Company registration number NI019852 (Northern Ireland)
GIBSON BROS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GIBSON BROS LIMITED
COMPANY INFORMATION
Directors
Mr J E Gibson
Mr J Gerring
Mr D Morgan
Ms P Fisher
Ms R Gerring
Ms D Stevenson
Secretary
Mr J Gerring
Company number
NI019852
Registered office
1 Kilmacrew Road
Magherally
Banbridge
Co Down
BT32 4ES
Auditor
GMcG PORTADOWN
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
Bankers
Danske Bank
45-48 High Street
Portadown
Craigavon
Co Armagh
BT62 1LB
Solicitors
Gillen & Co
3 Old Kenlis Street
Banbridge
Co Down
BT32 3BD
GIBSON BROS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 36
GIBSON BROS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Development and performance

The directors consider the results for the year to be satisfactory. The subsidiary companies have continued to trade well, and with synergies across group companies being taken advantage of, this has contributed to the increase in sales, gross profit margin and earnings. The directors are committed to the long term creation of shareholder value, which will enable continued investment and diversification. Whilst the incoming year is likely to provide challenges, early results are consistent with the directors' expectations.

Key performance indicators

The key performance indicators used as a barometer of the group's performance are gross profit margin and profit before tax. In the current year the gross profit margin was 24.75% (2022 - 19.86%). The group's profit before tax is disclosed on page 11.

Principal risks and uncertainties

Performance in the sector is affected by general economic conditions and specific sectorial factors such as public sector spending reviews, the uncertainty in the UK's current political and economic situation and, to a lesser extent, weather conditions.

 

The board of directors carries out regular strategic reviews including assessments of market trends and forecasts and customer behaviour. The security of product and service levels are also regularly reviewed.

Financial risk management

The group's operations expose it to financial risks that include the effects of changes in price, credit risk, liquidity risk and interest rate cash flow risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring the level of risk which it faces. Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's financial personnel.

 

Price risk

The group operates in an industry that is extremely price competitive. The directors continue to review their pricing to ensure jobs can be received at a competitive price.

Credit risk

On the occasions when the group has worked for non government or council bodies it has implemented policies that require appropriate credit checks on potential customers before contracts are agreed. The amount of exposure to individual customers is subject to a limit which is assessed regularly by the board.

 

Liquidity risk

The group maintains a level of significant cash reserves that is designed to ensure the company has sufficient available funds for its operations. Liquidity risk is considered low.

 

Interest rate cash flow risk

The group has interest bearing assets. Interest bearing assets include only cash balances, all of which earn interest at the best rates achievable by the directors.

GIBSON BROS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Environment

The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

 

Health and safety

The group is committed to achieving the highest practical standards in health and safety management and strives to make all places of work a safe environment for employees and customers alike.

 

Human resources

The group's most important resource is its people; their knowledge and experience are crucial to meeting customer requirements. Retention of key staff is critical and the group has invested increasingly in employment.

 

Other risks and uncertainties

The group's operational environment was impacted by the coronavirus pandemic in the period. This created a short term risk which the directors were fully cognisant of.    

On behalf of the board

Mr J E Gibson
Director
17 September 2024
GIBSON BROS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023. Disclosures relating to financial risk management are included in the strategic report.

Principal activities

The principal activity of the company and group continued to be that of offering a range of quarry materials, plant hire, road surfacing and civil engineering and that of granting credit facilities.

Results and dividends

The results for the year are set out on page 11.

 

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 J E Gibson
Mr J Gerring
Mr D Morgan
Ms P Fisher
Ms R Gerring
Ms D Stevenson
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

GIBSON BROS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr J E Gibson
Director
17 September 2024
GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GIBSON BROS LIMITED
- 5 -
Opinion

We have audited the financial statements of Gibson Bros Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIBSON BROS LIMITED
- 6 -

Other information

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:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIBSON BROS LIMITED
- 7 -
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIBSON BROS LIMITED
- 8 -
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.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the group and parent company for fraud and identified the greatest potential for fraud in revenue recognition. 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 group and parent 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 Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIBSON BROS LIMITED
- 9 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and 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.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

