Company registration number 04633827 (England and Wales)
GLOBAL TECHNOLOGIES RACING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
GLOBAL TECHNOLOGIES RACING LIMITED
COMPANY INFORMATION
Directors
J Biddlecombe
S Kingdon-Butcher
Secretary
R Kingdon-Butcher
Company number
04633827
Registered office
Westergate Works
Denmans Lane
Fontwell
West Sussex
United Kingdom
BN18 0SU
Auditor
Martlet Audit Limited
Martlet House
E1, Yeoman Gate
Yeoman Way
Worthing
West Sussex
BN13 3QZ
GLOBAL TECHNOLOGIES RACING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
GLOBAL TECHNOLOGIES RACING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

There was a pre-tax profit in the year of £1,039,916. As in prior years there has been significant expenditure on research and development which is written off each year as it is incurred.

 

Overheads totalled £5,539k which was 10% down compared to the previous year.

 

In excess of half of the company's business is accounted for by the Formula 1 international racing industry and the 2024 season consisted of 24 races, compared to 23 races in the 2023 season.

 

The company results for the year have been affected by a 'cost cap' introduced by Formula 1, the aim of which is to deliver a more competitive championship. It has however imposed financial pressures on those companies supplying the industry.

 

The company's ISO9001 accreditation continues to enable the company to work within the motorsport industry and other special projects.

Principal risks and uncertainties

The company is exposed to financial risk in different areas including holding cash in foreign currency bank accounts and awaiting payment of foreign currency denominated sales invoices. The company is mindful of reducing the financial risk as much as possible. However, given the amounts involved the company's current strategy does not include the use of financial instruments as a means of controlling financial risk. This is however, continuously being assessed by the Board of Directors.

 

The company's trade receivables are primarily customers with a generally high credit rating. The Board of Directors believes that the exposure to credit risk from the loss of trade receivables is relatively low. Credit evaluations of customers are performed regularly in order to manage potential risk. The maximum risk exposure is represented by the carrying amount of trade receivables.

 

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company's approach to managing liquidity risk is to strive to always having sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation.

Development and performance

The company's strategy is to develop new areas such as electrified powered vehicles and continue to serve its existing customer base. This expansion is being matched by investment including in the research and development department which ensures the company is constantly updated in the latest knowledge and trends.

GLOBAL TECHNOLOGIES RACING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Key performance indicators

The main key performance indicators are growth in turnover and gross profit. Compared to the previous year turnover has increased by 14% from £17,949,663 to £20,463,467. The company’s gross profit margin for the year was 29% compared to 27.5% in the previous year.

On behalf of the board

J Biddlecombe
Director
27 August 2024
GLOBAL TECHNOLOGIES RACING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be that of the manufacture of composite components for industries including defence, motorsport, aerospace, industrial, medical, marine and automotive.

Results and dividends

The results for the year are set out on page 9.

Interim dividends were paid amounting to £266,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Biddlecombe
S Kingdon-Butcher
Auditor

In accordance with the company's articles, a resolution proposing that Martlet Audit Limited be reappointed as auditor of the company will be put at a meeting of the Board of Directors.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

GLOBAL TECHNOLOGIES RACING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
On behalf of the board
J Biddlecombe
Director
27 August 2024
GLOBAL TECHNOLOGIES RACING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL TECHNOLOGIES RACING LIMITED
- 5 -
Opinion

We have audited the financial statements of Global Technologies Racing Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

 

Our evaluation of the directors' assessment of the company's ability to continue to be a going concern included:

 

We assessed the adequacy and appropriateness of the going concern disclosures with reference to the requirements of the financial reporting framework and our understanding of the business.

 

Based on the work we have performed, we have not identified any material uncertainties relating to the events or conditions that, individually or collectively may cast significant doubt on the company's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

GLOBAL TECHNOLOGIES RACING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL TECHNOLOGIES RACING LIMITED (CONTINUED)
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

GLOBAL TECHNOLOGIES RACING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL TECHNOLOGIES RACING LIMITED (CONTINUED)
- 7 -
Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

 

 

 

 

 

 

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

 

 

 

 

