REGISTERED NUMBER: 14123383 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
GFE Holdings Ltd |
REGISTERED NUMBER: 14123383 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
GFE Holdings Ltd |
GFE Holdings Ltd (Registered number: 14123383) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
GFE Holdings Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
69 High Street |
Bideford |
Devon |
EX39 2AT |
BUSINESS ADDRESS: | Neet Way |
Holsworthy Industrial Estate |
Holsworthy |
Devon |
EX22 6ES |
GFE Holdings Ltd (Registered number: 14123383) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
The principal activity of the group is the manufacture and fabrication of sheet metal components. |
The registered office is 69 The High Street, Bideford, EX39 2AT. |
Greenfield Engineering (Sheet Metal) Ltd is a subsidiary of GFE Holdings Ltd. |
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at year end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties faced. |
REVIEW OF BUSINESS |
The key financial performance indicators are those that communicate the financial performance and strength of the group as a whole. These being turnover and gross margin. |
Turnover has decreased from £8,146,186 in 2022 to £5,905,852 in 2023. The decrease was due to a general reduction in customer spend across the board. |
The gross profit percentage has decreased marginally from 34.6% in 2022 to 31.8% in 2023. |
The directors have been seeking to maintain margin, contain operating costs, increase the number of customers and improved product quality to achieve the business targets. Greenfield engineering continues to invest in new machinery and production processes in order to enhance the quality and on time delivery of customer products, whilst controlling costs. To this end fixed assets have increased to a total of £3,386,000. |
It has always been the business strategy to retain skill and develop staff. The business has a strong apprenticeship program, which is a key moving forwards. |
Both management and executive board meetings are held monthly where performance is compared to forecast budgets and any variance is investigated, if required strategic action is taken. |
With the risks and uncertainties of the current economic climate, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control. |
Shareholders funds as at 31st of December 2023 amounted to £2,816,697. |
GFE Holdings Ltd (Registered number: 14123383) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The market conditions in which the group operates are still extremely challenging due to the global economic climate and the competitive pressures within the industry. |
Financial risk |
The group's operations expose it to a variety of financial risks that include the effect of changes in credit liquidity and interest rate 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 levels of debt financed and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied. |
Credit risk |
The group has implemented policies that require appropriate credit checks on customers before sales are made in addition to this the company ensures the recoverability of all commercial sales through an outside credit agency. |
Liquidity risk |
The directors believe that the group has sufficient funds available to support its activities in the future. |
DIRECTORS STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP |
The directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts of supply with our customers. The group actually plays a part within the local community as it aims to employ local people and utilise the services of local companies as far as is possible. The directors are committed to employees' health, well-being and training engaging with specialists for external training and providing in-house sessions where required. |
FUTURE DEVELOPMENTS |
The parent company has purchased the second of the two sites from which the group trades in order to secure the long term sustainability and future of the business. |
SIGNED ON BEHALF OF THE BOARD: |
GFE Holdings Ltd (Registered number: 14123383) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £ 4,000 . |
RESEARCH AND DEVELOPMENT |
The subsidiary company undertakes extensive research and development activities, including on advancing security and durability in flat-pack storage units and EV chargers, tooling development and adaptation of existing machinery for advanced HVAC systems and network rail applications, and design and fabrication of visually optimised residential air source heat pump units. The charge to the income statement for the year was £502,264. |
EVENTS SINCE THE END OF THE YEAR |
Since the balance sheet date the parent company has purchased one of the two sites from which the group trades from its directors for £1,960,000. The other site was already owned by the company. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Particulars of the financial risk management objectives and policies of the company and future developments are set out in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
GFE Holdings Ltd (Registered number: 14123383) |
Report of the Directors |
for the Year Ended 31 December 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
SIGNED ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
GFE Holdings Ltd |
Qualified opinion |
We have audited the financial statements of GFE Holdings Ltd (the 'parent company') and its subsidiary (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the 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, except for the possible effects of the matters described in the Basis for Qualified Opinion section of our report, the accompanying financial statements: |
- give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's loss for the period 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 qualified opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical inventories at the beginning of the period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2021 and 31 December 2022, which are included in the balance sheet at £564,531 and £493,252 respectively, by using other audit procedures. Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023 and also for the year ended 31 December 2022. Our audit opinion on the group financial statements for the year ended 31 December 2023 has been modified accordingly. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 qualified opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Corresponding figures |
The corresponding figures for the year ended 31 December 2022 are unaudited. |
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
Report of the Independent Auditors to the Members of |
GFE Holdings Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
As described in the basis for qualified opinion of our report, we were unable to satisfy ourselves concerning the inventory quantities held at 31st December 2021 and 31st December 2022, which are included in the balance sheet at £564,531 and £493,252 respectively. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
Opinions on other matters prescribed by the Companies Act 2006 |
We were not appointed as auditor of the group until after 31 December 2022 and thus did not observe the counting of physical inventories at the beginning of the period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2021 and 31 December 2022, which are included in the balance sheet at £564,531 and £493,252 respectively, by using other audit procedures. |
Consequently we were unable to determine whether any adjustment to these amounts were necessary or whether there was any consequential effect on the cost of sales for the year ended 31 December 2023 and also for the year ended 31 December 2022. |
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
- the information given in the the Group Strategic Report and Report of the Directors for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, 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 Group Strategic Report or the Report of the Directors. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- we were unable to determine whether adequate accounting records have been kept by the parent company. |
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: |
- returns adequate for our audit have not been received by branches not visited by us; or |
- the parent company financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made. |
Report of the Independent Auditors to the Members of |
GFE Holdings Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. In common with all audits under UK ISAs we are also required to perform specific procedures to respond to the threat of management override. This work included testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We gained an understanding of the legal and regulatory framework applicable to the parent company and the group and the industry in which they operate, and considered the risk of acts by the parent company and the group that were contrary to these laws and regulations, including fraud. |
We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Health and Safety Act, UK Companies Act and UK tax legislation. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the Group's legal advisors. |
We did not identify any key audit matters relating to irregularities, including fraud. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
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 |
GFE Holdings Ltd |
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. |
for and on behalf of |
Statutory Auditors and Chartered Accountants |
69 High Street |
Bideford |
Devon |
EX39 2AT |
GFE Holdings Ltd (Registered number: 14123383) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 5,905,852 | 8,146,186 |
Cost of sales | 4,026,020 | 5,331,381 |
GROSS PROFIT | 1,879,832 | 2,814,805 |
Administrative expenses | 2,131,211 | 1,911,067 |
(251,379 | ) | 903,738 |
Other operating income | 14,209 | 33,277 |
OPERATING (LOSS)/PROFIT | 7 | (237,170 | ) | 937,015 |
Interest receivable and similar income | 24,939 | 3,235 |
(212,231 | ) | 940,250 |
Gain/loss on revaluation of investment property |
300,611 |
- |
88,380 | 940,250 |
Interest payable and similar expenses | 9 | 135,257 | 47,684 |
(LOSS)/PROFIT BEFORE TAXATION | (46,877 | ) | 892,566 |
Tax on (loss)/profit | 10 | 3,811 | 60,500 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(50,688 |
) |
832,066 |
(Loss)/profit attributable to: |
Owners of the parent | (50,688 | ) | 832,066 |
Total comprehensive income attributable to: |
Owners of the parent | (50,688 | ) | 832,066 |
GFE Holdings Ltd (Registered number: 14123383) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 | 2,319,632 | 2,096,772 |
Investments | 15 | - | - |
Investment property | 16 | 1,066,368 | 712,874 |
3,386,000 | 2,809,646 |
CURRENT ASSETS |
Stocks | 17 | 542,022 | 493,252 |
Debtors | 18 | 896,336 | 1,464,158 |
Cash at bank | 1,287,692 | 1,525,028 |
2,726,050 | 3,482,438 |
CREDITORS |
Amounts falling due within one year | 19 | 1,508,436 | 1,850,373 |
NET CURRENT ASSETS | 1,217,614 | 1,632,065 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,603,614 |
4,441,711 |
CREDITORS |
Amounts falling due after more than one year |
20 |
(1,482,352 |
) |
(1,374,439 |
) |
PROVISIONS FOR LIABILITIES | 24 | (304,565 | ) | (195,887 | ) |
NET ASSETS | 2,816,697 | 2,871,385 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 100 | 100 |
Retained earnings | 26 | 2,816,597 | 2,871,285 |
SHAREHOLDERS' FUNDS | 2,816,697 | 2,871,385 |
The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2024 and were signed on its behalf by: |
Mr F E Green - Director |
Mrs M D Green - Director |
GFE Holdings Ltd (Registered number: 14123383) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 18 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 19 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
20 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 24 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 870,711 | 634,726 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GFE Holdings Ltd (Registered number: 14123383) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 2,047,219 | 2,047,319 |
Changes in equity |
Dividends | - | (8,000 | ) | (8,000 | ) |
Total comprehensive income | - | 832,066 | 832,066 |
Balance at 31 December 2022 | 100 | 2,871,285 | 2,871,385 |
Changes in equity |
Dividends | - | (4,000 | ) | (4,000 | ) |
Total comprehensive income | - | (50,688 | ) | (50,688 | ) |
Balance at 31 December 2023 | 100 | 2,816,597 | 2,816,697 |
GFE Holdings Ltd (Registered number: 14123383) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
GFE Holdings Ltd (Registered number: 14123383) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 33 | 200,608 | 1,511,518 |
Interest paid | (73,686 | ) | (10,996 | ) |
Interest element of hire purchase payments paid |
(27,930 |
) |
(29,869 |
) |
Taxation refund | 24,613 | 149,415 |
Net cash from operating activities | 123,605 | 1,620,068 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (28,503 | ) | (1,157,304 | ) |
Purchase of investment property | (52,883 | ) | (712,874 | ) |
Sale of tangible fixed assets | - | 500 |
Interest received | 24,939 | 3,235 |
Net cash from investing activities | (56,447 | ) | (1,866,443 | ) |
Cash flows from financing activities |
New loans in year | - | 1,100,000 |
Loan repayments in year | (43,577 | ) | (7,326 | ) |
Capital repayments in year | (228,439 | ) | (273,703 | ) |
Amount introduced by directors | 64,790 | 750,964 |
Amount withdrawn by directors | (93,268 | ) | (441,571 | ) |
Equity dividends paid | (4,000 | ) | (8,000 | ) |
Net cash from financing activities | (304,494 | ) | 1,120,364 |
(Decrease)/increase in cash and cash equivalents | (237,336 | ) | 873,989 |
Cash and cash equivalents at beginning of year |
34 |
1,525,028 |
651,039 |
Cash and cash equivalents at end of year | 34 | 1,287,692 | 1,525,028 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
GFE Holdings Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. There were no material departures from that standard. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies adopted in the preparation of the financial statements are set out below and remain unchanged from the previous period, and also have been consistently applied within the same accounts. |
Basis of consolidation |
The consolidated accounts have been prepared under the merger basis of accounting. The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertaking. As a consolidated group profit and loss account is published, a separate profit and loss account for the parent is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
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. As a result of the judgements made 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. |
Estimated useful lives |
In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change is expected useful life of tangible assets.The depreciation charge for the year ended 31 December 2023 was £317,633 (2022 - £336,930). |
Stock provision |
Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values.There were no stock provisions at 31 December 2023 (2022 - £nil). |
Provision for doubtful debts |
Where estimated amounts receivable is less than the value of the debt included in the accounts, a provision for doubtful debts will be recorded. There were no provision for bad debts at 31 December 2023 (2022 - £nil). |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. No depreciation is provided in respect of investment properties. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Basic financial instruments with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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. |
Rentals under operating leases are charged to the profit and loss account as they fall due. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
Having regard to the group's anticipated future revenues and costs including repayment of debt where appropriate, together with the expected availability of working capital, the directors consider that it is appropriate to prepare the financial statements on the going concern basis. |
On 20 July 2022 the company acquired the entire share capital of Greenfield Engineering (Sheet Metal) Ltd via a share for share exchange. This has been accounted for under the merger method of accounting. |
Investments in subsidiaries |
Investments in subsidiaries are valued at cost less impairment. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Manufacturing | 5,806,652 | 8,130,989 |
Property letting | 99,200 | 15,197 |
5,905,852 | 8,146,186 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 5,905,240 | 8,090,367 |
Other | 612 | 55,819 |
5,905,852 | 8,146,186 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,956,847 | 2,059,421 |
Social security costs | 181,333 | 200,802 |
Other pension costs | 137,272 | 106,623 |
2,275,452 | 2,366,846 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 6 | 7 |
Production | 54 | 55 |
Sales | 2 | 1 |
Administration | 1 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was 63 (2022 - 64 ) . |
6. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration | 18,200 | 18,026 |
Directors' pension contributions to money purchase schemes | 85,000 | 53,679 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Operating lease income | (99,200 | ) | (15,197 | ) |
Depreciation - owned assets | 66,398 | 61,067 |
Depreciation - assets on hire purchase contracts | 251,235 | 275,863 |
Profit on disposal of fixed assets | - | (500 | ) |
Foreign exchange differences | (2,790 | ) | (97 | ) |
Operating lease payments | 304,983 | 347,734 |
8. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
25,000 |
- |
This amount is the aggregate fee for the audit of group and the audit of the subsidiary. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 73,686 | 10,985 |
Other interest payable | 33,641 | 6,830 |
Hire purchase interest | 27,930 | 29,869 |
135,257 | 47,684 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (104,867 | ) | (12,153 | ) |
Deferred tax | 108,678 | 72,653 |
Tax on (loss)/profit | 3,811 | 60,500 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (46,877 | ) | 892,566 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
(11,719 |
) |
169,588 |
Effects of: |
Expenses not deductible for tax purposes | 4,992 | 1,103 |
Adjustments to tax charge in respect of previous periods | - | (12,153 | ) |
Effect of super deductions | (10 | ) | (22,193 | ) |
Impact of change in tax rate on deferred tax | - | 47,013 |
Effect of enhanced allowance on research and development | (120,568 | ) | (122,858 | ) |
Effect of research and development tax credit | 131,116 | - |
Total tax charge | 3,811 | 60,500 |
11. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 1,000 | 2,000 |
Ordinary B shares of £1 each |
Interim | 1,000 | 2,000 |
Ordinary C share of £1 |
Interim | 1,000 | 2,000 |
Ordinary D share of £1 |
Interim | 1,000 | 2,000 |
4,000 | 8,000 |
13. | RESEARCH AND DEVELOPMENT |
The group's expenditure on qualifying research activities for the year ended 31 December 2023 was £502,264 (2022 - £497,399). |
14. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 January 2023 | 988,971 | - | 262,640 |
Additions | - | 16,946 | 10,234 |
At 31 December 2023 | 988,971 | 16,946 | 272,874 |
DEPRECIATION |
At 1 January 2023 | - | - | 254,566 |
Charge for year | 7,870 | 1,130 | 2,438 |
At 31 December 2023 | 7,870 | 1,130 | 257,004 |
NET BOOK VALUE |
At 31 December 2023 | 981,101 | 15,816 | 15,870 |
At 31 December 2022 | 988,971 | - | 8,074 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 5,208,072 | 103,130 | 19,850 | 6,582,663 |
Additions | 500,820 | 12,493 | - | 540,493 |
At 31 December 2023 | 5,708,892 | 115,623 | 19,850 | 7,123,156 |
DEPRECIATION |
At 1 January 2023 | 4,131,696 | 79,779 | 19,850 | 4,485,891 |
Charge for year | 289,440 | 16,755 | - | 317,633 |
At 31 December 2023 | 4,421,136 | 96,534 | 19,850 | 4,803,524 |
NET BOOK VALUE |
At 31 December 2023 | 1,287,756 | 19,089 | - | 2,319,632 |
At 31 December 2022 | 1,076,376 | 23,351 | - | 2,096,772 |
Included in cost of land and buildings is freehold land of £202,009 (2022 - £202,009) which is not depreciated. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 | 3,439,706 |
Additions | 495,986 |
At 31 December 2023 | 3,935,692 |
DEPRECIATION |
At 1 January 2023 | 2,493,759 |
Charge for year | 251,235 |
At 31 December 2023 | 2,744,994 |
NET BOOK VALUE |
At 31 December 2023 | 1,190,698 |
At 31 December 2022 | 945,947 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in cost of land and buildings is freehold land of £ 202,009 (2022 - £ 202,009 ) which is not depreciated. |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 January 2023 | 712,874 |
Additions | 52,883 |
Revaluations | 300,611 |
At 31 December 2023 | 1,066,368 |
NET BOOK VALUE |
At 31 December 2023 | 1,066,368 |
At 31 December 2022 | 712,874 |
The investment property is accounted for at fair value on an on-going basis. |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2023 | 300,611 |
Cost | 765,757 |
1,066,368 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 765,757 | 712,874 |
Company |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Additions |
Revaluations |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | INVESTMENT PROPERTY - continued |
Company |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2023 | 300,611 |
Cost | 765,757 |
1,066,368 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 765,757 | 712,874 |
The investment property is accounted for at fair value on an on-going basis. |
17. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 264,954 | 354,694 |
Work-in-progress | 277,068 | 138,558 |
542,022 | 493,252 |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 674,683 | 1,250,836 |
Other debtors | 45,944 | 92,998 |
Corporation tax | 138,748 | 58,494 |
VAT | - | - |
Prepayments and accrued income | 36,961 | 61,830 |
896,336 | 1,464,158 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 21) | 48,871 | 46,138 |
Hire purchase contracts (see note 22) | 312,526 | 193,943 |
Trade creditors | 493,768 | 759,567 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 47,547 | 47,949 |
VAT | 23,798 | 247,274 |
Other creditors | 157,961 | 122,044 |
Directors' current accounts | 281,968 | 310,446 |
Accrued expenses | 141,997 | 123,012 |
1,508,436 | 1,850,373 |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 21) | 1,000,226 | 1,046,536 |
Hire purchase contracts (see note 22) | 462,337 | 297,369 |
Accruals and deferred income | 19,789 | 30,534 |
1,482,352 | 1,374,439 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 48,871 | 46,138 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 51,926 | 49,021 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 176,083 | 166,224 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans due after 5 years | 772,217 | 831,291 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | LOANS - continued |
The company had two bank loans during the year which were repayable by monthly instalments. The loans incur interest at a rates of 2.5% and 1.3% over base rate and is due for final repayment on 27 October 2037. The loans are due for review in November 2024. |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 312,526 | 193,943 |
Between one and five years | 462,337 | 297,369 |
774,863 | 491,312 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 72,949 | 44,947 |
Between one and five years | 76,323 | 36,654 |
149,272 | 81,601 |
23. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 1,049,097 | 1,092,674 |
Hire purchase contracts | 774,863 | 491,312 |
1,823,960 | 1,583,986 |
Bank loans are secured by fixed and floating charges over the group's assets. |
