
-
Total comprehensive income for the year
409,659
1,203,421
Total comprehensive income for the year is all attributable to the owners of the parent company.
GADBROOK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
11
724,707
828,236
Tangible assets
12
6,210,791
6,312,562
Investment property
13
1,537,919
1,537,919
Investments
14
50,000
50,000
8,523,417
8,728,717
Current assets
Stocks
17
855,285
413,400
Debtors
18
406,694
190,965
Cash at bank and in hand
3,361,613
4,975,423
4,623,592
5,579,788
Creditors: amounts falling due within one year
19
(4,393,240)
(6,542,083)
Net current assets/(liabilities)
230,352
(962,295)
Total assets less current liabilities
8,753,769
7,766,422
Creditors: amounts falling due after more than one year
20
(761,416)
(127,878)
Provisions for liabilities
Deferred tax liability
23
165,799
185,649
(165,799)
(185,649)
Net assets
7,826,554
7,452,895
Capital and reserves
Called up share capital
26
1
1
Profit and loss reserves
7,826,553
7,452,894
Total equity
7,826,554
7,452,895

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

The financial statements were approved and signed by the director and authorised for issue on 1 May 2024
01 May 2024
Mr A Macnaughtan
Director
Company registration number 05977712 (England and Wales)
GADBROOK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Investment property
13
4,897,380
4,897,381
Investments
14
1,100,297
1,100,297
5,997,677
5,997,678
Current assets
Debtors
18
474,706
474,705
Cash at bank and in hand
3,043,696
4,904,779
3,518,402
5,379,484
Creditors: amounts falling due within one year
19
(136,222)
(2,954,823)
Net current assets
3,382,180
2,424,661
Total assets less current liabilities
9,379,857
8,422,339
Creditors: amounts falling due after more than one year
20
(23,367)
(33,367)
Net assets
9,356,490
8,388,972
Capital and reserves
Called up share capital
26
1
1
Profit and loss reserves
9,356,489
8,388,971
Total equity
9,356,490
8,388,972

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 £1,003,519 (2021 - £707,922 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 1 May 2024
01 May 2024
Mr A Macnaughtan
Director
Company registration number 05977712 (England and Wales)
GADBROOK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(666,180)
1,268,010
Income taxes (paid)/refunded
(833,751)
960,272
Net cash (outflow)/inflow from operating activities
(1,499,931)
2,228,282
Investing activities
Purchase of tangible fixed assets
(98,230)
(1,168,552)
Proceeds from disposal of investment property
-
356,244
Proceeds from disposal of subsidiaries, net of cash disposed
-
15,003
Proceeds from disposal of investments
-
(15,003)
Repayment of loans
79,974
(116,125)
Interest received
1,202
981
Dividends received
15,000
-
0
Net cash used in investing activities
(2,054)
(927,452)
Financing activities
Repayment of bank loans
(29,820)
83,987
Payment of finance leases obligations
(19,565)
-
Interest paid
(26,440)
(91,256)
Dividends paid to equity shareholders
(36,000)
(26,000)
Net cash used in financing activities
(111,825)
(33,269)
Net (decrease)/increase in cash and cash equivalents
(1,613,810)
1,267,561
Cash and cash equivalents at beginning of year
4,975,423
3,707,862
Cash and cash equivalents at end of year
3,361,613
4,975,423
GADBROOK HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(2,488,781)
695,131
Income taxes (paid)/refunded
(156,345)
155,944
Net cash (outflow)/inflow from operating activities
(2,645,126)
851,075
Investing activities
Purchase of tangible fixed assets
1
-
0
Proceeds from disposal of investment property
-
0
356,244
Repayment of loans
(209,704)
(598,617)
Dividends received
1,043,938
1,110,000
Net cash generated from investing activities
834,235
867,627
Financing activities
Repayment of bank loans
(10,000)
(5,833)
Interest paid
(4,192)
(35,010)
Dividends paid to equity shareholders
(36,000)
(36,000)
Net cash used in financing activities
(50,192)
(76,843)
Net (decrease)/increase in cash and cash equivalents
(1,861,083)
1,641,859
Cash and cash equivalents at beginning of year
4,904,779
3,262,920
Cash and cash equivalents at end of year
3,043,696
4,904,779
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
1
Accounting policies
Company information

