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REGISTERED NUMBER: 05183938 (England and Wales)















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: Mr M Winkles
Mr T E R Kneen





REGISTERED OFFICE: Unit 9 Dunchideock Barton
Dunchideock
Exeter
Devon
EX2 9UA





REGISTERED NUMBER: 05183938 (England and Wales)





AUDITORS: Swindells LLP
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:





Mr M Winkles - Director


13 August 2024

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
Mr M Winkles has held office during the whole of the period from 1 September 2022 to the date of this report.

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:





Mr M Winkles - Director


13 August 2024

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.




Melanie Richardson BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Swindells LLP
Chartered Accountants
and Statutory Auditor
Atlantic House
8 Bell Lane
Bellbrook Industrial Estate
Uckfield
East Sussex
TN22 1QL

14 August 2024

Gunning Transmission & Distribution
Services Limited (Registered number: 05183938)

Income Statement
for the Year Ended 31 August 2023

2023 2022
Notes £    £   

TURNOVER 44,056,164 15,825,662

Cost of sales 38,928,282 12,833,737
GROSS PROFIT 5,127,882 2,991,925

Administrative expenses 4,311,605 2,545,233
OPERATING PROFIT 4 816,277 446,692

Interest receivable and similar income 66,256 2,241
882,533 448,933

Interest payable and similar expenses 5 28,344 8,805
PROFIT BEFORE TAXATION 854,189 440,128

Tax on profit 6 190,575 89,116
PROFIT FOR THE FINANCIAL YEAR 663,614 351,012

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 663,614 351,012


OTHER COMPREHENSIVE INCOME
Share buy back/bonus issue (290,520 ) (40,980 )
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

(290,520

)

(40,980

)
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

373,094

310,032

Gunning Transmission & Distribution
Services Limited (Registered number: 05183938)

Balance Sheet
31 August 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 69,339 78,067

CURRENT ASSETS
Debtors 8 11,239,842 1,466,910
Cash at bank and in hand 9,738,831 4,069,444
20,978,673 5,536,354
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR

9

18,679,568

3,508,446
NET CURRENT ASSETS 2,299,105 2,027,908
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,368,444

2,105,975

CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR

10

298,236

408,881
NET ASSETS 2,070,208 1,697,094

CAPITAL AND RESERVES
Called up share capital 14 1,000 980
Capital redemption reserve 15 140 160
Retained earnings 15 2,069,068 1,695,954
SHAREHOLDERS' FUNDS 2,070,208 1,697,094

The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2024 and were signed on its behalf by:





Mr M Winkles - Director


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 1,000 1,385,942 140 1,387,082

Changes in equity
Purchase of own shares (20 ) - - (20 )
Total comprehensive income - 310,012 20 310,032
Balance at 31 August 2022 980 1,695,954 160 1,697,094

Changes in equity
Bonus issue of shares 160 - - 160
Purchase of own shares (140 ) - - (140 )
Total comprehensive income - 373,114 (20 ) 373,094
Balance at 31 August 2023 1,000 2,069,068 140 2,070,208

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 6,241,976 3,710,509
Interest paid (25,300 ) (6,190 )
Interest element of hire purchase
payments paid

(3,044

)

(2,615

)
Tax paid - (34,210 )
Net cash from operating activities 6,213,632 3,667,494

Cash flows from investing activities
Purchase of tangible fixed assets (13,298 ) (995 )
Interest received 66,256 2,241
Net cash from investing activities 52,958 1,246

Cash flows from financing activities
Loan repayments in year (91,409 ) (22,149 )
Capital repayments in year (14,474 ) (15,334 )
Amount introduced by directors - 15,300
Amount withdrawn by directors (200,820 ) (147,541 )
Share buyback (290,500 ) (41,000 )
Net cash from financing activities (597,203 ) (210,724 )

Increase in cash and cash equivalents 5,669,387 3,458,016
Cash and cash equivalents at beginning
of year

