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Registered number: 05419979









GEB SURFACE TREATMENTS LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 29 APRIL 2023

 
GEB SURFACE TREATMENTS LIMITED
 
 
COMPANY INFORMATION


Directors
W1S Directors Limited 
A J Upton 
J D Larner 




Company secretary
Cossey Cosec Services Limited



Registered number
05419979



Registered office
Nasmyth House
Coventry Road

Exhall

Coventry

CV7 9FT




Independent auditors
PKF Smith Cooper Audit Limited
Statutory Auditors

158 Edmund Street

Birmingham

B3 2HB





 
GEB SURFACE TREATMENTS LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 6
Statement of Comprehensive Income
7
Balance Sheet
8 - 9
Statement of Changes in Equity
10
Notes to the Financial Statements
11 - 20

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 APRIL 2023

The Directors present their report and the financial statements for the period ended 29 April 2023.

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 judgements and accounting estimates that are reasonable and prudent;

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.

Directors

The Directors who served during the period were:

P J Smith (resigned 17 October 2022)
S W Beech (resigned 31 May 2023)
S L Fyfe (resigned 13 October 2022)
Gold Round Limited (resigned 13 October 2022)
N C Robins (appointed 17 October 2022, resigned 30 June 2023)
W1S Directors Limited (appointed 17 October 2022)
A J Upton (appointed 17 October 2022)

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.

Page 1

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 APRIL 2023

Going concern

As at 29 April 2023, the Company was a subsidiary of Nasmyth Group Limited. As a consequence of the impacts of COVID-19 on the aerospace market, Nasmyth Group Limited and its subsidiary companies experienced a significant reduction in sales, profits and cashflow from operating activities and its directors identified that this would create financial difficulties that would affect the ability of Nasmyth Group Limited to continue as a going concern, with knock on effects to its subsidiary companies.
As a consequence of the post year end restructuring disclosed in note 18 to these financial statements, the Company and other companies previously subsidiaries of Nasmyth Group Limited (together the “Group”) became subsidiaries of W5SD Limited (now renamed as Nasmyth Group Limited) and additional working capital facilities were provided to the Group to support its working capital requirements.
The Board of Directors of the Company and the Group have undertaken an assessment of the ability of the Company and the Group to continue in operation and to meet their liabilities as they fall due. In making this assessment, the Directors have considered trading and cashflow forecasts which reflect the latest market intelligence and customer long term supply agreements, supply schedules and order books.
The directors have concluded that the new working capital facilities, which include undrawn headroom, provided since the period end will provide the Company and the Group with sufficient funds to enable them to meet their obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements, and have accordingly concluded that it is appropriate to prepare these financial statements on a going concern basis.

Post balance sheet events

Details of post balance sheet events affecting the Company are disclosed in note 18.

Auditors

The auditorsPKF Smith Cooper Audit Limitedwill 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.

This report was approved by the board on 2 August 2024 and signed on its behalf.
 





J D Larner
Director

Page 2

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GEB SURFACE TREATMENTS LIMITED
 

Opinion


We have audited the financial statements of GEB Surface Treatments Limited (the 'Company') for the period ended 29 April 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 29 April 2023 and of its profit 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 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.


Page 3

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GEB SURFACE TREATMENTS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 period 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 the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Page 4

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GEB SURFACE TREATMENTS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, 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 either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 
Based on our understanding of the Company and industry, key laws and regulations that we identified included:

Companies Act;
Tax legislation; and
Health and safety and employment legislation.

We identified that the principal risk of fraud or non-compliance with laws and regulations related to:

Management bias in respect of accounting estimates and judgements made;
Management override of control; and
Posting of unusual journals or transactions.

We focused on those areas that could give rise to a material misstatement in the Company's financial statements. 