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

GLOBAL TECHNOLOGIES RACING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL TECHNOLOGIES RACING LIMITED (CONTINUED)
- 8 -
John Pudduck FCCA
Senior Statutory Auditor
For and on behalf of Martlet Audit Limited
27 August 2024
Chartered Accountants
Statutory Auditor
Martlet House
E1, Yeoman Gate
Yeoman Way
Worthing
West Sussex
BN13 3QZ
GLOBAL TECHNOLOGIES RACING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
20,463,467
17,949,663
Cost of sales
(14,538,609)
(13,017,051)
Gross profit
5,924,858
4,932,612
Distribution costs
(50,156)
(13,610)
Administrative expenses
(5,539,043)
(6,122,548)
Other operating income
697,418
193,595
Operating profit/(loss)
7
1,033,077
(1,009,951)
Other interest receivable and similar income
9
25,328
1,767
Interest payable and similar expenses
8
(18,489)
(5,262)
Profit/(loss) before taxation
1,039,916
(1,013,446)
Tax on profit/(loss)
10
361,036
1,025,520
Profit for the financial year
1,400,952
12,074
Retained earnings brought forward
6,066,512
6,240,438
Dividends
12
(266,000)
(186,000)
Retained earnings carried forward
7,201,464
6,066,512

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GLOBAL TECHNOLOGIES RACING LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,279,885
2,309,649
Current assets
Stocks
13
707,485
935,066
Debtors
14
7,333,475
6,132,505
Cash at bank and in hand
3,485,492
1,578,261
11,526,452
8,645,832
Creditors: amounts falling due within one year
15
(6,317,474)
(4,616,924)
Net current assets
5,208,978
4,028,908
Total assets less current liabilities
7,488,863
6,338,557
Creditors: amounts falling due after more than one year
16
(26,697)
(40,643)
Provisions for liabilities
Deferred tax liability
18
260,700
231,400
(260,700)
(231,400)
Net assets
7,201,466
6,066,514
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
7,201,464
6,066,512
Total equity
7,201,466
6,066,514

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
J Biddlecombe
Director
Company registration number 04633827 (England and Wales)
GLOBAL TECHNOLOGIES RACING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,650,415
(1,128,087)
Interest paid
(18,489)
(5,262)
Income taxes refunded
957,502
1,373,292
Net cash inflow from operating activities
2,589,428
239,943
Investing activities
Purchase of tangible fixed assets
(428,514)
(201,406)
Proceeds from disposal of tangible fixed assets
500
70,453
Interest received
25,328
1,767
Net cash used in investing activities
(402,686)
(129,186)
Financing activities
Payment of finance leases obligations
(13,511)
(13,076)
Dividends paid
(266,000)
(186,000)
Net cash used in financing activities
(279,511)
(199,076)
Net increase/(decrease) in cash and cash equivalents
1,907,231
(88,319)
Cash and cash equivalents at beginning of year
1,578,261
1,666,580
Cash and cash equivalents at end of year
3,485,492
1,578,261
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
1
Accounting policies
Company information

Global Technologies Racing Limited is a private company limited by shares incorporated in England and Wales. The registered office is Westergate Works, Denmans Lane, Fontwell, West Sussex, United Kingdom, BN18 0SU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

Revenue from the sale of 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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Short leasehold property improvements
Straight line over lease term
Plant and machinery
25% reducing balance per annum
Furniture and fittings
25% reducing balance per annum
Office equipment
25% reducing balance per annum
Motor vehicles
25% reducing balance per annum

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

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

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

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

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

 

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

1.15
Foreign exchange

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

1.16

Research and development expenditure

Research and development expenditure is written off against profits in the year in which it is incurred.

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In preparing these financial statements, the directors have had to make the following judgements:

 

To determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
20,463,467
17,949,663
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,456,681
13,911,126
Europe
1,920,746
3,612,426
Rest of the World
86,040
426,111
20,463,467
17,949,663
2024
2023
£
£
Other revenue
Interest income
25,328
1,767
Grants received
30,767
40,998
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production staff
212
227
Administrative staff
21
28
Management staff
15
17
Total
248
272

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,920,604
10,638,605
Social security costs
1,009,744
1,144,422
Pension costs
192,305
209,688
11,122,653
11,992,715
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
34,400
21,200
6
Key management personnel

In addition to directors' remuneration, which is disclosed in notes 5 and 22, other key management personnel were paid a total of £74,700 during the year (2023: £61,500).

7
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(100,429)
(161,623)
Government grants
(30,767)
(40,998)
Fees payable to the company's auditor for the audit of the company's financial statements
9,180
8,500
Depreciation of owned tangible fixed assets
457,730
556,085
Loss/(profit) on disposal of tangible fixed assets
48
(35,000)
Operating lease charges
312,967
301,632
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
13,018
-
Other finance costs:
Interest on finance leases and hire purchase contracts
1,468
1,903
Other interest
4,003
3,359
18,489
5,262
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
25,328
1,035
Other interest income
-
0
732
Total income
25,328
1,767
Disclosed on the profit and loss account as follows:
Other interest receivable and similar income
25,328
1,767
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(390,336)
(957,502)
Adjustments in respect of prior periods
-
0
(1,418)
Total current tax
(390,336)
(958,920)
Deferred tax
Origination and reversal of timing differences
29,300
(66,600)
Total tax credit
(361,036)
(1,025,520)
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 20 -

