IRIS Accounts Production v24.2.0.383 03917740 Board of Directors 1.1.23 31.12.23 31.12.23 the wholesale of imported products. true false true true false false false true false Ordinary 0.0100 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REGISTERED NUMBER: 03917740 (England and Wales)











STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

GALLERY DIRECT LIMITED

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


GALLERY DIRECT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: P Delaney
M Maslo
J Schimmel
M Last





SECRETARIES: Mrs E Maslo
Miss N Atkinson





REGISTERED OFFICE: C/O Gallery Direct Limited,
Castle Road, Eurolink Commercial Park
Sittingbourne
Kent
ME10 3RN





REGISTERED NUMBER: 03917740 (England and Wales)





AUDITORS: Sargeant Partnership LLP
Chartered Accountants
and Statutory Auditors
5 White Oak Square
London Road
Swanley
Kent
BR8 7AG

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

REVIEW OF BUSINESS
Gallery Direct Limited (the Company") is a design-led supplier of home décor and furnishings committed to providing its retail and trade customers with a complete furnishing solution. Our results for 2023 were significantly better than 2022 with improvements seen in all areas covering revenue, margin and overheads. The relocation and consolidation of our warehouse operations during 2022 has improved our service levels and reduced our overall costs as we planned. During 2023 we also started to refine our customer base and product portfolio, this ongoing work supported our improved performance in 2023 and will continue to do so in future years.

The Directors are extremely grateful for the hard work, dedication and commitment of all of the staff at Gallery Direct who supported the Company during 2023. The strategy, investment and continued strong performance of the Company has created a strong platform upon which the Directors are working to take the company forward.

PRINCIPAL RISKS AND UNCERTAINTIES
Whilst the company does not anticipate any event that will have a significant adverse effect on business, because much of its product is manufactured overseas, any fluctuation in exchange rates, import duties and/or freight rates will impact the business.

RESULTS AND PERFORMANCE
The results for the Company for the year as set out on page 9 show a profit on ordinary activities before taxation of £1.02m compared to the loss of £7.24m for 2022. Trading results during 2024 at the date of signing this report are currently ahead of the same period for 2023. The shareholders' funds of company total £10.8m compared to £8.8m in 2022.

ON BEHALF OF THE BOARD:





M Last - Director


18 September 2024

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

P Delaney
M Maslo
J Schimmel
M Last

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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.

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 company'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 company's auditors are aware of that information.

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Sargeant Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M Last - Director


18 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GALLERY DIRECT LIMITED

Opinion
We have audited the financial statements of Gallery Direct Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GALLERY DIRECT LIMITED


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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 directors' 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 Statement of Directors' Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GALLERY DIRECT LIMITED


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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK).

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

- We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006, the UK Corporate Governance Code and UK corporate taxation laws.

-We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making inquiries to the management and directors. We corroborated our inquiries through our review of board minutes and papers provided to the audit engagement team.

-We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit engagement team included:

a) Identifying and assessing the design effectiveness of controls management has put in place to prevent and detect fraud;

b) Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

c) Challenging assumptions and judgements made by management in its significant accounting estimates;

d) Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations: and

e) Assessing the extent of compliance with the relevant laws and regulations.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GALLERY DIRECT LIMITED


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.




Gary Sargeant (Senior Statutory Auditor)
for and on behalf of Sargeant Partnership LLP
Chartered Accountants
and Statutory Auditors
5 White Oak Square
London Road
Swanley
Kent
BR8 7AG

18 September 2024

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 43,102,591 43,261,281

Cost of sales 34,774,412 39,940,811
GROSS PROFIT 8,328,179 3,320,470

Administrative expenses 6,499,724 6,427,704
1,828,455 (3,107,234 )

Other operating income 11,270 5,198
OPERATING PROFIT/(LOSS) 5 1,839,725 (3,102,036 )

Exceptional Items 6 32,877 3,637,077
1,806,848 (6,739,113 )

