Caseware UK (AP4) 2023.0.135 2023.0.135 2023-07-31The Directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to: select suitable accounting policies for the Company's financial statements and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.2023-07-31The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due within the operating cycle fall into this category of financial instruments. Financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Impairment of financial liabilities Financial liabilities are assessed for indicators of impairment at each reporting date. Financial liabilities are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial liabilities have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the liabilities original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.falsetrue2022-04-01falseNo description of principal activity202false 06667723 2022-04-01 2023-07-31 06667723 2021-04-01 2022-03-31 06667723 2023-07-31 06667723 2022-03-31 06667723 2021-04-01 06667723 c:RestatedAmount 2021-04-01 2022-03-31 06667723 d:CompanySecretary1 2022-04-01 2023-07-31 06667723 d:Director1 2022-04-01 2023-07-31 06667723 d:Director1 2023-07-31 06667723 d:Director2 2022-04-01 2023-07-31 06667723 d:Director2 2023-07-31 06667723 d:Director3 2022-04-01 2023-07-31 06667723 d:Director3 2023-07-31 06667723 d:Director4 2022-04-01 2023-07-31 06667723 d:Director4 2023-07-31 06667723 d:Director5 2022-04-01 2023-07-31 06667723 d:Director5 2023-07-31 06667723 d:Director6 2022-04-01 2023-07-31 06667723 d:Director6 2023-07-31 06667723 d:Director7 2022-04-01 2023-07-31 06667723 d:Director7 2023-07-31 06667723 d:Director8 2022-04-01 2023-07-31 06667723 d:Director8 2023-07-31 06667723 d:RegisteredOffice 2022-04-01 2023-07-31 06667723 c:ComputerEquipment 2022-04-01 2023-07-31 06667723 c:ComputerEquipment 2023-07-31 06667723 c:ComputerEquipment 2022-03-31 06667723 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-04-01 2023-07-31 06667723 c:CurrentFinancialInstruments 2023-07-31 06667723 c:CurrentFinancialInstruments 2022-03-31 06667723 c:CurrentFinancialInstruments c:WithinOneYear 2023-07-31 06667723 c:CurrentFinancialInstruments c:WithinOneYear 2022-03-31 06667723 c:ShareCapital 2023-07-31 06667723 c:ShareCapital 2022-03-31 06667723 c:ShareCapital 2021-04-01 06667723 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-07-31 06667723 c:RetainedEarningsAccumulatedLosses 2023-07-31 06667723 c:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 06667723 c:RetainedEarningsAccumulatedLosses 2022-03-31 06667723 c:RetainedEarningsAccumulatedLosses 2021-04-01 06667723 c:AcceleratedTaxDepreciationDeferredTax 2023-07-31 06667723 c:AcceleratedTaxDepreciationDeferredTax 2022-03-31 06667723 c:TaxLossesCarry-forwardsDeferredTax 2023-07-31 06667723 c:TaxLossesCarry-forwardsDeferredTax 2022-03-31 06667723 d:OrdinaryShareClass1 2022-04-01 2023-07-31 06667723 d:OrdinaryShareClass1 2023-07-31 06667723 d:OrdinaryShareClass1 2022-03-31 06667723 d:FRS102 2022-04-01 2023-07-31 06667723 d:Audited 2022-04-01 2023-07-31 06667723 d:FullAccounts 2022-04-01 2023-07-31 06667723 d:PrivateLimitedCompanyLtd 2022-04-01 2023-07-31 06667723 e:PoundSterling 2022-04-01 2023-07-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06667723









GORDON MURRAY ELECTRONICS LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 JULY 2023

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
COMPANY INFORMATION


Directors
E G Skaf (appointed 31 July 2023)
K-E Relander (appointed 31 July 2023)
S S Abdel Haq (appointed 31 July 2023)
K Raza (appointed 31 July 2023, resigned 12 July 2024)
I G Murray (resigned 31 July 2023)
J A Mclaren (resigned 12 June 2023)
J Feiber (resigned 31 July 2023)
C-P E M Forster (resigned 31 July 2023)




Company secretary
Vistra Cosec Limited



Registered number
06667723



Registered office
Suite 1
7th Floor 50 Broadway

London

England

SW1H 0DB




Independent auditors
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

2 Chamberlain Square

Birmingham

B3 3AX





 
GORDON MURRAY ELECTRONICS LIMITED
 

CONTENTS



Page
Directors' Report
1 - 3
Independent Auditor's Report
4 - 7
Statement of Comprehensive Income
8
Balance Sheet
9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 20


 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JULY 2023

The Directors present their report and the financial statements for the 16 month period ended 31 July 2023 (2022: year ended 31 March 2022). The company was acquired by Gordon Murray Technologies Limited on the 30 June 2023 and changed its accounting period to coincide with the acquisition. Due to this, the comparative figures are not strictly comparable.

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give 
a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The loss for the 16 month period ended 31 July 2023, after taxation, amounted to £1,111,136 (Year ended 31 March 2022 - loss £12,086).

The directors did not recommend a payment of a dividend for the 16 month period ended 31 July 2023 (Year ended 31 March 2022: £Nil).

