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REGISTERED NUMBER: 13166008 (England and Wales)















GKA Grandsons Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements For The Year Ended 31 December 2023






GKA Grandsons Limited (Registered number: 13166008)






Contents of the Consolidated Financial Statements
For The Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 6

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


GKA Grandsons Limited

Company Information
For The Year Ended 31 December 2023







DIRECTORS: A Agrawal
N Agrawal





REGISTERED OFFICE: 106 Elkington Street
Aston
Birmingham
B6 4SL





REGISTERED NUMBER: 13166008 (England and Wales)





AUDITORS: Kingswood Allotts Limited, Statutory Auditor
Chartered Accountants
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

GKA Grandsons Limited (Registered number: 13166008)

Group Strategic Report
For The Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group during the financial year was that of the design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers.

REVIEW OF BUSINESS
The results for the year ended 31st December 2023 amounted to a profit before taxation of £3,607,965 compared to a profit before taxation of £3,003,135 in 2022, an increase of 20%. Revenue for the year was £18,982,174 compared to £18,061,289 for 2022, an increase of 5.10%.

As an exceptional item, short term and long-term deposits and investment planning have increased profitability in 2023. The company has taken advantage of increased BOE's deposit rates focusing on low risk, core principles of financial management.

The exchange rate between the British Pound (Sterling) and the US Dollar continuing to exhibit significant fluctuations, exerting a substantial influence on the cost components of our product categories. The company continues to hedge its exposure to minimise potential losses and enhance its financial stability.

The core business operations have continued to be a challenging year with rising costs disrupting supply chains, making it harder to obtain materials and goods promptly and affordably. Escalating living costs has affected both our employees and suppliers and essential prices, rose at the fastest rate in 45 years, impacting spending habits.

The ongoing labour shortages and the increase in the minimum wage has pushed salary expectations making new recruitment more challenging. Hiatt Hardware's strategy is to attract fresh experienced talent to enhance its service and product offer for company's wide customer base. The continual focus and investment in core people strategy has enabled the organisation to be an employer of choice with motivated workforce further bolstering upon the wealth of specialist experience carried within the Hardware/ Ironmongery sector.

By way of systematic management approach, the group has boldly appraised key staff members to unlock further potential, and training new colleagues under promoted managers within the team. As a leading Hardware brand, Hiatt Hardware currently operates on 10-15% premium on remuneration rates compared to general market to retain and attract best in class and experienced talent within its operating sector.

The group remains steadfast in its dedication to uphold the utmost standards of service for its valued customers. As a vital strategic partner for numerous well-known retail and merchant brands in meeting their hardware requirements, Hiatt Hardware is driven by its core purpose of surpassing customers' expectations regarding service, availability, and product quality. Drawing upon its extensive expertise in the sector, the group consistently strives to enhance its service and maintain a distinguished level of brand recognition associated with exceptional service and uncompromising quality.

The group is aware of the emerging technology like, 5G, blockchain, the cloud, and the Internet of Things (IoT) which are building and speeding up AI, and all of them are enhancing each other. This is changing the world and the way the consumer buys its products, which means the company needs to adapt and stay abreast of the competitors. This technology is also driving more efficient processes along with more intelligent machines and software.

The direct-to-consumer E-Commerce channel plays a pivotal role in the group's strategic vision, focusing on industry-leading after-sales customer service and fostering incremental brand awareness across multiple own trademarked brands. This approach aligns with our future direction, while ensuring unwavering commitment to delivering exceptional service and maintaining a wide range of available products.

In 2023, income generated from E-Commerce sales experienced substantial growth, turnover grew by 83.37%. Anticipating continued expansion in 2024 and beyond, we are dedicated to investing significantly in talent to propel our service offering forward.

The board also considers the group to be in a strong operational and financial position to engage in mergers and acquisitions activity, on the buy side.

Key Performance Indicators (KPIs)
Key performance indicators include ratios and metrics that monitor the financial health and performance of the business:

2023 2022
Average stock days (Stock value/Cost of goods sold) x 365 - monthly average 157 180
Current ratio (Current assets/Current liabilities) 3.31 2.84

PRINCIPAL RISKS AND UNCERTAINTIES

The group monitors movements and the potential impact of the Sterling exchange rate with the US Dollar and hedges against them, where appropriate.


GKA Grandsons Limited (Registered number: 13166008)

Group Strategic Report
For The Year Ended 31 December 2023

Inflation Risk
Inflation has been steadily decreasing throughout 2023 with the UK CPI at the end of 2023 standing at 4%. Although the group maintains a positive outlook for 2024, research suggests that concerns about the cost of living and elevated interest rates have tempered the positive effects of milder inflation.

There are also suggestions that effects on increased headcount and business's addressing the skills gaps could sustain high wage inflation.

Interest Rate Risk
The Bank of England are considering cutting interest rates in response to inflation trends. Analysts predict that the base rate could fall in 2024, potentially reaching around 4.65% by the year-end.

Although the group itself does not bear significant interest costs and holds no secured or unsecured financial liabilities, it is indirectly affected by the impact of these interest rate increases on the broader economy and its customers. Consequently, the group recognises the potential implications stemming from these changes and remains mindful of their influence on its operations and market dynamics.

Commodity Price Risk
Despite predictions that the commodity price index is expected to fall 4 percent in 2024 and remain relatively stable in 2025, raw material prices have seen an increase at the time of reporting. Throughout 2023 standard prices for the raw materials utilised in the group's product range have continued to experience fluctuations.

There is still a lot of uncertainty around energy prices, 2024 has seen a reduction by up to 12% and prices are expected to remain at pre-2021 levels throughout the year. There are, however, risks denoted with unstable crude oil prices given the un-stability and geo-political tensions in the middle east. Generally, there is a direct link on raw material and crude oil price movements.

Supply Chain Management
The global supply chains have faced a series of disruptions. The most significant have included the COVID-19 pandemic, Russia-Ukraine war, US-China trade war, and the consumer goods boom. Supply chain disruptions have also included a variety of natural disasters, financial failures, and operational difficulties.

The group maintains a diligent oversight of political, economic, and social factors that have the potential to impact its robust supply chains. The board is committed to proactively adapting to evolving circumstances at every stage of the supply chain, leveraging its extensive expertise in managing these processes effectively.

The group continues to deliver significant value to its retail customers through its network of customised manufacturing facilities, ethical sourcing practices, and a well-controlled and transparent supply chain. Notably, a considerable portion of the Hiatt Hardware's current focus lies in pursuing new business opportunities, as various promising prospects are emerging amidst unprecedented market conditions. The group's ability to navigate these challenges has positioned it favourably, outperforming competitors who have struggled to sustain their operations in such conditions.

SECTION 172(1) STATEMENT
The directors of the group affirm that they have fulfilled their fiduciary duties diligently and in the best interest of the members, demonstrating good faith and utilising their utmost abilities. Their ongoing commitment lies in promoting the success and future growth of the group, with a strong emphasis on prioritising the health and safety of employees and other stakeholders, thereby ensuring a safe working environment for all. The group has implemented robust processes that are integrated into day-to-day operations to ensure compliance with relevant regulations.

Moreover, the group has established internal policies aimed at mitigating a wide range of risk factors that could potentially impact the smooth functioning and reputation of the group. These policies also serve to ensure that the group operates in a socially and ethically responsible manner. All employees are required to read and sign these policies, demonstrating their understanding and commitment to adhere to the outlined principles. While the policies encompass various areas, some examples include but are not limited to the following:

- Anti-Bribery and Corruption Policy
- Data Protection Policy
- Environmental Policy
- Equal Opportunities and Diversity Policy
- Ethical policy
- Health & Safety Policy
- Hospitality and Gifts Policy
- Modern Slavery Policy
- Whistleblowing Policy

The board of directors also acknowledge the growing importance of sustainability and its effects on the wider stakeholders. It endeavours to clearly understand the impact of the group's business activities on the environment and society and assess the risks and opportunities presented.


GKA Grandsons Limited (Registered number: 13166008)

Group Strategic Report
For The Year Ended 31 December 2023

GOING CONCERN
The directors consider that taking into the account the healthy financial position of the group, especially the availability of retained working capital and low fixed yet an efficient cost base that the business can operate for the foreseeable future. As a result, these financial statements and annual reports have been prepared on a going concern basis.

ON BEHALF OF THE BOARD:





A Agrawal - Director


19 September 2024

GKA Grandsons Limited (Registered number: 13166008)

Report of the Directors
For The Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of design, development, manufacturing, marketing, and distribution of Hardware/ Ironmongery products to commercial retail and merchant trade including home improvement retailers.

DIVIDENDS
During the year dividends of £1,680,160 have been declared by GKA Grandsons Limited during the year on Ordinary A and Ordinary B shares.

The consolidated financial statements for the year to 31 December 2023 and the comparatives for the year to 31 December 2022, together with the balance sheet of the parent company, have been prepared using the provisions of merger accounting. This is based on the assumption that the group has always been in existence.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

A Agrawal
N Agrawal

Other changes in directors holding office are as follows:

A R Jones - resigned 9 June 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A Agrawal - Director


19 September 2024

Report of the Independent Auditors to the Members of
GKA Grandsons Limited

Opinion
We have audited the financial statements of GKA Grandsons Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
GKA Grandsons Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and
regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries, sales and stock controls and
other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business
and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Mark Garrison BCom FCA DChA (Senior Statutory Auditor)
for and on behalf of Kingswood Allotts Limited, Statutory Auditor
Chartered Accountants
Sidings Court
Lakeside
Doncaster
South Yorkshire
DN4 5NU

20 September 2024

GKA Grandsons Limited (Registered number: 13166008)

Consolidated
Income Statement
For The Year Ended 31 December 2023

2023 2022
Notes £    £    £    £   

TURNOVER 18,982,174 18,061,289

Cost of sales 12,030,661 12,822,460
GROSS PROFIT 6,951,513 5,238,829

Distribution costs 1,266,337 988,910
Administrative expenses 2,247,835 1,306,599
3,514,172 2,295,509
3,437,341 2,943,320

Other operating income 10,417 50,000
OPERATING PROFIT 4 3,447,758 2,993,320

Interest receivable and similar income 160,207 9,815
PROFIT BEFORE TAXATION 3,607,965 3,003,135

Tax on profit 5 833,710 556,498
PROFIT FOR THE FINANCIAL YEAR 2,774,255 2,446,637
Profit attributable to:
Owners of the parent 2,774,255 2,446,637

GKA Grandsons Limited (Registered number: 13166008)

Consolidated
Other Comprehensive Income
For The Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,774,255 2,446,637


OTHER COMPREHENSIVE INCOME
Deferred tax - movement
Income tax relating to other comprehensive income 6,250 (82,990 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

6,250

(82,990

)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 2,780,505 2,363,647

Total comprehensive income attributable to:
Owners of the parent 2,780,505 2,363,647

GKA Grandsons Limited (Registered number: 13166008)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 11,074 30,057
Tangible assets 9 5,386,294 5,053,419
Investments 10 - -
5,397,368 5,083,476

CURRENT ASSETS
Stocks 11 3,880,680 4,222,339
Debtors 12 2,957,474 3,235,373
Cash at bank and in hand 5,704,296 4,737,147
12,542,450 12,194,859
CREDITORS
Amounts falling due within one year 13 3,786,160 4,290,958
NET CURRENT ASSETS 8,756,290 7,903,901
TOTAL ASSETS LESS CURRENT LIABILITIES 14,153,658 12,987,377

PROVISIONS FOR LIABILITIES 14 469,766 403,830
NET ASSETS 13,683,892 12,583,547

CAPITAL AND RESERVES
Called up share capital 15 10,000 10,000
Share premium 16 506,600 506,600
Revaluation reserve 16 1,236,807 1,238,659
Retained earnings 16 11,930,485 10,828,288
SHAREHOLDERS' FUNDS 13,683,892 12,583,547

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





A Agrawal - Director


GKA Grandsons Limited (Registered number: 13166008)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 - -
Investments 10 10,001 10,001
10,001 10,001

CURRENT ASSETS
Cash in hand 100 100

CREDITORS
Amounts falling due within one year 13 101 101
NET CURRENT LIABILITIES (1 ) (1 )
TOTAL ASSETS LESS CURRENT LIABILITIES 10,000 10,000

CAPITAL AND RESERVES
Called up share capital 15 10,000 10,000
SHAREHOLDERS' FUNDS 10,000 10,000

Company's profit for the financial year 1,680,160 1,040,000

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





A Agrawal - Director


GKA Grandsons Limited (Registered number: 13166008)

Consolidated Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Share Revaluation Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 10,000 9,413,549 506,600 1,329,751 11,259,900

Changes in equity
Dividends - (1,040,000 ) - - (1,040,000 )
Total comprehensive income - 2,454,739 - (91,092 ) 2,363,647
Balance at 31 December 2022 10,000 10,828,288 506,600 1,238,659 12,583,547

Changes in equity
Dividends - (1,680,160 ) - - (1,680,160 )
Total comprehensive income - 2,782,357 - (1,852 ) 2,780,505
Balance at 31 December 2023 10,000 11,930,485 506,600 1,236,807 13,683,892

GKA Grandsons Limited (Registered number: 13166008)

Company Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 10,000 - 10,000

Changes in equity
Dividends - (1,040,000 ) (1,040,000 )
Total comprehensive income - 1,040,000 1,040,000
Balance at 31 December 2022 10,000 - 10,000

Changes in equity
Dividends - (1,680,160 ) (1,680,160 )
Total comprehensive income - 1,680,160 1,680,160
Balance at 31 December 2023 10,000 - 10,000

GKA Grandsons Limited (Registered number: 13166008)

Consolidated Cash Flow Statement
For The Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,306,487 2,375,104
Tax paid (966,689 ) (196,543 )
Net cash from operating activities 2,339,798 2,178,561

Cash flows from investing activities
Purchase of tangible fixed assets (536,295 ) (89,525 )
Sale of tangible fixed assets 83,639 -
Interest received 160,207 9,815
Net cash from investing activities (292,449 ) (79,710 )

Cash flows from financing activities
Amount introduced by directors 1,921,160 1,080,830
Amount withdrawn by directors (1,321,200 ) (1,876,800 )
Equity dividends paid (1,680,160 ) (1,040,000 )
Net cash from financing activities (1,080,200 ) (1,835,970 )

Increase in cash and cash equivalents 967,149 262,881
Cash and cash equivalents at beginning of year 2 4,737,147 4,474,266

Cash and cash equivalents at end of year 2 5,704,296 4,737,147

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Cash Flow Statement
For The Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 3,607,965 3,003,135
Depreciation charges 138,952 68,547
Profit on disposal of fixed assets (188 ) -
Finance income (160,207 ) (9,815 )
3,586,522 3,061,867
Decrease in stocks 341,659 2,000,837
Decrease/(increase) in trade and other debtors 277,899 (2,004,587 )
Decrease in trade and other creditors (899,593 ) (683,013 )
Cash generated from operations 3,306,487 2,375,104

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 5,704,296 4,737,147
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 4,737,147 4,474,266


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 4,737,147 967,149 5,704,296
4,737,147 967,149 5,704,296
Total 4,737,147 967,149 5,704,296

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements
For The Year Ended 31 December 2023

1. STATUTORY INFORMATION

GKA Grandsons Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Accounting reference date
The group has taken advantage of the provisions in section 390 of the Companies Act 2006 which allow the group to make accounts up to a date within seven days of the accounting reference date. The group financial statements are made up to 26th December 2023 (2022: 31 December 2022).

