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REGISTERED NUMBER: 02210812 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

GREENBROOK INDUSTRIES LIMITED

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

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 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Financial Statements 13


GREENBROOK INDUSTRIES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: H Richard Green
David R Green
Peter M Ratcliffe
Jonathan J Green
Alexander D Green



SECRETARY: Kim Farrell



REGISTERED OFFICE: 62 West Road
Harlow
Essex
CM20 2BG



REGISTERED NUMBER: 02210812 (England and Wales)



SENIOR STATUTORY AUDITOR: Andrew Green LLB FCA



AUDITORS: THP Limited
Chartered Accountants
and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
It is with disappointment that we report a loss for the year of £1,125,585 before tax. This includes a provision of £160,000 for stock write downs and, in line with our existing accounting policy, a further £300,000 write-down of goodwill and other depreciation of £232,889. (2022: Total £573,175).

Electrical Division
The result for the past year reflects our operating in a highly competitive market, augmented by the challenges of dealing with a far east supply chain and the attendant logistical problems and delays arising from political instability.

To help mitigate this, we are investing in a new and modern ERP which will significantly improve operational efficiency and data management capability and position us to better meet customer needs, control stock levels and support our growth initiatives.

The company is dedicated to sustaining its leadership in portable RCD technology and is committed to the ongoing development of innovative products. To support this objective, we are making significant investments in the growth of our PowerBreaker branded RCD products in order to expand our market share.

This initiative involves enhancing our product offerings to meet the evolving needs of our customers. We are leveraging both internal expertise and external partnerships to drive research and development, ensuring that we remain at the forefront of technology and deliver high-quality solutions in the market under the Powerbreaker Brand.
At the same time, we continue to rationalize our product offering whilst concentrating our efforts, as mentioned above, in building our brands in areas of maximum added value.

Pension Schemes
Our two direct benefit pension schemes, comprising 127 preserved and pensionable members, has been totally closed for accrual since 2009. The latest FRS 102 valuations show a surplus of £735,000 which, owing to accounting rules, are not reflected in these accounts. We are constantly reviewing the two schemes and are also looking at the possibility of exiting the company from both.

The Company's key performance indicators are as follows:

2023 2022
£    £   
Turnover 14,386,084 15,073,734
Gross profit 4,014,345 3,485,581
Gross profit % 27.84% 38.44%
Operating result (1,144,804 ) (1,409,843 )
Loss before tax (1,124,585 ) (1,730,525 )

Despite the loss for the year, the balance sheet is showing a year end net asset position of £2,279,302 (2022: £3,557,204).


GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks.

Liquidity risk
Liquidity risks are managed by utilising various financing options, in addition to proactive cashflow management, so as to maintain a healthy cash position to meet the operational business needs and ensure sufficient working capital for day-to-day activities.

Currency Risk
Currency fluctuations, outside our control, can impact the cost of products and thus profitability. Hedging options to lessen these risks are constantly under review.

Supply Chain Logistics and Freight Costs
Potential high freight costs arising from supply chain disruptions are an increasing threat that could create inventory shortages and thus impact our ability to meet customer demand and maintain cost efficiency. We mitigate these risks by maintaining a broad base of freight suppliers, to ensure we receive the most competitive pricing while still having continuity of supply. We also explore and evaluate new technology in this area to create further efficiencies.

Credit Risk
As with most businesses, the Company is exposed to the credit risk of customers and their ability to pay debts on a timely basis. Our policy is to exercise prudence in credit checking new and existing customers, keeping debtor days as low as possible and limiting the dominance of any single customer in our overall turnover.

Price Risk and Competition
The business is encountering significant challenges due to high competition and ongoing price pressures in the electrical sector. We are addressing these risks through targeted commercial activities, such as optimising our product mix, strengthening supplier relationships, and implementing competitive pricing strategies to sustain profitability and market position.

IT Systems
The business faces risks associated with our IT systems. All steps are taken to ensure protection of our data and systems through appropriate back-up and recovery solutions. We plan on implementing a new ERP system which will dramatically improve our efficiency across the whole business and significantly reduce our IT costs.

ON BEHALF OF THE BOARD:





H Richard Green - Director


26 September 2024

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

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 principal activity of the company in the year under review was that of the design and distribution of electrical products and accessories to the wholesale and re-sale markets.