Directors

The Directors who served during the period and to the date of signing were:

E G Skaf (appointed 31 July 2023)
K-E Relander (appointed 31 July 2023)
S S Abdel Haq (appointed 31 July 2023)
K Raza (appointed 31 July 2023, resigned 12 July 2024)
I G Murray (resigned 31 July 2023)
J A Mclaren (resigned 12 June 2023)
J Feiber (resigned 31 July 2023)
C-P E M Forster (resigned 31 July 2023)

Page 1

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023

Economic impact of global events

UK businesses are currently facing many uncertainties such as the consequences of environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working. 
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Qualifying third party indemnity provisions

The Company maintains liability insurance for its directors and officers against liabilities which directors or officers may incur personally as a consequence of claims made against them alleging breach of duty or unlawful acts of or omissions in their capacity as a director or officer. The liability insurance was in place from 31 July 2023 and up to the date of signing this report.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the period end. 

Auditors

The auditorsForvis Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

Page 2

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2023

This report was approved by the board and signed on its behalf.
 





E G Skaf
Director

Date: 31 July 2024

Page 3

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GORDON MURRAY ELECTRONICS LIMITED
 

Opinion

We have audited the financial statements of Gordon Murray Electronics Limited (the ‘Company’) for the period ended 31 July 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Company’s affairs as at 31 July 2023 and of its loss for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 opinion.

Other matter 
Without qualifying our opinion we draw attention to the accounting policies on page 10 to the financial statements and the fact that the comparative information in the accounts was unaudited as the company was entitled to exemption from audit. 
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 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 Directors' report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Directors' 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.
Page 4

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GORDON MURRAY ELECTRONICS LIMITED
 

Other information (continued)
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 the audit:
 
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In 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 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Page 5

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GORDON MURRAY ELECTRONICS LIMITED
 

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.
 
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 

Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 

In addition, we evaluated the Directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

 
Page 6

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GORDON MURRAY ELECTRONICS LIMITED
 

Auditor's responsibilities for the audit of the financial statements (continued)
 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit 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.




Elisa Howe (Senior Statutory Auditor)  
for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
2 Chamberlain Square
Birmingham
B3 3AX

31 July 2024
Page 7

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JULY 2023

16 month period ended
31 July
Restated Unaudited Year
ended
31 March
2023
2022
£
£

  

Turnover
  
10,505,824
334,583

Cost of sales
  
(10,167,919)
(344,262)

Gross profit/(loss)
  
337,905
(9,679)

Administrative expenses
  
(1,437,753)
(13,643)

Operating loss
  
(1,099,848)
(23,322)

Interest payable and similar expenses
  
(52)
-

Loss before tax
  
(1,099,900)
(23,322)

Tax on loss
  
(11,236)
11,236

Loss for the financial period
  
(1,111,136)
(12,086)

There was no other comprehensive income for the 16 month period ended 31 July 2023 (Year ended 31 March 2022: £Nil).

The notes on pages 11 to 20 form part of these financial statements.

Page 8

 
GORDON MURRAY ELECTRONICS LIMITED
REGISTERED NUMBER: 06667723

BALANCE SHEET
AS AT 31 JULY 2023

31 July
Unaudited 31 March
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 5 
44,523
66,159

  
44,523
66,159

Current assets
  

Debtors: amounts falling due within one year
 6 
313,681
84,791

Cash at bank and in hand
  
451,540
78,003

  
765,221
162,794

Creditors: amounts falling due within one year
 7 
(1,932,866)
(240,939)

Net current liabilities
  
 
 
(1,167,645)
 
 
(78,145)

Total assets less current liabilities
  
(1,123,122)
(11,986)

  

Net liabilities
  
(1,123,122)
(11,986)


Capital and reserves
  

Called up share capital 
 9 
100
100

Profit and loss account
 10 
(1,123,222)
(12,086)

  
(1,123,122)
(11,986)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




E G Skaf
Director

Date: 31 July 2024

The notes on pages 11 to 20 form part of these financial statements.

Page 9

 
GORDON MURRAY ELECTRONICS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021 (Unaudited)
100
-
100


Comprehensive income for the year (Unaudited)

Loss for the year (Unaudited)
-
(12,086)
(12,086)



At 1 April 2022 (Unaudited)
100
(12,086)
(11,986)


Comprehensive income for the period

Loss for the period
-
(1,111,136)
(1,111,136)


At 31 July 2023
100
(1,123,222)
(1,123,122)


The notes on pages 11 to 20 form part of these financial statements.

Page 10

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

1.


General information

Gordon Murray Electronics Limited is a private company limited by shares and incorporated in England and Wales under the Companies Act 2006. The address of the registered office and principal place of business can be found on the Company Information page.
The company was acquired by Gordon Murray Technologies Limited on the 30 June 2023 and changed its accounting period to coincide with the acquisition. Due to this, the comparative figures are not strictly comparable.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The comparative information in the financial statements was unaudited as the Company was entitled to exemption from audit.