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
1,039,916
(1,013,446)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
249,896
(192,555)
Tax effect of expenses that are not deductible in determining taxable profit
7,131
5,503
Permanent capital allowances in excess of depreciation
1,140
(20,611)
Depreciation on assets not qualifying for tax allowances
34,627
20,896
Research and development tax credit
(1,137,883)
(1,134,491)
Under/(over) provided in prior years
-
0
(1,418)
Surrended tax losses
484,053
297,156
Taxation credit for the year
(361,036)
(1,025,520)
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
11
Tangible fixed assets
Short leasehold property improvements
Assets under construction
Plant and machinery
Furniture and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 February 2023
1,765,355
821,047
4,057,548
309,118
224,888
121,071
7,299,027
Additions
-
0
54,904
358,410
-
0
-
0
15,200
428,514
Disposals
-
0
-
0
-
0
-
0
-
0
(8,995)
(8,995)
At 31 January 2024
1,765,355
875,951
4,415,958
309,118
224,888
127,276
7,718,546
Depreciation and impairment
At 1 February 2023
1,529,568
-
0
2,938,617
251,488
177,645
92,060
4,989,378
Depreciation charged in the year
126,850
-
0
295,313
14,416
12,133
9,018
457,730
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(8,447)
(8,447)
At 31 January 2024
1,656,418
-
0
3,233,930
265,904
189,778
92,631
5,438,661
Carrying amount
At 31 January 2024
108,937
875,951
1,182,028
43,214
35,110
34,645
2,279,885
At 31 January 2023
235,787
821,047
1,118,931
57,630
47,243
29,011
2,309,649
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
12
Dividends
2024
2023
£
£
Interim paid
266,000
186,000
13
Stocks
2024
2023
£
£
Work in progress
233,729
428,232
Finished goods and goods for resale
473,756
506,834
707,485
935,066
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,900,632
2,837,203
Corporation tax recoverable
390,336
957,502
Other debtors
38,592
27,015
Prepayments and accrued income
3,003,915
2,310,785
7,333,475
6,132,505
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
13,946
13,511
Trade creditors
3,099,454
2,195,858
Taxation and social security
633,546
826,810
Other creditors
2,302,717
1,295,762
Accruals and deferred income
267,811
284,983
6,317,474
4,616,924
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
26,697
40,643
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
13,946
13,511
In two to five years
26,697
40,643
40,643
54,154
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
260,700
231,400
2024
Movements in the year:
£
Liability at 1 February 2023
231,400
Charge to profit or loss
29,300
Liability at 31 January 2024
260,700
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
192,305
209,688

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2
2
2
2
GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
259,682
294,532
Between two and five years
473,062
638,183
In over five years
5,180
93,980
737,924
1,026,695
22
Directors' transactions

Dividends totalling £266,000 (2023 - £186,000) were paid in the year in respect of shares held by the company's directors.

The company was under the control of the directors during the current and previous year.

 

During the year the company hired equipment from J Biddlecombe and S Kingdon-Butcher at a rental of £41,750 (2023 - £39,000) each.

23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
2024
2023
£
£
Entities over which the entity has control, joint control or significant influence
461,333
566,991

During the year the company incurred costs on behalf of Global Technologies Production Limited (GTP), a company under common control. Consequently it has charged GTP a management fee of £2,119,366 (2023: £1,981,482) to cover these costs. The fee has been accrued in these accounts. In addition the company also paid and received monies on behalf of GTP during the year. At the end of the year the company owed GTP £2,268,156 (2023: £1,246,347), which excludes accounting for the accrued management fee.

 

GLOBAL TECHNOLOGIES RACING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
24
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
1,400,952
12,074
Adjustments for:
Taxation credited
(361,036)
(1,025,520)
Finance costs
18,489
5,262
Investment income
(25,328)
(1,767)
Loss/(gain) on disposal of tangible fixed assets
48
(35,000)
Depreciation and impairment of tangible fixed assets
457,730
556,085
Movements in working capital:
Decrease/(increase) in stocks
227,581
(33,684)
Increase in debtors
(1,768,136)
(2,130,218)
Increase in creditors
1,700,115
1,524,681
Cash generated from/(absorbed by) operations
1,650,415
(1,128,087)
25
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,578,261
1,907,231
3,485,492
Obligations under finance leases
(54,154)
13,511
(40,643)
1,524,107
1,920,742
3,444,849
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