GOING CONCERN
The accounts have been prepared on a going concern basis despite the losses suffered in the year.

At the balance sheet date the company had net current assets of £1,615,332 (2022: £2,156,895) and net assets of £2,279,302 (2022: £3,557,204), which are net of preference shares of £3,605,513 (2022: £3,605,513).

The Directors have produced cashflow forecasts that show that with the existing trade finance and invoice discount facilities in place, the Company will have sufficient funds available to meet its debts as they fall due, for the foreseeable future.

Two of the Directors have provided personal guarantees over £1,580,867 (2022: £680,866) of third party loans. The current balance outstanding on these loans is now £1,397,501.

The Directors are however hopeful that the year ended 31 December 2025 will see a return to profit and that the decisions that they had made during this difficult times since the Coronavirus pandemic, coupled with the underlying strength of the business and its brands, will ensure that the Company can continue as a going concern.

DIVIDENDS
An interim dividend of £102,394 (2022: £102,394) was paid for the year ended 31 December 2023. The Directors recommend that no final dividend be paid.

FUTURE DEVELOPMENTS
The company continues to invest in maintaining its leading position is portable RCD technology as well as continuing the development of new products. This is achieved by utilising both internal and external resources.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

H Richard Green
David R Green
Peter M Ratcliffe
Jonathan J Green
Alexander D Green

Other changes in directors holding office are as follows:

Richard D Shaw - resigned 31 August 2023

DISCLOSURE IN THE STRATEGIC REPORT
The Company has chosen to make disclosures in relation to financial risk management and other matters considered to be of strategic importance which would otherwise be in the Directors report within the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
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.


GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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, THP Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





H Richard Green - Director


26 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GREENBROOK INDUSTRIES LIMITED


Opinion
We have audited the financial statements of Greenbrook Industries 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 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 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 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GREENBROOK INDUSTRIES LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the Company through discussions with Directors and other
management, and from our commercial knowledge and experience of the sector in which the Company operates;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, GDPR and data protection, anti-money laundering and anti-bribery, contract and employment law.
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of
potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and any other relevant regulators as required.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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
GREENBROOK INDUSTRIES 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.




Andrew Green LLB FCA (Senior Statutory Auditor)
for and on behalf of THP Limited
Chartered Accountants
and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ

26 September 2024

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 14,386,084 15,073,734

Cost of sales 10,371,739 11,588,153
GROSS PROFIT 4,014,345 3,485,581

Distribution costs 606,587 635,764
Administrative expenses 4,552,562 4,259,660
5,159,149 4,895,424
OPERATING LOSS (1,144,804 ) (1,409,843 )

Interest receivable and similar income - 29,712
(1,144,804 ) (1,380,131 )
Amounts written off investments 5 3,371 -
(1,148,175 ) (1,380,131 )

Interest payable and similar expenses 6 (23,590 ) 350,394
LOSS BEFORE TAXATION 7 (1,124,585 ) (1,730,525 )

Tax on loss 9 50,923 119,433
LOSS FOR THE FINANCIAL YEAR (1,175,508 ) (1,849,958 )

OTHER COMPREHENSIVE INCOME
Change in pension scheme deficit - 2,228,000
Share repurchase
Income tax relating to other comprehensive
income

-

(423,320

)
OTHER COMPREHENSIVE INCOME FOR
THE YEAR, NET OF INCOME TAX

-

1,804,680
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(1,175,508

)

(45,278

)

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 640,724 960,894
Tangible assets 12 3,768,419 3,704,710
Investments 13 10,315 340,218
4,419,458 5,005,822

CURRENT ASSETS
Stocks 14 2,946,447 3,677,121
Debtors 15 5,497,230 5,670,255
Cash at bank 1,872 -
8,445,549 9,347,376
CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR

16

6,830,217

7,190,481
NET CURRENT ASSETS 1,615,332 2,156,895
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,034,790

7,162,717

CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR

17

3,755,488

3,605,513
NET ASSETS 2,279,302 3,557,204

CAPITAL AND RESERVES
Called up share capital 21 78,764 78,764
Revaluation reserve 22 1,710,372 1,770,000
Capital redemption reserve 22 4,146 4,146
Other reserves 22 59,064 59,064
Retained earnings 22 426,956 1,645,230
SHAREHOLDERS' FUNDS 2,279,302 3,557,204

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2024 and were signed on its behalf by:





