Company Registration No. 00416586 (England and Wales)
Gilbert Thompson (Leeds) Limited
Annual Report and Financial Statements
For the Year ended 31 October 2023
GILBERT THOMPSON (LEEDS) LIMITED
COMPANY INFORMATION
Directors
Mr R J Thompson
Mr D C Thompson
Mr S Woodhead
Mr K J B Weiss
Secretary
Mr R J Thompson
Company number
00416586
Registered office
Yorkshire Produce Centre
Pontefract Lane
Leeds
LS9 0PX
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
GILBERT THOMPSON (LEEDS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 31
GILBERT THOMPSON (LEEDS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The directors present the strategic report for the year ended 31 October 2023.

Review of the business

The directors are pleased to report that the group has had a successful year.

GT Produce Limited saw an increase in sales of 18.5% and an increase in gross profit of 13.0% compared to 2022.

GT Prep Limited saw a 16.3% increase in sales compared to 2022, becoming a profitable company within the Group.

The directors are pleased with the performance during the year and consider the group to be in a good financial position at the year end. The group sold GT Flowers Limited in February 2023, enabling the group to focus on its core activity of fresh produce wholesale, with the sale proceeds further enhancing the group’s financial position.

The group merged its two fresh produce wholesale businesses in May 2023. The business of C. Scruton (Produce) Limited was merged into that of GT Produce Limited. The merger resulted in £157k of exceptional costs in 2023, but it will bring many benefits and synergies to the business in future years.

The directors will continue to look at opportunities to grow the business, but their focus for 2024 is on ensuring continued profitability, organic growth, and improved operational efficiencies.

Principal risks and uncertainties

We aim to present a balanced and comprehensive review of the developments and performance of our business during the period and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The group’s business may be affected by the fluctuations in the price of fruit and vegetables. To ensure that profit margins are maintained, the directors ensure that profit margins are closely monitored.

The group may be affected by the financial stability of customers, and, where considered necessary, the directors closely monitor customer balances and restrict the customer credit.

Key performance indicators

We monitor a wide range of KPIs, both financial and non-financial, on a regular basis. We consider the KPIs that communicate the financial performance and strength of the group are the turnover and profit margins.

The group turnover of its continued operations decreased from £25.2m in 2022 to £20.7m in 2023.

The group’s gross profit margin decreased from 11.1% in 2022 to 9.3% in 2023, reflecting the nationwide increase in wage and transport costs, and the exceptional costs associated with the merger of the group’s two fresh produce companies.

On behalf of the board

Mr R J Thompson
Director
8 July 2024
GILBERT THOMPSON (LEEDS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2023.

Principal activities

The principal activity of the group continues to be that of the wholesale of flowers, plants, fruit and vegetables and the management of the group's property.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £nil (2022: £120,000). The directors do not recommend payment of a final 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 R J Thompson
Mr D C Thompson
Mr S Woodhead
Mr K J B Weiss
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
Mr R J Thompson
Director
8 July 2024
GILBERT THOMPSON (LEEDS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

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.

GILBERT THOMPSON (LEEDS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GILBERT THOMPSON (LEEDS) LIMITED
- 4 -
Opinion

We have audited the financial statements of Gilbert Thompson (Leeds) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

GILBERT THOMPSON (LEEDS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GILBERT THOMPSON (LEEDS) LIMITED
- 5 -
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.

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.