The hire purchase contracts are secured over the assets to which they relate. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 304,565 | 195,887 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 195,887 |
Charge to Statement of Comprehensive Income during year | 108,678 |
Balance at 31 December 2023 | 304,565 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
Deferred tax is in respect of accelerated capital allowances and on the unrealised gain on the value of investment property. It is not expected to change significantly in the year to 31 December 2024. |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 49 | 49 |
Ordinary B | £1 | 49 | 49 |
Ordinary C | £1 | 1 | 1 |
Ordinary D | £1 | 1 | 1 |
100 | 100 |
Shares rank equally for voting purposes. On a show of hands each member shall have one vote and on a poll each member shall have one vote per share held. The voting rights are more particularly described in the Articles of Association. |
There are no rights, preferences or restrictions including restrictions on the payment of dividends and the repayment of capital on Ordinary shares. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
26. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 2,871,285 |
Deficit for the year | (50,688 | ) |
Dividends | (4,000 | ) |
At 31 December 2023 | 2,816,597 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
Included in retained earnings is £225,458 (2022 - £nil) of profits which are not available for distribution as they are unrealised. |
27. | PENSION COMMITMENTS |
The group provides a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost and charge represents contributions payable by the group to the fund and amounted to £137,272 (2022 - £106,623). At 31 December 2023 contributions amounting to £8,171 (2022 - £8,641) were payable to the fund and were included in creditors. |
28. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 340,000 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
29. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Mr F E Green and Mrs M D Green |
Balance outstanding at start of year | - | - |
Amounts advanced | 56,743 | 98,274 |
Amounts repaid | (56,743 | ) | (98,274 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
The maximum overdrawn balance during the year was £45,261. |
Interest was charged on the loan at the official interest rate. |
30. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £4,000 (2022 - £8,000) were paid to the directors and their close family members. |
During the year, rent of £209,784 (2022 - £209,784) was paid to the directors. |
The total compensation payable for the year to those individuals whom the directors consider to be key management personnel was £552,082 (2022 - £600,765). |
31. | POST BALANCE SHEET EVENTS |
Since the balance sheet date the parent company has purchased one of the two sites from which the group trades from its directors for £1,960,000. The other site was already owned by the company. |
32. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr F E and Mrs M D Green, the directors and majority shareholders. |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
33. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (46,877 | ) | 892,566 |
Depreciation charges | 317,633 | 336,930 |
Profit on disposal of fixed assets | - | (500 | ) |
Gain on revaluation of fixed assets | (300,611 | ) | - |
Finance costs | 135,257 | 47,684 |
Finance income | (24,939 | ) | (3,235 | ) |
80,463 | 1,273,445 |
(Increase)/decrease in stocks | (48,770 | ) | 71,279 |
Decrease in trade and other debtors | 648,076 | 22,271 |
(Decrease)/increase in trade and other creditors | (479,161 | ) | 144,523 |
Cash generated from operations | 200,608 | 1,511,518 |
34. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,287,692 | 1,525,028 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,525,028 | 651,039 |
GFE Holdings Ltd (Registered number: 14123383) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
35. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 1,525,028 | (237,336 | ) | 1,287,692 |
1,525,028 | (237,336 | ) | 1,287,692 |
Debt |
Finance leases | (491,312 | ) | 228,439 | - | (774,863 | ) |
Debts falling due |
within 1 year | (46,138 | ) | (2,733 | ) | - | (48,871 | ) |
Debts falling due |
after 1 year | (1,046,536 | ) | 46,310 | - | (1,000,226 | ) |
(1,583,986 | ) | 272,016 | - | (1,823,960 | ) |
Total | (58,958 | ) | 34,680 | - | (536,268 | ) |
36. | CORRESPONDING AMOUNTS |
These financial statements cover the year ended 31 December 2023. GFE Holdings Ltd was incorporated on 23 May 2022. The comparative figures cover the period 23 May 2022 to 31 December 2022 for this company and for the year ended 31 December 2022 for the subsidiary company. Accordingly, the corresponding amounts may not be comparable as required by the provisions of FRS 102. |