Basis of consolidation
The consolidated financial statements for the year to 31 December 2023 and the comparatives for the year to 31 December 2022, together with the balance sheet of the parent company, have been prepared using the provisions of merger accounting. This is based on the assumption that the group has always been in existence. The merger reserve on acquisition has been written off to reserves.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have had to make the following judgements:

Stock valuation (judgement)

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the statement of comprehensive income.

Property Valuation (judgement)

At each reporting date, the property value is assessed to ensure it is being held at fair value.

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the group has transferred the significant risks and rewards of ownership to the buyer;
- the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control
over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the group will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2009, has been fully amortised.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold property - 0.5% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on reducing balance
Computer equipment - 20% on cost

The company's long leasehold property is shown at fair value. Any movement in the fair value of long leashold property is shown in other comprehensive income and is transferred to or from the revaluation reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The group holds basic financial instruments as defined by FRS102. The financial assets and financial liabilities of the group and their measurement basis are as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank - is classified as a basic financial instrument and is measured at face value.

Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

The group enters into foreign exchange forward contracts to manage its exposure to foreign currency risk. These derivatives are measured at fair value at each reporting date and changes in fair value are recognised in profit and loss for the period

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Trust
A subsidiary has created a trust whose beneficiaries include employees of the trust and their dependents. Assets held under this trust are controlled by trustees who will be acting independently and entirely at their own discretion.

Where assets are held in the trust and these are considered by the group to be in respect of services already provided by employees to the group, the group accounts for these as assets of the trust when payment is made to the trust. The value transferred was charged in the group's profit and loss account for the year to which it related.

Grants
Grants received in respect of revenue expenditure are credited to the profit and loss account in the year to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,085,913 860,620
Social security costs 84,653 71,269
Other pension costs 208,049 109,064
1,378,615 1,040,953

The average number of employees during the year was as follows:
2023 2022

Administrative and warehouse staff 48 37

2023 2022
£    £   
Directors' remuneration 31,500 31,500
Directors' pension contributions to money purchase schemes 78,523 19,049

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 44,489 7,010
Depreciation - owned assets 119,969 49,564
Profit on disposal of fixed assets (188 ) -
Computer software amortisation 18,983 18,983
Auditors' remuneration 5,500 5,000
Foreign exchange gains 381,131 106,932

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 761,524 559,318

Deferred tax 72,186 (2,820 )
Tax on profit 833,710 556,498

UK corporation tax has been charged at 23.50 % (2022 - 19 %).

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

5. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 3,607,965 3,003,135
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) 847,872 570,596

Effects of:
depreciation on non eligible assets 5,614 4,412
Patent box (21,653 ) (18,890 )
Change in tax rates 1,885 431
Super deduction (8 ) (51 )
deferred tax charge
Total tax charge 833,710 556,498

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Deferred tax - movement - 6,250 6,250

2022
Gross Tax Net
£    £    £   
Deferred tax - movement - (82,990 ) (82,990 )

6. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


7. DIVIDENDS
2023 2022
£    £   
A ordinary shares of £1 each
Interim 760,080 280,000
B ordinary shares of £1 each
Interim 920,080 760,000
1,680,160 1,040,000

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

8. INTANGIBLE FIXED ASSETS

Group
Computer
Goodwill software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 8,800 56,950 65,750
AMORTISATION
At 1 January 2023 8,800 26,893 35,693
Amortisation for year - 18,983 18,983
At 31 December 2023 8,800 45,876 54,676
NET BOOK VALUE
At 31 December 2023 - 11,074 11,074
At 31 December 2022 - 30,057 30,057

9. TANGIBLE FIXED ASSETS

Group
Long Fixtures
leasehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 January 2023 5,000,000 362,298 143,248
Additions - 2,300 31,282
Disposals - - -
At 31 December 2023 5,000,000 364,598 174,530
DEPRECIATION
At 1 January 2023 50,000 356,600 128,036
Charge for year 25,000 3,055 9,902
Eliminated on disposal - - -
At 31 December 2023 75,000 359,655 137,938
NET BOOK VALUE
At 31 December 2023 4,925,000 4,943 36,592
At 31 December 2022 4,950,000 5,698 15,212