GILBERT THOMPSON (LEEDS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GILBERT THOMPSON (LEEDS) LIMITED
- 6 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jessica Lawrence (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
8 July 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
GILBERT THOMPSON (LEEDS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
Continuing
Discontinued
31 October
Continuing
Discontinued
31 October
operations
operations
2023
operations
operations
2022
Notes
£
£
£
£
£
£
Turnover
3
20,731,302
1,650,185
22,381,487
25,183,869
7,648,524
32,832,393
Cost of sales
(18,794,243)
(1,522,601)
(20,316,844)
(22,376,231)
(7,074,341)
(29,450,572)
Gross profit
1,937,059
127,584
2,064,643
2,807,638
574,183
3,381,821
Distribution costs
-
-
-
(732,832)
-
(732,832)
Administrative expenses
(1,765,897)
(186,410)
(1,952,307)
(1,675,252)
(512,416)
(2,187,668)
Other operating income
12,800
7,200
20,000
12,800
3,200
16,000
Exceptional item
4
-
-
-
491,220
(491,220)
-
Operating profit
5
183,962
(51,626)
132,336
903,574
(426,253)
477,321
Interest receivable and similar income
9
6,004
-
6,004
9,851
-
9,851
Interest payable and similar expenses
10
(131,576)
(331)
(131,907)
(94,350)
(1,323)
(95,673)
Amounts written off investments
11
28,187
-
28,187
(251,584)
-
(251,584)
Profit on disposal of operations
28
1,099,042
-
1,099,042
-
-
-
Profit before taxation
1,185,619
(51,957)
1,133,662
567,491
(427,576)
139,915
Tax on profit
12
(20,635)
12,500
(8,135)
31,080
(8,263)
22,817
Profit for the financial year
1,164,984
(39,457)
1,125,527
598,571
(435,839)
162,732
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.
GILBERT THOMPSON (LEEDS) LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
6,955,462
7,374,587
Debtors falling due after more than one year
17
414,087
40,923
Investments
15
73,894
78,699
7,443,443
7,494,209
Current assets
Stocks
16
118,758
505,929
Debtors
17
2,464,985
2,679,069
Investments
18
232,301
342,530
Cash at bank and in hand
143,786
444,047
2,959,830
3,971,575
Creditors: amounts falling due within one year
21
(2,852,924)
(3,942,808)
Net current assets
106,906
28,767
Total assets less current liabilities
7,550,349
7,522,976
Creditors: amounts falling due after more than one year
22
(2,782,132)
(3,195,998)
Provisions for liabilities
Deferred tax liability
23
727,247
814,035
(727,247)
(814,035)
Net assets
4,040,970
3,512,943
Capital and reserves
Called up share capital
25
464
464
Revaluation reserve
3,953,129
3,371,355
Capital redemption reserve
536
536
Profit and loss reserves
86,841
140,588
Total equity
4,040,970
3,512,943
The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
08 July 2024
Mr R J Thompson
Director
GILBERT THOMPSON (LEEDS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
6,521,802
6,689,905
Investments
15
256,716
270,685
6,778,518
6,960,590
Current assets
Debtors falling due after more than one year
17
414,087
40,923
Debtors falling due within one year
17
1,344,107
1,315,705
Investments
18
232,301
342,530
Cash at bank and in hand
97,357
74,360
2,087,852
1,773,518
Creditors: amounts falling due within one year
21
(1,412,171)
(1,562,677)
Net current assets
675,681
210,841
Total assets less current liabilities
7,454,199
7,171,431
Creditors: amounts falling due after more than one year
22
(2,778,455)
(3,130,677)
Provisions for liabilities
Deferred tax liability
23
637,747
666,590
(637,747)
(666,590)
Net assets
4,037,997
3,374,164
Capital and reserves
Called up share capital
25
464
464
Revaluation reserve
3,953,129
3,371,355
Capital redemption reserve
536
536
Profit and loss reserves
83,868
1,809
Total equity
4,037,997
3,374,164

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 £1,261,333 (2022 - £2,070,864).

The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
08 July 2024
Mr R J Thompson
Director
Company Registration No. 00416586
GILBERT THOMPSON (LEEDS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2021
464
3,684,303
536
19,175
2,049,110
5,753,588
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
162,732
162,732
Dividends
13
-
-
-
-
(120,000)
(120,000)
Transfers
-
(312,948)
-
(19,175)
312,948
(19,175)
EOT Contributions
-
-
-
-
(2,264,202)
(2,264,202)
Balance at 31 October 2022
464
3,371,355
536
-
0
140,588
3,512,943
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
-
1,125,527
1,125,527
Transfers
-
581,774
-
-
(581,774)
-
EOT Contributions
-
-
-
-
(597,500)
(597,500)
Balance at 31 October 2023
464
3,953,129
536
-
0
86,841
4,040,970
GILBERT THOMPSON (LEEDS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 November 2021
464
3,684,303
536
19,175
2,199
3,706,677
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
-
-
2,070,864
2,070,864
Dividends
13
-
-
-
-
(120,000)
(120,000)
Transfers
-
(312,948)
-
(19,175)
312,948
(19,175)
EOT Contributions
-
-
-
-
(2,264,202)
(2,264,202)
Balance at 31 October 2022
464
3,371,355
536
-
0
1,809
3,374,164
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
-
1,261,333
1,261,333
Transfers
-
581,774
-
-
(581,774)
-
EOT Contributions
-
-
-
-
(597,500)
(597,500)
Balance at 31 October 2023
464
3,953,129
536
-
0
83,868
4,037,997
GILBERT THOMPSON (LEEDS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(282,606)
1,209,550
Interest paid
(131,907)
(95,673)
Income taxes paid
(116,277)
(179,114)
Net cash (outflow)/inflow from operating activities
(530,790)
934,763
Investing activities
Proceeds of disposal of business
514,719
-
Purchase of tangible fixed assets
(91,231)
(238,469)
Proceeds on disposal of tangible fixed assets
149,350
70,450
Proceeds on disposal of associate
88,889
88,889
Dividends received
3,214
9,851
Net cash generated from/(used in) investing activities
664,941
(69,279)
Financing activities
Redemption of shares
-
(19,175)
Proceeds from borrowings
-
1,250,000
Repayment of bank loans
(327,225)
(278,615)
Payment of finance leases obligations
(107,187)
(89,543)
Dividends paid to equity shareholders
-
(120,000)
Contributions payable
-
(2,264,202)
Net cash used in financing activities
(434,412)
(1,521,535)
Net decrease in cash and cash equivalents
(300,261)
(656,051)
Cash and cash equivalents at beginning of year
444,047
1,100,098
Cash and cash equivalents at end of year
143,786
444,047
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
1
Accounting policies
Company information

Gilbert Thompson (Leeds) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Yorkshire Produce Centre, Pontefract Lane, Leeds, LS9 0PX.

 

The group consists of Gilbert Thompson (Leeds) 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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

The company has taken advantage of the exemption conferred by section 33.11 of FRS 102 allowing it not to disclose transactions and balance within its group, on the grounds that those entities are related by virtue of having the same control as defined in 33.11(b).

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gilbert Thompson (Leeds) 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 October 2023. 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.

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

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

1.3
Going concern

The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the group, the group continues to trade well. Budgets and cashflows have been prepared using assumptions for customer demand and supply chain costs as well as expectations for legal and regulatory environmental impacts. These budgets and cashflows indicate continuing profitability and cash generation, consequently the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements. Accordingly, these financial statements have been prepared on the going concern basis.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of fruit, vegetables and flowers is recognised when the significant risks and rewards of ownership of the fruit and vegetables have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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:

Land and buildings Freehold
2% Straight Line
Plant and machinery
20% Reducing Balance or 20% Straight Line
Plant and machinery
10% Reducing Balance or 10%/20%/33% Straight Line
Fixtures, fittings and equipment
20-33% Straight Line
Computer equipment
20%/25% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
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.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.

 

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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

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.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

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.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.11
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.

1.12
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.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

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

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

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
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

 

After review the Directors consider that there are no critical estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Produce and flower wholesale
22,381,487
32,832,393
2023
2022
£
£
Other revenue
Interest income
2,790
-
Dividends received
3,214
9,851
Grants received
20,000
16,000
4
Exceptional item

During the prior year Gilbert Thompson (Leeds) Limited and GT Flowers Limited had a write off / on of £491,220 respectively, in order to waive intercompany loan balances.

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
134
-
Government grants
(20,000)
(16,000)
Depreciation of owned tangible fixed assets
283,988
322,225
Depreciation of tangible fixed assets held under finance leases
56,408
70,944
Loss on disposal of tangible fixed assets
6,776
36,401
Operating lease charges
223,763
220,364
6
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
6,165
2,420
Audit of the financial statements of the company's subsidiaries
22,580
27,090
28,745
29,510
For other services
All other non-audit services
10,525
12,470
7
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
Directors
4
1
4
2
Direct
75
135
8
8
Administration
6
6
2
2
Management
4
6
3
3
Total
89
148
17
15
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
7
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,838,815
3,748,590
428,014
364,072
Social security costs
240,120
355,456
35,365
29,777
Pension costs
135,208
133,621
28,214
14,269
3,214,143
4,237,667
491,593
408,118
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
128,661
34,355
Company pension contributions to defined contribution schemes
6,319
-
134,980
34,355
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Unwinding of discount on provisions
2,790
-
Other income from investments
Dividends received
3,214
9,851
Total income
6,004
9,851
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
125,433
87,714
Interest on finance leases and hire purchase contracts
6,474
7,696
Other interest
-
263
Total finance costs
131,907
95,673
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
11
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
28,187
(81,972)
Other gains/(losses)
Other gains and losses
-
(169,612)
28,187
(251,584)
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
53,203
126,223
Adjustments in respect of prior periods
-
0
(450)
Total current tax
53,203
125,773
Deferred tax
Origination and reversal of timing differences
(45,068)
(148,590)
Total tax charge/(credit)
8,135
(22,817)

 

The actual charge/(credit) 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
1,133,662
139,915
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
255,074
26,584
Tax effect of expenses that are not deductible in determining taxable profit
11,994
69,145
Tax effect of income not taxable in determining taxable profit
-
0
15,147
Gains not taxable
(324,804)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(44,678)
Adjustments in respect of prior years
-
0
(199)
Permanent capital allowances in excess of depreciation
3,882
29,174
Deferred tax adjustments in respect of prior years
(45,059)
(148,590)
Other
107,048
30,600
Taxation charge/(credit)
8,135
(22,817)
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
13
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
-
120,000
14
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2022
6,750,000
290,501
1,343,923
49,637
683,954
9,118,015
Additions
-
0
47,957
31,462
7,312
4,500
91,231
Disposals
-
0
(12,699)
(26,275)
-
0
(115,035)
(154,009)
Disposals in respect of disposal of subsidiary
-
0
-
0
(177,983)
(12,386)
(91,150)
(281,519)
At 31 October 2023
6,750,000
325,759
1,171,127
44,563
482,269
8,773,718
Depreciation and impairment
At 1 November 2022
500,000
126,807
786,078
36,342
294,201
1,743,428
Depreciation charged in the year
135,000
40,747
61,712
6,601
96,336
340,396
Eliminated in respect of disposals
-
0
(4,513)
(11,201)
(2)
(85,221)
(100,937)
Eliminated in respect of disposals of subsidiary
-
0
-
0
(106,020)
(11,636)
(46,975)
(164,631)
At 31 October 2023
635,000
163,041
730,569
31,305
258,341
1,818,256
Carrying amount
At 31 October 2023
6,115,000
162,718
440,558
13,258
223,928
6,955,462
At 31 October 2022
6,250,000
163,694
557,845
13,295
389,753
7,374,587
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
14
Tangible fixed assets
(Continued)
- 24 -
Company
Land and buildings Freehold
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 November 2022
6,750,000
38,828
814,717
157,645
7,761,190
Additions
-
0
13,959
22,139
100
36,198
At 31 October 2023
6,750,000
52,787
836,856
157,745
7,797,388
Depreciation and impairment
At 1 November 2022
500,000
11,925
498,553
60,807
1,071,285
Depreciation charged in the year
135,000
7,707
42,209
19,385
204,301
At 31 October 2023
635,000
19,632
540,762
80,192
1,275,586
Carrying amount
At 31 October 2023
6,115,000
33,155
296,094
77,553
6,521,802
At 31 October 2022
6,250,000
26,903
316,164
96,838
6,689,905

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
£
£
£
£
Motor vehicles
137,954
195,249
77,470
96,837

Land and buildings at the Yorkshire Produce Centre with a carrying amount of £6,115,000 were revalued on 6 May 2021 by Sanderson Weatherall independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The condition of the property at the date of valuation was equal to that at the year end. As such, it is reasonable that this valuation is reflected in the accounts at 31 October 2023.

Land and Buildings at Yorkshire Produce Centre are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £2,243,793 (2022 - £2,305,845 ), being cost of £3,102,613 (2022 - £3,102,613) and depreciation of £858,820 (2022 - £796,768 ).

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
29
-
0
-
0
182,822
191,986
Unlisted investments
73,894
78,699
73,894
78,699
73,894
78,699
256,716
270,685
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 November 2022
78,699
Disposals
(4,805)
At 31 October 2023
73,894
Carrying amount
At 31 October 2023
73,894
At 31 October 2022
78,699
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 November 2022
191,986
78,699
270,685
Disposals
(9,164)
(4,805)
(13,969)
At 31 October 2023
182,822
73,894
256,716
Carrying amount
At 31 October 2023
182,822
73,894
256,716
At 31 October 2022
191,986
78,699
270,685
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
118,758
505,929
-
0
-
0
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,495,846
1,983,892
2,719
7,260
Corporation tax recoverable
-
0
30,794
-
0
777
Amounts owed by group undertakings
-
-
702,384
1,018,555
Other debtors
630,092
318,902
381,193
43,894
Prepayments and accrued income
339,047
345,481
257,811
245,219
2,464,985
2,679,069
1,344,107
1,315,705
Amounts falling due after more than one year:
Other debtors
414,087
40,923
414,087
40,923
Total debtors
2,879,072
2,719,992
1,758,194
1,356,628

Within other debtors is deferred consideration receivable on the sale of GT Flowers Limited totalling amounts of £256,916 falling due within the next 12 months and £385,375 falling due in more than one year.

 

Deferred consideration is received monthly in installments of £64,229, and will be received in full at 1 February 2026.

18
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Listed investments
232,301
342,530
232,301
342,530
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,083,588
3,410,813
3,083,588
3,410,813
Bank overdrafts
35,566
-
0
-
0
-
0
3,119,154
3,410,813
3,083,588
3,410,813
Payable within one year
356,692
321,126
321,126
321,126
Payable after one year
2,762,462
3,089,687
2,762,462
3,089,687
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
19
Loans and overdrafts
(Continued)
- 27 -

The bank loan and overdraft are secured by a fixed and floating charge over the assets of the company. A cross guarantee has also been provided by GT Flowers Limited, GT Produce Limited, G T Prep Limited, Sharrocks Fresh Produce Limited and C.Scruton (Produce) Limited in respect of group borrowings. At 31 October 2023 this amounted to £3,083,588 (2022 - £3,410,813).

 

The bank loan is due to HSBC Bank Plc and is a 18 year term loan repayable by 14 December 2027. It is being repaid by monthly capital and interest repayments. Interest is being charged at 1.8% above bank base rate.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
68,652
90,049
24,997
24,997
In two to five years
20,067
105,628
15,993
40,990
88,719
195,677
40,990
65,987
Less: future finance charges
(4,665)
(4,436)
-
0
-
0
84,054
191,241
40,990
65,987

Finance lease payments represent rentals payable by the company 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.