Interest receivable and similar income 13,665 -
1,820,513 (6,739,113 )

Interest payable and similar expenses 7 799,466 502,969
PROFIT/(LOSS) BEFORE TAXATION 1,021,047 (7,242,082 )

Tax on profit/(loss) 8 (938,922 ) (153,046 )
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

1,959,969

(7,089,036

)

OTHER COMPREHENSIVE INCOME
Revalued Property - (694,652 )
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE
INCOME FOR THE YEAR, NET OF
INCOME TAX


-


(694,652


)
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

1,959,969

(7,783,688

)

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 136,103 329,968
Tangible assets 11 17,780,791 18,141,890
Investments 12 850,353 -
18,767,247 18,471,858

CURRENT ASSETS
Stocks 13 6,789,418 9,539,411
Debtors 14 12,435,637 10,983,200
Cash at bank and in hand 299,179 371,550
19,524,234 20,894,161
CREDITORS
Amounts falling due within one year 15 15,125,507 17,303,761
NET CURRENT ASSETS 4,398,727 3,590,400
TOTAL ASSETS LESS CURRENT
LIABILITIES

23,165,974

22,062,258

CREDITORS
Amounts falling due after more than one
year

16

(12,372,101

)

(12,685,444

)

PROVISIONS FOR LIABILITIES 20 - (542,910 )
NET ASSETS 10,793,873 8,833,904

CAPITAL AND RESERVES
Called up share capital 21 151,500 151,500
Share premium 22 50,949 50,949
Revaluation reserve 22 6,711,040 6,711,040
Retained earnings 22 3,880,384 1,920,415
SHAREHOLDERS' FUNDS 10,793,873 8,833,904

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:



M Last - Director


GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

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 151,500 9,009,451 50,949 7,405,692 16,617,592

Changes in equity
Total comprehensive income - (7,089,036 ) - (694,652 ) (7,783,688 )
Balance at 31 December 2022 151,500 1,920,415 50,949 6,711,040 8,833,904

Changes in equity
Total comprehensive income - 1,959,969 - - 1,959,969
Balance at 31 December 2023 151,500 3,880,384 50,949 6,711,040 10,793,873

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Gallery Direct 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 Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Gallery Direct Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Gallery Direct 2013 Limited, C/o Gallery Direct Ltd, Castle Road, Eurolink Commercial Park, Sittingbourne, Kent, ME10 3RN.

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.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities in these accounts.

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's principal activity. Turnover excludes value added tax.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the entity.

Goodwill
Goodwill, being the amounts paid in connection with the acquisition of a business in 2003 and 2014, is being amortised in both cases evenly over its estimated useful life. This being 20 years for the 2003 purchase and 10 years in respect of the purchase of Frank Hudson Limited in 2014.

Trademarks
Trademarks relate to community trade marks that the company purchased in 2014 and brand related trademarks.

The community trade marks are being amortised evenly over their estimated useful life of 10 year, whereas other trade marks are being amortised over their estimated useful life of 5 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Improvements to property - 5% per annum on cost and 2% per annum on cost
Plant and machinery - 25% per annum on cost, 20% per annum on cost and 15% per annum on cost
Fixtures, fittings & equipment - 25% per annum on cost, 15% per annum on cost, 10% per annum on cost and 5% per annum on cost
Motor vehicles - 20% per annum on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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


GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Functional currency
The functional currency of the Company is the Great British Pound ("GBP ").

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates.

Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction.

Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss) for the respective periods.

Cash & cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less.

Property revaluation
Deferred tax has been accounted for in line with Accounting standards, being recharged to the revaluation reserve.

3. TURNOVER

The turnover and profit (2022 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 41,472,291 40,738,794
Rest of world 985,262 1,086,358
Europe 645,038 1,436,129
43,102,591 43,261,281

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 5,961,021 6,709,499
Social security costs 539,756 382,991
Other pension costs 95,744 105,480
6,596,521 7,197,970

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

4. EMPLOYEES AND DIRECTORS - continued

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

Directors 4 4
Transport 45 44
Warehouse 11 18
Administration 74 77
Quality Control 8 8
142 151

2023 2022
£    £   
Directors' remuneration 158,711 372,296

5. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 360,240 304,823
Depreciation - assets on hire purchase contracts 67,777 67,777
Loss on disposal of fixed assets 1,984 -
Goodwill amortisation 190,823 190,822
Trademarks amortisation 3,042 4,152
Auditors' remuneration 12,000 12,000

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional Items (32,877 ) (3,637,077 )

During the year the company carried out an impairment review of intercompany loans in line with IFRS 9. This cost is one off and therefore deemed to be exceptional.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 426,182 216,145
Factoring interest 368,282 279,321
Hire purchase 5,002 7,503
799,466 502,969

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - (347,948 )
Prior period corporation tax (1,649 ) (3,963 )
Total current tax (1,649 ) (351,911 )

Deferred tax (937,273 ) 198,865
Tax on profit/(loss) (938,922 ) (153,046 )

Reconciliation of total tax credit 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/(loss) before tax 1,021,047 (7,242,082 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 19% (2022 - 19%)

193,999

(1,375,996

)

Effects of:
Expenses not deductible for tax purposes 2,995 1,902
Capital allowances in excess of depreciation - (113,946 )
Depreciation in excess of capital allowances 74,307 -
Deferred tax movement (937,273 ) 198,865

Group relief (271,301 ) -
Tax losses carried forward - 654,937
Prior period tax (1,649 ) (3,963 )
Exceptional items - 485,155
Total tax credit (938,922 ) (153,046 )

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

2022
Gross Tax Net
£    £    £   
Revalued Property (694,652 ) - (694,652 )

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. SUBSIDIARY COMPANIES

Company Shares % Country

Frank Hudson Limited 100% UK
Art Marketing Limited 100% UK

All of the above companies results are included in the consolidated financial statements of the ultimate parent company, Gallery Direct 2013 Limited.

10. INTANGIBLE FIXED ASSETS
Goodwill Trademarks Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 2,158,225 42,381 2,200,606
AMORTISATION
At 1 January 2023 1,847,158 23,480 1,870,638
Amortisation for year 190,823 3,042 193,865
At 31 December 2023 2,037,981 26,522 2,064,503
NET BOOK VALUE
At 31 December 2023 120,244 15,859 136,103
At 31 December 2022 311,067 18,901 329,968

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST OR VALUATION
At 1 January 2023 15,314,459 783,691 285,187
Additions - - -
Disposals - - -
At 31 December 2023 15,314,459 783,691 285,187
DEPRECIATION
At 1 January 2023 290,420 110,299 123,371
Charge for year - 29,976 13,846
Eliminated on disposal - - -
At 31 December 2023 290,420 140,275 137,217
NET BOOK VALUE
At 31 December 2023 15,024,039 643,416 147,970
At 31 December 2022 15,024,039 673,392 161,816

Fixtures,
fittings Motor
& equipment vehicles Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 2,484,172 773,405 19,640,914
Additions 93,403 - 93,403
Disposals (119,634 ) (10,722 ) (130,356 )
At 31 December 2023 2,457,941 762,683 19,603,961
DEPRECIATION
At 1 January 2023 844,563 130,371 1,499,024
Charge for year 230,115 154,080 428,017
Eliminated on disposal (93,678 ) (10,193 ) (103,871 )
At 31 December 2023 981,000 274,258 1,823,170
NET BOOK VALUE
At 31 December 2023 1,476,941 488,425 17,780,791
At 31 December 2022 1,639,609 643,034 18,141,890

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. TANGIBLE FIXED ASSETS - continued

At the audit date the company has reviewed the value of the Phillips building, which the Directors believe to be £12,575,000. Therefore the net book value of the property has been reduced to this value, as this is considered the fair value at the year end.