H Richard Green - Director


GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   
Balance at 1 January 2022 78,764 1,792,902 1,770,000

Changes in equity
Deficit for the year - (1,849,958 ) -
Other comprehensive income - 1,804,680 -
Total comprehensive income - (45,278 ) -
Dividends - (102,394 ) -
Balance at 31 December 2022 78,764 1,645,230 1,770,000

Changes in equity
Deficit for the year - (1,175,508 ) -
Other comprehensive income - 59,628 (59,628 )
Total comprehensive income - (1,115,880 ) (59,628 )
Dividends - (102,394 ) -
Balance at 31 December 2023 78,764 426,956 1,710,372
Capital
redemption Other Total
reserve reserves equity
£    £    £   
Balance at 1 January 2022 4,146 59,064 3,704,876

Changes in equity
Deficit for the year - - (1,849,958 )
Other comprehensive income - - 1,804,680
Total comprehensive income - - (45,278 )
Dividends - - (102,394 )
Balance at 31 December 2022 4,146 59,064 3,557,204

Changes in equity
Deficit for the year - - (1,175,508 )
Other comprehensive income - - -
Total comprehensive income - - (1,175,508 )
Dividends - - (102,394 )
Balance at 31 December 2023 4,146 59,064 2,279,302

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 29 222,630 535,047
Interest paid (144,140 ) (156,583 )
Interest element of hire purchase payments
paid

(3,532

)

(22,549

)
Finance costs paid - (171,262 )
Tax paid (255,000 ) (54,000 )
Net cash from operating activities (180,042 ) 130,653

Cash flows from investing activities
Purchase of intangible fixed assets - (18,193 )
Purchase of tangible fixed assets (285,717 ) (72,509 )
Sale of tangible fixed assets 36,579 39,398
Sale of fixed asset investments 423,710 -
Interest received - 29,712
Net cash from investing activities 174,572 (21,592 )

Cash flows from financing activities
Capital repayments in year 163,583 (116,596 )
Amount introduced by directors 8,414 710,046
Amount withdrawn by directors - (745,034 )
Equity dividends paid (102,394 ) (102,394 )
Net cash from financing activities 69,603 (253,978 )

Increase/(decrease) in cash and cash equivalents 64,133 (144,917 )
Cash and cash equivalents at beginning
of year

30

(188,480

)

(43,563

)

Cash and cash equivalents at end of
year

30

(124,347

)

(188,480

)

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Greenbrook Industries Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements and going concern
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The accounts have been prepared on a going concern basis despite the losses suffered in the year.

At the balance sheet date the company had net current assets of £1,615,332 (2022: £2,156,895) and net assets of £2,279,302 (2022: £3,557,204), which are net of preference shares of £3,605,513 (2022: £3,605,513).

The Directors have produced cashflow forecasts that show that with the existing trade finance and invoice discount facilities in place, the Company will have sufficient funds available to meet its debts as they fall due, for the foreseeable future.

Two of the Directors have provided personal guarantees over £1,580,867 (2022: £680,866) of third party loans. The current balance outstanding on these loans is now £1,397,501.

The Directors are however hopeful that the year ended 31 December 2025 will see a return to profit and that the decisions that they had made during this difficult times since the Coronavirus pandemic, coupled with the underlying strength of the business and its brands, will ensure that the Company can continue as a going concern.

Preparation of consolidated financial statements
The Company is exempt from the requirement to prepare consolidated financial statements as all its subsidiaries are required to be excluded from consolidation by section 402 of the Companies Act 2006.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

a) Critical judgements in applying the entity's accounting policies

There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity’s accounting policies that have a significant effect on the amounts recognised in the financial statements.

b) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic live of intangible assets
Goodwill and intangible assets are amortised over their useful economic lives and are assessed annually for indications of impairment.

(ii) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancements, future investments, economic utilisation and the physical condition of the assets.

(iii) Stock provisioning
Due to the nature of the business, it is necessary for the management to consider the recoverability of the cost of stock and the associated provisioning required. When calculating stock provisions, management considers the nature, condition and future saleability of the stock.

(iv) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing their impairment, the management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Changes in accounting policies
The company has changed the presentation of comprehensive income to the single-statement approach. In prior years a two-statement approach was used.

Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and value added taxes.

Sales of goods are recognised on sale to the customer, which is considered to be the point of delivery and when the significant risks and rewards of the goods have been passed to the customer.

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirers interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life of 10 years.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued

Other intangible assets
The company applies the rules set out in FRS102 Section 18 when considering the capitalization of Software and Development costs. Therefore, the company only recognises an intangible asset as an asset if, and only if:

(a) it is probable that the expected future economic benefits that are attributable to
the asset will flow to the entity; and
(b) the cost or value of the asset can be measured reliably.

Any expenditure carried forward is amortised in line with the expected future life of the asset less any accumulated impairment losses, commencing from the month in which the relevant asset begins generating revenue.

The estimated useful lives range as follows:

Purchased computer software 3-5 years
Development costs3 years

Tangible fixed assets
Tangible Fixed Assets are stated at cost less depreciation, except in the case of freehold land and buildings which are included at fair value.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold Property - 2% on cost of buildings
Plant and Equipment- 10 to 33% on cost
Motor Vehicles- 25% on cost

Freehold land is not depreciated.

Depreciation commences in the month that the asset is brought into use.

Freehold properties are shown at fair values determined by the Directors, with assistance from external valuers, derived from comparable valuations and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Any aggregate surplus or deficit that arises from a change in fair value is recognised in the Statement of Comprehensive Income, net of deferred tax.

Investments in subsidiaries
Investments in subsidiaries are measured at cost less accumulated impairment.

Other Investments
Investments in unlisted Company shares, whose market value can be reliably determined, are adjusted to fair value at each balance sheet date. Gains and losses on revaluation are recognised in the profit or loss for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are adjusted to fair value at the balance sheet date. Gains and losses on revaluation are recognised in profit or loss for the period.

Gains and losses arising from disposals are recognised in the profit or loss for the period in which the disposal takes place.

Stocks
Stock is stated at the lower of cost and selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Stocks are recognized as an expense in the period in which the related revenue is recognized.

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Cost is determined on an average cost basis ( changed from first in first out February 2021). Cost includes the purchase price, including taxes and duties, transport and all other costs directly attributable to bringing the stock to its present location and condition.


GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

Pension costs and other post-retirement benefits
The company provides a range of benefits to employees, including paid holiday arrangements and a group personal pension plan.

(i) Short Term Benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Group Personal Pension Plan

The company operates a group personal pension plan for its employees. This 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 payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown as a creditor on the balance sheet. The assets of the scheme are held separately from the group in independently administered funds.

(iii) Defined Benefit Scheme

The company also operates a defined benefit scheme, as further explained in Note 23.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS

Staff costs during the period (including directors' remuneration) amounted to:
20232022
£   £   
Wages and salaries 2,135,8951,836,348
Social security costs 223,153191,680
Other pension costs97,463100,608
Pension costs - defined benefit schemes107,200111,990
2,563,7112,478,196

The average number of employees during the period was as follows:
20232022

Administration, production & sales staff (including 6 part time)5451
Executive staff66
6057

The Directors are considered to be the key management for the purposes of disclosure under FRS102.

2023 2022
£    £   
Directors' remuneration 186,010 175,961

5. AMOUNTS WRITTEN OFF INVESTMENTS
2023 2022
£    £   
Provisions for unlisted investments 3,371 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 70,412 132,579
Other interest 73,728 24,004
Hire purchase interest 3,532 22,549
Preference dividend - 4.75% (171,262 ) 171,262
(23,590 ) 350,394

The preference dividend was formally waived in relation to the year ended 31/12/22 and 31/12/23.

7. LOSS BEFORE TAXATION

The loss is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 143,246 170,208
Depreciation - assets on hire purchase contracts 69,473 82,987
Profit on disposal of fixed assets (124,468 ) (31,273 )
Goodwill amortisation 300,000 300,000
Computer software amortisation 20,170 19,980

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. AUDITORS' REMUNERATION

Fees payable to the Company's auditors and their associates in respect of:

2023 2022
£    £   
Audit of Greenbrook Industries Ltd 13,750 13,125
Audit of pension schemes 6,600 6,300
Taxation services 2,750 2,625
23,100 22,050


9. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax 50,923 119,433
Tax on loss 50,923 119,433

UK corporation tax has been charged at 25% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Loss before tax (1,124,585 ) (1,730,525 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

(281,146

)

(328,800

)

Effects of:
Expenses not deductible for tax purposes 14,860 51,979
Income not taxable for tax purposes (73,934 ) (5,942 )
Depreciation in excess of capital allowances 56,780 82,342
Utilisation of tax losses 283,440 200,421
Deferred tax 50,923 119,433
Total tax charge 50,923 119,433

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.

