Company registration number 06931626 (England and Wales)
GEM PARTNERSHIP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GEM PARTNERSHIP LIMITED
COMPANY INFORMATION
Directors
Mr RA Dunbar
Mr LJ Rankin
Mr I Miller
Mrs M Miller
Company number
06931626
Registered office
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
United Kingdom
NE2 1TJ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
Business address
Generator Studios
Trafalgar Street
Newcastle upon Tyne
Tyne and Wear
NE1 2LA
Bankers
Barclays Bank Plc
PO Box 378
71 Grey Street
Newcastle upon Tyne
Tyne & Wear
NE99 1JP
GEM PARTNERSHIP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
GEM PARTNERSHIP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
As a recruitment business we have operated within the temporary and permanent sectors within our core market since 2009. As a training business we have operated within apprenticeship training delivery via the apprenticeship levy fund, other government funded training, and commercial training since 2017.
Our detailed results for the 12 months to 31 March 2024 can be found in our Income Statement on page 8. The directors consider the top line results this year to be in line with general market and sector conditions.
Top line sales are approx 2% ahead of last year.
2024 2023
£ £
Turnover 29,680,989 29,031,947
Cost of sales 25,683,314 25,448,441
Gross profit 3,997,675 3,583,506
Administrative expenses 2,386,473 2,093,336
Other operating profit 6,525 103,956
Operating profit 1,617,727 1,594,126
Principal risks and uncertainties
The principal risks to the business are potential changes to the UK employment legislation and generally external via competition and the general state of the UK and regional economy, in particular the state of the employment market.
Mr RA Dunbar
Director
3 September 2024
GEM PARTNERSHIP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of a recruitment business.
Results and dividends
The results for the year are set out on page 8.
Dividends of £740,544 were paid during the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr RA Dunbar
Mr LJ Rankin
Mr I Miller
Mrs M Miller
Financial instruments
The company has an invoice discounting facility in place to mitigate the company's exposure to liquidity and cash flow risks.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
Robson Laidler Accountants Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
GEM PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GEM PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.
On behalf of the board
Mr RA Dunbar
Mrs M Miller
Director
Director
14 August 2024
GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 5 -
Opinion
We have audited the financial statements of Gem Partnership Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 6 -
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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.
The laws and regulations which are considered to be significant to the entity relate to employment law. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
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.
GEM PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEM PARTNERSHIP LIMITED
- 7 -
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.
Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
9 September 2024
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
GEM PARTNERSHIP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
29,680,989
29,031,947
Cost of sales
(25,683,314)
(25,448,441)
Gross profit
3,997,675
3,583,506
Administrative expenses
(2,386,473)
(2,093,336)
Other operating income
6,525
103,956
Profit before taxation
1,617,727
1,594,126
Tax on profit
8
(418,077)
(309,258)
Profit for the financial year
1,199,650
1,284,868
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GEM PARTNERSHIP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
55,423
54,980
Investments
11
100
100
55,523
55,080
Current assets
Stocks
13
2,638
2,614
Debtors
14
3,007,180
4,072,948
Cash at bank and in hand
1,150,920
406,329
4,160,738
4,481,891
Creditors: amounts falling due within one year
15
(2,455,131)
(3,235,079)
Net current assets
1,705,607
1,246,812
Total assets less current liabilities
1,761,130
1,301,892
Provisions for liabilities
Deferred tax liability
16
13,792
13,660
(13,792)
(13,660)
Net assets
1,747,338
1,288,232
Capital and reserves
Called up share capital
17
551
551
Capital redemption reserve
552
552
Profit and loss reserves
1,746,235
1,287,129
Total equity
1,747,338
1,288,232
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 3 September 2024 and are signed on its behalf by:
Mr RA Dunbar
Mrs M Miller
Director
Director
Company registration number 06931626 (England and Wales)
GEM PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
551
552
741,703
742,806
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,284,868
1,284,868
Dividends
9
-
-
(739,442)
(739,442)
Balance at 31 March 2023
551
552
1,287,129
1,288,232
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,199,650
1,199,650
Dividends
9
-
-
(740,544)
(740,544)
Balance at 31 March 2024
551
552
1,746,235
1,747,338
GEM PARTNERSHIP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,043,774
1,041,727
Income taxes paid
(535,169)
(185,823)
Net cash inflow from operating activities
1,508,605
855,904
Investing activities
Purchase of tangible fixed assets
(23,470)
(29,646)
Net cash used in investing activities
(23,470)
(29,646)
Financing activities
Dividends paid
(740,544)
(739,442)
Net cash used in financing activities
(740,544)
(739,442)
Net increase in cash and cash equivalents
744,591
86,816
Cash and cash equivalents at beginning of year
406,329
319,513
Cash and cash equivalents at end of year
1,150,920
406,329
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
Gem Partnership Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne, United Kingdom, NE2 1TJ.