Our procedures included, but were not limited to:

Enquiry of management and those charged with governance around actual and potential litigation and claims including instances of non-compliance with laws, regulations and fraud;
Reviewing minutes of meetings of those charged with governance, where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws, regulations and fraud;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and


Page 5

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GEB SURFACE TREATMENTS LIMITED (CONTINUED)


Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Stephen Newman (Senior Statutory Auditor)
  
for and on behalf of
PKF Smith Cooper Audit Limited
 
Statutory Auditors
  
158 Edmund Street
Birmingham
B3 2HB

5 August 2024
Page 6

 
GEB SURFACE TREATMENTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 APRIL 2023

Period
 ended
29 April
Period
 ended
30 April
2023
2022
Note
£000
£000

  

Turnover
  
1,870
1,316

Cost of sales
  
(1,290)
(1,281)

Gross profit
  
580
35

Administrative expenses
  
(212)
(331)

Exceptional administrative expenses
 4 
(55)
(199)

Operating profit/(loss)
  
313
(495)

Interest receivable and similar income
  
16
6

Interest payable and similar expenses
  
(23)
(10)

Profit/(loss) before tax
  
306
(499)

Tax on profit/(loss)
  
-
85

Profit/(loss) for the financial period
  
306
(414)

There was no other comprehensive income for 2023 (2022:£000).

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

Page 7

 
GEB SURFACE TREATMENTS LIMITED
REGISTERED NUMBER: 05419979

BALANCE SHEET
AS AT 29 APRIL 2023

29 April
30 April
2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 5 
458
457

  
458
457

Current assets
  

Stocks
  
-
11

Debtors: amounts falling due within one year
 6 
935
358

Cash at bank and in hand
 7 
52
95

  
987
464

Creditors: amounts falling due within one year
 8 
(860)
(595)

Net current assets/(liabilities)
  
 
 
127
 
 
(131)

Total assets less current liabilities
  
585
326

Creditors: amounts falling due after more than one year
 9 
(153)
(164)

Provisions for liabilities
  

Other provisions
 11 
-
(36)

  
 
 
-
 
 
(36)

Net assets
  
432
126


Capital and reserves
  

Called up share capital 
 12 
2
2

Profit and loss account
 13 
430
124

  
432
126


Page 8

 
GEB SURFACE TREATMENTS LIMITED
REGISTERED NUMBER: 05419979
    
BALANCE SHEET (CONTINUED)
AS AT 29 APRIL 2023

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 on 2 August 2024.




J D Larner
Director

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

Page 9

 
GEB SURFACE TREATMENTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 APRIL 2023


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 February 2021
2
538
540


Comprehensive income for the period

Loss for the period
-
(414)
(414)



At 1 May 2022
2
124
126


Comprehensive income for the period

Profit for the period
-
306
306


At 29 April 2023
2
430
432


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

Page 10

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

1.


General information

GEB Surface Treatments Limited is a private company, limited by shares, registered in England and Wales. The Company's registration number 05419979 and its registered office address is Nasmyth House, Coventry Road, Exhall, Coventry, CV7 9FT.
The principal place of business is Wharf Road Industrial Estate, Pinxton, Nottinghamshire, NG16 6LE.
The comparative figures covered a 15 month accounting period from 1 February 2021 to 30 April 2022. The reporting period was extended as a result of the Company's decision to change auditors during the previous financial period. The current figures cover a 12 month accounting period to 29 April 2023 and as a result the reported figures for the current and comparative year may not be entirely 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 Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of the financial statements is Pound Sterling and amounts have been presented in round thousands (£000's).

The following principal accounting policies have been applied:

 
2.2

Going concern

As at 29 April 2023, the Company was a subsidiary of Nasmyth Group Limited. As a consequence of the impacts of COVID-19 on the aerospace market, Nasmyth Group Limited and its subsidiary companies experienced a significant reduction in sales, profits and cashflow from operating activities and its directors identified that this would create financial difficulties that would affect the ability of Nasmyth Group Limited to continue as a going concern, with knock on effects to its subsidiary companies.
As a consequence of the post period end restructuring disclosed in note 18 to these financial statements, the Company and other companies previously subsidiaries of Nasmyth Group Limited (together the “Group”) became subsidiaries of W5SD Limited (now renamed as Nasmyth Group Limited) and additional working capital facilities were provided to the Group to support its working capital requirements.
The Board of Directors of the Company and the Group have undertaken an assessment of the ability of the Company and the Group to continue in operation and to meet their liabilities as they fall due. In making this assessment, the Directors have considered trading and cashflow forecasts which reflect the latest market intelligence and customer long term supply agreements, supply schedules and order books.
The directors have concluded that the new working capital facilities, which include undrawn headroom, provided since the year end will provide the Company and the Group with sufficient funds to enable them to meet their obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements, and have accordingly concluded that it is appropriate to prepare these financial statements on a going concern basis.

Page 11

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Transactions in foreign currencies are translated to the company's functional currency at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at the balance sheet date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign currency differences arising on translation are recognised in the Statement of Comprehensive Income.

 
2.4

Turnover

Turnover is measured at the fair value of the consideration receivable which generally equates to the invoiced amount, excluding sales tax. The company has one principal revenue stream: 
(i) Sales of product
Turnover for sales of goods is recognised when the risk and rewards of ownership have passed which, dependent upon the contractual terms, may be at the point of despatch, acceptance by the customer or certification by the customer. 

 
2.5

Operating lease

Payments (excluding costs for services and insurance) made under operating leases are recognised in the Statement of Comprehensive Income on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation, in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in the Statement of Comprehensive Income over the term of the lease as an integral part of the total expense.

 
2.6

Finance lease

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 12

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

2.Accounting policies (continued)

 
2.9

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 creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Taxation

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.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.12

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. 
Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets. 
Leases in which the Company assumed substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other assets are classified as operating leases. Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at the inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition, a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. All other leases are regarded as operating leases and payments made under them are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term. 
The company assesses at each reporting date whether tangible fixed assets (including those under finance leases) are impaired. 
Depreciation is charged to the Statement of Comprehensive Income on a straight-line basis over the estimated useful economic lives of each part of an item of tangible fixed assets.

Page 13

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

The estimated useful lives are as follows:

Short-term leasehold property
-
10 years
Plant and machinery
-
5 - 10 years
Fixtures and fittings
-
3 - 5 years

Depreciation methods, useful economic lives and residual values are reviewed if there in an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits. 

 
2.13

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.  Cost is based on the weighted average principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.15

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits.

 
2.16

Creditors

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

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 14

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

2.Accounting policies (continued)

 
2.18

Financial instruments

(i) Trade and other debtors and creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at the transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.            
(ii) Interest-bearing borrowings classified as basic financial instruments
Interest-bearing borrowings are recognised initially at the present value of the future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.


3.


Employees

The average monthly number of employees, including directors, during the period was 16 (2022 - 15).


4.


Exceptional items

Period ended
29 April
Period ended
30 April
2023
2022
£000
£000


Impairment of intercompany loans
-
163

Reorganisation costs
-
36

Onerous lease obligations
55
-

55
199

During the period, as part of the on-going restructure of certain subsidiaries within the group of which the Company belongs, plant and machinery and related hire purchase liabilities were transferred to the Company from a fellow subsidiary. During this process, certain items of plant and machinery were scrapped prior to being transferred to the Company which had outstanding obligations under hire purchase agreements which were novated to the Company. The directors have reviewed these transactions and consider these to be onerous lease obligations and the Company continues to make repayments of these hire purchase liabilities as per the terms of the agreement.

Page 15

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

5.


Tangible fixed assets







Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£000
£000
£000
£000



Cost


At 1 May 2022
166
1,063
53
1,282


Additions
-
104
-
104



At 29 April 2023

166
1,167
53
1,386



Depreciation


At 1 May 2022
110
674
41
825


Charge for the year
16
82
5
103



At 29 April 2023

126
756
46
928



Net book value



At 29 April 2023
40
411
7
458



At 30 April 2022
56
389
13
458

Included in the total net book value of plant and machinery is £334,000 (2022: £278,000) in respect of assets held under finance lease and hire purchase contracts. Depreciation for the year on these assets was £48,000 (2022: £45,000).

Page 16

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

6.


Debtors

29 April
30 April
2023
2022
£000
£000


Trade debtors
467
346

Amounts owed by group undertakings
465
12

Prepayments
3
-

935
358


Trade debtors are part of the secured gross collateral of the Secure Trust Bank plc facility.