Gadbrook Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Gadbrook Holdings 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 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Prior period error

A prior period adjustment has been made to reclassify goodwill that was previously classified as an investment. Additionally amortisation has been provided in respect of earlier periods. Furthermore a prior period adjustment has been made to reclassify investment properties used within the group as freehold land and buildings. Details of these adjustments are provided in note 31.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gadbrook Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. The parent company continues to support the working capital of subsidiary company's.

1.6
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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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 (see below).
Leasehold land and buildings
5% straight line
Leasehold improvements
5% straight line
Plant and machinery
10-25% reducing balance
Fixtures and fittings
25% reduccing 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.

The director is maintaining the company's freehold property to a high standard, and its useful economic life and residual value based on current assessments is such that depreciation would not be material. Provision will be made in the Profit and Loss Account for any permanent diminution in value that arises.

 

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is attributed to stock based upon director judgement and experience. They factor in costs, level of completion and expected revenues in their calculation.

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.

1.13
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.

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.14
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.

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 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.

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
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

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 group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.17
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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation

The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by the directors when determining the residual values for plant, machinery and equipment. When determining the residual value management assesses the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Recoverability of bad debts

Bad debts are recognised where there are indicators of non-recoverability, and appropriate action has been taken to recover the debt unsuccessfully. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual groups of customers.

 

Where an indication of impairment exists, the directors will carry out an impairment review to determine the recoverable amount, which is the higher of fair value less cost to sell and value in use. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the asset or the cash generating unit and a suitable discount rate in order to calculate present value.

Work in progress

The directors are responsible for the valuation of work in progress based on their judgement and experience. The directors assess the work in progress and consider factors such as level of completion, costs incurred and expected revenues. However, this is a highly subjective area that relies on director judgement and has no formal process or calculation. Consequently, it has been necessary to qualify this area of the accounts.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Sale of goods
14,147,681
15,394,399
Grants receivable
-
13,195
14,147,681
15,407,594
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 21 -
2022
2021
£
£
Other revenue
Interest income
1,202
981
Dividends received
15,000
-
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
170,512
190,116
Depreciation of tangible fixed assets held under finance leases
29,490
39,320
Amortisation of intangible assets
103,529
-
Operating lease charges
32,110
41,029
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,790
4,300
Audit of the financial statements of the company's subsidiaries
35,890
32,860
40,680
37,160
For other services
All other non-audit services
27,104
36,354
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Production
84
85
-
-
Admin and management
4
5
1
1
Total
88
90
1
1
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
2,751,197
3,326,073
-
0
-
0
Social security costs
280,192
271,639
-
-
Pension costs
69,230
75,395
-
0
-
0
3,100,619
3,673,107
-
0
-
0
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
1,202
981
Other income from investments
Dividends received
15,000
-
0
Total income
16,202
981
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,202
981
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,512
1,707
Other interest on financial liabilities
-
39,369
3,512
41,076
Other finance costs:
Interest on finance leases and hire purchase contracts
1,317
1,317
Other interest
21,611
48,863
Total finance costs
26,440
91,256
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
149,275
171,098
Deferred tax
Origination and reversal of timing differences
(19,850)
140,434
Total tax charge
129,425
311,532

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:

2022
2021
£
£
Profit before taxation
539,084
1,514,953
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
102,426
287,841
Tax effect of expenses that are not deductible in determining taxable profit
6,095
63,251
Tax effect of income not taxable in determining taxable profit
(9,268)
(1,900)
Effect of change in corporation tax rate
262
836
Permanent capital allowances in excess of depreciation
20,998
(38,496)
Deferred tax adjustments in respect of prior years
8,912
-
0
Taxation charge
129,425
311,532
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
36,000
36,000
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
1,060,294
Amortisation and impairment
At 1 January 2022
232,058
Amortisation charged for the year
103,529
At 31 December 2022
335,587
Carrying amount
At 31 December 2022
724,707
At 31 December 2021
828,236
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2022
3,889,744
1,660,414
530,994
606,502
11,851
165,500
6,865,005
Additions
-
0
51,298
20,431
16,211
4,296
5,995
98,231
At 31 December 2022
3,889,744
1,711,712
551,425
622,713
16,147
171,495
6,963,236
Depreciation and impairment
At 1 January 2022
-
0
109,567
31,108
309,573
9,974
92,221
552,443
Depreciation charged in the year
-
0
85,086
27,572
67,235
1,414
18,695
200,002
At 31 December 2022
-
0
194,653
58,680
376,808
11,388
110,916
752,445
Carrying amount
At 31 December 2022
3,889,744
1,517,059
492,745
245,905
4,759
60,579
6,210,791
At 31 December 2021
3,889,744
1,550,847
499,886
296,929
1,877
73,279
6,312,562
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
12
Tangible fixed assets
(Continued)
- 26 -

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
2022
2021
2022
2021
£
£
£
£
Motor vehicles
44,235
58,980
-
0
-
0
13
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 January 2022 and 31 December 2022
1,537,919
4,897,380

Investment property comprises commercial properties rented to third parties.

14
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,050,297
1,050,297
Unlisted investments
50,000
50,000
50,000
50,000
50,000
50,000
1,100,297
1,100,297
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2022 and 31 December 2022
50,000
Carrying amount
At 31 December 2022
50,000
At 31 December 2021
50,000
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2022 and 31 December 2022
1,050,297
50,000
1,100,297
Carrying amount
At 31 December 2022
1,050,297
50,000
1,100,297
At 31 December 2021
1,050,297
50,000
1,100,297
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Collingwood Boat Builders Limited
United Kingdom
Ordinary
100.00
Orchard Marina Limited
United Kingdom
Ordinary
100.00
Park Farm Marina Limited
United Kingdom
Ordinary
100.00
Orchard Marina & Boat Builders Limited
United Kingdom
Ordinary
100.00
16
Financial instruments
Group
Company
2022
2021
2022
2021
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
3,735,278
5,162,718
3,518,417
4,904,779
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
(2,590,663)
(2,667,845)
(66,035)
(2,777,985)
17
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and work in progress
855,285
413,400
-
0
-
0
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
18
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
320,865
58,931
-
0
-
0
Amounts owed by group undertakings
-
-
474,706
474,705
Other debtors
52,785
126,608
-
0
-
0
Prepayments and accrued income
33,044
5,426
-
0
-
0
406,694
190,965
474,706
474,705
19
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
21
30,800
31,073
10,800
10,800
Obligations under finance leases
22
19,106
19,565
-
0
-
0
Trade creditors
2,263,844
2,379,466
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
2,701,164
Corporation tax payable
446,894
1,131,370
93,569
210,205
Other taxation and social security
1,434,922
2,870,747
-
-
Deferred income
24
61,626
-
0
-
0
-
0
Other creditors
23,661
21,389
5,980
5,980
Accruals and deferred income
112,387
88,473
25,873
26,674
4,393,240
6,542,083
136,222
2,954,823
20
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
73,367
102,914
23,367
33,367
Obligations under finance leases
22
5,858
24,964
-
0
-
0
Other taxation and social security
682,191
-
-
0
-
0
761,416
127,878
23,367
33,367
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
21
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
104,167
133,987
34,167
44,167
Payable within one year
30,800
31,073
10,800
10,800
Payable after one year
73,367
102,914
23,367
33,367

The long-term loans are secured by fixed charges over:

 

29 Townsend Street, Liverpool, L5 9XY (Charge imposed 8 January 2008).

26 Townsend Street, Liverpool, L5 9XY (Charge imposed 8 January 2008).

 