Cost or valuation at 31 December 2023 is represented by:

Improvements
Freehold to Plant and
property property machinery
£    £    £   
Valuation in 2023 15,314,459 783,691 285,187

Fixtures,
fittings Motor
& equipment vehicles Totals
£    £    £   
Valuation in 2023 2,457,941 762,683 19,603,961

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Fixtures,
fittings Motor
& equipment vehicles Totals
£    £    £   
COST OR VALUATION
At 1 January 2023
and 31 December 2023 250,130 276,350 526,480
DEPRECIATION
At 1 January 2023 45,858 90,820 136,678
Charge for year 12,507 55,270 67,777
At 31 December 2023 58,365 146,090 204,455
NET BOOK VALUE
At 31 December 2023 191,765 130,260 322,025
At 31 December 2022 204,272 185,530 389,802

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
Additions 850,353
At 31 December 2023 850,353
NET BOOK VALUE
At 31 December 2023 850,353

13. STOCKS
2023 2022
£    £   
Raw materials 290,000 178,964
Finished goods 6,499,418 9,360,447
6,789,418 9,539,411

14. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 4,258,830 5,650,936
Credit note provision (100,000 ) (265,241 )
Amounts owed by group undertakings 4,965,368 3,415,480
Other debtors 788,158 40,590
Tax 363,262 347,948
Deferred tax asset 394,363 -
Prepayments 565,165 606,146
11,235,146 9,795,859

Amounts falling due after more than one year:
Amounts owed by group undertakings 1,200,491 1,187,341

Aggregate amounts 12,435,637 10,983,200

Deferred tax asset
2023
£   
Accelerated capital allowances 394,363

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 17) 1,048,397 639,333
Hire purchase contracts (see note 18) 121,467 180,804
Trade creditors 5,446,473 4,305,304
Amounts owed to associates 3,176,782 3,176,782
Social security and other taxes 180,761 190,394
VAT 558,345 769,577
Other creditors 3,569,262 7,449,966
Accruals and deferred income 1,024,020 591,601
15,125,507 17,303,761

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Bank loans (see note 17) 5,080,772 6,020,730
Hire purchase contracts (see note 18) 294,264 414,714
Amounts owed to associates 6,997,065 6,250,000
12,372,101 12,685,444

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 825,000 300,000
Mortgage Phillips Building 223,397 339,333
1,048,397 639,333

Amounts falling due between one and two years:
Bank loans - 1-2 years - 75,000
Mortgage Phillips Building 241,636 354,446
241,636 429,446

Amounts falling due between two and five years:
Bank loans - 2-5 years - 750,000
Mortgage Phillips Building 847,099 1,147,570
847,099 1,897,570

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. LOANS - continued
2023 2022
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Mortgage Phillips Building 3,992,037 3,693,714

The outstanding coronavirus business interruption loan was repaid in full in February 2024. This was repaid with the positive cashflow generated by the company.

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 121,467 180,804
Between one and five years 294,264 414,714
415,731 595,518

Non-cancellable operating leases
2023 2022
£    £   
Within one year 194,688 189,200
Between one and five years 233,875 302,003
428,563 491,203

19. SECURED DEBTS

The company uses RBS Invoice Finance Limited who hold fixed and floating charges over all of the assets of the company.

The National Westminster Bank Plc holds a fixed charge over the land on the North-west side of Castle Road, Sittingbourne, Kent.

The National Westminster Bank Plc also holds fixed and floating charges over all of the assets of the company.

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

20. PROVISIONS FOR LIABILITIES
2022
£   
Deferred tax
Accelerated capital allowances 334,188
Deferred Taxation on property
revaluation

208,722
542,910

Deferred
tax
£   
Balance at 1 January 2023 542,910
Accelerated capital allowances (728,551 )
DT on property revaluation (208,722 )
Balance at 31 December 2023 (394,363 )

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
151,500,000 Ordinary 0.1p 151,500 151,500

22. RESERVES
Retained Share Revaluation
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 1,920,415 50,949 6,711,040 8,682,404
Profit for the year 1,959,969 1,959,969
At 31 December 2023 3,880,384 50,949 6,711,040 10,642,373

23. CAPITAL COMMITMENTS

At the balance sheet date Gallery Direct UK Limited entered into a financial commitment of deferred consideration for the purchase of Art Marketing of £400,000. This is due to be paid in August 2024.

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

There were no transactions with directors during the year and no balances were owed at the year end.

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

25. RELATED PARTY DISCLOSURES

Poole Lighting Limited is a related party of Gallery Direct Limited due to it being under common ownership.

During the year the company raised sales invoices to Poole Lighting Limited amounting to £24,698 (2022: £10,509). At the balance sheet date Poole Lighting Limited owed Gallery Direct Limited £27,131 (2022: £8,666) by way of a trade debtor.

During the year Poole Lighting Limited raised purchase invoices to Gallery Direct Limited of £976,760 (2022: £1,535,460). At the balance sheet date Gallery Direct Limited owed Poole Lighting Limited £326,408 (2022: £394,370) by way of a stock trade creditor.

Orion Warehouse Services Limited is a related party of Gallery Direct Limited due to it being under common ownership.

During the year the company raised recharge invoices to Orion Warehouse Services Limited amounting to £16,885 (2022: £8,944). At the balance sheet date Orion Warehouse Services Limited owed Gallery Direct Limited £13,200 (2022: £7,429) by way of a trade debtor.

During the year Orion Warehouse Services Limited raised purchase invoices to Gallery Direct Limited of £3,554,239 (2022: £3,006,235). At the balance sheet date Gallery Direct Limited owed Orion Warehouse Services Limited £4,651,191 (2022: £2,972,094) by way of a stock trade creditor.

M Maslo a director of Gallery Direct Limited is also a director of a company called NLC Group of Companies Limited, previously known as The National Lighting Company Limited, a company incorporated in England and Wales.

At the Balance sheet date Gallery Direct Limited owed NLC Group of Companies Limited £6,997,065 (2022: £6,250,000) by way of an intercompany loan.

During the year the company raised sales invoices to NLC Group of Companies Limited amounting to £1,502 (2022: £292). At the balance sheet date, NLC Group of Companies Limited Gallery Direct Limited £1,924 (2022: £292) by way of a trade debtor.

During the year NLC Group of Companies Limited raised purchase invoices to Gallery Direct Limited of £396,699 (2022: £585,110). At the balance sheet date, Gallery Direct Limited owed NLC Group of Companies Limited £113,350 (2022: £160,268) by way of a trade creditor.

M Maslo a director of Gallery Direct Limited is also a director of a company called National Lighting Limited, previously known as Genesis 1:3 Limited, a company incorporated in England and Wales.

At the Balance sheet date Gallery Direct Limited owed National Lighting Limited £2,854,798 (2022: £2,394,058).

I Weiler a director of Gallery Direct 2013 Limited, the ultimate parent company is also a director of a company called Danacrest Limited, a company incorporated in England and Wales.

At the Balance sheet date Gallery Direct Limited owed Danacrest Limited £321,984 (2022: £321,984).

GALLERY DIRECT LIMITED (REGISTERED NUMBER: 03917740)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

26. ULTIMATE CONTROLLING PARTY

The Ultimate Controlling Party is Mr M Maslo by virtue of his shareholding in Gallery Direct 2013 Limited (Ultimate Parent Company) a company registered in England & Wales.

27. KEY MANAGEMENT

M Maslo Director/Chairman
M Last Managing Director/CEO
P Delaney Sales Director
J Hudson Commercial Director
C Aldous Operations Director
N Atkinson Finance Director
P Dodd Group Finance Director