2022
Gross Tax Net
£    £    £   
Change in pension scheme deficit 2,228,000 (423,320 ) 1,804,680
Share repurchase
2,228,000 (423,320 ) 1,804,680

The Company has corporation tax losses of £13,130,505 (2022: £11,996,747) to carry forward and offset against future trading profits. A deferred tax asset on these losses has only been recognised in these accounts to the extent that it offsets a deferred tax liability. The Company also has capital losses of £5,699,632 (2022:£5,699,632) to carry forward against future capital gains.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £0.01 each
Interim 102,394 102,394

11. INTANGIBLE FIXED ASSETS
Development Computer
Goodwill costs software Totals
£    £    £    £   
COST
At 1 January 2023
and 31 December 2023 3,000,000 4,815 522,353 3,527,168
AMORTISATION
At 1 January 2023 2,100,000 4,815 461,459 2,566,274
Amortisation for year 300,000 - 20,170 320,170
At 31 December 2023 2,400,000 4,815 481,629 2,886,444
NET BOOK VALUE
At 31 December 2023 600,000 - 40,724 640,724
At 31 December 2022 900,000 - 60,894 960,894

12. TANGIBLE FIXED ASSETS
Freehold
land and Plant and Motor
buildings equipment vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 3,465,700 1,485,228 410,886 5,361,814
Additions - 15,204 270,513 285,717
Disposals - - (77,950 ) (77,950 )
At 31 December 2023 3,465,700 1,500,432 603,449 5,569,581
DEPRECIATION
At 1 January 2023 92,327 1,278,210 286,567 1,657,104
Charge for year 37,876 72,224 102,619 212,719
Eliminated on disposal - - (68,661 ) (68,661 )
At 31 December 2023 130,203 1,350,434 320,525 1,801,162
NET BOOK VALUE
At 31 December 2023 3,335,497 149,998 282,924 3,768,419
At 31 December 2022 3,373,373 207,018 124,319 3,704,710

Included in cost or valuation of land and buildings is freehold land of £ 950,000 (2022 - £ 950,000 ) which is not depreciated.

Cost or valuation at 31 December 2023 is represented by:

Freehold
land and Plant and Motor
buildings equipment vehicles Totals
£    £    £    £   
Valuation in 2020 1,590,000 - - 1,590,000
Cost 1,875,700 1,500,432 603,449 3,979,581
3,465,700 1,500,432 603,449 5,569,581

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


12. TANGIBLE FIXED ASSETS - continued

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2023 2022
£    £   
Cost 1,850,000 1,850,000
Aggregate depreciation 216,000 216,000

Value of land in freehold land and buildings 1,652,000 1,652,000

The freehold land and buildings were revalued by the Directors, with the assistance of external valuation specialists as at 31 December 2021.

Fixed assets with net book value of £242,440 (2022: £104,883) are secured under hire purchase agreements. Depreciation charged on these assets in the year was £69,473 (2022: £82,987).

13. FIXED ASSET INVESTMENTS
Shares in
group Unlisted
undertakings investments Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 100 340,118 340,218
Disposals - (326,532 ) (326,532 )
At 31 December 2023 100 13,586 13,686
PROVISIONS
Provision for year - 3,371 3,371
At 31 December 2023 - 3,371 3,371
NET BOOK VALUE
At 31 December 2023 100 10,215 10,315
At 31 December 2022 100 340,118 340,218

Cost or valuation at 31 December 2023 is represented by:

Shares in
group Unlisted
undertakings investments Totals
£    £    £   
Cost 100 13,586 13,686

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Greenbrook Electrical Ltd
Registered office: 62 West Road, Harlow, Essex, CM20 2BG
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00

14. STOCKS
2023 2022
£    £   
Finished goods 2,946,447 3,677,121

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,649,372 3,105,371
Other debtors 1,308,123 1,034,148
Directors' current accounts 736,620 745,034
Corporation tax recoverable 674,851 567,755
Deferred tax asset - 50,923
Prepayments and accrued income 128,264 167,024
5,497,230 5,670,255

Deferred tax asset
2023 2022
£    £   
Tax losses carried forward - 34,943
Other timing differences - 15,980
- 50,923

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 18) 126,219 188,480
Hire purchase contracts (see note 19) 76,749 63,141
Trade creditors 1,197,755 2,169,297
Amounts owed to group undertakings 100 100
Corporation tax 276,487 424,391
Social security and other taxes 854,923 410,271
Other creditors 3,197,017 2,888,844
Accruals and deferred income 1,100,967 1,045,957
6,830,217 7,190,481

Other creditors include £1,493,951 (2022:£1,986,281) of advances received under an invoice discounting facility.