21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
356,692
321,126
321,126
321,126
Obligations under finance leases
20
64,384
84,930
24,997
24,997
Trade creditors
1,910,326
2,711,957
400,721
310,016
Amounts owed to group undertakings
-
0
-
0
498,354
711,765
Corporation tax payable
55,642
76,996
13,737
29,464
Other taxation and social security
163,212
281,072
98,784
107,562
Other creditors
18,471
33,074
9,308
10,898
Accruals and deferred income
284,197
433,653
45,144
46,849
2,852,924
3,942,808
1,412,171
1,562,677
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,762,462
3,089,687
2,762,462
3,089,687
Obligations under finance leases
20
19,670
106,311
15,993
40,990
2,782,132
3,195,998
2,778,455
3,130,677
23
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
174,729
250,450
Revaluations
553,078
572,770
Provisions
(560)
(9,185)
727,247
814,035
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
85,229
94,280
Revaluations
553,078
572,770
Provisions
(560)
(460)
637,747
666,590
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
814,035
666,590
Credit to profit or loss
(86,788)
(28,843)
Liability at 31 October 2023
727,247
637,747
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
135,208
133,621

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.

 

At the year end £8,333 (2022 - £12,890) of pension contributions were accrued but unpaid.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
464
464
464
464
26
Capital contribution reserve

A company repurchase of own shares, transacted in the year ended 31 October 2020, was settled by way of a credit to a loan account against which the counterparty has indicated an indefinite deferral of settlement of the loan, and as such this has been recognised as a capital contribution.

 

 

27
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
75,435
490,660
1,142
4,307
Between two and five years
178,626
787,952
124
935
254,061
1,278,612
1,266
5,242
GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
28
Disposals

On 3 February 2024 the group disposed of its 100% holding in GT Flowers Ltd. Included in these financial statements are losses of £39,457 arising from the company's interests in GT Flowers Ltd up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
85,281
Property, plant and equipment
116,884
Trade and other receivables
455,907
Inventories
298,423
Trade and other payables
(579,125)
Tax liabilities
(38,775)
Obligations under finance leases
(37,668)
Deferred tax
(29,220)
271,707
Gain on disposal
1,099,042
Total consideration
1,370,749
The consideration was satisfied by:
£
Cash
600,000
Deferred consideration
770,749
-
1,370,749

 

GILBERT THOMPSON (LEEDS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
29
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
C.Scruton & Sons LImited
England
Ordinary
100.00
GT Prep Limited
England
Ordinary
100.00
GT Produce Limited
England
Ordinary
100.00

The registered offices of all the above subsidiaries is Yorkshire Produce Centre, Pontefract Lane, Leeds, West Yorkshire, LS9 0PX.

30
Controlling party

The ultimate controlling party is Gilbert Thompson Trustees Limited.

31
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
1,125,527
162,732
Adjustments for:
Taxation charged/(credited)
8,135
(22,817)
Finance costs
131,907
95,673
Investment income
(6,004)
(9,851)
Loss on disposal of tangible fixed assets
6,776
36,401
Gain on disposal of business
(1,099,042)
-
Depreciation and impairment of tangible fixed assets
340,396
393,169
Other gains and losses
95,941
251,584
Loss on disposal of associates
(35,841)
Movements in working capital:
Decrease in stocks
387,171
151,700
(Increase)/decrease in debtors
(189,874)
504,574
Decrease in creditors
(1,083,539)
(317,774)
Cash (absorbed by)/generated from operations
(282,606)
1,209,550
32
Analysis of changes in net debt - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
389,317
54,730
444,047
Borrowings excluding overdrafts
(3,410,813)
327,225
(3,083,588)
Obligations under finance leases
(191,241)
107,187
(84,054)
(3,212,737)
489,142
(2,723,595)
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