Company registration number 09219236 (England and Wales)
GORILLA GLUE EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GORILLA GLUE EUROPE LIMITED
COMPANY INFORMATION
Directors
D Kaylor
G A Molyneux
H Ragland IV
J Ragland
J Smith
M Mercurio
Secretary
H Ragland IV
Company number
09219236
Registered office
26 Eaton Avenue
Buckshaw Village
Chorley
Lancs
PR7 7NA
Auditor
UHY Hacker Young Manchester LLP
St James Building
79 Oxford Street
Manchester
M1 6HT
GORILLA GLUE EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 31
GORILLA GLUE EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The adhesive and moisturising markets continue to be challenging marketplaces in the current climate, however, the Company was able to increase market share through successful marketing and new product development. The Company’s focus during the period has been to grow market share by offering as wide a range of products to the DIY and Beauty markets.

 

Financial Performance at the reporting date

As at the reporting date, the Company had net current assets of £14,460,000 (2022: £13,084,000) and net assets and funds attributable to the shareholders of £14,470,000 (2022: £13,129,000)

 

Principle risk and uncertainties

Management continuously monitors the key risks facing the Company together with assessing the controls used for managing these risks. The Board of Directors formally reviews and documents the principal risks facing the Company annually.

 

Economic Impact of Global Instabilities

UK Businesses are currently facing many uncertainties surrounding environmental sustainability, geographical events and currency fluctuations. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, fluctuating interest rates, labour shortages, disrupted supply chains and new ways of working.

 

The Directors have carried out and assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and having concluded that the greatest impact on the business is expected to be from the economic ripple effect on the Global Economy. The Directors have taken account of these potential impacts in their going concern assessment.

 

Financial Risk Management

The Company is exposed to a variety of financial risks, the most significant of which are liquidity and interest rate risk and credit risk. The Board seeks to limit the adverse effects on the financial performance of the Company by reviewing and agreeing policies for managing each of these risks and these are summaries below and discussed further.

 

Liquidity and interest rate risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting its obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and monitoring projected future cash flows. The company’s exposure to liquidity risk and interest rate movements is considered to be low.

 

Credit Risk

The Company does not consider that it is materially exposed to credit risk given the Companies review of each trade receivable’s financial condition and historical records of actual credit loss and amounts past due.

 

GORILLA GLUE EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

Management use a range of performance measures to monitor and manage to business. The performance measures are split into financial and non-financial key performance indicators as set out below.

 

 

2023

£’000

2022

£’000

Turnover

37,121

33,595

Cost of Sales

24,334

19,535

As a % of Sales

65.6%

58.1%

Administrative Costs

10,999

8,910

As a % of Sales

29.6%

26.5%

Operating Profit

1,788

5,150

As a % of Sales

4.8%

15.3%

 

Non-Financial Key Performance Indicators

Health and Safety is the Company’s key Non-Financial Key Performance Indicator and the Company uses the Accident report to monitor its performance. To the year ended 31 December 2023 there were no significant accidents (2022 – no significant accidents).

 

Future Development

The European and Rest of World Markets continue to be routes which the company is exploring and trying to expand into as part of the Companies Strategic plan along with further market growth and strengthening within the UK markets.

On behalf of the board

D Kaylor
Director
8 August 2024
GORILLA GLUE EUROPE 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 the company continued to be the supply and distribution of adhesive and moisturising products.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final 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:

D Kaylor
G A Molyneux
H Ragland IV
J Ragland
J Smith
M Mercurio
Auditor

UHY Hacker Young Manchester LLP 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.

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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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.

GORILLA GLUE EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business review, financial performance at the reporting date, future developments, principal risks and uncertainties, financial risk management and key performance indicators.

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
D Kaylor
Director
8 August 2024
GORILLA GLUE EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GORILLA GLUE EUROPE LIMITED
- 5 -
Opinion

We have audited the financial statements of Gorilla Glue Europe Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows, and Notes to the financial statements, including a summary of significant accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards.

 

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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.

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors 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:

GORILLA GLUE EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GORILLA GLUE EUROPE LIMITED (CONTINUED)
- 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:

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.

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

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the Financial Statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation in all relevant jurisdictions where the company operates.

GORILLA GLUE EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GORILLA GLUE EUROPE LIMITED (CONTINUED)
- 7 -

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the Financial Statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

In addition to the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non- detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Stephen Grayson ACA FCCA (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young Manchester LLP
8 August 2024
Chartered Accountants
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
GORILLA GLUE EUROPE LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£'000
£'000
Revenue
4
37,121
33,595
Cost of sales
(24,334)
(19,535)
Gross profit
12,787
14,060
Administrative expenses
(10,999)
(8,910)
Operating profit
5
1,788
5,150
Investment revenues
8
45
20
Finance costs
9
(52)
(86)
Profit before taxation
1,781
5,084
Income tax expense
10
(440)
(968)
Profit and total comprehensive income for the year
26
1,341
4,116

There is no difference between the profit for the year stated above and the total comprehensive income for the year.

 

All results were derived from continuing activities.

 

The notes on pages 8 to 26 form part of these financial statements.

GORILLA GLUE EUROPE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£'000
£'000
ASSETS
Non-current assets
Property, plant and equipment
11
831
917
Deferred tax asset
22
14
32
845
949
Current assets
Inventories
12
8,381
8,247
Trade and other receivables
13
13,286
10,365
Cash and cash equivalents
1,156
1,216
22,823
19,828
Total assets
23,668
20,777
EQUITY
Called up share capital
24
-
0
-
0
Share premium account
25
569
569
Retained earnings
26
13,901
12,560
Total equity
14,470
13,129
LIABILITIES
Non-current liabilities
Trade and other payables
20
341
335
Lease liabilities
21
494
569
835
904
Current liabilities
Trade and other payables
20
7,836
6,469
Current tax liabilities
404
166
Lease liabilities
21
123
109
8,363
6,744
Total liabilities
9,198
7,648
Total equity and liabilities
23,668
20,777
GORILLA GLUE EUROPE LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 8 August 2024 and are signed on its behalf by:
D Kaylor
Director
Company registration number 09219236 (England and Wales)
GORILLA GLUE EUROPE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Retained earnings
Total
£'000
£'000
£'000
£'000
Balance at 1 January 2022
-
569
8,444
9,013
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
4,116
4,116
Balance at 31 December 2022
-
0
569
12,560
13,129
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,341
1,341
Balance at 31 December 2023
-
0
569
13,901
14,470
GORILLA GLUE EUROPE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
27
293
1,679
Interest paid
(46)
(54)
Income taxes paid
(184)
-
Net cash inflow from operating activities
63
1,625
Investing activities
Purchase of property, plant and equipment
(101)
-
0
Interest received
45
20
Net cash (used in)/generated from investing activities
(56)
20
Financing activities
Repayment of borrowings
(6)
(1,518)
Payment of lease liabilities
(61)
(131)
Net cash used in financing activities
(67)
(1,649)
Net decrease in cash and cash equivalents
(60)
(4)
Cash and cash equivalents at beginning of year
1,216
1,220
Cash and cash equivalents at end of year
1,156
1,216
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

These financial statements have been presented in Pounds Sterling (£), this being the functional currency of the Company and currency of the primary economic environment in which the Company operates.

 

Monetary amounts included in these financial statements are rounded to the nearest thousand (£000's).

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimated are recognised prospectively.

 

The areas where judgements and estimates have been made in preparing the Company's financial statements and their effects are disclosed in note 3.

 

The principal accounting polices applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

The Company's financial statements have been prepared under the historical cost convention unless otherwise specified within the accounting policies and in accordance with International Accounting Standards and the Companies Act 2006.

1.2
Going concern

These financial statements have been prepared on a going concern basis. The current economic conditions present risks for all business. In response to such conditions, the Directors have carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least 12 months form the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.true

The Directors have confirmed that they believe they will continue to grow their revenues and net profits throughout the changing and challenging economic landscape as set out in the Strategic Report. The Directors envisage the Company will continue to be in a strong position with the support of The Gorilla Glue Company. The Statement of Financial Position is strong reflecting a net current asset position.

Based on this assessment, the Directors consider that the Company maintains an appropriate level of liquidity sufficient to meet the demands of the business.

In addition, the Company’s assets are assessed for recoverability on a regular basis; the Directors consider that the Company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operation existence for the foreseeable future and that there are no material uncertainties that least to significant doubt upon the Company’s ability to continue as a going concern. Thus, the Directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.3
Revenue

The Company’s revenue is earned from the supply and distribution of adhesive and moisturising products. Revenue from contracts with customers is measured at its transaction price, being the amount of consideration to which the Company expects to be entitled in exchange for transferring the promised goods to a customer, net of value added tax (VAT), returns, rebates and discounts.