The following principal accounting policies have been applied:

 
2.2

Going concern

Following the acquisition, the Company relies on income from its provision of services to Gordon Murray Technologies Limited to meet its day-to-day working capital requirements. The Company made a loss of £1,111,136 (Year ended 31 March 2022: unaudited £12,086) for the period ended 31 July 2023 and had net liabilities of £1,123,122 (31 March 2022: unaudited £11,986).
The directors have received a letter of support from CYVN Holdings LLC confirming it will continue to provide the necessary financial support to the Company for a period of at least 12 months from the date of signing these financial statements, as it may require. The directors have reviewed the strategic plans, financial forecasts and cash flows for the Company, and consider that it will have sufficient funds available to meets its liabilities as they fall due for a minimum of 12 months from the date of signing these financial statements. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 11

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP and the financial statements are rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'other operating income'.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets would be recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 13

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to the Statement of Comprehensive Income.

Page 14

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due within the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.
Page 15

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Impairment of financial liabilities

Financial liabilities are assessed for indicators of impairment at each reporting date.
Financial liabilities are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial liabilities have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the liabilities original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.

Derecognition of financial liabilities

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

  
2.14

Prior year restatement

There has been a prior period restatement within the Statement of Comprehensive Income that involes the reclassification of costs from administrative expenses to costs of sales due to their nature. The effect of this restatement on the loss for the year ended 31 March 2022 is £Nil. 

Page 16

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. However, the nature of estimation means that actual outcomes could differ from those estimates.
There are no significant judgements or estimates in the financial statements.  


4.


Employees

The average monthly number of employees during the 16 month period was  20 (Year ended 31 March 2022 - 2).

5.

Tangible fixed assets







Computer equipment

£


Cost or valuation


At 1 April 2022 (Unaudited)
70,692


Additions
13,361


At 31 July 2023

84,053


Depreciation


At 1 April 2022 (Unaudited)
4,533


Charge for the period on owned assets
34,997


At 31 July 2023

39,530


Net book value


At 31 July 2023
44,523


At 31 March 2022 (Unaudited)
66,159






 

Page 17

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

6.


Debtors

31 July
Unaudited 31 March
2023
2022
£
£


Trade debtors
-
34,254

Amounts owed by group undertakings
-
100

Other debtors
286,307
38,295

Prepayments and accrued income
27,374
906

Deferred taxation
-
11,236

313,681
84,791


Amounts owed by group undertakings were unsecured, interest free and repayable on demand.


7.


Creditors: Amounts falling due within one year

31 July
Unaudited 31 March
2023
2022
£
£

Trade creditors
603,271
107,537

Amounts owed to group undertakings
304,734
100,000

Other taxation and social security
77,323
7,617

Accruals and deferred income
947,538
25,785

1,932,866
240,939


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


8.


Deferred taxation






2023


£






At beginning of year (Unaudited)
11,236


Charged to Statement of Comprehensive Income
(11,236)



At end of year
-

Page 18

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023
 
8.Deferred taxation (continued)

The deferred tax asset is made up as follows:

31 July
Unaudited 31 March
2023
2022
£
£


Accelerated capital allowances
(11,131)
(16,540)

Tax losses carried forward
11,131
27,776

-
11,236


9.


Share capital

31 July
Unaudited 31 March
2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



10.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.


11.


Related party transactions

The company has taken advantage of the exemption available under parargraph 33.1A of the Financial Reporting Standards 102 not to disclose related party transactions with other wholly owned group companies.

During the period the company made sales of £3,515,790 to Gordon Murray Automotive Limited. At the year end the Company was owed £Nil from Gordon Murray Automotive Limited and owed £Nil to Gordon Murray Automotive Limited.
During the period the company made purchases of £586,270 from Gordon Murray Group Limited. At the year end the Company was owed £Nil from Gordon Murray Group Limited and owed £Nil to Gordon Murray Group Limited.
Page 19

 
GORDON MURRAY ELECTRONICS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2023

12.


Controlling party

As at 31 March 2022, the company's immediate and ultimate parent undertaking was Gordon Murray Group Limited,  a company registered in England and Wales. 
On 30 June 2023, 100% of the company's share capital was acquired by Gordon Murray Technologies Limited. 
As at 31 July 2023, the immediate parent undertaking is Gordon Murray Technologies Limited, a company registered in England and Wales, whose registered address is Suite 1, 7th Floor, 50 Broadway, London, United Kingdom, SW1H 0DB.
The ultimate parent company is CYVN Holdings LLC (Formerly Abu Dhabi Advanced Motors Holding LLC), which is registered at Building No. 51B, Al Bateen Executive Airport, Abu Ahabi - U.A.E.
The smallest group into which the results of the company are consolidated is Foreight Limited, a company registered in England and Wales, whose registered address is Suite 1, 7th Floor, 50 Broadway, London, United Kingdom, SW1H 0DB.
The largest group into which the results of the company are consolidated is that headed by CYVN Holdings LLC.
The ultimate controlling party is the Abu Dhabi Government whose registered address is Department of Finance - Abu Dhabi, Al Muntazag - Zone 1, Abu Dhabi, U.A.E.

Page 20