Company registration number 08473746 (England and Wales)
GRAF UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GRAF UK LIMITED
COMPANY INFORMATION
Directors
Mr D Kwasny
Mr M T Rolph
Company number
08473746
Registered office
Regen House
Beaumont Road
Banbury
Oxfordshire
OX16 1RH
Auditor
Dendy Neville Limited
3-4 Bower Terrace
Tonbridge Road
Maidstone
Kent
ME16 8RY
Business address
Regen House
Beaumont Road
Banbury
Oxfordshire
OX16 1RH
GRAF UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 19
GRAF UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company is the distribution of sustainable water management solutions, products and systems. There has been no significant change in those activities during the year.
Results and business review
Turnover for the year under review was £16,649,000 (2022: £20,594,000). Loss before taxation was £549,502 for the year under review (2022 profit: £655,000). Further details are set out in the statement of income and retained earnings on page 7 and in the related notes. The directors understand the changes in our level of turnover, gross profit and net profit, which were largely due to the political and economic challenges in the UK market during 2023. We acknowledge the factors that influenced these outcomes and are understanding of the overall results for this financial year.
Key performance indicators
The principal key performance indicators used by management to monitor performance are as follows:
Principal risks and uncertainties
The directors consider that the following are principal risk factors that could materially and adversely affect the company’s future operating profits or financial position:
The directors are confident that steps taken by them, in conjunction with the parent company, will enable them to return to sales growth during 2024.
Future developments in the business
The directors expect turnover to increase in 2024.
Mr M T Rolph
Director
22 August 2024
GRAF UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 7.
No ordinary 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:
Mr D Kwasny
Mr M T Rolph
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Information referred to in the 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 future developments.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M T Rolph
Director
22 August 2024
GRAF UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GRAF UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRAF UK LIMITED
- 4 -
Opinion
We have audited the financial statements of Graf UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GRAF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAF UK LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
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:
• the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for directors’ remuneration and staff bonuses;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities;
• any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
GRAF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAF UK LIMITED
- 6 -
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. 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, tax legislation and pension legislation.
Audit response to risks identified
As a result of performing the above, we identified management override of controls as a key consideration related to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
• reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management regarding actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• reading minutes of meetings of those charged with governance, and asking management whether there had been any correspondence with HMRC; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business reasons behind any significant transactions that are unusual or outside the normal course of the company’s business.
We also communicated 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.
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.
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.
David Hill BA FCA
Senior Statutory Auditor
For and on behalf of Dendy Neville Limited
23 August 2024
Chartered Accountants
Statutory Auditor
3-4 Bower Terrace
Tonbridge Road
Maidstone
Kent
ME16 8RY
GRAF UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
16,648,891
20,593,561
Cost of sales
(12,820,127)
(16,146,930)
Gross profit
3,828,764
4,446,631
Administrative expenses
(4,645,742)
(3,786,450)
Other operating income
296,801
24,000
Operating (loss)/profit
4
(520,177)
684,181
Interest receivable and similar income
7
445
80
Interest payable and similar expenses
8
(29,770)
(29,260)
(Loss)/profit before taxation
(549,502)
655,001
Tax on (loss)/profit
9
68,500
(145,000)
(Loss)/profit for the financial year
(481,002)
510,001
Retained earnings brought forward
477,393
(32,608)
Retained earnings carried forward
(3,609)
477,393
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GRAF UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
69,543
Tangible assets
11
2,752,877
2,323,575
2,822,420
2,323,575
Current assets
Stocks
12
1,704,023
2,233,503
Debtors
13
2,942,488
2,905,261
Cash at bank and in hand
140,891
203,614
4,787,402
5,342,378
Creditors: amounts falling due within one year
14
(6,448,931)
(6,073,560)
Net current liabilities
(1,661,529)
(731,182)
Total assets less current liabilities
1,160,891
1,592,393
Provisions for liabilities
Deferred tax liability
16
164,500
115,000
(164,500)
(115,000)
Net assets
996,391
1,477,393
Capital and reserves
Called up share capital
18
1,000,000
1,000,000
Profit and loss reserves
(3,609)
477,393
Total equity
996,391
1,477,393
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 22 August 2024 and are signed on its behalf by:
Mr M T Rolph
Director
Company registration number 08473746 (England and Wales)
GRAF UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
788,522
1,278,709
Interest paid
(29,770)
(29,260)
Income taxes paid
(118,642)
Net cash inflow from operating activities
640,110
1,249,449
Investing activities
Purchase of tangible fixed assets
(749,340)
(168,242)
Proceeds from disposal of tangible fixed assets
16,874
33,153
Interest received
445
80
Net cash used in investing activities
(732,021)
(135,009)
Financing activities
Proceeds from borrowings
29,770
Repayment of borrowings
(1,170,740)
Net cash generated from/(used in) financing activities
29,770
(1,170,740)
Net decrease in cash and cash equivalents
(62,141)
(56,300)
Cash and cash equivalents at beginning of year
203,614
260,991
Effect of foreign exchange rates
(582)
(1,077)
Cash and cash equivalents at end of year
140,891
203,614
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
Graf UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Regen House, Beaumont Road, Banbury, Oxfordshire, OX16 1RH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon the financial support of the parent company and a related company, details of which are provided in the related party transactions note. This financial support has continued and, based upon discussions with the ultimate controlling party, the directors consider that it will continue for at least 12 months from the date of approval of the financial statements and have therefore adopted a going concern basis for the preparation of these financial statements.true
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. 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.
1.4
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.
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:
Software
Over 3 years
1.5
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their estimated residual values over their useful lives on the following bases:
Land and buildings Freehold
Over 50 years - buildings only (less residual balance)
Leasehold improvements
Over period of lease
Plant and machinery
Over 3 - 8 years
Fixtures, fittings & equipment
Over 3 - 13 years
Motor vehicles
Over 5 - 6 years
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
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.
1.6
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).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is calculated using the 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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies are recognised at transaction price.
1.10
Taxation
The tax expense represents the sum of the tax currently payable or receivable and deferred tax.
Current tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.
1.12
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The accounting policies set out the basis of estimates and judgements made during preparations of the financial statements. In the opinion of the directors, there are no material judgements or estimates which affect the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Supply of goods
15,274,017
19,102,107
Services provided
1,374,874
1,491,454
16,648,891
20,593,561
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 13 -
2023
2022
£
£
Turnover analysed by geographical market
National (UK)
16,576,439
20,541,395
Europe (EU)
72,452
52,166
16,648,891
20,593,561
2023
2022
£
£
Other significant revenue
Interest income
445
80
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
582
1,077
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
16,000
Depreciation of owned tangible fixed assets
238,923
207,779
Profit on disposal of tangible fixed assets
(5,302)
(6,709)
Operating lease charges
53,000
42,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management/Administration
33
28
Operations/Production
14
12
Total
47
40
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,147,971
1,606,251
Social security costs
212,817
169,539
Pension costs
54,129
51,044
2,414,917
1,826,834
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
172,000
141,665
Company pension contributions to defined contribution schemes
1,321
5,381
173,321
147,046
Remuneration relates to the two directors whereas there is only 1 (2022 - 1) for whom retirement benefits are accruing.