GIBSON BROS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GIBSON BROS LIMITED
- 10 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Ms Gillian Johnston ACA (Senior Statutory Auditor)
For and on behalf of GMcG PORTADOWN
19 September 2024
Chartered Accountants
Statutory Auditor
17 Mandeville Street
Portadown
Craigavon
Co Armagh
BT62 3PB
GIBSON BROS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
20,342,791
18,434,676
Cost of sales
(15,308,141)
(14,774,405)
Gross profit
5,034,650
3,660,271
Administrative expenses
(1,348,651)
(1,135,746)
Other operating income
4,544
7,425
Operating profit
4
3,690,543
2,531,950
Interest receivable and similar income
9
52,797
13,486
Interest payable and similar expenses
8
-
0
(98)
Fair value gains and losses on foreign exchange contracts
52,733
(65,136)
Profit before taxation
3,796,073
2,480,202
Tax on profit
10
(847,559)
(349,844)
Profit for the financial year
22
2,948,514
2,130,358
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(30,169)
114,566
Total comprehensive income for the year
2,918,345
2,244,924
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GIBSON BROS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
154,561
175,403
Tangible assets
11
9,940,733
10,248,130
Current assets
Stocks
16
372,088
228,012
Debtors falling due after more than one year
17
3,217,407
849,325
Debtors falling due within one year
17
9,183,205
8,273,542
Cash at bank and in hand
7,141,973
7,276,427
19,914,673
16,627,306
Creditors: amounts falling due within one year
18
(7,268,726)
(7,703,480)
Net current assets
12,645,947
8,923,826
Total assets less current liabilities
22,741,241
19,347,359
Provisions for liabilities
Deferred tax liability
19
1,384,010
908,473
(1,384,010)
(908,473)
Net assets
21,357,231
18,438,886
Capital and reserves
Called up share capital
21
1,000
1,000
Capital redemption reserve
22
196,325
196,325
Other reserves
22
229
229
Profit and loss reserves
22
21,159,677
18,241,332
Total equity
21,357,231
18,438,886

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
17 September 2024
Mr J E Gibson
Director
Company registration number NI019852 (Northern Ireland)
GIBSON BROS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,516,696
7,834,219
Investments
14
2,941,863
3,038,019
10,458,559
10,872,238
Current assets
Stocks
16
274,972
171,891
Debtors falling due after more than one year
17
839,324
849,325
Debtors falling due within one year
17
5,297,026
4,603,641
Cash at bank and in hand
1,165,023
1,194,288
7,576,345
6,819,145
Creditors: amounts falling due within one year
18
(1,910,044)
(2,825,137)
Net current assets
5,666,301
3,994,008
Total assets less current liabilities
16,124,860
14,866,246
Provisions for liabilities
Deferred tax liability
19
1,142,498
902,937
(1,142,498)
(902,937)
Net assets
14,982,362
13,963,309
Capital and reserves
Called up share capital
21
1,000
1,000
Capital redemption reserve
22
196,325
196,325
Profit and loss reserves
22
14,785,037
13,765,984
Total equity
14,982,362
13,963,309

As permitted by section 408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £1,106,240 (2022 - £355,775).

