REGISTERED NUMBER: 08339591 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GALLERY DIRECT 2013 LIMITED |
REGISTERED NUMBER: 08339591 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GALLERY DIRECT 2013 LIMITED |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
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 | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 21 |
GALLERY DIRECT 2013 LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARIES: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Gary Sargeant |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
5 White Oak Square |
London Road |
Swanley |
Kent |
BR8 7AG |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
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. |
REVIEW OF BUSINESS |
The company is a non-trading company. The company owns the whole of the share capital of Gallery Direct Holdings Limited, who in turn owns the whole of the share capital in Gallery Direct Limited, Dreamworks Beds Limited, and Gallery Direct (Australia) Pty Limited. On the 3rd May 2023 Gallery Direct Limited purchased 100% of the share capital in Art Marketing Limited. The company is the ultimate parent company of Gallery Direct Limited, Dreamworks Beds Limited and Gallery Direct (Australia) Pty Limited, and Art Marketing Limited. |
Gallery Direct Holdings limited is a non-trading company. Gallery Direct Limited, Dreamworks Beds Limited, Gallery Direct (Australia) Pty Limited, and Art Marketing Limited are trading companies. |
Gallery Direct Limited is a design-led supplier of home décor and furnishings committed to providing its retail and trade customers with a complete furnishing solution. Our results for 2023 were significantly better than 2022 with improvements seen in all areas covering revenue, margin and overheads. The relocation and consolidation of our warehouse operations during 2022 has improved our service levels and reduced our overall costs as we planned. During 2023 we also started to refine our customer base and product portfolio, this ongoing work supported our improved performance in 2023 and will continue to do so in future years. |
Dreamworks Beds Limited continued to trade within its primary market sector throughout 2023. During the current year the company undertook a number of actions to restructure its cost base, these actions together with its new product ranges have resulted in a much improved trading result during 2024 and there is an expectation for the company to at least breakeven in 2024 as a whole which is a significant improvement on recent results. |
Gallery Direct (Australia) Pty Limited continued to trade within its primary market sector throughout 2023. It continued to trade as a separate company and provided household goods including bed and furniture products to large retail stores and the general public through its showrooms. On the 21st December 2023 the company was placed into liquidation, due to continuous poor trading results. |
With the changes made within the group, the profitability for 2024 is beyond the results achieved in 2023. We expect this to continue throughout the rest of the 2024 financial year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Whilst the Group does not anticipate any event that will have a significant adverse effect on business, because much of its product is manufactured overseas, any fluctuation in exchange rates will impact on the business. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
RESULTS AND PERFORMANCE |
Gallery Direct (2013) Ltd had no trading income during the year but was subject to audit fees and other professional fees. |
The shareholders' funds of the Gallery Direct (2013) Limited total £13,855 (2022: £25,055) in their individual accounts. |
Gallery Direct Holdings Limited did not trade during 2023 but incurred an audit fee and exchange differences which have been included in the profit and loss account within their accounts. There was also the write off of the investment and intercompany loan of subsidiary Gallery Direct (Australia) Pty Limited who went into liquidation on the 21st December 2023. |
The shareholders' funds of the Gallery Direct Holdings Limited is a £125,204 deficit (2022: £17,253 surplus) in their accounts. |
Frank Hudson Limited remained dormant during 2023 following the transfer of its trade into Gallery Direct Limited in 2015. |
Gallery Direct Limited continued to trade during 2023 and the results for the company for the year as set out on page 9 of their accounts show a profit on ordinary activities before taxation of £1.021m (2022 loss: £7.242m). |
The shareholders' funds of Gallery Direct Limited total £10.794m (2022: £8.834m) in their accounts. |
Dreamworks Beds Limited continued to trade during 2023 and the results for the company for the year as set out on page 8 of their accounts show a loss on ordinary activities before taxation of £1,252,646 (2022: £1,319,865).As described above, we expect Dreamworks to trade close to breakeven during the 2024 financial year. |
Gallery Direct Australia Pty continued to trade during 2022 until the 21st December 2023 when it went into liquidation. The Accounts for 2023 show a loss before tax of £786,678 (2022: £477,938). |
BUSINESS ENVIRONMENT |
Gallery Direct Limited, Dreamworks Beds Limited and Art Marketing Limited trade within the UK and the rest of the world. Within the UK the Home Furnishings/Home Décor sector is very competitive. The company is well established in these sectors and the two companies are able to offer a diverse range of products to sell into these markets. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STRATEGY |
The company will continue to hold investments in other companies and support these companies. |
Gallery Direct Limited, Dreamworks Beds Limited and Art Marketing Limited will continue to explore ways to innovate and expand its offer across the sector in which it operates. Regular reviews of the product offer are undertaken and potential new markets explored. |
Gallery Direct Limited, Dreamworks Beds Limited and Art Marketing Limited will continue to consolidate their position and concentrate their efforts on achieving maximum growth in existing market segments. They aim to improve efficiency in all areas of their operations and to control operating costs whilst at the same time growing the businesses further. |
ON BEHALF OF THE BOARD: |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
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 |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
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. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, Sargeant Partnership LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GALLERY DIRECT 2013 LIMITED |
Opinion |
We have audited the financial statements of Gallery Direct 2013 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
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. |
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. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GALLERY DIRECT 2013 LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the 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 |
In the light of the knowledge and understanding of the group and the parent company and its 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. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from 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; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GALLERY DIRECT 2013 LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK). |
In identifying and assessing risks of material misstatement in respect of irregularities including, fraud and non-compliance with laws and regulations, our procedures included the following: |
- We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006, the UK Corporate Governance Code and UK corporate taxation laws. |
-We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making inquiries to the management and directors. We corroborated our inquiries through our review of board minutes and papers provided to the audit engagement team. |
-We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit engagement team included: |
a) Identifying and assessing the design effectiveness of controls management has put in place to prevent and detect fraud; |
b) Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
c) Challenging assumptions and judgements made by management in its significant accounting estimates; |
d) Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations: and |
e) Assessing the extent of compliance with the relevant laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GALLERY DIRECT 2013 LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
5 White Oak Square |
London Road |
Swanley |
Kent |
BR8 7AG |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 3 | 45,120,327 | 1,577,025 | 46,697,352 |
Cost of sales | (34,838,104 | ) | (1,862,959 | ) | (36,701,063 | ) |
GROSS PROFIT/(LOSS) | 10,282,223 | (285,934 | ) | 9,996,289 |
Administrative expenses | (10,041,154 | ) | (632,999 | ) | (10,674,153 | ) |
241,069 | (918,933 | ) | (677,864 | ) |
Other operating income | 158,819 | 6 | 158,825 |
OPERATING PROFIT/(LOSS) | 5 | 399,888 | (918,927 | ) | (519,039 | ) |
Exceptional Items | 6 | 132,826 | - | 132,826 |
532,714 | (918,927 | ) | (386,213 | ) |
Interest receivable and similar income | 13,665 | - | 13,665 |
Interest payable and similar expenses | 7 | (810,265 | ) | (1,441 | ) | (811,706 | ) |
LOSS BEFORE TAXATION | (263,886 | ) | (920,368 | ) | (1,184,254 | ) |
Tax on loss | 8 | 1,011,213 | - | 1,011,213 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( | ) | ( | ) |
Profit/(loss) attributable to: |
Owners of the parent | (173,041 | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 3 | 45,237,832 | - | 45,237,832 |
Cost of sales | (41,597,692 | ) | - | (41,597,692 | ) |
GROSS PROFIT | 3,640,140 | - | 3,640,140 |
Administrative expenses | (8,742,805 | ) | - | (8,742,805 | ) |
(5,102,665 | ) | - | (5,102,665 | ) |
Other operating income | 5,198 | - | 5,198 |
OPERATING LOSS | 5 | (5,097,467 | ) | - | (5,097,467 | ) |
Exceptional Items | 6 | (1,083,629 | ) | - | (1,083,629 | ) |
(6,181,096 | ) | - | (6,181,096 | ) |
Interest payable and similar expenses | 7 | (518,029 | ) | - | (518,029 | ) |
LOSS BEFORE TAXATION | (6,699,125 | ) | - | (6,699,125 | ) |
Tax on loss | 8 | 165,411 | - | 165,411 |
LOSS FOR THE FINANCIAL YEAR | ( | ) | ( | ) |
Loss attributable to: |
Owners of the parent | (6,533,714 | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
LOSS FOR THE YEAR | (173,041 | ) | (6,533,714 | ) |
OTHER COMPREHENSIVE INCOME |
Asset Revaluation | - | (694,652 | ) |
Exchange gain or loss | 72,364 | (54,495 | ) |
Income tax relating to components of other comprehensive income | - | - |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | 72,364 | (749,147 | ) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (100,677 | ) | (7,282,861 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (100,677 | ) | (7,282,861 | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 300,620 | 373,406 |
Tangible assets | 11 | 18,367,973 | 18,640,688 |
Investments | 12 | - | - |
18,668,593 | 19,014,094 |
CURRENT ASSETS |
Stocks | 13 | 8,377,979 | 11,268,793 |
Debtors | 14 | 7,446,902 | 6,694,777 |
Cash at bank and in hand | 592,700 | 441,319 |
16,417,581 | 18,404,889 |
CREDITORS |
Amounts falling due within one year | 15 | 16,905,958 | 18,291,741 |
NET CURRENT (LIABILITIES)/ASSETS | (488,377 | ) | 113,148 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 18,180,216 | 19,127,242 |
CREDITORS |
Amounts falling due after more than one year | 16 | (18,060,563 | ) | (18,310,156 | ) |
PROVISIONS FOR LIABILITIES | 20 | - | (596,756 | ) |
NET ASSETS | 119,653 | 220,330 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 125 | 125 |
Revaluation reserve | 22 | 6,711,040 | 6,711,040 |
Other reserves | 22 | 8,917 | (63,447 | ) |
Retained earnings | 22 | (6,600,429 | ) | (6,427,388 | ) |
SHAREHOLDERS' FUNDS | 119,653 | 220,330 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by: |
M Last - Director |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (11,200 | ) | (10,000 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 125 | (147,706 | ) | 7,659,724 | (8,952 | ) | 7,503,191 |
Changes in equity |
Total comprehensive income | - | (6,279,682 | ) | (948,684 | ) | (54,495 | ) | (7,282,861 | ) |
Balance at 31 December 2022 | 125 | (6,427,388 | ) | 6,711,040 | (63,447 | ) | 220,330 |
Changes in equity |
Total comprehensive income | - | (173,041 | ) | - | 72,364 | (100,677 | ) |
Balance at 31 December 2023 | 125 | (6,600,429 | ) | 6,711,040 | 8,917 | 119,653 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