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
445
80
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
445
80
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
29,770
29,260
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(118,000)
120,000
Deferred tax
Origination and reversal of timing differences
49,500
25,000
Total tax (credit)/charge
(68,500)
145,000
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 15 -
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(549,502)
655,001
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(129,133)
124,450
Tax effect of expenses that are not deductible in determining taxable profit
26,512
13,924
Unutilised tax losses carried forward
(273)
Effect of change in corporation tax rate
28,100
5,156
Depreciation on assets not qualifying for tax allowances
3,585
1,775
Deferred tax adjustments in respect of prior years
(1,698)
Other tax adjustments
5,443
4,875
Enhanced capital allowances
(1,036)
(5,180)
Taxation (credit)/charge for the year
(68,500)
145,000
10
Intangible fixed assets
Software
£
Cost
At 1 January 2023
Transfers
115,698
At 31 December 2023
115,698
Amortisation and impairment
At 1 January 2023
Transfers
46,155
At 31 December 2023
46,155
Carrying amount
At 31 December 2023
69,543
At 31 December 2022
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
11
Tangible fixed assets
Land and buildings Freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,061,024
562
307,835
439,838
236,849
3,046,108
Additions
253,315
1,170
44,936
243,187
206,732
749,340
Disposals
(6,052)
(21,095)
(5,020)
(20,833)
(53,000)
Transfers
(115,698)
(115,698)
At 31 December 2023
2,308,287
1,732
331,676
562,307
422,748
3,626,750
Depreciation and impairment
At 1 January 2023
85,962
562
225,568
314,161
96,280
722,533
Depreciation charged in the year
25,290
1,170
37,791
113,690
60,982
238,923
Eliminated in respect of disposals
(132)
(21,095)
(3,882)
(16,319)
(41,428)
Transfers
(46,155)
(46,155)
At 31 December 2023
111,120
1,732
242,264
377,814
140,943
873,873
Carrying amount
At 31 December 2023
2,197,167
89,412
184,493
281,805
2,752,877
At 31 December 2022
1,975,062
82,267
125,677
140,569
2,323,575
The cost of freehold land which is not depreciated, included within freehold land and buildings above, amounts to £980,053 (2022 - £980,053).
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,704,023
2,233,503
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,435,760
2,639,263
Corporation tax recoverable
118,000
Other debtors
532
919
Prepayments and accrued income
388,196
265,079
2,942,488
2,905,261
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
15
1,022,210
992,440
Trade creditors
281,159
292,759
Taxation and social security
239,499
467,408
Other creditors
4,488,435
3,947,689
Accruals and deferred income
417,628
373,264
6,448,931
6,073,560
Further details of other creditors and other borrowings are provided in the related party transactions note.
15
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
1,022,210
992,440
Payable within one year
1,022,210
992,440
Further details of the loans from group undertakings are provided in the related party transactions note.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
169,000
115,000
Tax losses
(4,500)
-
164,500
115,000
2023
Movements in the year:
£
Liability at 1 January 2023
115,000
Charge to profit or loss
49,500
Liability at 31 December 2023
164,500
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Deferred taxation
(Continued)
- 18 -
None of the deferred tax liability set out above is expected to reverse within 12 months of the balance sheet date.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,129
51,044
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
33,000
21,000
20
Events after the reporting date
The company purchased a property in March 2024 for a total consideration of £2,578,000. The purchase of the property was funded by way of a loan from the parent company GRAF Holding GmbH.
21
Related party transactions
Other creditors includes an amount of £4,465,586 (2022 - £3,918,826) due to Otto Graf GmbH, a company registered in Germany and which the parent company, GRAF Holding GmbH, has an interest. The amount is secured on the freehold land and buildings owned by the company.
Other borrowings represents £1,022,210 (2022 - £992,440) due to the parent company GRAF Holding GmbH in respect of a loan. This loan is repayable on demand, accrued interest during the year at rates of 2.8% and then 4.0% per annum, and is secured on the freehold land and buildings, and other assets, owned by the company.
22
Ultimate controlling party
The immediate and ultimate parent company is GRAF Holding GmbH, a company registered in Germany.
The ultimate controlling party is Otto P Graf.
GRAF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
23
Cash generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(481,002)
510,001
Adjustments for:
Taxation (credited)/charged
(68,500)
145,000
Finance costs
29,770
29,260
Investment income
(445)
(80)
Gain on disposal of tangible fixed assets
(5,302)
(6,709)
Depreciation and impairment of tangible fixed assets
238,923
207,779
Foreign exchange gains on cash equivalents
582
1,077
Movements in working capital:
Decrease/(increase) in stocks
529,480
(535,599)
Decrease in debtors
80,773
982,653
Increase/(decrease) in creditors
464,243
(54,673)
Cash generated from operations
788,522
1,278,709
24
Analysis of changes in net debt
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
203,614
(62,141)
(582)
140,891
Borrowings excluding overdrafts
(992,440)
(29,770)
-
(1,022,210)
(788,826)
(91,911)
(582)
(881,319)
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