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 17 September 2024 and are signed on its behalf by:
17 September 2024
Mr J E Gibson
Director
Company registration number NI019852 (Northern Ireland)
GIBSON BROS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Equity reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 January 2022
1,000
-
196,325
229
15,996,408
16,193,962
Year ended 31 December 2022:
Profit for the year
-
-
-
-
2,130,358
2,130,358
Other comprehensive income:
Currency translation differences
-
-
-
-
114,566
114,566
Total comprehensive income
-
-
-
-
2,244,924
2,244,924
Balance at 31 December 2022
1,000
-
0
196,325
229
18,241,332
18,438,886
Year ended 31 December 2023:
Profit for the year
-
-
-
-
2,948,514
2,948,514
Other comprehensive income:
Currency translation differences
-
-
-
-
(30,169)
(30,169)
Total comprehensive income
-
-
-
-
2,918,345
2,918,345
Balance at 31 December 2023
1,000
-
0
196,325
229
21,159,677
21,357,231
GIBSON BROS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
1,000
196,325
13,410,210
13,607,535
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
355,774
355,774
Balance at 31 December 2022
1,000
196,325
13,765,984
13,963,309
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,019,053
1,019,053
Balance at 31 December 2023
1,000
196,325
14,785,037
14,982,362
GIBSON BROS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
727,046
3,539,512
Interest paid
-
0
(98)
Income taxes (paid)/refunded
(110,422)
964
Net cash inflow from operating activities
616,624
3,540,378
Investing activities
Purchase of tangible fixed assets
(1,273,699)
(3,642,260)
Proceeds from disposal of tangible fixed assets
507,200
284,199
Proceeds from disposal of investments
-
1,716,150
Interest received
52,797
12,646
Dividends received
-
0
840
Net cash used in investing activities
(713,702)
(1,628,425)
Net (decrease)/increase in cash and cash equivalents
(97,078)
1,911,953
Cash and cash equivalents at beginning of year
7,276,427
5,213,281
Effect of foreign exchange rates
(37,376)
151,193
Cash and cash equivalents at end of year
7,141,973
7,276,427
GIBSON BROS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
238,126
1,530,230
Income taxes refunded
14,268
-
0
Net cash inflow from operating activities
252,394
1,530,230
Investing activities
Purchase of tangible fixed assets
(876,257)
(3,302,419)
Proceeds from disposal of tangible fixed assets
433,800
152,700
Repayment of loans
141,000
-
Proceeds from disposal of investments
-
0
1,716,150
Interest received
14,544
6,581
Dividends received
5,254
840
Net cash used in investing activities
(281,659)
(1,426,148)
Net (decrease)/increase in cash and cash equivalents
(29,265)
104,082
Cash and cash equivalents at beginning of year
1,194,288
1,090,206
Cash and cash equivalents at end of year
1,165,023
1,194,288
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Gibson Bros Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 1 Kilmacrew Road, Banbridge, Co. Down, BT32 4ES.

 

The group consists of Gibson Bros Limited and all of its subsidiaries.

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 group and 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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gibson Bros Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 19 -

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, and having given due regard to the group and company’s operations and current economic climate, the directors expect the group and company to have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 20 -

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:

Freehold land and buildings
2%/4% straight line or 25% reducing balance
Plant and equipment
6.67%/20% straight line or 20% reducing balance
Fixtures and fittings
15% reducing balance
Computers
20% straight line
Motor vehicles
25% straight line or 25% reducing balance

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 recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 21 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
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.

1.12
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 22 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 23 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, 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 if, and only if, there is 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.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 leased asset are consumed.

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 24 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.19

Current asset investments

Current asset investments are assets held by the company that can reasonably be expected to be converted into cash within one year. These assets are held at fair value as this is the most appropriate method to reflect the current valuation of investments that are easily converted to cash if a reliable fair value is available.

2
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Debtors

Short term debtors are measured at transaction price, less any impairment. Long term debtors are measured at the present value of future payments and subsequently at amortised cost using the effective interest rate method. Where loans are not subject to a market rate of interest there is some estimation uncertainty in arriving at the effective interest rate used. Loans are also stated less any impairment. Impairment of short term debtors and loans involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The directors used external professional advice to support the year end provisions

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
52,797
12,646
Dividends received
-
840
Rental income
4,544
7,425

The directors consider that the group operates one class of business and within one geographical market, that being the United Kingdom and Ireland.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,111,884
1,054,383
Profit on disposal of tangible fixed assets
(38,011)
(51,513)
Amortisation of intangible assets
20,842
23,233
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production staff
44
52
26
25
Administrative staff
11
11
9
9
Management staff
8
8
5
5
Total
63
71
40
39

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,366,849
2,346,086
1,537,783
1,355,329
Social security costs
219,229
243,053
161,406
142,235
Pension costs
358,388
270,675
335,437
244,070
2,944,466
2,859,814
2,034,626
1,741,634
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,395
12,199
Audit of the financial statements of the company's subsidiaries
14,600
11,897
26,995
24,096
For other services
Other taxation services
3,000
3,000
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
251,809
188,248
Company pension contributions to defined contribution schemes
249,013
168,284
500,822
356,532

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
83,778
72,228
Company pension contributions to defined contribution schemes
63,593
42,489
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
98
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
52,797
12,646
Income from fixed asset investments
Income from shares in group undertakings
-
0
840
Total income
52,797
13,486

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
52,797
12,646
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
372,022
61,186
Adjustments in respect of prior periods
-
0
(14,268)
Total current tax
372,022
46,918
Deferred tax
Origination and reversal of timing differences
475,537
135,264
Adjustment in respect of prior periods
-
0
167,662
Total deferred tax
475,537
302,926
Total tax charge
847,559
349,844

