Company registration number 05732892 (England and Wales)
G M HOLDINGS (FELIXSTOWE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
G M HOLDINGS (FELIXSTOWE) LIMITED
COMPANY INFORMATION
Directors
J Grange
Mrs S G J Munnings
Secretary
J Grange
Company number
05732892
Registered office
Ordnance House
1 Garrison Lane
FELIXSTOWE
IP11 7SH
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Business address
Ordnance House
1 Garrison Lane
FELIXSTOWE
IP11 7SH
G M HOLDINGS (FELIXSTOWE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
G M HOLDINGS (FELIXSTOWE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

 

Grange Shipping reported a good year despite a 15% (£1.86M) reduction in turnover. The decrease was directly due to a reduction in deep sea traffic. No deep-sea customers were lost in fact new customers were gained. There was just an overall reduction on container volumes reflected in the TEU count through the main UK ports.

 

Administration costs increased, largely due to training costs and the introduction of management bonus payments. EU Customs Clearance volumes were largely maintained and the healthy margins plus contributions from Bank Interest enabled us to report a similar profit to 2022.

 

Sales & marketing activity remained low as the Company continued to grapple with the ever changing interpretation of Brexit rules, the unreliability of Government IT systems (CDS Imports / Exports / transit in fact everything!).

 

Preparation continued for the implementation of full Border checks for food stuffs in 2024, a new transit system and Safety & Security declarations. Despite the anodyne and misleading government pronouncements there is little or no data sharing between government departments. Each department develops its own unreliable IT system that can’t share data with other departments leading to industrial duplication of data entry.

 

We have no confidence that matters will improve in 2024 and given DEFRA’s understanding of Geography and trade it may very well get worse.

 

Smaller / medium customers continue test trade with the EU, but volumes still remain at a lower level than prior to Brexit.

 

Global Containers reported another excellent year based on their Far East business and the of Brexit customs clearances.

 

GBH did not purchase or dispose of any properties during the year. There was a country wide consolidation in property values, but GBH continues to enjoy a very high occupancy rate.

 

The company does not rely on rental income to support increasing mortgage rates and so continued to offer affordable, reasonable rentals leading to a reliable source of rental income.

 

We consider that our key financial performance indicators for our group are those that communicate the financial performance and strength of the group overall. These being turnover, gross margin, return on capital employed, and Cash Flow management.

G M HOLDINGS (FELIXSTOWE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The principal risks and uncertainties for the two ‘shipping’ companies are shared by most similar companies in the UK; recruitment and staff retention, slowing demand at home, especially in the second half of the year through changes in Brexit regulations, incoherent Government IT systems, fuel and energy costs, political uncertainty and the war in Ukraine and now the Middle East.

 

Good Credit Control and management is vital but, in an era, where even the largest companies could be in trouble there are no guarantees

 

For GBH the main threat is a collapse in the housing market. The company has invested in popular properties that should always be in demand. We continue to run the company with a long-term view on valuations and where prices and rentals will go.

 

All Companies are managed in a conservative manner and are well founded for cash and reserves. The Shipping Companies retain large cash reserves to meet their duty deferment / transit and VAT financial guarantee liabilities.

 

Liquidity Risk

The Group has sufficient cash reserves to enable it to meet its obligations as they fall due.

Development and performance

Good progress is being made in our Management training which continued during 2023 and will extend into 2024/25.

 

The companies aim to be flexible and well-resourced to meet an ever-changing world.

Key performance indicators

The key financial highlights are as follows:

 

Gross Profit % - 2023: 22.98%    - 2022: 17.19%

Net Profit before Tax % - 2023: 16.94%    - 2022: 8.31%

Position of the business at the year end

The profit for the financial year, after taxation, amounted to £2,099,730 (2022: £1,515,709) and is added to reserves. At the financial year end, the company had net assets of £9,516,309 (2022: £8,098,744).

On behalf of the board

J Grange
Director
12 September 2024
G M HOLDINGS (FELIXSTOWE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of GM Holdings (Felixstowe) Limited is that of a holding company.

The principal activity of Grange Shipping Limited is that of shipping and forwarding agents

The principal activity of Global Container Services Limited is that of export and import forwarding agents for deep sea businesses.

The principal activity of Global Container Lines Limited is that of a dormant company.

The principal activity of GCS Holdings (Felixstowe) Limited is that of a holding company.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £514,725. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Grange
Mrs S G J Munnings
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J Grange
Director
12 September 2024
G M HOLDINGS (FELIXSTOWE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

G M HOLDINGS (FELIXSTOWE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G M HOLDINGS (FELIXSTOWE) LIMITED
- 5 -
Opinion

We have audited the financial statements of GM Holdings (Felixstowe) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

G M HOLDINGS (FELIXSTOWE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G M HOLDINGS (FELIXSTOWE) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

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

 

Based on our understanding of the Group’s industry and activities, we identified the principal risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.

 

We considered the opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to fraudulent transactions that would result in the manipulation of profits.

Audit procedures included:

 

 

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.

G M HOLDINGS (FELIXSTOWE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G M HOLDINGS (FELIXSTOWE) LIMITED
- 7 -

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

Use of our report

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

Jonathan Oakley F.C.A. (Senior Statutory Auditor)
For and on behalf of BG Audit LLP
12 September 2024
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
G M HOLDINGS (FELIXSTOWE) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
15,829,612
22,246,558
Cost of sales
(12,191,724)
(18,423,031)
Gross profit
3,637,888
3,823,527
Administrative expenses
(2,297,336)
(2,284,514)
Other operating income
2,899
4,197
Operating profit
4
1,343,451
1,543,210
Share of profits of joint ventures
116,460
1,274
Interest receivable and similar income
8
538,300
377,445
Interest payable and similar expenses
9
(815)
-
0
Amounts written off investments
10
683,847
(73,347)
Profit before taxation
2,681,243
1,848,582
Tax on profit
11
(581,513)
(332,873)
Profit for the financial year
2,099,730
1,515,709
Profit for the financial year is attributable to:
- Owners of the parent company
1,853,191
1,059,500
- Non-controlling interests
246,539
456,209
2,099,730
1,515,709
G M HOLDINGS (FELIXSTOWE) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,099,730
1,515,709
Other comprehensive income
-
-
Total comprehensive income for the year
2,099,730
1,515,709
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,853,191
1,059,500
- Non-controlling interests
246,539
456,209
2,099,730
1,515,709
G M HOLDINGS (FELIXSTOWE) LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
102,406
288,898
Investments
16
2,857,229
2,022,874
2,959,635
2,311,772
Current assets
Debtors
20
2,331,049
3,127,226
Cash at bank and in hand
7,587,249
6,165,249
9,918,298
9,292,475
Creditors: amounts falling due within one year
21
(3,027,862)
(3,355,714)
Net current assets
6,890,436
5,936,761
Total assets less current liabilities
9,850,071
8,248,533
Provisions for liabilities
Deferred tax liability
22
333,762
149,789
(333,762)
(149,789)
Net assets
9,516,309
8,098,744
Capital and reserves
Called up share capital
24
9,400
9,400
Profit and loss fair value reserve
974,969
479,852
Profit and loss reserves
7,551,110
6,707,761
Equity attributable to owners of the parent company
8,535,479
7,197,013
Non-controlling interests
980,830
901,731
9,516,309
8,098,744
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
J Grange
Director
G M HOLDINGS (FELIXSTOWE) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
16
2,414,411
1,696,516
Current assets
Debtors
20
326,712
327,518
Cash at bank and in hand
894,333
643,679
1,221,045
971,197
Creditors: amounts falling due within one year
21
(12,978)
(10,127)
Net current assets
1,208,067
961,070
Total assets less current liabilities
3,622,478
2,657,586
Provisions for liabilities
Deferred tax liability
22
314,930
126,201
(314,930)
(126,201)
Net assets
3,307,548
2,531,385
Capital and reserves
Called up share capital
24
9,400
9,400
Profit and loss fair value reserve
974,969
479,852
Profit and loss reserves
2,323,179
2,042,133
Total equity
3,307,548
2,531,385

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,290,888 (2022 - £691,965 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
J Grange
Director
Company Registration No. 05732892
G M HOLDINGS (FELIXSTOWE) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss fair value reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
9,400
513,896
5,825,472
6,348,768
605,962
6,954,730
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,059,500
1,059,500
456,209
1,515,709
Dividends
12
-
-
(211,255)
(211,255)
(160,440)
(371,695)
Transfers
-
(34,044)
34,044
-
-
-
Balance at 31 December 2022
9,400
479,852
6,707,761
7,197,013
901,731
8,098,744
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,853,191
1,853,191
246,539
2,099,730
Dividends
12
-
-
(514,725)
(514,725)
(167,440)
(682,165)
Transfers
-
495,117
(495,117)
-
-
-
Balance at 31 December 2023
9,400
974,969
7,551,110
8,535,479
980,830
9,516,309
G M HOLDINGS (FELIXSTOWE) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss fair value reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
9,400
513,896
1,527,379
2,050,675
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
691,965
691,965
Dividends
12
-
-
(211,255)
(211,255)
Transfers
-
(34,044)
34,044
-
Balance at 31 December 2022
9,400
479,852
2,042,133
2,531,385
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,290,888
1,290,888
Dividends
12
-
-
(514,725)
(514,725)
Transfers
-
495,117
(495,117)
-
Balance at 31 December 2023
9,400
974,969
2,323,179
3,307,548
G M HOLDINGS (FELIXSTOWE) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,716,368
2,729,608
Interest paid
(815)
-
0
Income taxes paid
(236,123)
(468,063)
Net cash inflow from operating activities
1,479,430
2,261,545
Investing activities
Purchase of tangible fixed assets
(15,076)
(55,173)
Proceeds from disposal of tangible fixed assets
135,559
-
Proceeds from disposal of joint ventures
1
-
Proceeds from disposal of investments
(34,049)
(6,779)
Repayment of loans
-
12
Interest received
148,037
55,605
Dividends received
390,263
321,840
Net cash generated from investing activities
624,735
315,505
Financing activities
Dividends paid to equity shareholders
(514,725)
(211,255)
Dividends paid to non-controlling interests
(167,440)
(160,440)
Net cash used in financing activities
(682,165)
(371,695)
Net increase in cash and cash equivalents
1,422,000
2,205,355
Cash and cash equivalents at beginning of year
6,165,249
3,959,894
Cash and cash equivalents at end of year
7,587,249
6,165,249
G M HOLDINGS (FELIXSTOWE) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(1,837)
(2,365)
Income taxes paid
(7,727)
(7,601)
Net cash outflow from operating activities
(9,564)
(9,966)
Investing activities
Proceeds from disposal of investments
(34,049)
(6,779)
Interest received
44,489
40,670
Dividends received
764,503
696,080
Net cash generated from investing activities
774,943
729,971
Financing activities
Dividends paid to equity shareholders
(514,725)
(211,255)
Net cash used in financing activities
(514,725)
(211,255)
Net increase in cash and cash equivalents
250,654
508,750
Cash and cash equivalents at beginning of year
643,679
134,929
Cash and cash equivalents at end of year
894,333
643,679
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

GM Holdings (Felixstowe) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ordnance House, 1 Garrison Lane, Felixstowe IP11 7SH and the company number is 05732892.

 

The group consists of GM Holdings (Felixstowe) Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company GM Holdings (Felixstowe) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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
Over the life of the lease
Plant and equipment
33% straight line
Fixtures and fittings
25% straight line or 25% reducing balance
Motor vehicles
25% 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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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

 

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

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

1.10
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.

1.11
Financial instruments

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

 

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

 

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

Other financial assets

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

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

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.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.14
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.

1.15
Retirement benefits

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

1.16
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 leased asset are consumed.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.17
Government grants

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

 

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 and other revenue
2023
2022
£
£
Turnover analysed by class of business
15,829,612
22,246,558
2023
2022
£
£
Turnover analysed by geographical market
UK
14,023,259
19,382,708
Europe
1,202,041
1,768,548
Rest of the world
604,312
1,095,302
15,829,612
22,246,558
2023
2022
£
£
Other revenue
Interest income
148,037
55,605
Dividends received
390,263
321,840
Grants received
2,899
4,197
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(3,862)
(14,318)
Government grants
(2,899)
(4,197)
Depreciation of owned tangible fixed assets
65,992
101,322
Loss on disposal of tangible fixed assets
17
-
Operating lease charges
41,602
40,104
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,508
2,870
Audit of the financial statements of the company's subsidiaries
18,347
20,841
20,855
23,711
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
42
43
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,495,448
1,455,284
-
0
-
0
Social security costs
157,252
151,799
-
-
Pension costs
132,108
157,206
-
0
-
0
1,784,808
1,764,289
-
0
-
0
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
10,800
11,211
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
108,870
15,605
Other interest income
39,167
40,000
Total interest revenue
148,037
55,605
Other income from investments
Dividends received
390,263
321,840
Total income
538,300
377,445
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
108,870
15,605
Dividends from financial assets measured at fair value through profit or loss
390,263
321,840
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
815
-
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
683,846
(23,347)
Other gains/(losses)
Other gains and losses
1
(50,000)
683,847
(73,347)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
397,540
312,123
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
183,973
20,750
Total tax charge
581,513
332,873

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:

2023
2022
£
£
Profit before taxation
2,681,243
1,848,582
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
630,628
351,231
Tax effect of expenses that are not deductible in determining taxable profit
(184,895)
14,900
Effect of change in corporation tax rate
(2,722)
16,481
Depreciation on assets not qualifying for tax allowances
355
1,018
Effect of revaluations of investments
188,729
10,697
Dividend income
(91,790)
(61,149)
Deferred tax under provision
41,222
1,073
Capital allowances at enhanced rate
(14)
(1,378)
Taxation charge
581,513
332,873
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
514,725
211,255
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Investments in joint ventures
16
50,000
Recognised in:
Amounts written off investments
-
50,000

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2023
2022
Notes
£
£
In respect of:
Investments in joint ventures
16
1
-
Recognised in:
Amounts written off investments
1
-
14
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
35,708
Amortisation and impairment
At 1 January 2023 and 31 December 2023
35,708
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
15
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
146,178
223,329
126,380
359,951
855,838
Additions
-
0
11,476
3,600
-
0
15,076
Disposals
-
0
(7,646)
(3,047)
(270,000)
(280,693)
At 31 December 2023
146,178
227,159
126,933
89,951
590,221
Depreciation and impairment
At 1 January 2023
137,939
186,764
89,969
152,268
566,940
Depreciation charged in the year
1,508
18,624
9,716
36,144
65,992
Eliminated in respect of disposals
-
0
(7,646)
(3,029)
(134,442)
(145,117)
At 31 December 2023
139,447
197,742
96,656
53,970
487,815
Carrying amount
At 31 December 2023
6,731
29,417
30,277
35,981
102,406
At 31 December 2022
8,239
36,565
36,411
207,683
288,898
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
102,210
102,210
Investments in joint ventures
18
541,828
425,368
500
500
Loans to joint ventures
18
792,249
792,249
792,249
792,249
Listed investments
541,065
500,021
541,065
500,021
Unlisted investments
982,087
305,236
978,387
301,536
2,857,229
2,022,874
2,414,411
1,696,516
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Shares in joint ventures
Loans to joint ventures
Other investments
Total
£
£
£
£
Cost or valuation
At 1 January 2023
425,368
792,249
805,257
2,022,874
Additions
-
-
34,075
34,075
Valuation changes
-
-
683,846
683,846
Share of profit/(loss)
116,460
-
-
116,460
Disposals
-
-
(26)
(26)
At 31 December 2023
541,828
792,249
1,523,152
2,857,229
Carrying amount
At 31 December 2023
541,828
792,249
1,523,152
2,857,229
At 31 December 2022
425,368
792,249
805,257
2,022,874
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
Loans to joint ventures
Other investments
Total
£
£
£
£
Cost or valuation
At 1 January 2023
102,710
792,249
801,557
1,696,516
Additions
-
-
34,075
34,075
Valuation changes
-
-
683,846
683,846
Disposals
-
-
(26)
(26)
At 31 December 2023
102,710
792,249
1,519,452
2,414,411
Carrying amount
At 31 December 2023
102,710
792,249
1,519,452
2,414,411
At 31 December 2022
102,710
792,249
801,557
1,696,516
17
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Grange Shipping Limited
England and Wales
Ordinary
100.00
-
Global Container Services Limited
England and Wales
Ordinary
-
70.00
GSC Holdings (Felixstowe) Limited
England and Wales
Ordinary
70.00
-
Global Container Lines Limited
England and Wales
Ordinary
-
70.00
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Joint ventures

