Company registration number 05876382 (England and Wales)
GAPFORCE (LONDON) LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
GAPFORCE (LONDON) LTD.
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
GAPFORCE (LONDON) LTD.
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
165
460
Current assets
Debtors
5
114,152
203,625
Cash at bank and in hand
96,710
375,751
210,862
579,376
Creditors: amounts falling due within one year
6
(664,303)
(931,742)
Net current liabilities
(453,441)
(352,366)
Total assets less current liabilities
(453,276)
(351,906)
Creditors: amounts falling due after more than one year
7
(31,136)
(39,737)
Net liabilities
(484,412)
(391,643)
Capital and reserves
Called up share capital
8
410,100
410,100
Profit and loss reserves
(894,512)
(801,743)
Total equity
(484,412)
(391,643)
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 September 2024 and are signed on its behalf by:
Mr J Catterall
Director
Company Registration No. 05876382
GAPFORCE (LONDON) LTD.
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
1
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.
2
Accounting policies
Company information
Gapforce (London) Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is 80 Cheapside, London, EC2V 6EE.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
2.2
Going concern
The Directors have prepared these financial statements on a going concern basis. They have considered all information available to them concerning the foreseeable future and concluded that the financial statements should be prepared on a going concern basis but have identified that a material uncertainty exists because of the continued losses reported by the company, and the net liability position of the balance sheet at the reporting date.true
The company is reliant on the continued support from the ultimate parent company, InterExchange Inc. At the balance sheet date, the company has net liabilities of £484,412 (2022: £391,643), which includes £506,625 (2022: £447,148) due to the parent company, Interests Abroad Holdings Inc. The directors have received reassurances from InterExchange Inc, that financial support will continue for the foreseeable future. Consequently, the directors have a reasonable expectation that the company will have sufficient funds to continue to meet its liabilities as they fall due for the foreseeable future and therefore have prepared the financial statements on a going concern basis.
2.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
2.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
GAPFORCE (LONDON) LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
2.5
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.
2.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
2.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
GAPFORCE (LONDON) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 4 -
2.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2.11
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
5
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
1,181
Depreciation and impairment
At 1 January 2023
721
Depreciation charged in the year
295
At 31 December 2023
1,016
Carrying amount
At 31 December 2023
165
At 31 December 2022
460
GAPFORCE (LONDON) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
68,230
128,514
Amounts owed by group undertakings
27,794
7,366
Other debtors
18,128
67,745
114,152
203,625
Included within debtors is £27,794 (2022: £7,366) due to its ultimate parent company, InterExchange Inc.
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,868
9,627
Trade creditors
12,095
23,694
Amounts owed to group undertakings
506,625
447,148
Other creditors
135,715
451,273
664,303
931,742
Included within creditors is £506,625 (2022: £447,148) due to its parent company, Interests Abroad Holdings Inc. Interests Abroad Holdings Inc has confirmed in a letter of support that they will not call upon the balance for a period of at least twelve months from when the financial statements are authorised for issue.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
31,136
39,737
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
410,100
410,100
410,100
410,100
GAPFORCE (LONDON) LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified but included the below material uncertainty relating to going concern disclosure:
We draw attention to note 2.2 of the financial statements which indicates that the company has incurred net losses after tax for the year ended 31 December 2023, and as at that date the company’s liabilities exceed their assets. The company is reliant on the continued support from the parent company. These matters indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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.
Senior Statutory Auditor:
Toby Mason
Statutory Auditor:
Azets Audit Services
10
Parent company
The parent company of Gapforce (London) Ltd. is Interests Abroad Holdings Inc, a company incorporated in the United States of America with registered address 100 Wall Street, Suite 301, New York, NY 10005, United States of America.
The largest group in which the results of the company are consolidated is that headed by the ultimate parent company, InterExchange Inc, a company incorporated in the United States of America with registered address 100 Wall Street, Suite 301, New York, NY 10005, United States of America.