 

 

22
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
19,106
19,565
-
0
-
0
In two to five years
5,858
24,964
-
0
-
0
24,964
44,529
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

23
Deferred taxation

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

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
165,799
185,649
The company has no deferred tax assets or liabilities.
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
23
Deferred taxation
(Continued)
- 30 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
185,649
-
Credit to profit or loss
(19,850)
-
Liability at 31 December 2022
165,799
-
24
Deferred income
Group
Company
2022
2021
2022
2021
£
£
£
£
Other deferred income
61,626
-
-
-
25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,308
52,043

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.

26
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
1
1
1
1
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 31 -
27
Cash (absorbed by)/generated from group operations
2022
2021
£
£
Profit for the year after tax
409,659
1,203,421
Adjustments for:
Taxation charged
129,425
311,532
Finance costs
26,440
91,256
Investment income
(16,202)
(981)
Amortisation and impairment of intangible assets
103,529
-
Depreciation and impairment of tangible fixed assets
200,002
229,436
Movements in working capital:
Increase in stocks
(441,886)
(67,100)
(Increase)/decrease in debtors
(295,703)
625,427
Decrease in creditors
(843,070)
(1,124,981)
Increase in deferred income
61,626
-
Cash (absorbed by)/generated from operations
(666,180)
1,268,010
28
Cash (absorbed by)/generated from operations - company
2022
2021
£
£
Profit for the year after tax
1,003,518
707,922
Adjustments for:
Taxation charged
39,709
54,261
Finance costs
4,192
35,010
Investment income
(1,043,938)
(1,110,000)
Other gains and losses
209,704
598,617
Movements in working capital:
(Increase)/decrease in debtors
(1)
250,237
(Decrease)/increase in creditors
(2,701,965)
159,084
Cash (absorbed by)/generated from operations
(2,488,781)
695,131
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
29
Analysis of changes in net funds - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
4,975,423
(1,613,810)
3,361,613
Borrowings excluding overdrafts
(133,987)
29,820
(104,167)
Obligations under finance leases
(44,529)
19,565
(24,964)
4,796,907
(1,564,425)
3,232,482
30
Analysis of changes in net funds - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
4,904,779
(1,861,083)
3,043,696
Borrowings excluding overdrafts
(44,167)
10,000
(34,167)
4,860,612
(1,851,083)
3,009,529
31
Prior period adjustment

A prior period adjustment has been made to reclassify goodwill amounting that was previously classified as an investment. Additionally amortisation has been provided in respect of earlier periods. Furthermore a prior period adjustment has been made to reclassify investment properties used within the group as freehold land and buildings.

 

Changes to the balance sheet - group
As previously reported
Adjustment at 1 Jan 2021
Adjustment at 31 Dec 2021
As restated at 31 Dec 2021
£
£
£
£
Fixed assets
Goodwill
-
828,236
-
828,236
Tangible assets
2,953,101
3,359,461
-
6,312,562
Investment properties
4,897,380
(3,359,461)
-
1,537,919
Investments
1,085,294
(1,035,294)
-
50,000
Net assets
7,659,953
(207,058)
-
7,452,895
Capital and reserves
Profit and loss reserves
7,659,952
(207,058)
-
7,452,894
GADBROOK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
31
Prior period adjustment
(Continued)
- 33 -
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 December 2021
£
£
£
Profit after taxation
1,203,421
-
1,203,421
Reconciliation of changes in equity - group
1 January
31 December
2021
2021
£
£
Adjustments to prior year
Goodwill amortisation
(207,058)
(207,058)
Equity as previously reported
6,482,532
7,659,953
Equity as adjusted
6,275,474
7,452,895
Analysis of the effect upon equity
Profit and loss reserves
(207,058)
(207,058)
Reconciliation of changes in profit for the previous financial period
2021
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
1,203,421
Profit as adjusted
1,203,421
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2021
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
707,922
Profit as adjusted
707,922
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