7.


Cash and cash equivalents

29 April
30 April
2023
2022
£000
£000

Cash at bank and in hand
52
95

52
95



8.


Creditors: Amounts falling due within one year

29 April
30 April
2023
2022
£000
£000

Bank loans
425
297

Trade creditors
112
79

Amounts owed to group undertakings
32
-

Other taxation and social security
109
87

Obligations under finance lease and hire purchase contracts
128
78

Other creditors
12
12

Accruals and deferred income
42
42

860
595


Included in bank loans is the Company's invoice financing facility provided by Secure Trust Bank plc which is secured by a fixed and floating charge over the assets of the Company. 
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. 

Page 17

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

9.


Creditors: Amounts falling due after more than one year

29 April
30 April
2023
2022
£000
£000

Obligations under finance leases and hire purchase contracts
153
164

153
164


Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.  


10.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

29 April
30 April
2023
2022
£000
£000


Within one year
128
78

Between 1-5 years
153
164

281
242


11.


Provisions








Restructuring provisions

£000





At 1 May 2022
36


Utilised in period
(36)



At 29 April 2023
-

The restructuring provision comprises staff and other costs related to the closure and restructuring of certain divisions.

Page 18

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

12.


Share capital

30 April
 2022
29 April 2023
(as restated)
£000
£000
Authorised, allotted, called up and fully paid



1,000 (2022 - 1,000) A Ordinary shares of £1.00 each
1
1
1,000 (2022 - 1,000) B Ordinary shares of £1.00 each
1
1

2

2

A Ordinary shares and B Ordinary shares rank pari passu in terms of voting rights and income distribution.
The disclosure of share capital as at 30 April 2022 has been restated to disclose the analysis between A Ordinary Shares and B Ordinary Shares.



13.


Reserves

Profit and loss account

The reserves records all current and prior period retained profits and losses.


14.


Pension commitments

The Company operates a defined contribution pension scheme. The pension costs charged for the year represents contributions payable by the Company to the scheme and amounted to £10,000 (2022: £12,000).
There were outstanding contributions of £6,000 (2022: £6,000) at the end of the financial year. These are included in creditors and have been settled since the year end.


15.


Commitments under operating leases

At 29 April 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

29 April
30 April
2023
2022
£000
£000


Not later than 1 year
120
120

Later than 1 year and not later than 5 years
10
132

130
252

Page 19

 
GEB SURFACE TREATMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2023

16.Contingencies and commitments

Guarantees
The Company has given cross guarantees in respect of bank loans of group companies amounting to £14,888,000 (2022: £12,247,000).
The Company has given a guarantee in respect of other loans of a fellow subsidiary undertaking amounting to £7,500,000 (2022: £5,500,000).


17.


Related party transactions

The Company has taken advantage of the exemption, as permitted by section 33.1A of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the previous period, the Company impaired intercompany loan balances due from its parent undertaking totalling £163,000. There were no impairments of intercompany loan balances during the current period.


18.


Post balance sheet events

On 5 May 2023, the Company and other companies previously subsidiaries of NGL Realisations Limited (formerly Nasmyth Group Limited) (together the "Group") became subsidiaries of Nasmyth Group Limited (formerly W5SD Limited) and additional working capital facilities were provided to the Group to support its working capital requirements. This has resulted in successfully mitigating the effect of a number of legacy issues previously faced by the Group and has enabled the Group to continue as a going concern.


19.


Ultimate controlling party

At 29 April 2023, the immediate parent undertaking was NGL Realisations Limited (in administration) (formerly Nasmyth Group Limited), a company incorporated in England and Wales. The registered office address is C/O Begbies Traynor (London) LLP, 31st Floor, 40 Bank Street, London, E14 5NR.
At 29 April 2023, the ultimate controlling party was Lettbel Limited. As at the date of approval of these financial statements, the ultimate parent undertaking and controlling party is Nasmyth Group Limited (formerly W5SD Limited). The registered office address is 4th Floor, 24 Old Bond Street, London, W1S 4AW.

 
Page 20