Registered number: 07183222
GRANT PALMER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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GRANT PALMER LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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GRANT PALMER LIMITED
CONTENTS
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Independent Auditor's Report
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Statement of Income and Retained Earnings
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Notes to the Financial Statements
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GRANT PALMER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
Grant Palmer Limited is a privately owned company operating commercial and subsidised bus routes across Bedfordshire for local authorities, businesses and the general public. Grant Palmer was formed in 2010 and has progressively grown through partnership working and the winning of tendered contracts with local authorities, seeking new business to business agreements, and providing replacement services in areas disposed of by other bus operators.
Grant Palmer aims to develop profitable and sustainable revenue streams through the expansion of its commercial bus network and contracted activities, and by being an active company participating in national transport business trends as they appear in Bedfordshire. The directors believe the policy of national government since 2010 has significantly disrupted the markets of the bus industry as laid out by the Transport Act 1985, making the operational and commercial environment for small bus operators increasingly bureaucratic and complex, whilst also undermining the financial performance of the larger national operators in the provinces.
Our strategy is therefore to seize the opportunities created by the Bus Services Act 2017 and the National Bus Strategy, to seek new commercial opportunities where they become available regionally, and to continue to benefit from the industrial and commercial development of the south Midlands / Home Counties.
Our strategic goals are to continue to achieve sustainable growth in shareholder value, to improve our operational capability, performance and resilience, and to deliver a consistently high quality of service to our customers.
We will measure our performance with a focus on revenue and margin, to deliver strong organic growth and a high margin business, our continuing investment in infrastructure, technology and high quality operational assets, and through the monitoring of our operational performance and service standards.
Board and Shareholder Structure
The business is jointly owned by two shareholding directors who work full-time and closely together to ensure the business is well managed and controlled. A shareholders agreement is in place to maintain governance and the directors together bring a variety of skills and experience for the effective management of the business.
Core Values
As a locally based and operating company, we aim to conduct business in the best interests of our shareholders, employees and customers together, through our organisational beliefs:
∙Safe and risk aware – continually learning and assessing future risks
∙Collaborative – working with all our stakeholders and local partners
∙Service led – delivering a high standard of delivery, value and performance
∙Commercially minded – putting business profitability and sustainability at the heart of what we do
∙Traditionally innovative – Holding traditional values of care, understanding and service, whilst innovating through technology and best practices where appropriate
∙Agile – fast moving and quick to adapt
∙Professional – highly trained, experienced and proficient in what we do throughout the organisation
∙Results focusses – always keeping an eye on how we are doing, financially and operationally
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GRANT PALMER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
Relationships with Stakeholders
There are many different stakeholders and interest groups in the bus industry. Some have statutory powers entrusted in them, or have a more informal influence on our business and success, equally important. The team at Grant Palmer work hard to maintain good contact and relations which all these stakeholders and groups, listening to what they say, taking advice and learning where appropriate, and consulting when best practice of the law require it.
Of particular importance are our formal stakeholders, and customer representatives:
∙The Department of Transport and its regulatory bodies such as Traffic Commissioners, Driver and Vehicle Standards Agency and Driver and Vehicle Licensing Agency.
∙Local Transport Authorities, Local Councils, local MPs and councillors.
∙Bus user representative groups
∙Industry bodies
∙Individual bus users and corporate customers
We are in constant contact with all these stakeholders, meeting regularly with them, either individually or through our representatives, giving us insight and guidance, and an up to date awareness of new legal and regulatory requirements, and giving us the strength of knowledge to adapt our business to meet needs. With our customers, and their representatives, the key matters are service delivery and performance targets, including consideration of individual contract compliance.
We also work closely with our suppliers, holding them to account to ensure good performance and best value.
Principal risks and uncertainties
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The COVID-19 pandemic saw a period of many unforeseen material risks and uncertainties, but the business reacted quickly to ensure financial stability, and to be continue to react to new opportunities to strengthen the business going forward. Consequently, a challenging time was turned into one of expansion and investment. The pandemic has however clearly changed the nature and extent of risk that should be considered, and the directors have identified the following risks as of concern and needing mitigation.
∙Fleet insurance, cover and rates - There is a concern that the Company may not be able to maintain adequate levels of comprehensive cover if our specific company or wider industry risk increases beyond a level that is viable for underwriters. Accident risk, actual accidents, staff training and review, incident mitigation and a constructive relationship with both our broker and underwriter are actively managed by the directors.
∙Legislation - The Bus Services Act 2017 has created the risk of unforeseen costs and additional restrictions being imposed on our business. A change in government would create further uncertainty, with the prospect of franchising, nationalisation and restrictions on employers. The directors continually monitor developments, working closely with local authorities and the DfT when appropriate and possible, lobbying local councillors and MPs when it can. We seek to maintain an excellent relationship with elected mayors.
∙Staffing and recruitment - 2022 into 2023 was a period of considerable difficulty in recruiting and retaining bus drivers and this impacted on service delivery. During the period, an action plan was drawn up and roll out commenced to address the situation. The market for labour is volatile and can turn, so there is a constant focus on employee performance, welfare, recruitment and morale.
∙Fuel costs - There has been considerable volatility in fuel prices, including periods of significant fuel price increase, in the last few years, which can affect profitability if pricing on contracts and fares cannot be adjusted. Fuel prices are monitored daily, and a policy of annual fuel price hedging is in place. Additionally, there is a focus on fleet investment to deliver improvements in fuel efficiency.
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GRANT PALMER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
∙Management resources - There is a skills deficit within the industry affecting management of engineering, operational and commercial functions. This impacts service delivery and may cause the business to miss opportunities for growth. The directors work closely with managers to maximise morale and motivation, provide career development and training opportunities, and to recruit new talent where they can.
Financial key performance indicators
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Revenue measures our success in the expansion of our market share in the Bedfordshire bus market, and our ability to grow rates in the face of inflation.
Gross profit margin is fundamental to the longer term sustainability of our business, its monitoring ensuring that we can continue to invest in the business and react to opportunities for growth, and gives an indication of our position amongst our competitors and the wider market.
Profit before Taxation is a key determiner of shareholder return, and the overall success and sustainability of the business.
As a result of the recent growth of our business, this is Grant Palmer’s first year requiring a statutory audit. Having grown from a single shareholder business less 13 years ago, it has been necessary for us to develop new systems or management, monitoring and financial control, to keep pace with our growth in revenues, employee numbers, contracts and customers. In particular, the roll out of new technology and payment systems in the last few years has presented considerable challenge, as we have kept up with the demands of our customers and stakeholders. We are committed to addressing any issues highlighted in the audit for the future integrity of our business.
This report was approved by the board and signed on its behalf.
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G Palmer
Director
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GRANT PALMER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
The directors present their report and the financial statements for the year ended 31 August 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £826,872 (2022 - £785,577).
The directors have declared and paid dividends for the year ending 31 August 2023 of £137,000 (2022 - £126,000).
The directors who served during the year were:
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GRANT PALMER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
There is a trend regionally of other bus service operators, both large and small, scaling back operations or withdrawing from the market. We see this as an opportunity for both organic growth of existing service business, and introduction of new services. The recent opening of an operating site in Biggleswade provides a spring board for us.
There has been considerable commercial and residential development in the area, this continues apace, and we see opportunity for the introduction of new services to serve new housing estates, funded by developers, and for working with employers on the provision of staff transport. A headline development project is a proposal for a large Universal Studios site to open within 10 miles of our base.
To ensure we can meet growth opportunities, we intend to increase our licenced operating capability from 40 to 45 buses.
Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditor, Hillier Hopkins LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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G Palmer
Director
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GRANT PALMER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANT PALMER LIMITED
We have audited the financial statements of Grant Palmer Limited (the 'Company') for the year ended 31 August 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, 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.
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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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.
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GRANT PALMER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANT PALMER LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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:
∙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
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.
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GRANT PALMER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANT PALMER LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
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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.
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:
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.
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:
∙we consider the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
∙the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management about their own identification and assessment of the risks of irregularities;
∙any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
∙the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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GRANT PALMER LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GRANT PALMER LIMITED (CONTINUED)
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act and relevant tax legislation.
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 Auditor's Report.
In the previous accounting period the Directors of the Company took advantage of the audit exemption under Companies Act 2006, section 477. Therefore, the prior period financial statements were not subject to audit.
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.
Neal Carter ACA (Senior Statutory Auditor)
for and on behalf of
Hillier Hopkins LLP
Chartered Accountants
Statutory Auditor
249 Silbury Boulevard
Milton Keynes
Buckinghamshire
MK9 1NA
28 August 2024
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GRANT PALMER LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2023
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Interest payable and similar expenses
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- correction of a prior period error
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At the beginning of the year as restated
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Dividends declared and paid
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Retained earnings at the end of the year
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The notes on pages 12 to 27 form part of these financial statements.
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GRANT PALMER LIMITED
REGISTERED NUMBER: 07183222
BALANCE SHEET
AS AT 31 AUGUST 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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G Palmer
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The notes on pages 12 to 27 form part of these financial statements.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
Grant Palmer Limited is a private limited company, incorporated in England & Wales and limited by shares. Its registered office is Unit 2c, Commerce Way, Flitwick, Bedfordshire, MK45 5BP.
The principal activity of the Company is the provision of road passenger transport services.
The financial statements are presented in sterling which is the functional currency of the Company and the Group and rounded to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Grant Palmer (Holdings) Limited (Co 14768230) as at 31 August 2023 and these financial statements may be obtained from Companies House online where they are publicly available.
The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for a period of at least 12 months following the approval of these financial statements. The Directors are of the opinion that the Company can meeting its liabilities as they fall due.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from providing bus services is recognised in the period in which the services are provided when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that future economic benefits will flow to the entity; and
∙specific criteria have been met for each of the entity's activities.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Land included in freehold property is not depreciated.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
2.Accounting policies (continued)
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Financial instruments (continued)
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Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year.
Debtors:
The recoverability of debtors has been assessed at the year end and up until the date of signing these financial statements. Management have based the decision to provide for any amounts based on their judgement of all the available information, and their experience of the specific nature of the debtor in question.
Depreciation:
The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that asset lives and residual values are appropriate.
All of the Company's revenue derives from the provision of road passenger transport services within the United Kingdom.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Government grants receivable
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Included in government grants is money received from Central Bedfordshire Council related to the CBC LTF funding.
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The operating profit is stated after charging:
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Other operating lease rentals
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During the year, the Company obtained the following services from the Company's auditor:
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Fees payable to the Company's auditor for the audit of the Company's financial statements
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Interest payable and similar expenses
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Finance leases and hire purchase contracts
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Current tax on profits for the year
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Origination and reversal of timing differences
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
11.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Changes in provisions leading to an increase (decrease) in the tax charge
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Change in corporation tax rates during the year
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Charge for the year on owned assets
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Charge for the year on financed assets
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Included in freehold property is land valued at £60,072 that has not been depreciated.
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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J.K Developments (Biggleswade) Ltd
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Unit 2c, Commerce Way, Flitwick, Bedfordshire, MK45 5BP
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Prepayments and accrued income
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Cash and cash equivalents
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Details of security provided:
The bank loan above relates to a mortgage with Handelsbanken and is secured by way of a fixed charge against the property and all plant, machinery and chattels located at the property. The bank loan is repayable by monthly installments and interest is charged at 7.75% per annum.
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Charged to profit or loss
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
21.Deferred taxation (continued)
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
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90 (2022 - 90) Ordinary shares of £1.00 each
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10 (2022 - 10) B Ordinary shares of £1.00 each
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Profit and loss account
Profit and loss account includes all current and prior period retained profits and losses.
A prior year adjustment has been entered to account for grant income in the period in which it was received, and remove the related deferred income. It was deemed the funding met the recognition criteria when it was received and therefore should not have been deferred.
Grant income has been increased by £384,234, in other operating income, and corporation tax increased by £73,004, for the year ending 31 August 2022. Resulting in a net increase in profits of £311,230.
Grant income has been increase by £576,587 for year ending 31 August 2020 and £416,744 for year ending 31 August 2021, and the corporation tax has been increased by £97,677 and £91,056, The total of £804,598 has been corrected through a profit and loss reserves adjustment.
A prior year adjustment has been entered to write off a £500,000 loan due from J.K Developments (Biggleswade) Ltd to Grant Palmer Limited, due to the loan being impaired during the year ending 31 August 2022. Resulting in a reduction profits of £500,000.
A prior year adjustment has been entered to adjust the split between costs of sales and admin costs, for employees' salaries, national insurance and pension. This has resulted in cost of sales reducing by £180,740 and admin costs increasing by this amount, and had no impact on the corporation tax.
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GRANT PALMER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
The Company operates a defined contribution scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions paid during the year amounted to £163,062 (2022 - £72,202). At the year end the sum of £7,523 was owed by the Company (2022 - £6,627) and is included within creditors.
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Commitments under operating leases
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The Company had no commitments under non-cancellable operating leases at the balance sheet date.
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Related party transactions
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At the year end, the directors owed the Company £347,643 (2022 - £695,778).
During the year, £250,000 (2022 - £143,024) consultancy fees were paid to other related parties.
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From 5 May 2023 the Company was a wholly owned subsidiary of Grant Palmer (Holdings) Limited, a company incorporated in England & Wales and had therefore taken the disclosure exemption under the Companies Act provision 400 not to prepare it's own consolidated financial statements.
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