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Preference shares (see note 18) 3,605,513 3,605,513
Hire purchase contracts (see note 19) 149,975 -
3,755,488 3,605,513

18. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 126,219 188,480

Amounts falling due in more than five years:
Repayable otherwise than by instalments
Preference shares 3,605,513 3,605,513

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. LOANS - continued

Details of shares shown as liabilities are as follows:

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,605,513 Preference "B" 4.75% £1 3,605,513 3,605,513

The preference shares carry a fixed cumulative dividend of 4.75% per annum payable quarterly in arrears. On a winding up they rank ahead only of the ordinary shares and will be repaid at par.

In accordance with accounting standards any dividends paid on cumulative preference shares are included within interest payable.

19. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
£    £   
Net obligations repayable:
Within one year 76,749 63,141
Between one and five years 149,975 -
226,724 63,141

20. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 126,219 188,480
Hire purchase contracts 226,724 63,141
Invoice discounting facility 1,493,951 1,986,281
1,846,894 2,237,902

Amounts received under the invoice discounting facility are secured by way of a fixed and floating charge over the assets of the Company.

Hire purchase contracts are secured on the assets to which they relate.

The overdraft is secured by way of a fixed and floating charge over the assets of the Company.

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
7,876,488 Ordinary £0.01 78,764 78,764

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


22. RESERVES
Capital
Retained Revaluation redemption Other
earnings reserve reserve reserves Totals
£    £    £    £    £   

At 1 January 2023 1,645,230 1,770,000 4,146 59,064 3,478,440
Deficit for the year (1,175,508 ) (1,175,508 )
Dividends (102,394 ) (102,394 )
Reserve transfer 59,628 (59,628 ) - - -
At 31 December 2023 426,956 1,710,372 4,146 59,064 2,200,538

Merger reserve

The other reserves relate to a merger reserve that arose as a result of a historic group reorganisation.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


23. EMPLOYEE BENEFIT OBLIGATIONS

The Company operates a defined contribution pension scheme. The pension charge for the year was £97,463 (2022 - £100,608).

In addition the Company operates two defined benefits pensions schemes, the Greenbrook Industries Limited Retirement Benefits Scheme ('GILRBS') and the Plyglass Plc Pension and Assurance Scheme ('PPAS'). The assets of the schemes are held separately from those of participating group companies. The schemes are currently independently administered by Deloitte Total Reward and Benefits Limited. A complete valuation of each scheme is undertaken by independently qualified actuaries at least every three years and annual contributions to the schemes are made in accordance with their recommendations.

The pension (liability) /surplus under FRS 102 at the year end relates to the following group and group schemes:

20232022
£   £   

'GILRBS'(18,000)16,000
'PPAS'753,000660,000
------------------------------
Total735,000676,000
------------------------------
In accordance with FRS102, the scheme surplus has not been recognised as there is not an expectation that the employer is able to recover that surplus in future.

(a) The Greenbrook Industries Limited Retirement Benefits Scheme ('GILRBS')

The scheme was closed to new entrants with effect from 1 November 2005 and ceased to have active members from August 2009.

The scheme covers employees of Greenbrook Industries Limited and certain other former group companies including Greenbrook Electrical Limited.

There is no agreement or policy for charging the net defined benefit cost of the plan as a whole measure in accordance with FRS 102 to individual group entities.

Contributions by group companies to 'GILRBS' on recommendation of the actuary and including expenses during the year ended 31 December 2023 amount to £127,293 (2022 - £76,000).

A full actuarial valuation of the 'GILRBS' was carried out as at 6 April 2022. The valuation has been updated for FRS 102 requirements at each 31 December by a qualified actuary. The most significant assumptions applied were:

20232022

Rate of increase in pensions in payment - post 1988 GMP3.00%3.00%
Rate of increase in pensions in payment - post 1997 pension2.90%2.90%
Discount rate5.00%4.95%
Inflation assumption3.05%3.05%
Deferred pensioner revaluation - RPI max 5% pa2.05%3.05%
Deferred pensioner revaluation - RPI max 2.50% pa2.50%2.50%

The most important assumption underlying the present value of the scheme liabilities is the rate of interest applied to discount the estimated cashflows arising under liabilities.

Mortality assumptions

The assumed life expectations on retirement at age 65 are:

20232022
Retiring today:
Male22.222.7
Female24.725.1
Retiring in 20 years:
Male23.524.0
Female26.126.5

Amounts recognised in the profit or loss are as follows:


GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

20232022
£   £   
Expenses83,00047,000
Net interest on the defines benefit liability(2,000)46,000
----------------------------
81,00093,000
----------------------------

Amounts recognised in the statement of other comprehensive income (OCI) are as follows:

20232022
£   £   
Actuarial (loss) / gain(80,000)2,484,000
-----------------------------

The amounts included in the statement of financial position arising from the group's obligation in respect of defined benefit plans are as follows:

20232022
£   £   
Present values of defined benefit obligation(5,589,000)(5,486,000)
Fair value of plan assets5,571,000 5,502,000
-------------------------------
Closing defined benefit obligation(18,000)16,000
-------------------------------

Movement in present value of the define benefit obligation:

20232022
£   £   
Defined benefit obligation at 1 January5,486,0008,121,000
Past service cost - GMP equalisation--
Interest on liabilities(2,000)151,000
Actuarial (gains)/losses(368,000)(2,484,000)
Settlements--
Benefits paid(263,000)(302,000)
------------------------------
Defined benefit obligation at 31 December 5,589,0005,486,000
------------------------------

Movements in the fair value of plan assets

20232022
£   £   
Plan assets at 1 January5,502,0005,651,000
Interest income 20,000105,000
Contributions by employer127,00076,000
Asset return268,00019,000
Expenses paid by scheme(83,000)(47,000)
Benefits paid(263,000)(302,000)
------------------------------
Plan assets at 31 December5,571,0005,502,000
------------------------------

The analysis of the scheme assets at the reporting date were as follows:
20232022
£   £   
Multi-asset funds and equities 2,980,0003,141,000
Property1,694,0001,886,000
Bonds and fixed interest investments838,000435,000
Cash59,00040,000
------------------------------
Total plan assets5,571,0005,502,000
------------------------------

(b) The Plyglass Plc Pension and Assurance Scheme ('PPAS')

The PPAS is a closed scheme and has had no active members since March 1997.

Contributions by group companies to PPAS, on the recommendations of the actuaries during the year ended 31 December 2023 amounted to £nil (2022 - £36,000) plus expenses.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


A full actuarial valuation of the PPAS was carried out as the 31 December 2021. The valuation has been updated for FRS 102 requirements at each 31 December by a qualified actuary. The most significant assumptions applied were:

20232022
Rate of increase in pensions in payment3.05%3.00%
Deferred pensioner revaluation - CPI 5% pa2.05%2.05%
Discount rate5.00%5.00%
Inflation assumption3.05%3.05%

The most important assumption underlying the present value of the scheme liabilities is the rate of interest applied to discount the estimated cash flows arising under the liabilities.

Mortality assumptions

The assumed life expectations on retirement at age 65 are:

20232022
Retiring today:
Male22.222.7
Female24.725.1
Retiring in 20 years:
Male23.524.0
Female26.126.5

Amounts recognised in profit and loss in respect of the defined pension schemes are as follows:

20232022
£   £   
Net interest on the defined benefit liability32,000 5,000
Expenses(21,000)(1,000)
--------------------------
11,0004,000
--------------------------

Amounts recognised in statement of other comprehensive income (OCI) are as follows:

20232022
£   £   
Actuarial (loss)/gain (122,000)414,000
-------------------------

The amounts included in the statement of financial position arising from the group's obligation in respect of the defined benefit plans are as follows:

20232022
£   £   
Opening defined benefit obligation2,099,0002,841,000
Past service cost--
Interest on liabilities-52,000
Actuarial (gains)/losses(122,000)(616,000)
Settlements-
Benefits paid(165,000)(178,000)
------------------------------
Closing defined benefit obligation2,056,0002,099,000
------------------------------