COMPANY 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 |
Changes in equity |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2023 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,120,592 | 2,173,578 |
Interest paid | (800,784 | ) | (506,736 | ) |
Interest element of hire purchase payments paid | (10,922 | ) | (11,293 | ) |
Tax paid | - | (347,948 | ) |
Net cash from operating activities | 1,308,886 | 1,307,601 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (111,213 | ) | (6,372 | ) |
Purchase of tangible fixed assets | (244,529 | ) | (3,635,386 | ) |
Sale of tangible fixed assets | 43,013 | 1,625,170 |
Intangible assets on acquisition | (102,508 | ) | - |
Tangible assets on acquisition | (252,427 | ) | - |
Reclassification/Exchange adjustments | 7,976 | (4,234 | ) |
Interest received | 13,665 | - |
Net cash from investing activities | (646,023 | ) | (2,020,822 | ) |
Cash flows from financing activities |
Bank loans movement during the year | (365,894 | ) | 189,988 |
Capital repayments in year | (217,952 | ) | 447,366 |
Other reserves movement | 72,364 | (54,495 | ) |
Net cash from financing activities | (511,482 | ) | 582,859 |
Increase/(decrease) in cash and cash equivalents | 151,381 | (130,362 | ) |
Cash and cash equivalents at beginning of year | 2 | 441,319 | 571,681 |
Cash and cash equivalents at end of year | 2 | 592,700 | 441,319 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (1,184,254 | ) | (6,699,125 | ) |
Depreciation charges | 865,091 | 874,511 |
Loss on disposal of fixed assets | 143,320 | - |
Finance costs | 811,706 | 518,029 |
Finance income | (13,665 | ) | - |
622,198 | (5,306,585 | ) |
Decrease in stocks | 2,890,814 | 1,990,011 |
(Increase)/decrease in trade and other debtors | (340,890 | ) | 1,886,919 |
(Decrease)/increase in trade and other creditors | (1,051,530 | ) | 3,603,233 |
Cash generated from operations | 2,120,592 | 2,173,578 |
2. | 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 | 592,700 | 441,319 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 441,319 | 571,681 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 441,319 | 151,381 | 592,700 |
441,319 | 151,381 | 592,700 |
Debt |
Finance leases | (726,463 | ) | 217,952 | (508,511 | ) |
Debts falling due within 1 year | (639,333 | ) | (475,064 | ) | (1,114,397 | ) |
Debts falling due after 1 year | (6,020,730 | ) | 840,958 | (5,179,772 | ) |
(7,386,526 | ) | 583,846 | (6,802,680 | ) |
Total | (6,945,207 | ) | 735,227 | (6,209,980 | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Gallery Direct 2013 Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements consolidate the accounts of Gallery Direct 2013 Limited and all of its subsidiary undertakings. |
These conform to group accounting policies. |
As a consolidated group profit and loss is published, a separate profit and loss for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities in these accounts. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's principal activity. Turnover excludes value added tax. |
The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the entity. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill represents the excess of fair value of the consideration given over the fair value of the identifiable net assets acquired. |
Goodwill on acquisitions is capitalised and will be eliminated by amortisation through the profit and loss over its useful economic life which depending on the acquisition is estimated to be 10 or 20 years. |
This is considered to be the period over which benefit will be derived from the goodwill acquired. |
Negative goodwill is recognised and treated in accordance with FRS102 section 19. The directors assess the accounting periods expected to benefit from the excess of the fair value of non-monetary assets acquired and release negative goodwill in accordance with that assessment. |
Intangible assets |
Intangible assets acquired separately from a group are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. |
Intangible assets acquired on business combinations are recognised separately from goodwill at the |
acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the group. |
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: |
Software & Website costs - 25% reducing balance |
Trademarks |
Trademarks relate to community trade marks that the company purchased in 2014. They are being amortised evenly over their estimated useful life of 5 years. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Functional currency |
The functional currency of the Company is the Great British Pound ("GBP "). Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at rates of exchange prevailing at the balance sheet dates. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Exchange gains or losses arising from foreign currency transactions are included in the determination of net income (loss) for the respective periods |
Cash & cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 43,422,690 | 39,624,780 |
Rest of the World | 2,629,624 | 4,176,923 |
Europe | 645,038 | 1,436,129 |
46,697,352 | 45,237,832 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 9,021,598 | 8,828,351 |
Social security costs | 813,123 | 557,301 |
Other pension costs | 125,162 | 115,492 |
9,959,883 | 9,501,144 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 6 |
Warehouse and Production | 121 | 95 |
Design | 8 | 8 |
Administrative | 74 | 77 |
Transport | 45 | 44 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees by undertakings that were proportionately consolidated during the year was 253 (2022 - 230 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 158,711 | 372,296 |
5. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 28,018 | 26,943 |
Depreciation - owned assets | 476,999 | 356,376 |
Depreciation - assets on hire purchase contracts | 101,208 | 111,426 |
Loss on disposal of fixed assets | 143,320 | - |
Goodwill amortisation | 261,122 | 397,800 |
Trademarks amortisation | 5,845 | 8,909 |
Computer software amortisation | 19,294 | - |
Auditors' remuneration | 31,540 | 30,721 |
6. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional Items | 132,826 | (1,083,629 | ) |
During the year the group moved a significant amount of stock to a larger warehouse, made redundancies and also carried out an impairment review of intercompany loans in line with IFRS 9. There was also a write off of the loan between the previous owner and Art Marketing Limited. As part of the sale of Art Marketing Limited to Gallery Direct Limited this amount is no longer owed and has been subsequently written off to the profit and loss.These costs are a one off and therefore deemed to be exceptional. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 1,441 | 1,732 |
Bank loan interest | 426,182 | 216,145 |
Factoring Interest | 368,286 | 279,321 |
Loan | 4,875 | 9,538 |
Hire purchase | 10,922 | 11,293 |
811,706 | 518,029 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | - | (347,948 | ) |
Prior period corporation tax | (1,649 | ) | (3,963 | ) |
Total current tax | (1,649 | ) | (351,911 | ) |
Deferred tax | (1,009,564 | ) | 186,500 |
Tax on loss | (1,011,213 | ) | (165,411 | ) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (1,184,254 | ) | (6,699,125 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) | (225,008 | ) | (1,272,834 | ) |
Effects of: |
Expenses not deductible for tax purposes | 35,211 | 3,488 |
Capital allowances in excess of depreciation | - | (154,119 | ) |
Depreciation in excess of capital allowances | 94,458 | - |
Exceptional items | - | 485,155 |
Adjustments on Consolidation | 1,241 | (445,829 | ) |
Deferred tax | (1,009,564 | ) | 186,500 |
Prior period Corporation tax | (1,649 | ) | (3,963 | ) |
assets |
Tax losses utilised | 94,098 | 1,036,191 |
Total tax credit | (1,011,213 | ) | (165,411 | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Asset Revaluation |
Exchange gain or loss | 72,364 | - | 72,364 |
72,364 | - | 72,364 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Asset Revaluation | (694,652 | ) | - | (694,652 | ) |
Exchange gain or loss | (54,495 | ) | - | (54,495 | ) |
(749,147 | ) | - | (749,147 | ) |
9. | INDIVIDUAL INCOME STATEMENT |
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. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | Trademarks | software | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 4,057,030 | 67,198 | - | 4,124,228 |
Additions | 109,713 | - | 1,500 | 111,213 |
Additions on Subsidiary Purch | - | - | 165,585 | 165,585 |
Exchange differences | - | (1,194 | ) | - | (1,194 | ) |
At 31 December 2023 | 4,166,743 | 66,004 | 167,085 | 4,399,832 |
AMORTISATION |
At 1 January 2023 | 3,707,628 | 43,194 | - | 3,750,822 |
Amortisation for year | 261,122 | 5,845 | 19,294 | 286,261 |
Amortisation on Subsidiary Pur | - | - | 63,077 | 63,077 |
Exchange differences | - | (948 | ) | - | (948 | ) |
At 31 December 2023 | 3,968,750 | 48,091 | 82,371 | 4,099,212 |
NET BOOK VALUE |
At 31 December 2023 | 197,993 | 17,913 | 84,714 | 300,620 |
At 31 December 2022 | 349,402 | 24,004 | - | 373,406 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 15,314,459 | 783,691 | 816,570 |
Additions | - | - | 34,822 |
Disposals | - | (103,200 | ) | (226,944 | ) |
Additions on Subsidiary Purch | - | 103,200 | 671,682 |
Exchange differences | - | - | (812 | ) |
At 31 December 2023 | 15,314,459 | 783,691 | 1,295,318 |
DEPRECIATION |
At 1 January 2023 | 290,420 | 110,299 | 223,579 |
Charge for year | - | 26,036 | 128,439 |
Eliminated on disposal | - | (55,919 | ) | (125,836 | ) |
Charge on Subsidiary Purchase | - | 59,859 | 489,245 |
Exchange differences | - | - | - |
At 31 December 2023 | 290,420 | 140,275 | 715,427 |
NET BOOK VALUE |
At 31 December 2023 | 15,024,039 | 643,416 | 579,891 |
At 31 December 2022 | 15,024,039 | 673,392 | 592,991 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 2,494,273 | 850,161 | (157,986 | ) | 20,101,168 |
Additions | 207,207 | 2,500 | - | 244,529 |
Disposals | (176,150 | ) | (40,234 | ) | - | (546,528 | ) |
Additions on Subsidiary Purch | - | 33,095 | - | 807,977 |
Exchange differences | (4,510 | ) | (4,129 | ) | - | (9,451 | ) |
At 31 December 2023 | 2,520,820 | 841,393 | (157,986 | ) | 20,597,695 |
DEPRECIATION |
At 1 January 2023 | 809,602 | 184,566 | (157,986 | ) | 1,460,480 |
Charge for year | 259,376 | 164,356 | - | 578,207 |
Eliminated on disposal | (138,735 | ) | (39,705 | ) | - | (360,195 | ) |
Charge on Subsidiary Purchase | - | 8,446 | - | 557,550 |
Exchange differences | (3,276 | ) | (3,044 | ) | - | (6,320 | ) |
At 31 December 2023 | 926,967 | 314,619 | (157,986 | ) | 2,229,722 |
NET BOOK VALUE |
At 31 December 2023 | 1,593,853 | 526,774 | - | 18,367,973 |
At 31 December 2022 | 1,684,671 | 665,595 | - | 18,640,688 |
Cost or valuation at 31 December 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2020 | 10,493,956 | - | - |
Valuation in 2021 | 6,125,000 | 724,978 | 511,966 |
Valuation in 2022 | (1,304,497 | ) | 58,713 | 304,604 |
Cost | - | - | 478,748 |
15,314,459 | 783,691 | 1,295,318 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2020 | - | - | - | 10,493,956 |
Valuation in 2021 | 2,311,996 | 269,595 | (157,986 | ) | 9,785,549 |
Valuation in 2022 | 182,277 | 580,566 | - | (178,337 | ) |
Cost | 26,547 | (8,768 | ) | - | 496,527 |
2,520,820 | 841,393 | (157,986 | ) | 20,597,695 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 115,773 | 250,130 | 362,151 | (54,726 | ) | 673,328 |
Disposals | - | - | (29,512 | ) | - | (29,512 | ) |
Additions on Subsidiary Purch | - | - | 33,095 | - | 33,095 |
Exchange differences | - | - | (4,129 | ) | - | (4,129 | ) |
At 31 December 2023 | 115,773 | 250,130 | 361,605 | (54,726 | ) | 672,782 |
DEPRECIATION |
At 1 January 2023 | 19,296 | 45,858 | 154,060 | (54,726 | ) | 164,488 |
Charge for year | 23,155 | 12,507 | 65,546 | - | 101,208 |
Eliminated on disposal | - | - | (29,512 | ) | - | (29,512 | ) |
Charge on Subsidiary Purchase | - | - | 8,446 | - | 8,446 |
Exchange differences | - | - | (3,044 | ) | - | (3,044 | ) |
At 31 December 2023 | 42,451 | 58,365 | 195,496 | (54,726 | ) | 241,586 |
NET BOOK VALUE |
At 31 December 2023 | 73,322 | 191,765 | 166,109 | - | 431,196 |
At 31 December 2022 | 96,477 | 204,272 | 208,091 | - | 508,840 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | 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: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( | ) |
(Loss)/profit for the year | ( | ) |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( | ) |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( | ) | ( | ) |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( | ) | ( | ) |
Loss for the year | ( | ) | ( | ) |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( | ) | ( | ) |
Loss for the year | ( | ) | ( | ) |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£ |
Aggregate capital and reserves |
Profit for the year |
* The share capital is held indirectly through the company's subsidiary undertaking. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 1,071,964 | 760,726 |
Raw materials | 290,000 | 178,964 |
Finished goods | 7,016,015 | 10,329,103 |
8,377,979 | 11,268,793 |
14. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 4,902,524 | 5,846,450 |
Credit note provision | (100,000 | ) | (265,241 | ) | - | - |
Other debtors | 803,080 | 33,664 |
Tax | 363,262 | 347,948 |
Deferred tax asset | 395,921 | - | - | - |
Prepayments | 1,082,115 | 731,956 |
7,446,902 | 6,694,777 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 7,446,902 | 6,694,777 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Accelerated capital allowances | 395,921 | - |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) | 1,114,397 | 639,333 |
Hire purchase contracts (see note 18) | 174,682 | 236,934 |
Trade creditors | 6,651,952 | 4,935,840 |
Amounts owed to associates | 3,176,782 | 3,176,782 |
Social security and other taxes | 273,868 | 245,901 |
VAT | 683,112 | 796,476 |
Other creditors | 3,568,067 | 7,497,370 |
Net Pay Control | - | (1,727 | ) |
Accruals and deferred income | 1,263,098 | 764,832 |
16,905,958 | 18,291,741 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 5,179,772 | 6,020,730 |
Hire purchase contracts (see note 18) | 333,829 | 489,529 |
Amounts owed to group undertakings | - | - | 524,478 | 513,278 |
Amounts owed to associates | 12,546,962 | 11,799,897 | 3,000,000 | 3,000,000 |
18,060,563 | 18,310,156 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 891,000 | 300,000 |
Mortgage Phillips Building | 223,397 | 339,333 |
1,114,397 | 639,333 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 99,000 | 75,000 |
Mortgage Phillips Building | 241,636 | 354,446 |
340,636 | 429,446 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 750,000 |
Mortgage Phillips Building | 847,099 | 1,147,570 |
847,099 | 1,897,570 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Mortgage Phillips Building | 3,992,037 | 3,693,714 |
The outstanding coronavirus business interruption loan totalling £825k was repaid in full in February 2024. This was repaid with the positive cashflow generated by the company. |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 174,682 | 236,934 |
Between one and five years | 333,829 | 489,529 |
508,511 | 726,463 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | SECURED DEBTS |
Gallery Direct Limited uses RBS Invoice Finance Limited who hold fixed and floating charges over all of the assets of the company. |
The National Westminster Bank Plc holds a fixed charge over the land on the North-west side of Castle Road, Sittingbourne, Kent. |
The National Westminster Bank Plc also holds fixed and floating charges over all of the assets of the Gallery Direct Limited. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | - | 334,188 |
Other timing differences | - | 208,722 |
Accelerated capital allowances | - | 53,846 |
- | 596,756 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 596,756 |
Accelerated capital allowances | (783,955 | ) |
Deferred tax on revaluation | (208,722 | ) |
Balance at 31 December 2023 | (395,921 | ) |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 63 | 63 |
B Ordinary | £1 | 28 | 28 |
C Ordinary | £1 | 34 | 34 |
125 | 125 |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | RESERVES |
Group |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | (6,427,388 | ) | 6,711,040 | (63,447 | ) | 220,205 |
Deficit for the year | (173,041 | ) | (173,041 | ) |
Exchange differences | - | - | 72,364 | 72,364 |
At 31 December 2023 | (6,600,429 | ) | 6,711,040 | 8,917 | 119,528 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Deficit for the year | ( | ) |
At 31 December 2023 |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is M Maslo by virtue of his shareholding. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
During the year Gallery Direct Limited raised sales invoices to Poole Lighting Limited amounting to £24,698 (2022: £10,509). Poole Lighting Limited is a related party of Gallery Direct Limited due to it being under common ownership. At the balance sheet date Poole Lighting Limited owed Gallery Direct Limited £27,131 (2022: £8,666) by way of a trade debtor. |
