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Company No: 00577410 (England and Wales)

GUARANTEE LAUNDRIES LIMITED

Unaudited Financial Statements
For the financial year ended 31 December 2023
Pages for filing with the registrar

GUARANTEE LAUNDRIES LIMITED

Unaudited Financial Statements

For the financial year ended 31 December 2023

Contents

GUARANTEE LAUNDRIES LIMITED

BALANCE SHEET

As at 31 December 2023
GUARANTEE LAUNDRIES LIMITED

BALANCE SHEET (continued)

As at 31 December 2023
Note 2023 2022
£ £
Fixed assets
Tangible assets 3 3,217,316 3,145,545
3,217,316 3,145,545
Current assets
Stocks 4 240,339 101,238
Debtors 5 797,121 715,132
Cash at bank and in hand 100,783 154,475
1,138,243 970,845
Creditors: amounts falling due within one year 6 ( 2,412,931) ( 1,870,530)
Net current liabilities (1,274,688) (899,685)
Total assets less current liabilities 1,942,628 2,245,860
Creditors: amounts falling due after more than one year 7 ( 476,472) ( 665,960)
Net assets 1,466,156 1,579,900
Capital and reserves
Called-up share capital 79,038 79,038
Profit and loss account 1,387,118 1,500,862
Total shareholder's funds 1,466,156 1,579,900

For the financial year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of Guarantee Laundries Limited (registered number: 00577410) were approved and authorised for issue by the Board of Directors on 22 July 2024. They were signed on its behalf by:

F M Foote
Director
S J Harris
Director
GUARANTEE LAUNDRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
GUARANTEE LAUNDRIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Guarantee Laundries Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 2 Pinesway, Station Road, Stalbridge, DT10 2RN, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Turnover

The company provides laundry services and recognises turnover on despatch to the customer. Turnover is measured as the amount receivable excluding discounts and value added tax.

Employee benefits

Defined contribution schemes
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Plant and machinery 3 - 20 years straight line
Vehicles 4 years straight line
Other property, plant and equipment 2 - 5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Borrowing costs

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Leases

The Company as lessee
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Rentals paid under operating leases are charged to the profit or loss on a straight line basis over the period of the lease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Ordinary share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

2. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including directors 78 78

3. Tangible assets

Plant and machinery Vehicles Other property, plant
and equipment
Total
£ £ £ £
Cost
At 01 January 2023 3,737,978 593,443 1,324,432 5,655,853
Additions 51,612 143,765 998,481 1,193,858
Disposals ( 324,631) ( 156,263) ( 376,579) ( 857,473)
At 31 December 2023 3,464,959 580,945 1,946,334 5,992,238
Accumulated depreciation
At 01 January 2023 1,809,638 357,491 343,179 2,510,308
Charge for the financial year 246,450 125,383 720,254 1,092,087
Disposals ( 294,631) ( 156,263) ( 376,579) ( 827,473)
At 31 December 2023 1,761,457 326,611 686,854 2,774,922
Net book value
At 31 December 2023 1,703,502 254,334 1,259,480 3,217,316
At 31 December 2022 1,928,340 235,952 981,253 3,145,545

The other property, plant and equipment represents linen and garments held as short life rental assets.

4. Stocks

2023 2022
£ £
Stocks 240,339 101,238

5. Debtors

2023 2022
£ £
Trade debtors 757,367 682,273
Prepayments 39,754 32,859
797,121 715,132

6. Creditors: amounts falling due within one year

2023 2022
£ £
Bank loans 50,000 50,000
Trade creditors 590,516 527,270
Amounts owed to Group undertakings 235,435 235,935
Other taxation and social security 231,181 325,713
Obligations under finance leases and hire purchase contracts 266,242 414,213
Other creditors 1,039,557 317,399
2,412,931 1,870,530

Included within other creditors is £529,599 (2022 - £Nil) relating to amounts drawn on a Confidential Invoice Discounting facility that the directors have arranged with the company's bankers in order to fund the growth of the company.

7. Creditors: amounts falling due after more than one year

2023 2022
£ £
Bank loans 133,333 179,167
Obligations under finance leases and hire purchase contracts (secured) 337,221 446,298
Other creditors 5,918 40,495
476,472 665,960

Hire purchase contracts are secured on the plant and machinery they are financing and are repayable in monthly instalments over 4-5 years from the date they are advanced.

8. Off Balance Sheet arrangements

The total amount of financial commitments not included in the balance sheet is £1,002,691 (2022 - £1,172,523). The company had future minimum lease payments under non-cancellable operating leases and capital commitments relating to rental of premises and plant and machinery.

The directors feel that the security provided by length of the lease negotiated with the company's landlord gives them the stability to invest in the business and generate the expected growth.