20232022
£   £   
Present value of defined benefit obligation(2,056,000)(2,099,000)
Fair value of plan assets2,809,0002,759,000
------------------------------
Closing defined benefit surplus/(obligation)735,000660,000
------------------------------
Movements in the fair value of plan assets:

20232022
£   £   
Plan assets at 1 January2,759,0003,083,000
Interest income135,00057,000

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

(Loss)/gain on asset return101,000(202,000)
Contributions by employer--
Expenses paid by scheme(21,000)(1,000)
Settlements--
Benefits paid(165,000)(178,000)
------------------------------
Plan assets at 31 December2,809,0002,759,000
------------------------------

The analysis of the scheme assets at the reporting date were as follows:

20232022
£   £   
Invested assets2,809,0002,728,000
Cash-31,000
------------------------------
Total plan assets2,809,0002,759,000
------------------------------

24. CONTINGENT LIABILITIES

The Company has agreed to guarantee a £500,000 loan held by a third party. This bears interest at 7% per annum and is repayable over the next three years. The balance on this loan as at 31 December 2023 was £277,155.

25. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
David R Green
Balance outstanding at start of year 745,035 510,374
Amounts advanced - 341,308
Amounts repaid (8,415 ) (106,647 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 736,620 745,035

Evelyn Green
Balance outstanding at start of year - 199,672
Amounts repaid - (199,672 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

Interest of £nil (2022: £9,825) was charged on this balance in the year.

£700,000 of the loan was repaid on 21 February 2024.

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


26. RELATED PARTY DISCLOSURES

At the balance sheet date the Company was owed by certain Directors and members of their close family £1,304,470 (2022 :£1,001,905). Interest was charged on the balances owed of £nil (2022: £19,887). £700,000 of this balance was repaid after the year end.

At the balance sheet date the Company owed certain Directors and members of their close family £341,697 (2022 :£692,898). Interest was charged on the balances owed of £33,935 (2022: £24,004).

During the year motor vehicles were purchased from the Company by Directors and their close family for total proceeds of £nil (2022: £19,135).

During the year income was received in regards to the management of a related company in which two directors of Greenbrook Industries Limited hold a 5% share each. This income amounted to £35,000 (2022 - £27,500).

During the year the Company paid £102,394 (2022: £102,394) in dividends to the holders of ordinary shares, who are Directors and members of their close family.

During the year, an unlisted investment was sold to The Plyglass Pension Scheme at its market value of £423,810.

The Directors D Green and H R Green have personally guaranteed loans made to the company of £1,580,867 (2022: £680,866).

27. POST BALANCE SHEET EVENTS

In February 2024 the Company secured a new trade finance facility, secured on its freehold property, up to a maximum amount of £1,000,000.

28. ULTIMATE CONTROLLING PARTY

The Company is under the control of the Directors David R Green and H Richard Green.

29. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (1,124,585 ) (1,730,525 )
Depreciation charges 532,888 573,175
Profit on disposal of fixed assets (124,468 ) (31,273 )
Movement on provision for investments 3,372 -
Finance costs (23,590 ) 350,394
Finance income - (29,712 )
(736,383 ) (867,941 )
Decrease in stocks 730,674 1,254,931
Decrease in trade and other debtors 220,784 662,662
Increase/(decrease) in trade and other creditors 7,555 (514,605 )
Cash generated from operations 222,630 535,047

GREENBROOK INDUSTRIES LIMITED (REGISTERED NUMBER: 02210812)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


30. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,872 -
Bank overdrafts (126,219 ) (188,480 )
(124,347 ) (188,480 )
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents - 1,654
Bank overdrafts (188,480 ) (45,217 )
(188,480 ) (43,563 )


31. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank - 1,872 1,872
Bank overdrafts (188,480 ) 62,261 (126,219 )
(188,480 ) 64,133 (124,347 )
Debt
Finance leases (63,141 ) (163,583 ) (226,724 )
Debts falling due after 1 year (3,605,513 ) - (3,605,513 )
(3,668,654 ) (163,583 ) (3,832,237 )
Total (3,857,134 ) (99,450 ) (3,956,584 )

32. DEBTS FALLING DUE AFTER 1 YEAR

The balance above of £3,605,513 within debt relates to the 4.75% preference shares.