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,796,073
2,480,202
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
949,018
471,238
Adjustments in respect of prior years
34,007
(32,722)
Effect of change in corporation tax rate
(4,807)
218,034
Other adjustments
(130,659)
(306,706)
Taxation charge
847,559
349,844

 

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
3,726,217
12,521,465
160,750
48,892
4,180,767
20,638,091
Additions
152,567
1,054,560
17,382
11,792
37,398
1,273,699
Disposals
(367,831)
(629,500)
-
0
-
0
(32,695)
(1,030,026)
Exchange adjustments
-
0
(292)
(23)
-
0
(438)
(753)
At 31 December 2023
3,510,953
12,946,233
178,109
60,684
4,185,032
20,881,011
Depreciation and impairment
At 1 January 2023
755,314
5,733,923
132,572
8,325
3,759,827
10,389,961
Depreciation charged in the year
26,217
968,009
5,009
11,744
100,905
1,111,884
Eliminated in respect of disposals
(43,867)
(495,352)
-
0
-
0
(21,618)
(560,837)
Exchange adjustments
-
0
(269)
(23)
-
0
(438)
(730)
At 31 December 2023
737,664
6,206,311
137,558
20,069
3,838,676
10,940,278
Carrying amount
At 31 December 2023
2,773,289
6,739,922
40,551
40,615
346,356
9,940,733
At 31 December 2022
2,970,903
6,787,542
28,178
40,567
420,940
10,248,130
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
3,484,012
9,963,306
155,396
4,112,921
17,715,635
Additions
144,607
676,870
17,382
37,398
876,257
Disposals
(367,831)
(528,500)
-
0
(32,695)
(929,026)
At 31 December 2023
3,260,788
10,111,676
172,778
4,117,624
17,662,866
Depreciation and impairment
At 1 January 2023
747,644
5,306,719
127,218
3,699,835
9,881,416
Depreciation charged in the year
21,306
663,293
5,009
97,655
787,263
Eliminated in respect of disposals
(43,867)
(457,024)
-
0
(21,618)
(522,509)
At 31 December 2023
725,083
5,512,988
132,227
3,775,872
10,146,170
Carrying amount
At 31 December 2023
2,535,705
4,598,688
40,551
341,752
7,516,696
At 31 December 2022
2,736,368
4,656,587
28,178
413,086
7,834,219
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
220,367
Amortisation and impairment
At 1 January 2023
44,964
Amortisation charged for the year
20,842
At 31 December 2023
65,806
Carrying amount
At 31 December 2023
154,561
At 31 December 2022
175,403
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Financial instruments

Financial assets

 

The group holds financial assets in the form of loans measured at amortised cost. Loans held at 31 December 2023 amounted to £6,451,776 (2022 - £4,295,404). Interest is charged on such loans and repayment schedules are in place with amounts becoming due for repayment after more than one year of £2,839,324 (2022 - £849,325).

 

The company holds financial assets as outlined above with amounts due at 31 December 2023 of £863,439 (2022 - £877,750), of which amounts falling due after more than one year were £839,324 (2022 - £849,325).