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 88,624 59,768 5,653,938
Additions 500,722 1,991 536,295
Disposals (94,674 ) - (94,674 )
At 31 December 2023 494,672 61,759 6,095,559
DEPRECIATION
At 1 January 2023 14,771 51,112 600,519
Charge for year 79,178 2,834 119,969
Eliminated on disposal (11,223 ) - (11,223 )
At 31 December 2023 82,726 53,946 709,265
NET BOOK VALUE
At 31 December 2023 411,946 7,813 5,386,294
At 31 December 2022 73,853 8,656 5,053,419

Cost or valuation at 31 December 2023 is represented by:

Long Fixtures
leasehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2020 5,000,000 - -
Cost - 364,598 174,530
5,000,000 364,598 174,530

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2020 - - 5,000,000
Cost 494,672 61,759 1,095,559
494,672 61,759 6,095,559

If long leasehold property had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 3,466,212 3,466,212
Aggregate depreciation 138,648 121,317

Long leasehold property was valued on an open market basis on 31 December 2020 by Cushman & Wakefield. .

The directors consider this valuation approximates to the market value at 31 December 2023.

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 10,001
NET BOOK VALUE
At 31 December 2023 10,001
At 31 December 2022 10,001

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Hiatt Hardware (UK) Limited
Registered office: 106 Elkington Street, Aston, Birmingham, United Kingdom, B6 4SL
Nature of business: Hardware sales
%
Class of shares: holding
A ordinary 100.00
B ordinary 100.00

The company is included by full consolidation on a line by line basis using merger accounting.

Decorails Limited
Registered office: 106 Elkington Street, Aston, Birmingham, United Kingdom, B6 4SL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

This subsidiary is owned by Hiatt Hardware (UK) Limited.

Mascot Metal Manufacturers Limited
Registered office: 106 Elkington Street, Aston, Birmingham, United Kingdom, B6 4SL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

This subsidiary was incorporated on 6 August 2021.

AA Estate Investments Limited
Registered office: 106 Elkington Street, Aston, Birmingham, United Kingdom, B6 4SL
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00


11. STOCKS

Group
2023 2022
£    £   
Stocks 3,880,680 4,222,339

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 2,444,295 3,117,514
Other debtors 31 31
Derivative financial
instruments 428,023 46,892
Prepayments 85,125 70,936
2,957,474 3,235,373

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 1,815,548 2,383,476 - -
Amounts owed to group undertakings - - 101 101
Taxation 356,524 561,689 - -
Social security and other taxes 475,151 626,513 - -
Other creditors 119,171 181,455 - -
Directors' current accounts 881,752 281,792 - -
Accruals and deferred income 138,014 256,033 - -
3,786,160 4,290,958 101 101

14. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax
Other timing differences (289 ) (22,985 )
Accelerated capital allowances 110,726 61,235
Deferred tax on revaluation surplus 359,329 365,580
469,766 403,830

Group
Deferred
tax
£   
Balance at 1 January 2023 403,830
Movement in year 49,491
Capital allowances (6,250 )
Revaluation 22,695
Short term timing difference
Change in tax rate
Balance at 31 December 2023 469,766

Deferred tax has been charged at 25% (2022: 25%). Subject to further capital expenditure, £2,735 is expected to reverse within one year.

GKA Grandsons Limited (Registered number: 13166008)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,400 A ordinary £1 5,400 5,400
4,600 B ordinary £1 4,600 4,600
10,000 10,000

16. RESERVES

Group
Retained Share Revaluation
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 10,828,288 506,600 1,238,659 12,573,547
Profit for the year 2,774,255 - - 2,774,255
Dividends (1,680,160 ) - - (1,680,160 )
Transfer for depreciation on
revaluation 8,102 - (8,102 ) -
Movement in deferred tax
provision - - 6,250 6,250
At 31 December 2023 11,930,485 506,600 1,236,807 13,673,892

Company
Retained
earnings
£   

Profit for the year 1,680,160
Dividends (1,680,160 )
At 31 December 2023 -