Details of joint ventures at 31 December 2023 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Indirect
GBH Felixstowe Limited
England and Wales
Ordinary
-
50.00
19
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,927,469
3,745,810
1,093,049
1,093,049
Equity instruments measured at cost less impairment
1,523,152
805,257
1,519,452
801,557
Carrying amount of financial liabilities
Measured at amortised cost
2,597,440
3,088,453
2,514
2,400
20
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,020,608
2,714,643
-
0
-
0
Amounts owed by group undertakings
-
-
300,800
300,800
Amounts owed by undertakings in which the company has a participating interest
-
11,662
-
-
Other debtors
212,456
331,395
-
0
-
0
Prepayments and accrued income
97,985
69,526
25,912
26,718
2,331,049
3,127,226
326,712
327,518
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
1,955,051
2,153,497
-
0
-
0
Corporation tax payable
397,540
236,123
10,464
7,727
Other taxation and social security
32,882
31,138
-
-
Other creditors
385,563
691,653
-
0
-
0
Accruals and deferred income
256,826
243,303
2,514
2,400
3,027,862
3,355,714
12,978
10,127
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
18,832
23,588
Investments
314,930
126,201
333,762
149,789
Liabilities
Liabilities
2023
2022
Company
£
£
Investments
314,930
126,201
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
149,789
126,201
Charge to profit or loss
183,973
188,729
Liability at 31 December 2023
333,762
314,930

The net deferred tax liability expected to reverse in the year ended 31st December 2024 is £7,776. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
132,108
157,206

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
5,250
1,750
5,250
1,750
Ordinary B shares of £1 each
2,510
4,970
2,510
4,970
Ordinary C shares of £1 each
670
670
670
670
Ordinary D shares of £1 each
670
670
670
670
Ordinary E shares of £1 each
300
670
300
670
Ordinary F shares of £1 each
-
670
-
670
9,400
9,400
9,400
9,400

There are six classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

25
Financial commitments, guarantees and contingent liabilities

At the year end the bank had given a guarantee in favour of HM Revenue & Customs for £450,000.

26
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
39,000
19,206
-
-
Between two and five years
136,500
-
-
-
175,500
19,206
-
-
27
Events after the reporting date

Since the year end the company disposed of it's shares in a subsidiary for a consideration of £1,700,000.

28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
15,346
12,711
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 32 -
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Joint Venture companies
-
54,047
437,901
1,192,571
Loan interest
2023
2022
£
£
Group
Joint Venture companies
39,166
40,000

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Joint Venture companies
-
11,662

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Joint Venture companies
792,249
792,249
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 33 -
Other information

The company has taken advantage of the exemptions conferred by FR102 not to make disclosures concerning companies wholly owned within the group.

29
Directors' transactions

During the year directors of a subsidiary company received advances of £20,566 and made repayments of £20,566.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,099,730
1,515,709
Adjustments for:
Share of results of associates and joint ventures
(116,460)
(1,274)
Taxation charged
581,513
332,873
Finance costs
815
-
0
Investment income
(538,300)
(377,445)
Loss on disposal of tangible fixed assets
17
-
Depreciation and impairment of tangible fixed assets
65,992
101,322
Other gains and losses
(683,847)
73,347
Movements in working capital:
Decrease in debtors
796,177
1,403,192
Decrease in creditors
(489,269)
(318,116)
Cash generated from operations
1,716,368
2,729,608
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
1,290,888
691,965
Adjustments for:
Taxation charged
199,193
18,424
Investment income
(808,992)
(736,750)
Other gains and losses
(683,846)
23,347
Movements in working capital:
Decrease/(increase) in debtors
806
(1)
Increase in creditors
114
650
Cash absorbed by operations
(1,837)
(2,365)
G M HOLDINGS (FELIXSTOWE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
32
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,165,249
1,422,000
7,587,249
33
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
643,679
250,654
894,333
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