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
795,828
795,828
Loans to subsidiaries
15
-
0
-
0
2,146,035
2,242,191
-
0
-
0
2,941,863
3,038,019
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments (Continued)
- 31 -
Movements in fixed asset investments
Company
Invetsment in subsidiaries
Loans to subsidiaries
Total
£
£
£
Cost or valuation
At 1 January 2023
795,828
2,242,191
3,038,019
Interest charged
-
44,844
44,844
Repayments
-
(141,000)
(141,000)
At 31 December 2023
795,828
2,146,035
2,941,863
Carrying amount
At 31 December 2023
795,828
2,146,035
2,941,863
At 31 December 2022
344,561
2,693,458
3,038,019
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Gibson Bros (Ireland) Limited
Unit 5B, Unit 5H Fingal Bay Business Park, Balbriggan, Co. Dublin
Odinary shares
100.00
Court Finance Limited
1 Kilmacrew Road, Banbridge, Co. Down BT35 4ES
Ordinary shares
100.00
M P Coleman Limited
14 Brigh Road, Stewartstown, Dungannon, Northern Ireland, BT71 5JP
Ordinary shares
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
372,088
228,012
274,972
171,891
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,848,924
2,713,108
1,748,640
1,436,003
Gross amounts owed by contract customers
349,099
60,086
-
0
-
0
Corporation tax recoverable
-
0
-
0
-
0
14,268
Amounts owed by group undertakings
-
957,326
342,434
1,349,760
Other debtors
5,565,000
4,195,179
2,847,791
1,506,035
Prepayments and accrued income
420,182
347,843
358,161
297,575
9,183,205
8,273,542
5,297,026
4,603,641
Amounts falling due after more than one year:
Trade debtors
378,083
-
0
-
0
-
0
Other debtors
2,839,324
849,325
839,324
849,325
3,217,407
849,325
839,324
849,325
Total debtors
12,400,612
9,122,867
6,136,350
5,452,966
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
2,392,296
1,713,649
429,589
483,130
Gross amounts owed to contract customers
7,376
4,617
7,376
4,617
Corporation tax payable
309,450
47,850
80,229
-
0
Other taxation and social security
466,518
392,986
427,603
363,462
Deferred income
86,957
529,563
-
0
-
0
Other creditors
2,902,091
3,889,102
357,304
1,734,058
Accruals and deferred income
1,104,038
1,125,713
607,943
239,870
7,268,726
7,703,480
1,910,044
2,825,137
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,456,746
1,308,422
Other timing differences
(72,736)
(399,949)
1,384,010
908,473
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
1,214,354
1,149,591
Other timing differences
(71,856)
(246,654)
1,142,498
902,937
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
908,473
902,937
Profit and loss account movement arising in the year
475,537
239,561
Liability at 31 December 2023
1,384,010
1,142,498
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
358,388
270,675
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
21
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
22
Reserves
Profit and loss reserves

 

Capital redemption reserve

This reserve is a non distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares.

 

Other reserves

This reserve records assets gifted to the group by the directors.

 

Profit and loss account

This reserve records retained earnings and accumulated losses.

23
Related party transactions

Group

The group carries on trade on normal commercial terms with companies under common control (connected companies). During the year the group made sales of £5,820,650 (2022 - £4,345,475) to connected companies and purchases of £2,922,926 (2022 - £3,608,112) from connected companies. At 31 December 2023 the group was owed £2,406,821 (2022 - £1,960,137) by connected companies and owed £4,261,706 (2022 - £4,690,567) to connected companies.

    

Company                    

Gibson Bros Limited carries on trade on normal commercial terms with companies under common control (connected companies).

 

Gibson Bros Limited made sales of £3,058,283 (2022 - £3,206,331) to connected companies and made purchases of £633,857 (2022 - £752,654) from connected companies. At the year end, the company was owed £2,311,023 (2022 - £1,589,791) from connected companies and owed £270,561 (2022 - £1,530,705) to connected companies.

 

The directors have taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102.

 

Group and Company                    

Management charge income of £473,093 (2022 - £473,093) was receivable from connected companies in respect of related company charges.

 

During the year Gibson Bros Limited paid rent of £35,000 (2022 - £35,000) to the Gibson Family Pension Fund.

 

Key management is considered to be the Board of Directors. The remuneration paid or payable to key management for employee services is shown in note 7.            

GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,948,514
2,130,358
Adjustments for:
Taxation charged
847,559
349,844
Finance costs
-
0
98
Investment income
(52,797)
(13,486)
Gain on disposal of tangible fixed assets
(38,011)
(51,513)
Fair value (gain)/loss on foreign exchange contracts
(3,630)
23,055
Amortisation and impairment of intangible assets
20,840
23,233
Depreciation and impairment of tangible fixed assets
1,111,884
1,054,383
Movements in working capital:
Increase in stocks
(144,076)
(622)
Increase in debtors
(3,283,549)
(400,219)
(Decrease)/increase in creditors
(679,688)
424,381
Cash generated from operations
727,046
3,539,512
25
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
1,019,053
355,774
Adjustments for:
Taxation charged
319,790
283,122
Investment income
(64,642)
(50,878)
Gain on disposal of tangible fixed assets
(27,283)
(91,224)
Depreciation and impairment of tangible fixed assets
787,263
751,297
Movements in working capital:
Increase in stocks
(103,081)
(8,571)
(Increase)/decrease in debtors
(697,652)
614,650
Decrease in creditors
(995,322)
(323,940)
Cash generated from operations
238,126
1,530,230
26
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,194,288
(29,265)
1,165,023
GIBSON BROS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,276,427
(134,454)
7,141,973
7,276,427
(134,454)
7,141,973
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