REGISTERED NUMBER: |
Gunning Transmission & Distribution |
Services Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
REGISTERED NUMBER: |
Gunning Transmission & Distribution |
Services Limited |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 August 2023 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Contents of the Financial Statements |
for the Year Ended 31 August 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 17 |
Gunning Transmission & Distribution |
Services Limited |
Company Information |
for the Year Ended 31 August 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
Atlantic House |
8 Bell Lane |
Bellbrook Industrial Estate |
Uckfield |
East Sussex |
TN22 1QL |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Strategic Report |
for the Year Ended 31 August 2023 |
The directors present their strategic report for the year ended 31 August 2023. |
REVIEW OF BUSINESS |
The principal activity of the Company is Mechanical & Electrical Design, Civil Design, Procurement, Civil works, Mechanical & Electrical works & Commissioning of High Voltage Power Systems and associated equipment. |
The directors are pleased to announce that our turnover for this financial year end has increased in comparison to the previous year and profit before tax has increased from £440,128 in 2022 to £854,189 in 2023. |
Shareholder funds have increased from £1,697,094 in 2022 to £2,070,208 in 2023. |
Our increased turnover is a direct result of the drive to de-carbonise the UK's Power Generation & Distribution System. GTDS specialises in the connection of renewable energy to the National Grid Network. We have many years' experience in this field and have continually invested in the recruitment of highly qualified, experienced engineering staff, backed up with all the necessary training and equipment to carry out the works. This has resulted in a strong core of direct staff, highly motivated and committed to the Company. |
Applications for renewable energy connections to the National Grid are growing year on year as the UK's dependence on fossil fuels diminishes. GTDS is ideally placed to take advantage of these opportunities, provided we remain competitive. |
We have a solid order book for 2023/2024 and opportunities in the UK are increasing month on month. |
2023 | 2022 | 2021 |
Turnover | £44,056,164 | £15,825,662 | £15,133,422 |
Sales growth | 178% | 5% | 59% |
Gross margin | £5,127,882 | £2,991,925 | £3,067,168 |
Gross margin | 11.6% | 18.9% | 20% |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Strategic Report |
for the Year Ended 31 August 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors recognise the need to take a strategic approach to business planning, compliance, risk management and financial performance, ensuring that the management of the business delivers the best possible shareholder value. |
In terms of safety, health, environment and quality risk management within the power generation & distribution industry, the Company continually invests in the training and development of our staff, to ensure we establish and maintain compliance with company procedures, customers procedures and government legislation. We are proud of our record to date and continually improve our management systems with the aim of meeting and exceeding our customers' expectations through a continual improvement process. |
Human resource remains a key challenge within our industry. GTDS recognises this and we are committed to training more and more engineers and apprentices year on year. |
Price risk |
The consequences of the geopolitical situation due to the continuing conflict in Ukraine are the unprecedented price increases affecting all areas of the business including materials, energy, insurance, and property rentals. |
The business is constantly looking at design/procurement improvements to mitigate the impact of the steep cost increases within our supply chain. |
ON BEHALF OF THE BOARD: |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Report of the Directors |
for the Year Ended 31 August 2023 |
The directors present their report with the financial statements of the company for the year ended 31 August 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 August 2023. |
FUTURE DEVELOPMENTS |
The directors aim to continue to build on the success of 2023 and increase the company's market share in the UK, by investment in the company's operational capabilities. On 9 May 2024, the company was acquired by Ethical Power Group Limited. |
DIRECTORS |
Other changes in directors holding office are as follows: |
Mr T E R Kneen was appointed as a director of the company on 9 May 2024. |
Mr G Gunning and Mrs D A Gunning resigned as directors of the company on 9 May 2024. |
POLITICAL DONATIONS AND EXPENDITURE |
The company made donations during the year amounting to £7,703 (2022: £4,617) to small local charities. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 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 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. |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Report of the Directors |
for the Year Ended 31 August 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the |
steps that he ought to have taken as a director in order to make himself aware of any relevant audit |
information and to establish that the Company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Gunning Transmission & Distribution |
Services Limited |
Opinion |
We have audited the financial statements of Gunning Transmission & Distribution Services Limited (the 'company') for the year ended 31 August 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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 31 August 2023 and of its profit for the year 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 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 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. |
Report of the Independent Auditors to the Members of |
Gunning Transmission & Distribution |
Services Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have 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 Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Gunning Transmission & Distribution |
Services Limited |
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 a Report of the Auditors 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: |
- | the company's internal controls have been discussed with management and understood prior to our audit testing. Internal controls have been tested through walkthrough testing, to assess whether controls are adequate, whether they are being followed, and whether irregularities and fraud are prevented. |
- | deficiencies in internal controls have been highlighted and explained to management, along with recommendations as to how deficiencies can be improved and the risk of irregularity and fraud occurrence minimised. |
- | representations have been provided by management that there were no identified cases of fraud or instances of non-compliance during or since the accounting period. |
