Company Registration No. SC394817 (Scotland)
Gael Force Engineering Limited
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Gael Force Engineering Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
Gael Force Engineering Limited
Balance sheet
As at 31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
835,855
Tangible assets
4
171,425
1,007,280
Current assets
Stocks
-
144,341
Debtors
5
1
4,344,895
Cash at bank and in hand
971,276
1
5,460,512
Creditors: amounts falling due within one year
6
(4,442,605)
Net current assets
1
1,017,907
Total assets less current liabilities
1
2,025,187
Creditors: amounts falling due after more than one year
7
(429,253)
Provisions for liabilities
(46,301)
Net assets
1
1,549,633
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
1,549,632
Total equity
1
1,549,633
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
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:
S Graham
Director
Company Registration No. SC394817
Gael Force Engineering Limited
Statement of changes in equity
For the year ended 31 December 2023
2
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1
1,874,185
1,874,186
Year ended 31 December 2022:
Loss and total comprehensive income
-
(324,553)
(324,553)
Balance at 31 December 2022
1
1,549,632
1,549,633
Year ended 31 December 2023:
Profit and total comprehensive income
-
279,136
279,136
Dividends
-
(1,828,768)
(1,828,768)
Balance at 31 December 2023
1
1
Gael Force Engineering Limited
Notes to the financial statements
For the year ended 31 December 2023
3
1
Accounting policies
Company information
Gael Force Engineering Limited is a private company limited by shares incorporated in Scotland. The registered office is 136 Anderson Street, Inverness, IV3 8DH.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
Gael Force Engineering Limited is a subsidiary of Gael Force Group Limited which itself is a wholly owned subsidiary of Gael Force Group Holdings Limited. The results of Gael Force Engineering Limited are included in the consolidated financial statements of Gael Force Group Holdings Limited which are publicly available.
1.2
Going concern
The group prepares projections which demonstrate their ability to continue to meet all liabilities as they fall due.true
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 the preparation of the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
20% straight line
Intellectual property
20% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% straight line
Plant and equipment
10-33% straight line
Fixtures and fittings
20-25% straight line
Computers
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Assets transferred at book value from other group companies are depreciated by reference to the original historic cost to the group.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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).
1.8
Stocks
Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Cost is calculated using weighted average cost method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
5
1.9
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets 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.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
7
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.14
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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Government grants
Government grants relating to assets are treated as deferred income and released to profit or loss over the expected useful lives of the assets concerned.
Government grants relating to turnover and the Coronavirus job retention scheme are recognised as income over the periods when the related costs are incurred.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
8
1.18
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management, back-office and sales
10
9
Shop, yard, warehouse and workshop
37
33
Total
47
42
3
Intangible fixed assets
Other
Intellectual property
Total
£
£
£
Cost
At 1 January 2023
858,958
19,328
878,286
Additions
65,762
-
65,762
Transfers to group
(924,720)
(19,328)
(944,048)
At 31 December 2023
Amortisation and impairment
At 1 January 2023
38,465
3,966
42,431
Amortisation charged for the year
3,375
1,322
4,697
Transfers to group
(41,840)
(5,288)
(47,128)
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
820,493
15,362
835,855
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
9
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
7,809
1,225,291
1,233,100
Additions
62,211
62,211
Transfers to group
(7,809)
(1,287,502)
(1,295,311)
At 31 December 2023
Depreciation and impairment
At 1 January 2023
3,124
1,058,551
1,061,675
Depreciation charged in the year
1,561
65,721
67,282
Transfers to group
(4,685)
(1,124,272)
(1,128,957)
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
4,685
166,740
171,425
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
328,006
Amounts owed by group undertakings
1
3,318,857
Other debtors
698,032
1
4,344,895
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
255,545
Amounts owed to group undertakings
1,339,866
Taxation and social security
734,032
Other creditors
2,113,162
4,442,605
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
10
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
429,253
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Eunice McAdam
Statutory Auditors:
Saffery LLP
Date of audit report:
12 September 2024
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
2023
2022
£
£
Other related parties
12,369
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
-
625
Other related parties represents other group entities which are not wholly owned within the group. Amounts owed by/to other related parties are included within debtors/creditors at the year end. These amounts are unsecured, interest-free and have no fixed terms of repayment.
The company has taken advantage of the exemption within FRS 102 Section 33 paragraph 33. 1A from the requirement to disclose transactions with its parent company.
On 31 December 2023 the trade, assets and liabilities of the company were transferred to the parent undertaking Gael Force Group Limited as part of the company Hive Up.
Gael Force Engineering Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
10
Parent company
The immediate parent company and the smallest group which the company is consolidated in is Gael Force Group Limited.
The ultimate parent company is Gael Force Group Holdings Limited and the registered office is 136 Anderson Street, Inverness, IV3 8DH.
2023-12-312023-01-01false12 September 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedStewart GrahamRobert FosterStephen OffordJames YoungRhiann SwansonR FosterfalseSC3948172023-01-012023-12-31SC3948172023-12-31SC3948172022-12-31SC394817core:IntangibleAssetsOtherThanGoodwill2023-12-31SC394817core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-31SC394817core:IntangibleAssetsOtherThanGoodwill2022-12-31SC394817core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31SC394817core:LandBuildings2023-12-31SC394817core:OtherPropertyPlantEquipment2023-12-31SC394817core:LandBuildings2022-12-31SC394817core:OtherPropertyPlantEquipment2022-12-31SC394817core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-31SC394817core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC394817core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-31SC394817core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC394817core:CurrentFinancialInstruments2023-12-31SC394817core:CurrentFinancialInstruments2022-12-31SC394817core:ShareCapital2023-12-31SC394817core:ShareCapital2022-12-31SC394817core:RetainedEarningsAccumulatedLosses2023-12-31SC394817core:RetainedEarningsAccumulatedLosses2022-12-31SC394817core:ShareCapital2021-12-31SC394817core:RetainedEarningsAccumulatedLosses2021-12-31SC394817bus:Director12023-01-012023-12-31SC394817core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31SC3948172022-01-012022-12-31SC394817core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31SC394817core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-31SC394817core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-31SC394817core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-31SC394817core:LeaseholdImprovements2023-01-012023-12-31SC394817core:PlantMachinery2023-01-012023-12-31SC394817core:FurnitureFittings2023-01-012023-12-31SC394817core:ComputerEquipment2023-01-012023-12-31SC394817core:IntangibleAssetsOtherThanGoodwill2022-12-31SC394817core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31SC3948172022-12-31SC394817core:LandBuildings2022-12-31SC394817core:OtherPropertyPlantEquipment2022-12-31SC394817core:LandBuildings2023-01-012023-12-31SC394817core:OtherPropertyPlantEquipment2023-01-012023-12-31SC394817core:WithinOneYear2023-12-31SC394817core:WithinOneYear2022-12-31SC394817core:Non-currentFinancialInstruments2023-12-31SC394817core:Non-currentFinancialInstruments2022-12-31SC394817core:OtherRelatedPartiescore:SaleOrPurchaseGoods2023-01-012023-12-31SC394817core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-01-012022-12-31SC394817bus:PrivateLimitedCompanyLtd2023-01-012023-12-31SC394817bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-31SC394817bus:FRS1022023-01-012023-12-31SC394817bus:Audited2023-01-012023-12-31SC394817bus:Director22023-01-012023-12-31SC394817bus:Director32023-01-012023-12-31SC394817bus:Director42023-01-012023-12-31SC394817bus:Director52023-01-012023-12-31SC394817bus:CompanySecretary12023-01-012023-12-31SC394817bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP