REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
GDMP Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
GDMP Limited |
GDMP Limited (Registered number: 07954792) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
GDMP Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
2nd Floor |
Grove House |
55 Lowlands Road |
Harrow |
Middlesex |
HA1 3AW |
GDMP Limited (Registered number: 07954792) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
FAIR REVIEW OF BUSINESS |
The directors are satisfied with the results for the year under review that were in line with the expectations. |
The principal activity of the company remained the same being franchisee of second hand electronic goods. During the year, five new stores were acquired and the company continued to trade through high street shops and online selling second hand electronic and technological products in the UK through its 26 stores. |
Product warranty, brand awareness and our online presence remain the distinct advantages amongst local competitors and larger national brands, we expect to continue to lean on these areas to leverage our position in the market. |
The reduction of cost above store level to enhance profitability remains a focus and work is taking place to deliver more on this front with improved efficiencies in operations through technology and the revision of operational procedures. |
These efficiencies are expected to deliver gains and improvement in stock and people management, labour cost and stock shrinkage. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are number of potential risks and uncertainties which could impact company's performance. The board of Directors consider the risks of all significant business decisions and changes in the external environment and company operations. These risks are assessed by the board on a regular basis to ensure they are identified and appropriately managed. The principal risks arise from inaccurate assessment of the products, inappropriate staff and managers training and inefficient internal controls assessment. |
Financial risk |
The company's financial risk is arising primarily from adjusting buying and selling prices of the products to match demand and supply at a given time. |
However, the company is dealing in the second-hand electronic products which are highly technical and the risk has been mitigated by setting fixed prices across the whole franchise. |
Competitive risk |
UK's franchisee market is competitive, particularly in the high street retail sectors where our business is focused. Many companies have entered the market and are offering similar products which gives rise to competitive pricing structures. The impact of technology has been enormous, and it is essential that we keep abreast of advances in this area. Our Franchisor is one of the leaders in the market, continuous training improvements and product selection criteria has helped us to control competition risk. |
GDMP Limited (Registered number: 07954792) |
Strategic Report |
for the Year Ended 31 December 2023 |
KEY PERFORMANCE INDICATORS |
The company's key performance indicators for the year ended 31 December 2023 are as follows: |
YE 31.12.23 | YE 31.12.22 |
Turnover | £21,646,578 | £20,369,827 |
Gross profit | £8,540,047 | £8,484,684 |
Gross profit margin | 39.45% | 41.65% |
Profit before tax | £1,099,609 | £1,343,654 |
Shareholders' equity | £2,554,801 | £1,928,312 |
In the year ending 31 December 2023, turnover has increased by 6.3% and Gross profit margin has declined marginally and profit before tax has been decreased which is in line with the management's expectations. |
In addition, the company continues to maintain a healthy balance of reserves and cash to meet its current and long-term liabilities as they fall due. |
ON BEHALF OF THE BOARD: |
18 September 2024 |
GDMP Limited (Registered number: 07954792) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The Company's principal activities during the year were continued to be the sale and purchase of second hand technological and entertainment products. |
DIVIDENDS |
The total dividends declared and paid for the year ended 31 December 2023 were £220,600 (2022: £1,525,894). |
FUTURE DEVELOPMENTS |
The company continues to focus on presence at prime high street location as the means of sustaining high turnover levels and improving operational efficiencies. The directors are always looking to enhance the value of the business through forward planning, investing in human resources and expansion programmes. |
The company is actively managing its capital and cash requirements. The directors are confident that the company will continue to meet all future capital requirements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank borrowings.. The main purpose of these instruments is to raise funds for company's operations and to finance company's trading activities. |
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to financial instruments concerned is shown below. |
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding. |
Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding. |
Trade creditors liquidity risk is managed by ensuring funds are available to meet amounts due within agreed terms. |
Interest rate risk - The Company borrows from its bankers using term loans whose tenure depends on the nature of the asset and management's view of the future direction on interest rate. |
In respect of loans due to related parties, these are interest-free and repayable on demand. This allows the company to maintain sufficient funds to meet its payment to creditors. |
GDMP Limited (Registered number: 07954792) |
Report of the Directors |
for the Year Ended 31 December 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, is deemed to be reappointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
GDMP Limited |
Opinion |
We have audited the financial statements of GDMP Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
GDMP Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
GDMP 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: |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed |
below: |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK taxation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management override of controls. Audit procedures performed by the engagement team included: |
- Discussions with those charged with governance; |
- Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias). |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 or intentional misrepresentation, or through collusion. |
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 |
GDMP 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 |
2nd Floor |
Grove House |
55 Lowlands Road |
Harrow |
Middlesex |
HA1 3AW |
GDMP Limited (Registered number: 07954792) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,071,081 | 1,011,347 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Interest receivable and similar income |
1,142,808 | 1,424,701 |
Interest payable and similar expenses |
8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
GDMP Limited (Registered number: 07954792) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
GDMP Limited (Registered number: 07954792) |
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 |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
GDMP Limited (Registered number: 07954792) |
Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,447,615 |
Cash and cash equivalents at end of year |
2 |
1,042,133 |
GDMP Limited (Registered number: 07954792) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Fixed asset transfer to P&L | - | 4,034 |
Finance costs | 43,199 | 81,047 |
Finance income | (23,410 | ) | (5,649 | ) |
1,521,054 | 1,895,949 |
Increase in stocks | ( |
) | ( |
) |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 | 708,532 | 1,042,133 |
Bank overdrafts | ( |
) |
708,528 | 1,042,133 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,042,133 | 1,447,615 |
GDMP Limited (Registered number: 07954792) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,042,133 | (333,601 | ) | 708,532 |
Bank overdrafts | - | (4 | ) | (4 | ) |
1,042,133 | ( |
) | 708,528 |
Debt |
Debts falling due within 1 year | (505,012 | ) | 505,012 | - |
Debts falling due after 1 year | (202,515 | ) | 202,515 | - |
(707,527 | ) | 707,527 | - |
Total | 334,606 | 373,922 | 708,528 |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
GDMP Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the companies Act 2006. The financial statements have been prepared under the historical cost convention. |
GDMP Limited is a wholly owned subsidiary of GDMP Investments Limited and the results of GDMP Limited are included in the consolidated financial statements of GDMP Investments Limited which are available from 70 Heathwood Road, Bournemouth, England, BH9 2JZ. |
Going concern |
Management has considered the post balance sheet events and other conditions, and it has determined that they do not create a material uncertainty that casts significant doubt upon the entity's ability to continue as a going concern. Improving operating results and financial position after the balance sheet date indicates the going concern assumption is still appropriate. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows : |
Sales of goods |
Turnover from sale of goods is recognised when significant risk and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Company and the cost incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when goods are processed through the Company's outlet till and handed over to the customers or processed through internet and goods are dispatched. Sales are recognised in the accounts at the earlier of money received or point of sale. |
Intangible assets - goodwill |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Goodwill, being the amount paid in connection with the acquisition of businesses is being amortised evenly over its estimated useful life of 10 years. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets - patents and licences |
Patents and licences are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised over their estimated useful life of 5 - 10 years. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Motor vehicles | - |
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses. |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Exchange liabilities |
The Company purchases second hand electronic goods from the general public for a non-cash consideration by issuing 'Exchange Voucher'. The exchange vouchers are redeemable in exchange for other goods from any shop operated by the Franchisor but can not be redeemed for cash. The vouchers have no expiry date. Exchange liability vouchers are recognised at transaction price. |
Cash and cash equivalents |
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks and bank overdraft. Bank overdrafts are shown within borrowings in current liabilities. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they no longer at the discretion of the company. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCER |
In the application of the company's accounting policies, the directors are required to make judgments estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key Sources of estimation uncertainty |
The following judgements have had the most significant effect on amounts recognised in the financial statements. |
Useful lives of intangible fixed assets |
Intangible fixed assets consist of goodwill and fanchisee fees. The annual amortisation charge depends on estimated useful economic life of the asset. The directors regularly review the remaining useful life of these assets. Changes in asset's useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies. |
Useful lives of tangible fixed assets |
The costs of tangible fixed assets less their residual value are depreciated over their estimated useful economic lives which are estimated by the director. Changes in the expected level of usage and technological developments could impact on the useful economic lives of these assets; therefore, further depreciation charges could be revised. |
Exchange liabilities |
The Company purchases second hand electronic goods from the general public for a non-cash consideration by issuing 'Exchange Voucher'. These vouchers have no expiry date. Based on the knowledge of the industry, the company keeps the exchange liability for last 4 years as amounts due within one year and the balance is written off profit or loss account. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of the company's turnover is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Sale of goods | 21,646,578 | 20,369,827 |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | OTHER OPERATING INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Rents received |
Miscellaneous income | 33,517 | 89,816 |
Job Retention Scheme Grant |
Kick start scheme |
48,317 | 407,705 |
6. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Management | 5 | 7 |
Engineer | 6 | 6 |
Store assistant | 213 | 192 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Patents and licences amortisation |
Auditors' remuneration |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Interest payable |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Over provision previous year | (47,945 | ) | - |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge 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: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Profit on sale of assets | - | (14,203 | ) |
Chargeable gains | - | 13,306 |
Deferred tax | 101,365 | 21,288 |
Group losses surrendered | (29,145 | ) | (45,096 | ) |
Prior year over provision | (47,945 | ) | - |
Rate difference | (13,153 | ) | - |
Total tax charge | 262,520 | 251,201 |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | DIVIDENDS |
31.12.22 | 31.12.22 |
£ | £ |
Final - Class A Shares of £1 each | 220,600 | 1,525,894 |
Final - Class B Shares of £1 each | - | - |
Final - Class C Shares of £1 each | - | - |
Final - Class D Shares of £1 each | - | - |
Final - Class E Shares of £1 each | - | - |
Final - Class F Shares of £1 each | - | - |
11. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | TANGIBLE FIXED ASSETS |
Improvements |
Short | to | Plant and | Motor |
leasehold | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
13. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Stocks |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Purchase ledger debit balance | 23,433 | 140,154 |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Exchange liability | 682,315 | 552,623 |
Corporation tax |
Social security and other taxes |
VAT | 294,188 | 261,998 |
Other creditors |
Accrued expenses |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Included within other creditors falling due within one year and creditors falling due after more than one year is £Nil (2022: £320,833) in respect of a bank loan which is guaranteed by the government under Coronavirus Business Interruption Loan Scheme. The loan is repayable by 2024 and interest is charged at 3.99% above base rate per annum on this loan. |
Included within other creditors falling due within one year and creditors falling due after more than one year are bank loans totalling £Nil (2022: £386,694). The loan is repayable by 2024 and interest is charged at commercial rates. |
Bank loans were secured by a fixed and floating charge over present and future assets of the company. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
19. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 293,159 | 191,794 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
20. | CALLED UP SHARE CAPITAL |
Alloted, issued and fully paid: |
Number | Class of Share | Nominal | 31.12.22 | 31.12.21 |
value | £ | £ |
98 | A Ordinary | £1 | 98 | 98 |
98 | B Ordinary | £1 | 98 | 98 |
196 | C Ordinary | £1 | 196 | 196 |
212 | D Ordinary | £1 | 212 | 212 |
98 | E Ordinary | £1 | 98 | 98 |
98 | F Ordinary | £1 | 98 | 98 |
800 | 800 |
All classes of shares carrying full voting rights and full entitlement to profit and capital distribution. |
21. | ULTIMATE PARENT COMPANY |
The company's parent company is GDMP Investments Limited , a company registered in England and Wales and its registered office address is 70 Heathwood Road, Bournemouth, England, BH9 2JZ. |
GDMP Limited (Registered number: 07954792) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | RELATED PARTY DISCLOSURES |
Other creditors due within one year includes balance of £15,927 (2022: £15,927) due to the shareholders and £202,000 (2022: £222,000) due to the shareholders' family members. |
23. | ULTIMATE CONTROLLING PARTY |
The company is controlled by both the directors with no one party having an overall control. |
24. | GUARANTEE |
There is unlimited multilateral guarantee between the company and related company H &D Estates Limited in respect of bank loans. |