- | substantive testing has been carried out to test the validity of transactions, with entries in the accounting system vouched to corresponding third party documentation and evidence of appropriate authorisation. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Gunning Transmission & Distribution |
Services Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
Atlantic House |
8 Bell Lane |
Bellbrook Industrial Estate |
Uckfield |
East Sussex |
TN22 1QL |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Income Statement |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
882,533 | 448,933 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Other Comprehensive Income |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Share buy back/bonus issue | ( |
) | ( |
) |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Balance Sheet |
31 August 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Debtors | 8 |
Cash at bank and in hand |
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
10 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Capital redemption reserve | 15 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Statement of Changes in Equity |
for the Year Ended 31 August 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Purchase of own shares | (20 | ) | - | - | (20 | ) |
Total comprehensive income | - |
Balance at 31 August 2022 |
Changes in equity |
Bonus issue of shares | 160 | - | - | 160 |
Purchase of own shares | (140 | ) | - | - | (140 | ) |
Total comprehensive income | - | ( |
) |
Balance at 31 August 2023 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Cash Flow Statement |
for the Year Ended 31 August 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 15,300 |
Amount withdrawn by directors | (200,820 | ) | (147,541 | ) |
Share buyback | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
611,428 |
Cash and cash equivalents at end of year |
2 |
9,738,831 |
4,069,444 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 28,344 | 8,805 |
Finance income | (66,256 | ) | (2,241 | ) |
838,303 | 472,577 |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 9,738,831 | 4,069,444 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 4,069,444 | 647,862 |
Bank overdrafts | ( |
) |
4,069,444 | 611,428 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Cash Flow Statement |
for the Year Ended 31 August 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.22 | Cash flow | At 31.8.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,069,444 | 5,669,387 | 9,738,831 |
4,069,444 | 9,738,831 |
Debt |
Finance leases | (37,924 | ) | 14,474 | (23,450 | ) |
Debts falling due within 1 year | (91,326 | ) | (4,762 | ) | (96,088 | ) |
Debts falling due after 1 year | (386,525 | ) | 96,171 | (290,354 | ) |
(515,775 | ) | 105,883 | (409,892 | ) |
Total | 3,553,669 | 5,775,270 | 9,328,939 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements |
for the Year Ended 31 August 2023 |
1. | STATUTORY INFORMATION |
Gunning Transmission & Distribution Services Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. The company changed its registered office address from The Middle House, Somerhill Stud, Five Oak Green Road, Tudeley, Kent, TN11 0N on 10 May 2024. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods 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. |
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered. |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
2. | ACCOUNTING POLICIES - continued |
Construction contracts |
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is |
recognised as an expense immediately. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period. |
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered. |
Government grants |
Government grants in respect of capital expenditure are credited to a deferred income account and released to profit over the expected useful lives of the relevant assets in equal annual instalments. |
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Productive labour | 60 | 48 |
Directors | 3 | 3 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Other interest payable |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
year |
Total tax charge | 190,575 | 89,116 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Share buy back/bonus issue | ( |
) | - | (290,520 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Share buy back | ( |
) | - | (40,980 | ) |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
7. | TANGIBLE FIXED ASSETS |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 September 2022 |
and 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Provision for bad debts | (19,365 | ) | (19,365 | ) |
Amounts recoverable on contract |
Other debtors |
Directors' current accounts | 343,061 | 142,241 |
s455 tax repayable | 114,140 | 48,006 |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 11) |
Hire purchase contracts (see note 12) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 1,425,376 | 84,087 |
Other creditors |
Wages and salaries control | 207,132 | 164,059 |
Accruals and deferred income |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 11) |
Hire purchase contracts (see note 12) |
11. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
11. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 290,354 |
12. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
13. | SECURED DEBTS |
Bank borrowings are secured by way of fixed and floating charges over the company's assets. This includes a legal charge dated 10 May 2023 over security cash deposits up to a maximum of £2,000,000. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 1,000 | 980 |
During the year, the company effected a share buyback of 140 Ordinary A shares of £1 each, and a bonus issue of 160 Ordinary A shares of £1 each. |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
15. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 September 2022 | 1,696,114 |
Profit for the year |
Bonus share issue | ( |
) | ( |
) |
Purchase of own shares | (290,500 | ) | 140 | (290,360 | ) |
At 31 August 2023 | 2,069,208 |
16. | CONTINGENT LIABILITIES |
The company is party to a guarantee dated 30 May 2023 in favour of Hd143ock Ltd for £858,602, and to a guarantee dated 1 June 2023 in favour of Warley Green Limited for £644,680. |
17. | OTHER FINANCIAL COMMITMENTS |
At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases totalling £535,890 (2022 - £343,870). |
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 August 2023 and 31 August 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Gunning Transmission & Distribution |
Services Limited (Registered number: 05183938) |
Notes to the Financial Statements - continued |
for the Year Ended 31 August 2023 |
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Interest amounting to £4,867 has been charged on these loans at the official rate. The loans are unsecured and repayable on demand. |
19. | RELATED PARTY DISCLOSURES |
Two of the directors have provided personal guarantees over the company's bank overdraft facility. This facility was not used in the year. |