2

4,069,444

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 854,189 440,128
Depreciation charges 22,026 25,885
Finance costs 28,344 8,805
Finance income (66,256 ) (2,241 )
838,303 472,577
(Increase)/decrease in trade and other debtors (9,505,980 ) 2,817,351
Increase in trade and other creditors 14,909,653 420,581
Cash generated from operations 6,241,976 3,710,509

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 - (36,434 )
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 5,669,387 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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 25% on reducing balance
Motor vehicles - 25% on reducing balance


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 3,346,653 2,971,561
Social security costs 402,492 324,900
Other pension costs 66,815 57,881
3,815,960 3,354,342

The average number of employees during the year was as follows:
2023 2022

Productive labour 60 48
Directors 3 3
63 51

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 464,197 358,857
Directors' pension contributions to money purchase schemes 9,286 9,079

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 215,749 164,583
Pension contributions to money purchase schemes 3,889 4,302

4. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 1,939,853 601,078
Other operating leases 288,359 170,301
Depreciation - owned assets 12,247 12,846
Depreciation - assets on hire purchase contracts 9,779 13,039
Auditors' remuneration 22,000 16,250

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 22,226 6,190
Other interest payable 3,074 -
Hire purchase 3,044 2,615
28,344 8,805

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 190,575 89,116
Tax on profit 190,575 89,116

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 854,189 440,128
Profit multiplied by the standard rate of corporation tax in the UK
of 21.520% (2022 - 19%)

183,821

83,624

Effects of:
Expenses not deductible for tax purposes 5,016 2,839
Depreciation in excess of capital allowances 1,738 2,653
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 ) - (290,520 )

2022
Gross Tax Net
£    £    £   
Share buy back (40,980 ) - (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 409,074 87,839 496,913
Additions 13,298 - 13,298
At 31 August 2023 422,372 87,839 510,211
DEPRECIATION
At 1 September 2022 370,122 48,724 418,846
Charge for year 12,247 9,779 22,026
At 31 August 2023 382,369 58,503 440,872
NET BOOK VALUE
At 31 August 2023 40,003 29,336 69,339
At 31 August 2022 38,952 39,115 78,067

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 87,839
DEPRECIATION
At 1 September 2022 48,724
Charge for year 9,779
At 31 August 2023 58,503
NET BOOK VALUE
At 31 August 2023 29,336
At 31 August 2022 39,115

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 4,191,392 1,002,156
Provision for bad debts (19,365 ) (19,365 )
Amounts recoverable on contract 4,440,535 -
Other debtors 2,170,079 293,872
Directors' current accounts 343,061 142,241
s455 tax repayable 114,140 48,006
11,239,842 1,466,910

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 11) 96,088 91,326
Hire purchase contracts (see note 12) 15,568 15,568
Trade creditors 6,968,166 2,571,369
Tax 393,829 137,122
Social security and other taxes 250,872 216,171
VAT 1,425,376 84,087
Other creditors 29,358 11,739
Wages and salaries control 207,132 164,059
Accruals and deferred income 9,293,179 217,005
18,679,568 3,508,446

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Other loans (see note 11) 290,354 386,525
Hire purchase contracts (see note 12) 7,882 22,356
298,236 408,881

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 96,088 91,326

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 290,354 386,525

12. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 15,568 15,568
Between one and five years 7,882 22,356
23,450 37,924

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: £    £   
1,000 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 1,695,954 160 1,696,114
Profit for the year 663,614 663,614
Bonus share issue - (160 ) (160 )
Purchase of own shares (290,500 ) 140 (290,360 )
At 31 August 2023 2,069,068 140 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
£    £   
Mr G Gunning
Balance outstanding at start of year 142,241 10,000
Amounts advanced 165,905 132,241
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 308,146 142,241

Mr M Winkles
Balance outstanding at start of year - -
Amounts advanced 34,915 -
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 34,915 -

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.