During the year Poole Lighting Limited raised purchase invoices to Gallery Direct Limited of £976,760 (2022: £1,535,460). At the balance sheet date Gallery Direct Limited owed Poole Lighting Limited £326,408 (2022: £394,370) by way of a stock trade creditor. |
Orion Warehouse Services Limited is a related party of Gallery Direct Limited due to it being under common ownership. |
During the year Gallery Direct Limited raised recharge invoices to Orion Warehouse Services Limited amounting to £16,885 (2022: £8,944). At the balance sheet date Orion Warehouse Services Limited owed Gallery Direct Limited £13,200 (2022: £7,429) by way of a trade debtor. |
During the year Orion Warehouse Services Limited raised purchase invoices to Gallery Direct Limited of £3,554,239 (2022: £3,006,235). At the balance sheet date Gallery Direct Limited owed Orion Warehouse Services Limited £4,651,191 (2022: £2,972,094) by way of a stock trade creditor. |
M Maslo a director of Gallery Direct Limited is also a director of a company called NLC Group of Companies Limited, previously known as The National Lighting Company Limited, a company incorporated in England and Wales. |
At the Balance sheet date Gallery Direct Limited owed NLC Group of Companies Limited £6,997,065 (2022: £6,250,000) by way of an intercompany loan. |
During the year Gallery Direct Limited raised sales invoices to NLC Group of Companies Limited amounting to £1,502 (2022: £292). At the balance sheet date, NLC Group of Companies Limited owed Gallery Direct Limited £1,924 (2022: £292) by way of a trade debtor. |
During the year NLC Group of Companies Limited raised purchase invoices to Gallery Direct Limited of £396,699 (2022: £585,110). At the balance sheet date, Gallery Direct Limited owed NLC Group of Companies Limited £113,350 (2022: £160,268) by way of a trade creditor. |
At the Balance sheet date Dreamworks Beds Limited owed NLC Group of Companies Limited £468,190 (2022: £468,190). |
At the balance sheet date Gallery Direct Holdings Limited owed the NLC Group of Companies Limited £1,070,301 (2022: £1,070,301). |
M Maslo a director of Gallery Direct Limited is also a director of a company called National Lighting Limited, previously known as Genesis 1:3 Limited, a company incorporated in England and Wales. |
At the Balance sheet date Gallery Direct Limited owed National Lighting Limited £2,854,798 (2022: £2,394,058). |
At the balance sheet date Gallery Direct 2013 Limited owed National Lighting Limited £3,000,000 (2022: £3,000,000). |
GALLERY DIRECT 2013 LIMITED (REGISTERED NUMBER: 08339591) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
24. | RELATED PARTY DISCLOSURES - continued |
I Weiler a director of Gallery Direct 2013 Limited, the ultimate parent company is also a director of a company called Danacrest Limited, a company incorporated in England and Wales. |
At the Balance sheet date Gallery Direct Limited owed Danacrest Limited £321,984 (2022: £321,984). |
I Weiler a director of the ultimate parent company Gallery Direct 2013 Limited is also a director of a company called Oakriver Limited, a company incorporated in England and Wales. |
At the Balance sheet date Dreamworks Beds Limited owed Oakriver Limited £366,467 (2022: £366,467). |
At the balance sheet date Gallery Direct Holdings Limited owed Oakriver Limited £144,939 (2022: £144,939). |
Orion Warehouse Services Limited is a related party of Art Marketing Limited due to it being under common ownership. |
During the year Orion Warehouse Services Limited raised purchase invoices to Art Marketing Limited of £128,263. At the balance sheet date Art Marketing Limited owed Orion Warehouse Services Limited £126,819 by way of a trade creditor. |
25. | GOING CONCERN |
The group has the continuous support of the ultimate controlling party M Maslo and the directors feel therefore it is appropriate for the groups accounts to be shown on the going concern basis. |
26. | KEY MANAGEMENT |
M Maslo | Director/Chairman |
M Last | Managing Director/CEO |
P Delaney | Sales Director |
J Hudson | Commercial Director |
C Aldous | Operations Director |
N Atkinson | Finance Director |
P Dodd | Group Finance Director |