Sale of goods

Transaction price is allocated to each performance obligation on the basis of the relative stand-alone selling price of each distinct good promised in the contract.

Revenue is recognised at a point in time when the performance obligation is satisfied which is when control of the asset is transferred to the customer and only when it is highly probable that a significant reversal of revenue will not occur. Control is transferred when the goods are delivered to the customer and title and risk have passed to the customer, which is when the goods have been received and accepted by the customer.

1.4
Property, plant and equipment

Property, plant and equipment 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 land and buildings
10 years
Leasehold improvements
10 years
Plant and equipment
5 years

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 income statement.

1.5
Impairment of tangible and intangible assets

At each reporting 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.

1.6
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
Equity instruments

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

1.11
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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 inventories or non-current 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.

1.13
Retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.15
Foreign exchange

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

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2
Adoption of new and revised standards and changes in accounting policies
Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2)
The amendments to IAS 1 require companies to disclosure their material accounting policy information rather than their significant accounting policies. The amendment to this standard is not felt to impact upon the reported position.
Definition of Accounting Estimates (Amendments to IAS 8)
The amendments to IAS 8 result in the definition of a change in accounting estimates is replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The standard clarifies that a change in accounting estimate that results from new information or new developments is not the correction of an error. In addition, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors.  Having considered the extent of this revision the board do not consider that this modification in the definition will impact upon the company's reported position.
Deferred Tax related to Assets and Liabilities arising from a single transaction (amendments to IAS 12)
The amendments to IAS 12 relate to the accounting of deferred tax on Assets and Liabilities arising from a single transaction.  In particular the amendments address the need consistency of accounting for deferred tax in respect of timing differences deriving from the initial implementation of accounting for right of use assets and liabilities.  On the basis that the tax treatment in the UK does not result in a timing difference then no impact is considered on the company in respect of this amendment.
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements
IFRS 16 - Leases

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered an option to terminate the lease, if it reasonably certain not to be exercised.

Under certain terms of its lease, the Company has a renewal and termination option to lease assets for an additional term of five years. The Company applies judgement in evaluating whether it is reasonably certain to exercise the option to renew or terminate the lease. The Company considers all relevant factors that create an economic incentive for it to either exercise the renewal or termination option.

After the commencement date, the Company reassesses the lease term to determine if there is a significant event or change in circumstances, within the Company’s control, which affect the Company’s ability to exercise (or not to exercise) the option to renew or terminate the lease.

The company has applied an incremental borrowing rate for the purpose of computing lease liabilities based on its incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow over a similar term. Upon the Company’s adoption of IFRS 16, the Company applied a weighted average incremental borrowing rate of 4% to all leases existing as of January 1, 2019 i.e. the date of initial application.

During the year, interest was recognised in respect of lease liabilities of £24,000 (2022 - £26,000) (as reflected in note 9).

As at the year end, right-of-use assets with a net book value of £549,000 were recognised on the Statement of Financial Position in respect of right-of-use assets (2022 – current liability £109,000 and non-current liability of £678,000) (as reflected in note 17.)

Key sources of estimation uncertainty
Valuation of inventory

The Company establishes a provision for inventory that is not deemed to be held at the lower of cost and net realisable value. When assessing this, the Directors consider the recent movement of stock and the current prices of raw materials. As at 31 December 2023, a stock provision of £958,450 has been recognised in respect of obsolete and slow-moving stock (2022 - £288,000).

4
Revenue
2023
2022
£'000
£'000
Revenue analysed by class of business
Sale of goods
37,121
33,595
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Revenue
(Continued)
- 20 -
2023
2022
£'000
£'000
Revenue analysed by geographical market
United Kingdom
31,748
27,610
Europe
4,503
5,326
Rest of the World
870
659
37,121
33,595
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses/(gains)
187
(266)
Research and development costs
494
449
Fees payable to the company's auditor for the audit of the company's financial statements
28
30
Depreciation of property, plant and equipment
185
186
Loss on disposal of property, plant and equipment
2
-
Cost of inventories recognised as an expense
23,413
18,651
6
Employees

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

2023
2022
Number
Number
Sales
15
21
Administration
14
17
Operation
19
14
Marketing
21
17
Total
69
69

Their aggregate remuneration comprised:

2023
2022
£'000
£'000
Wages and salaries
4,298
4,237
Social security costs
369
290
Pension costs
212
210
4,879
4,737
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
200
296
Amounts receivable under long term incentive schemes
-
0
335
Company pension contributions to defined contribution schemes
12
8
212
639

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
200
296
Company pension contributions to defined contribution schemes
12
8

The Company considered its key management personal to be its Executive Directors. Key management personnel were remunerated as above.