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.
As the company's only subsidiary company has been dormant throughout the current and preceding accounting period, and the assets of the subsidiary company are not material to the group, group accounts have not been prepared. The financial statements relate to the activities of the holding company only.
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Services provided are those of processing payroll, providing agency workers to various companies and recruitment fees.
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:
Leasehold improvements
25% reducing balance
Fixtures and fittings
33% reducing balance
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.
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
1.7
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.
1.8
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.
1.9
Financial instruments
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.
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.10
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.
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
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.
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.14
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Rendering of services
29,680,989
29,031,947
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
23,027
21,693
Operating lease charges
44,055
45,871
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,320
6,570
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Head office
35
31
Commercial/industrial/professional
1,063
1,171
Total
1,102
1,206
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
24,796,078
24,378,287
Social security costs
1,908,948
1,742,774
Pension costs
484,740
469,960
27,189,766
26,591,021
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
50,280
71,435
Company pension contributions to defined contribution schemes
234,063
244,980
284,343
316,415
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
417,945
307,242
Deferred tax
Origination and reversal of timing differences
132
2,016
Total tax charge
418,077
309,258
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 17 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,617,727
1,594,126
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
404,432
302,884
Tax effect of expenses that are not deductible in determining taxable profit
13,624
7,556
Adjustments in respect of prior years
5
Deferred tax charge
132
2,016
Capital allowances in excess of depreciation
(111)
(3,203)
Taxation charge for the year
418,077
309,258
9
Dividends
2024
2023
£
£
Interim paid
740,544
739,442
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 April 2023
2,861
194,422
197,283
Additions
23,470
23,470
At 31 March 2024
2,861
217,892
220,753
Depreciation and impairment
At 1 April 2023
2,521
139,782
142,303
Depreciation charged in the year
85
22,942
23,027
At 31 March 2024
2,606
162,724
165,330
Carrying amount
At 31 March 2024
255
55,168
55,423
At 31 March 2023
340
54,640
54,980
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
100
100
12
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
GEM Training Limited
England & Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
GEM Training Limited
100
13
Stocks
2024
2023
£
£
Raw materials and consumables
2,638
2,614
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,888,061
3,987,631
Other debtors
22,550
22,725
Prepayments and accrued income
91,569
57,592
3,002,180
4,067,948
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
5,000
5,000
Total debtors
3,007,180
4,072,948
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Debtors
(Continued)
- 19 -
Included within trade debtors are balances totaling £2,155,965 (2023: £2,867,846 ) that are subject to an invoice discounting facility. The trade debtor balances have been transferred to the counterparty although the transaction does not qualify for de-recognition on the basis the credit risk is retained by the company. The associated liability recognised in creditors is £nil (2023: £nil).