During the prior year the Company recognised a charge to the Statement of Comprehensive Income of £329,000 in respect of a Long-term Incentive Plan (LTIP). The scheme was in respect of a Director. As at the year end an amount of £340,658 (2022 - £335,000) has been accrued in respect of the LTIP scheme. The expected pay-out date of the LTIP scheme is 30 June 2025 and as a result an accrual equal to the pay-out has been recognised within non-current liabilities.

 

8
Investment income
2023
2022
£'000
£'000
Interest income
Financial instruments measured at amortised cost:
Bank deposits
45
20
Income above relates to assets held at amortised cost, unless stated otherwise.
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
9
Finance costs
2023
2022
£'000
£'000
Interest on bank overdrafts and loans
22
54
Interest on lease liabilities
24
26
Interest on financial liabilities classified as measured at fair value through profit or loss
6
6
Total interest expense
52
86
10
Income tax expense
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current period
422
1,066
Deferred tax
Origination and reversal of temporary differences
18
(98)
Total tax charge
440
968

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£'000
£'000
Profit before taxation
1,782
5,083
Expected tax charge based on a corporation tax rate of 23.50% (2022: 19.00%)
419
966
Effect of expenses not deductible in determining taxable profit
2
8
Adjustment in respect of prior years
-
0
13
Effect of change in UK corporation tax rate
1
5
Under/(over) provided in prior years
18
-
0
Deferred tax adjustments in respect of prior years
-
0
(24)
Taxation charge for the year
440
968

The Company’s profits for the accounting period to 31 December 2023 were taxed at the UK statutory rate of 25% (2022 - 19%).

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profit increase.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Property, plant and equipment
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Total
£'000
£'000
£'000
£'000
Cost
At 1 January 2022 and 1 January 2023
1,077
479
260
1,816
Additions
49
52
-
0
101
Disposals
-
0
(4)
-
0
(4)
At 31 December 2023
1,126
527
260
1,913
Accumulated depreciation and impairment
At 1 January 2022
359
158
196
713
Charge for the year
108
48
30
186
At 31 December 2022
467
206
226
899
Charge for the year
111
50
24
185
Eliminated on disposal
-
0
(2)
-
0
(2)
At 31 December 2023
578
254
250
1,082
Carrying amount
At 31 December 2023
548
273
10
831
At 31 December 2022
610
273
34
917

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2023
2022
£'000
£'000
Net values at the year end
Property
548
610
Total additions in the year
49
-
Depreciation charge for the year
Property
111
108
12
Inventories
2023
2022
£'000
£'000
Work in progress
426
-
Finished goods
7,955
8,247
8,381
8,247
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Inventories
(Continued)
- 24 -

As at the year end, a provision of £958,450 was recognised against inventories in respect of slow-moving and obsolete stock (2022: £288,000).

13
Trade and other receivables
2023
2022
£'000
£'000
Trade receivables
10,180
8,801
Provision for bad and doubtful debts
(377)
-
0
9,803
8,801
Amounts owed by fellow group undertakings
2,747
905
Other receivables
-
159
Prepayments
736
500
13,286
10,365

As at 31 December 2023, Gorilla Glue Europe Limited were owed £nil (2022 - £4,000) by Gorilla Glue Distribution Company and were owed £1,447,193 (2022 - £401,000) by GG Brands Netherlands B.V. These amounts are both included within amounts owed by group undertakings and are interest-free, unsecured and repayable on demand.

On 20 December 2021, the Company loaned an amount of £500,000 to GG Brands Netherlands B.V. Interest is charged on the loan at an amount of 4% per annum and interest is paid monthly. The loan and any outstanding interest is repayable on demand. This amount is also included within amounts owed by group undertakings. There has been no movement in the balance during the year.

As at the year end, the Company recognised expected credit losses of £nil (2022 - £nil). The Company adopts the simplified model of expected credit losses under IFRS 9. In the current and prior year, the Company does not consider that it is material exposed to credit risk given the Company’s review of each trade receivable’s financial condition and historical records of actual credit loss and amounts past due. The other classes within trade and other receivables do not contain impaired assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Company does not hold any collateral as security. There is no difference between the fair values of trade and other receivables and their carrying values as stated above due to their relatively short maturity date.

Trade receivables that are less than three months past due are not considered impaired. As at 31 December 2023, trade receivables of £379,844 (2022 - £251,000) were past due but not impaired. These relate to a number of large and independent customers for whom there is no recent history of default.










GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Financial instruments - Financial risk management

The Company's principal financial assets include trade and other receivables, amounts owed by group undertakings and cash and cash equivalents. The Company's principal financial liabilities include trade and other payables, amounts owed to group undertakings and lease liabilities. Cash and cash equivalents are deposits with major UK clearing banks and are considered of good credit quality.

The Company's activities expose it to a variety of financial risks: credit risk and liquidity risk. The Company has no material exposure to market risk. The Company is part of the Gorilla Glue Company group wide risk management policy. The overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, and credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity exist in written documents.

15
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

Movement in the allowances for impairment of trade receivables
2023
2022
£'000
£'000
Balance at 1 January 2023 and at 31 December 2023
377
-
16
Fair value of financial liabilities

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

 

 

 

 

 

 

 

 

 

 

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

Less than 1 year
£'000
At 31 December 2023
Trade and other payables
7,842
Liquidity risk management

The company manages liquidity risk by maintaining sufficient cash, adequate reserves, the availability of funding from an adequate amount of committed credit facilities and the ability to close out market positions. Management monitors forecast figures of the company's liquidity reserve on the basis of expected cash flow.

18
Currency risk

The Company is exposed primarily to the financial risks of changes in foreign currency exchange rates.

 

For trading transactions global monitoring of cash flows acts an an internal hedger whereby intercompany cash movement are timed to minimise adverse variances in exchange movements, The group does not undertake external hedging activities, although borrowings are undertaken in currencies to mirror the groups trading currencies.

 

The company does not consider that it is materially exposed to currency risk and as such, no sensitivity analysis has been disclosed.

19
Capital risk management

The Company's objectives when managing capital are to safeguard the Company's ability to continue as a going concern in order to provide returns for shareholders and benefits for their stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Company does not have significant externally imposed capital requirements. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Consistent with others in the same industry the Company monitors capital on the basis of the gearing ratio. This ratio is calculated as total financial debt divided by total equity (debt to equity ratio).

 

The equity capital, as shown in the Statement of Financial Position, corresponds to the managed equity capital. The gearing ratio as at 31 December 2023 was 0% (2022: 0%), the Company maintains operations without external borrowings. In the current year the Company only has trading balances with fellow group companies.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
20
Trade and other payables
Current
Non-current
2023
2022
2023
2022
£'000
£'000
£'000
£'000
Trade payables
1,634
1,712
-
0
-
0
Accruals
3,168
2,255
341
335
Social security and other taxation
276
174
-
0
-
0
Other payables
2,758
2,328
-
0
-
0
7,836
6,469
341
335

As at 31 December 2023, the Company had a trade payable balance of £2,758,473 (2022 - £2,328,000) owed to The Gorilla Glue Company. This amount is interest-free, unsecured and repayable on demand within one year. There is no difference between the fair value of trade and other payables and their carrying values as stated above due to their relatively short maturity date.

During the prior year the Company recognised a charge to the Statement of Comprehensive Income of £329,000 in respect of a Long-term Incentive Plan (LTIP). The scheme was in respect of a Director. As at the year end an amount of £340,658 (2022 - £335,000) has been accrued in respect of the LTIP scheme. The expected pay-out date of the LTIP scheme is 30 June 2025 and as a result an accrual equal to the pay-out has been recognised within non-current liabilities.

21
Lease liabilities
2023
2022
Maturity analysis
£'000
£'000
Within one year
123
109
In two to five years
494
482
In over five years
-
87
Total undiscounted liabilities
617
678

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£'000
£'000
Current liabilities
123
109
Non-current liabilities
494
569
617
678
2023
2022
Amounts recognised in profit or loss include the following:
£'000
£'000
Interest on lease liabilities
24
26
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Lease liabilities
(Continued)
- 28 -

The amount recognised in respect of the depreciation charge on right-of-use assets for the year is £111,000 (2022: £108,000).

 

The cash payment for the principal portion of the lease liabilities in the year is £109,000 (2022: £105,000). The cash payment for the interest portion of the lease liabilities is £24,000 (2022: £26,000).

Other leasing information is included in note .
22
Deferred taxation
Assets
2023
2022
£'000
£'000
Deferred tax balances
14
32
Deferred tax assets are expected to be recovered after more than one year.

Deferred tax assets are recognised to the extent that the related tax benefit through future taxable profits is probable based on projections and budgets. There are no deferred tax assets or liabilities not recognised in these financial statements.

 

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

ACAs
£'000
Asset at 1 January 2022
(66)
Deferred tax movements in prior year
Credit/(charge) to profit or loss
98
Asset at 1 January 2023
32
Deferred tax movements in current year
Credit/(charge) to profit or loss
(18)
Asset at 31 December 2023
14
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
212
201

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

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Ordinary shares of £1 each
200
200
-
-

The Company has one class of ordinary share. Each share carries with it voting rights but have no right to fixed income or any other preference attached to them.

25
Share premium account
2023
2022
£'000
£'000
At the beginning and end of the year
569
569

The Share premium account represents the amounts received in respect of the share issue which were in excess of the nominal value of the shares. Any transaction costs associated with the issuing of shares are deducted from Share premium.

26
Retained earnings

Retained earnings represents the aggregate results for the Company, after the payment of dividends.

27
Cash generated from operations
2023
2022
£'000
£'000
Profit for the year before income tax
1,782
5,083
Adjustments for:
Finance costs
52
86
Investment income
(45)
(20)
Loss on disposal of property, plant and equipment
2
-
Depreciation and impairment of property, plant and equipment
185
186
Movements in working capital:
Increase in inventories
(134)
(603)
Increase in trade and other receivables
(2,921)
(546)
Increase/(decrease) in trade and other payables
1,372
(2,507)
Cash generated from operations
293
1,679
GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
28
Analysis of changes in net funds
1 January 2023
Cash flows
Market value movements
31 December 2023
£'000
£'000
£'000
£'000
Cash at bank and in hand
1,216
(60)
-
1,156
Borrowings excluding overdrafts
-
6
(6)
-
Obligations under finance leases
(678)
61
-
(617)
538
7
(6)
539
1 January 2022
Cash flows
Market value movements
31 December 2022
Prior year:
£'000
£'000
£'000
£'000
Cash at bank and in hand
1,220
(4)
-
1,216
Borrowings excluding overdrafts
(1,853)
1,859
(6)
-
Obligations under finance leases
(783)
105
-
(678)
(1,416)
1,960
(6)
538
29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

Other transactions with related parties

During the year the Company made sales totalling £nil (2022: £nil) and purchases totalling £14,109,541 (2022: £11,588,000) from The Gorilla Glue Company. The Company also incurred recharges in relation to administrative costs totalling £333,584 from The Gorilla Glue Company.

 

The Company made sales in relation to inventory totalling £1,719,000 (2022: £438,000) and administration costs totalling £1,498,120 (2022: £212,000) to GG Brands Netherlands BV. The Company also made recharges in relation to administrative costs totalling £40,300 (2022: £1,127,000) to Gorilla Glue Distribution Company. Each of these entities are in the same group as Gorilla Glue Europe Limited.

 

As at 31 December 2023, the Company had a trade payable balance of £2,758,473 (2022: £2,328,000) owed to The Gorilla Glue Company. This amount is interest-free, unsecured and repayable on demand within one year as disclosed within note 18.

 

Included within borrowings due more than one year is a principal amount of £Nil (2022: £Nil) due to The Gorilla Glue Company. The total interest paid on loan for the period was £Nil (2022: £21,030), no interest amount is outstanding at year end.

 

As at 31 December 2023, Gorilla Glue Europe Limited were owed £Nil (2022: £4,000) by The Gorilla Glue Distribution Company and were owed £1,447,193 (2022: £401,000) by GG Brands Netherlands B.V., both entities are in the same group as Gorilla Glue Europe Limited. These amounts are both included within amounts due to related parties and are interest-free, unsecured and repayable on demand within one year as disclosed with note 13.

 

Included within amount owed by group undertakings is a loan amount of £1,300,000 (2022: £500,000) owed by the Company to GG Brands Netherlands B.V. as disclosed within note 13.

GORILLA GLUE EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
30
Controlling party

The ultimate parent undertaking is The Gorilla Glue Company, a company incorporated in the United States.

 

The ultimate parent undertaking, controlling party and the largest and only group to consolidate these financial statements at 31 December 2023 is The Gorilla Glue Company, a Company incorporated in the state of Ohio (United States) with the registered address 2101 E Kemper Rd, Cincinnati, Ohio, 45241-1805, United States.

 

The consolidated financial statements of The Gorilla Glue Company are not publicly available.

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