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
58,851
62,821
Corporation tax
190,018
307,242
Other taxation and social security
1,354,661
1,768,929
Other creditors
381,994
515,746
Accruals and deferred income
469,607
580,341
2,455,131
3,235,079
16
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
13,792
13,660
2024
Movements in the year:
£
Liability at 1 April 2023
13,660
Charge to profit or loss
132
Liability at 31 March 2024
13,792
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
551
551
551
551
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
18
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
87,039
Between two and five years
77,981
In over five years
37,614
202,634
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Name of related party
Nature of relationship
Key management personnel
Other related parties
Description of
Income
Payments
transaction
2024
2023
2024
2023
£
£
£
£
Key management personnel
Dividends paid
541,632
540,826
Other related parties
Dividends paid
198,912
198,616
Other information
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
GEM PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
20
Directors' transactions
Dividends totalling £541,632 (2023 - £540,826) were paid in the year in respect of shares held by the company's directors.
Interest is not charged on the below loans.
Description
% Rate
Opening balance
Closing balance
£
£
Mr RA Dunbar - Directors' loan
-
5,000
5,000
Mr LJ Rankin - Directors' loan
-
5,000
5,000
Mr I Miller - Directors' loan
-
5,000
5,000
Mrs M Miller - Directors' loan
-
5,000
5,000
20,000
20,000
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,199,650
1,284,868
Adjustments for:
Taxation charged
418,077
309,258
Depreciation and impairment of tangible fixed assets
23,027
21,693
Movements in working capital:
(Increase)/decrease in stocks
(24)
642
Decrease/(increase) in debtors
1,065,768
(1,229,929)
(Decrease)/increase in creditors
(662,724)
655,195
Cash generated from operations
2,043,774
1,041,727
22
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
406,329
744,591
1,150,920
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210Mr RA DunbarMr LJ RankinMr I MillerMrs M Millerfalsefalse069316262023-04-012024-03-3106931626bus:Director12023-04-012024-03-3106931626bus:Director22023-04-012024-03-3106931626bus:Director32023-04-012024-03-3106931626bus:Director42023-04-012024-03-3106931626bus:RegisteredOffice2023-04-012024-03-3106931626bus:Agent12023-04-012024-03-31069316262024-03-31069316262022-04-012023-03-3106931626core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3106931626core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31069316262023-03-3106931626core:LeaseholdImprovements2024-03-3106931626core:FurnitureFittings2024-03-3106931626core:LeaseholdImprovements2023-03-3106931626core:FurnitureFittings2023-03-3106931626core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3106931626core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3106931626core:CurrentFinancialInstruments2024-03-3106931626core:CurrentFinancialInstruments2023-03-3106931626core:ShareCapital2024-03-3106931626core:ShareCapital2023-03-3106931626core:CapitalRedemptionReserve2024-03-3106931626core:CapitalRedemptionReserve2023-03-3106931626core:RetainedEarningsAccumulatedLosses2024-03-3106931626core:RetainedEarningsAccumulatedLosses2023-03-3106931626core:ShareCapital2022-03-3106931626core:CapitalRedemptionReserve2022-03-3106931626core:RetainedEarningsAccumulatedLosses2022-03-31069316262023-03-31069316262022-03-3106931626core:LeaseholdImprovements2023-04-012024-03-3106931626core:FurnitureFittings2023-04-012024-03-3106931626core:UKTax2023-04-012024-03-3106931626core:UKTax2022-04-012023-03-310693162612023-04-012024-03-310693162612022-04-012023-03-310693162622023-04-012024-03-310693162622022-04-012023-03-3106931626core:LeaseholdImprovements2023-03-3106931626core:FurnitureFittings2023-03-3106931626core:Non-currentFinancialInstruments2024-03-3106931626core:Non-currentFinancialInstruments2023-03-3106931626core:WithinOneYear2024-03-3106931626core:WithinOneYear2023-03-3106931626core:BetweenTwoFiveYears2024-03-3106931626core:BetweenTwoFiveYears2023-03-3106931626core:MoreThanFiveYears2024-03-3106931626core:MoreThanFiveYears2023-03-3106931626bus:PrivateLimitedCompanyLtd2023-04-012024-03-3106931626bus:FRS1022023-04-012024-03-3106931626bus:Audited2023-04-012024-03-3106931626bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP