REGISTERED NUMBER: 02360505 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GUARDSMAN INDUSTRIES LIMITED |
REGISTERED NUMBER: 02360505 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GUARDSMAN INDUSTRIES LIMITED |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Financial Statements | 19 |
GUARDSMAN INDUSTRIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
30 Old Bailey |
London |
EC4M 7AU |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present the annual report of Guardsman Industries Limited ("the Company") and its subsidiary, Guardsman Europe Limited (together "the Group") containing a Group Strategic Report, Report of the Directors and the financial statements for the year ended 31 December 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the Group during the period continues to be the marketing and distribution of Guardsman furniture protection plans, consumer products and furniture care kits. The Company acts as an agent in the sale and administration of fabric and furniture protection insurance policies. The Group operates from Abingdon, Oxfordshire supporting the UK, Republic of Ireland, The Netherlands and Spain. Guardsman Industries Limited has an Irish subsidiary, Guardsman Europe Limited, which sells and manages unregulated service plans and service requests in Ireland, Spain and the Netherlands. This subsidiary began trading in January 2021. |
Guardsman Industries Limited is a master franchisor for a business that trades as 'Safeclean'. In this capacity, the Company sells franchises and supplies products and management services to its network of franchisees. Safeclean franchisees remove furniture and carpet stains. |
Guardsman Industries Limited has also developed and successfully built up non-regulated furniture repair services to consumers and businesses, utilising the franchisee and repairer network. |
REVIEW OF BUSINESS |
The Group's key financial and other performance indicators during the period were as follows: |
2023 | 2022 |
£ 's | £ 's |
Turnover | 12,569 | 13,331 |
Operating (loss)/profit before interest and taxation | (453 | ) | 710 |
Average number of employees | 76 | 78 |
Profit and loss account |
The performance for the 12 months ended 31 December 2023 was not in line with the expectations of the Directors as a result of difficult trading conditions and the profit-sharing arrangements provided for during the year, which resulted in a reported loss. The underlying trading of the Company delivered profitability, however this was lower than the previous year. The performance of the subsidiary was positive and is performing in line with expectations and continued to deliver good results through 2023. The directors are confident that the Group will return to profitability in 2024 and build on the solid baseline of 2023 and deliver growth in 2024, whilst expanding its range of products and services. The company will also continue to drive improvements in the claims funds and continue to deliver cost savings across the Group. |
The (loss)/profit for the period, after taxation, amounted to (£485,557) (2022: profit of £662,086). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group has implemented a co-ordinated set of risk management and control systems, including strategic planning and management reporting, to help anticipate, measure, monitor, and manage its exposure to risk. Risks which the Group faces include price and product competition, increases in costs and frequency of claims, loss of supply of product components, changes in the regulatory and legal environment, and credit and interest rate risks, which may increase due to the global shortage of credit. To address the risks the Group undertakers measures such as annual strategic plans for all product lines including SWOT analysis, full competitor analysis, along with constant monitoring of the regulatory environment reacting to any changes. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
SECTION 172(1) STATEMENT |
The Directors of the Company consider that they have acted in the way that would most likely promote the success of the Group for the benefit of its member (having regard to relevant stakeholders and matters set out in Section 172 (1) (a-f) of the Companies Act 2006) in the relevant decisions taken during the year ended 31 December 2023. |
In coming to the conclusion, the Directors have considered who the stakeholders of the business are, the issues they need to take into consideration and concluded that the following stakeholders are material to the Group: |
i. Shareholder: the Company is a wholly owned subsidiary of the Amynta Group. As such, it must ensure that its strategic decisions consider the interests of its shareholder and are aligned with the wider Amynta Group strategy. The shareholder expects the Company to generate profits and contribute to the Amynta Group results. |
ii. Employees: employee culture, values, behaviours, and overall performance are central factors for the Group in ensuring good customer experience and elimination of conduct risk. |
iii. Customers: the Group works in the best interests of its customers and therefore customer considerations are a key component of the Director's and Group's decision making. |
iv. Suppliers and third parties: the Group seeks to maintain strong relationships with its suppliers to ensure quality of service, cost effectiveness, economies of scale and effective collaboration. |
v. Regulators: the Company is authorised and regulated by the FCA. Ensuring there is a strong, open and cooperative relationship with the Group's regulator is a key objective for the Group and its Directors. This relationship underpins the Group's permissions to operate, its ability to carry out business and its reputation with customers and other stakeholders. |
For each of these groups of stakeholders the Group and its Directors seek to ensure they understand and take account of their concerns through a process of engagement, namely: |
i. Shareholder: The Chairman of the Group is the President of Global Consumer Warranty for the Amynta Group. Regular communications and reporting between the Directors and their Group counterparts ensure appropriate information flows. |
ii. Employees: the Group seeks and listens to employee feedback, implementing suggestions where they are compatible with the Group's goals. |
iii. Customers: the Group ensures that each customer relationship is managed in the most effective way and it is important to the Group to maintain a high standard of business conduct. The Group strives through constant training and monitoring of service levels to conclude claims quickly and fairly for our customers to deliver the best possible outcomes. We maintain a key focus on treating customers fairly and ensuring we have a flexible approach to meet the needs of a diverse customer base including specific consideration of the needs of vulnerable customers. |
iv. Suppliers and third parties: the Group actively manages and promotes strong relationships with its suppliers and outsourced service providers to ensure good service, cost effectiveness, use of economies of scale and effective collaboration. |
v. Regulators: The Group aims to maintain strong and effective relationships with the FCA, working in a collaborative manner to enable good customer outcomes while treating customers fairly. The importance of having an open and collaborative relationship with the regulators is embedded as a conduct requirement for all regulated staff. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
ANALYSIS OF KEY PERFORMANCE INDICATORS |
The Company measures its performance on a number of key performance indicators, including: |
- increasing revenue |
- controlling costs; |
- operating margin; |
- average number of employees; |
- accurate monthly accounts closed by day 3 of month end; |
- balance sheet accounts reconciled by end of the following month; |
- statutory accounts filed on time and no penalties incurred; |
- tax returns filed on time and no penalties incurred; |
The Group continues to operate in a challenging environment with a significantly worsening economic landscape and the ongoing conflicts around the world which is leading to continued global instability. Ongoing regulatory focus in the form of the new Consumer Duty will also remain a priority for the business. Despite this, the Group is continuing to drive revenue growth both through its existing retail partners, the winning of new business and the development of new product lines. The Group continues to deliver the very highest levels of customer service. |
The operational performance has remained a core strength and policies and claims management continue to be a key focus for the business. The Group is continuing to strive towards claims cost reductions, however this is becoming increasingly challenging as a result of inflation both locally and globally. However, following actuarial assessments, the Group has had to make further provisions for shortfalls in claims funds relating to historical policies. Action continues to be taken by the Group to substantially reduce the risk of further losses occurring. |
Throughout 2023 the Group has continued its relationship with its underwriting partner, Fortegra Europe Insurance Company Limited, based in Malta, however the relationship was terminated at the end of May 2024. A new partnership long term partnership has been established with Acasta Europe starting in June 2024, and this will allow the Group to maintain its strong position in the market and successfully navigate the complex regulatory environment. |
The Group has continued to develop and extend the business beyond the core furniture protection plan model. The Safeclean franchising model continues to receive investment in both training and marketing support to build network capability and strengthen the consumer proposition. Revenue and profit also continue to be built from Guardsman Professional Services to retailers for first year warranty work and the Group continues to acquire new customers in this area. The Group has also continued to enhance its consumer product range which is distributed through retailers, via an Amazon store and direct to consumers. |
Following continued investment, the directors expect the Company to continue working towards profitability through the remainder of 2024 and into 2025. |
ON BEHALF OF THE BOARD: |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of The principal activity of the Group during the period continues to be the marketing and distribution of Guardsman furniture protection plans, consumer products and furniture care kits. The Company acts as an agent in the sale and administration of fabric and furniture protection insurance policies. The Group operates from Abingdon, Oxfordshire supporting the UK, Republic of Ireland, The Netherlands and Spain. Guardsman Industries Limited has an Irish subsidiary, Guardsman Europe Limited, which sells and manages unregulated service plans and service requests in Ireland, Spain and the Netherlands. This subsidiary began trading in January 2021. |
Guardsman Industries Limited is a master franchisor for a business that trades as 'Safeclean'. In this capacity, the Company sells franchises and supplies products and management services to its network of franchisees. Safeclean franchisees remove furniture and carpet stains. |
Guardsman Industries Limited has also developed and successfully built up non-regulated furniture repair services to consumers and businesses, utilising the franchisee and repairer network. |
DIVIDENDS |
No dividends were paid or declared for the year ended 31 December 2023 (2022 - £nil). |
FUTURE DEVELOPMENTS |
The competitive and commercial trading environment for the business is likely to remain intense in 2024 and the directors expect the market to become more challenging. The new underwriting partnership with Acasta will allow the Company to continue to develop and support the existing and future regulated activities. The Company has invested a lot of time in further improving product value for consumers and has worked closely with their retail partners to achieve this. |
The current economic situation with high interest rates has reduced demand for expensive purchases by consumers and the period of high inflation has left costs higher comparatively to previous financial years. This drives up costs of furniture repairs due to higher parts costs as well as replacement furniture being more expensive than previous years. These costs are being constantly monitored and action taken where necessary. |
With the backing of the Amynta Group, the directors expect the Group to drive profit into the business through investment in further technology enhancements that will drive productivity and improve the customer experience. Guardsman Europe Limited continues to deliver profit and the Group has the opportunity to further expand across the European Union at the appropriate time. |
The directors remain confident that the development and investments the Group is making in the core furniture protection plans will further increase market share and sales. As well as supporting the growth of existing retailers and gaining new retailers, Guardsman is looking to expand into new products and markets with the support of The Amynta Group. |
Guardsman will also continue to develop and invest in the other business channels to support a complete consumer offering. The furniture care products range has grown over recent years and is being further expanded in 2024 through our online Amazon store. The professional services offering and the Safeclean franchise proposition also continue to see investment. |
The directors and leadership team remain focused on delivery against defined strategic goals, which are designed to deliver further sales, customer experience improvements and profit growth in the coming years. This strategy includes growth driven by new customer wins and new product development; increased profit driven by process improvements and a cost focus; and technology innovations to further improve delivery of service excellence as well as driving productivity. The directors are confident that this strategy will continue to grow the Company and deliver against its objectives. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
EVENTS SINCE THE END OF THE YEAR |
The Company was party to an agreement with Blue Group UK Retail Limited (Blue Group) in which Blue Group believed they were owed monies. As agents and third-party administrators, any monies due to Blue Group would be recoverable from the carrier, thus the previous year financial statements included both debtor and creditor balances related to the aforementioned. |
On 26 September 2024, Blue Group was dissolved. As a result, these entries were reversed as an adjusting post-balance sheet event. There was no impact on the income statement in the current year financial statements. |
On 26 September 2024, Guardsman Holdco, LLC subscribed for 5,000,000 Ordinary shares of £1 each. The issue of additional share capital was made in order to continue to grow the business of the Company. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
GOING CONCERN |
Following regular actuarial reviews of the back book claims funds (in run-off), top ups have been made in previous years, including 2023, to cover the projected future claims liabilities. The profit-sharing losses first posted in 2019 have been updated following payments made and an updated actuarial review. This has led to the provision being reduced by £648k (see note 18). The Group is also continuing to deliver aggressive claims cost reduction activities to benefit these funds as they mature as well as the ongoing Fortegra fund. Going forward, the new underwriting contract with Acasta does not feature a profit-sharing arrangement, therefore reducing the potential for liabilities in the future. |
The financial statements have been prepared on a going concern basis as The Amynta Group, the ultimate parent undertaking, has provided £10m of additional paid capital in March 2019 which was reduced to £4m in December 2019. This paid in capital remains in place in 2023 to enable the Company to meets it liabilities as they fall due. On September 26, 2024, Guardsman Holdco, LLC made a capital contribution in the amount of £5m to the Company. |
After making enquiries, the directors have a reasonable expectation that the Group has sufficient resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the annual financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's and company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit -information and to establish that the group's and company's auditors are aware of that information. |
AUDITORS |
The auditors, Forvis Mazars LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUARDSMAN INDUSTRIES LIMITED |
Opinion |
We have audited the financial statements of Guardsman Industries Limited (the parent company) and its subsidiary (the group) for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, 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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, the financial statements: |
- give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2023 and of the group's loss for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 'Auditor's responsibilities for the audit of the financial statements' section of our report. We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The other information comprises the information included in the 'Group Strategic Report, Report of the Directors and Consolidated Financial Statements', other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. |
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 course of 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 |
GUARDSMAN INDUSTRIES LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- the parent company financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 6 , 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUARDSMAN INDUSTRIES 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 an auditor's report 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 the financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Based on our understanding of the group and the parent company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: the regulatory and supervisory requirements of the Financial Conduct Authority (FCA), employment regulations, anti-bribery, corruption and fraud and anti-money laundering regulations. |
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: |
" Inquiring of management and, where appropriate, those charged with governance, as to whether the group and the parent company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; |
" Inspecting correspondence with the FCA; |
" Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and |
" Considering the risk of acts by the group and the parent company which were contrary to applicable laws and regulations, including fraud. |
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, and the Companies Act 2006. |
In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to the posting of manual journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to the level of deferred income and the provision for profit-sharing arrangements and significant one-off or unusual transactions. |
Our audit procedures in relation to fraud included but were not limited to: |
- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
- Gaining an understanding of the internal controls established to mitigate risks related to fraud; |
- Discussing amongst the engagement team the risks of fraud; and |
- Addressing the risks of fraud through management override of controls by performing journal entry testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
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 auditor's report. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUARDSMAN INDUSTRIES LIMITED |
Use of our report |
This report is made solely to the company's member 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 member those matters we are required to state to it in an auditor's report 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 member for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
30 Old Bailey |
London |
EC4M 7AU |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 12,568,997 | 13,331,421 |
Cost of sales | 8,100,562 | 8,089,656 |
GROSS PROFIT | 4,468,435 | 5,241,765 |
Distribution costs | 259,487 | 347,343 |
Administrative expenses | 4,661,996 | 4,184,098 |
4,921,483 | 4,531,441 |
OPERATING (LOSS)/PROFIT | 6 | (453,048 | ) | 710,324 |
Interest receivable and similar income | 7,576 | - |
(445,472 | ) | 710,324 |
Interest payable and similar expenses | 8 | 2,101 | 4,266 |
(LOSS)/PROFIT BEFORE TAXATION | (447,573 | ) | 706,058 |
Tax on (loss)/profit | 9 | 37,984 | 43,972 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(485,557 |
) |
662,086 |
(Loss)/profit attributable to: |
Owners of the parent | (485,557 | ) | 662,086 |
Total comprehensive income attributable to: |
Owners of the parent | (485,557 | ) | 662,086 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 33,603 | 49,204 |
Investments | 12 | - | - |
33,603 | 49,204 |
CURRENT ASSETS |
Stocks | 13 | 265,053 | 466,810 |
Debtors | 14 | 5,514,754 | 7,274,439 |
Cash at bank | 5,485,509 | 6,531,198 |
11,265,316 | 14,272,447 |
CREDITORS |
Amounts falling due within one year | 15 | 4,067,151 | 5,977,878 |
NET CURRENT ASSETS | 7,198,165 | 8,294,569 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,231,768 |
8,343,773 |
CREDITORS |
Amounts falling due after more than one year | 16 | (2,769,902 | ) | (3,083,331 | ) |
PROVISIONS FOR LIABILITIES | 18 | (4,182,708 | ) | (4,495,727 | ) |
NET ASSETS | 279,158 | 764,715 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2,002 | 2,002 |
Share premium | 20 | 5,799,998 | 5,799,998 |
Retained earnings | 20 | (5,522,842 | ) | (5,037,285 | ) |
SHAREHOLDERS' FUNDS | 279,158 | 764,715 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2024 and were signed on its behalf by: |
Ms E E Mulloy - Director |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
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 | 18 | ( |
) | ( |
) |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's (loss)/profit for the financial year | (739,482 | ) | 283,376 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 2,002 | (5,699,371 | ) | 5,799,998 | 102,629 |
Changes in equity |
Total comprehensive income | - | 662,086 | - | 662,086 |
Balance at 31 December 2022 | 2,002 | (5,037,285 | ) | 5,799,998 | 764,715 |
Changes in equity |
Total comprehensive income | - | (485,557 | ) | - | (485,557 | ) |
Balance at 31 December 2023 | 2,002 | (5,522,842 | ) | 5,799,998 | 279,158 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2023 | ( |
) | ( |
) |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (978,284 | ) | 2,036,257 |
Interest paid | (2,101 | ) | (4,266 | ) |
Tax paid | (72,880 | ) | (31,400 | ) |
Net cash from operating activities | (1,053,265 | ) | 2,000,591 |
Cash flows from investing activities |
Interest received | 7,576 | - |
Net cash from investing activities | 7,576 | - |
(Decrease)/increase in cash and cash equivalents | (1,045,689 | ) | 2,000,591 |
Cash and cash equivalents at beginning of year |
2 |
6,531,198 |
4,530,607 |
Cash and cash equivalents at end of year | 2 | 5,485,509 | 6,531,198 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
(Loss)/profit before taxation | (447,573 | ) | 706,058 |
Depreciation charges | 15,601 | 20,827 |
Profit sharing arrangements | (647,716 | ) | 1,118,708 |
Claims provision | 334,697 | 257,170 |
Finance costs | 2,101 | 4,266 |
Finance income | (7,576 | ) | - |
(750,466 | ) | 2,107,029 |
Decrease in stocks | 201,757 | 132,600 |
Decrease/(increase) in trade and other debtors | 1,765,935 | (164,553 | ) |
Decrease in trade and other creditors | (2,195,510 | ) | (38,819 | ) |
Cash generated from operations | (978,284 | ) | 2,036,257 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 5,485,509 | 6,531,198 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 6,531,198 | 4,530,607 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 6,531,198 | (1,045,689 | ) | 5,485,509 |
6,531,198 | (1,045,689 | ) | 5,485,509 |
Total | 6,531,198 | (1,045,689 | ) | 5,485,509 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | 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. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. |
The financial statements are prepared in Sterling |
Going concern |
The financial statements have been prepared on a going concern basis. |
Basis of Consolidation |
The group consolidated financial statements include the financial statements of the company and its subsidiary undertaking made up to 31 December. A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Revenue recognition |
Fees, excluding Value Added Tax and Insurance Premium Tax, receivable for the administration and claims handling of fabric and furniture protection insurance policies are recognised in proportion to the Group's average experience of costs incurred to set-up, maintain, and manage claims handling over the life of such policies. This policy leads to a deferred income balance as detailed in notes 15 & 16. |
Revenue in respect of consumer products is recognised upon delivery to the customer. |
Revenue in respect of professional services is recognised on completion of the work. |
Revenue in respect of franchise operations is recognised immediately in the month charged. |
Turnover also includes the variable consideration arising under profit-sharing arrangements. See the separate accounting policy (page 19) for its recognition. |
Expenditure |
The claims provision is recorded as a cost of sale. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
All property, plant and machinery are initially recorded at cost. |
Depreciation is provided on all property, plant and machinery, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Plant and machinery - 3 or 5 years straight line |
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. |
Impairment of non-financial assets |
Non-financial assets are valued at cost less impairment. |
The Group assesses at each reporting date whether an asset may be impaired. If any such indication exists the Group estimates recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the Group estimates, the recoverable amount of the cash generating unit to which the asset belongs. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through an impairment in profit and loss unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease. |
An impairment loss recognised for all assets, including goodwill, is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is determined on the first-in, first-out (FIFO) method. |
Costs include all costs incurred in bringing each product to its present location and conditions, as follows; |
Finished goods for resale - cost of direct materials and labour plus attributable overheads based on normal level of activity. |
Net realisable value is based on estimated selling price less any further costs expected to be incurred to disposal. |
Stocks are assessed for impairment at the end of each reporting period. Impairment charges are recognised in the Statement of Comprehensive Income. |
Taxation |
Taxation for the yearyear comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income - Continuing operations Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position statement of financial position date. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED 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 statement of financial positionstatement of financial position 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 yearyear 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 statement of financial position statement of financial positiondate. 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. |
Leasing commitments |
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term. Lease incentives are recognised over the shorter of the lease term and the period to the next rent review. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Claims provisions |
The claim provision for the Company is recorded using internal actuarial projections, which are based on current and historical claim experience. The Company's in-house actuary performs an accrual analysis utilizing actuarial methods that incorporate historical claim experience. The Company regularly reviews the estimates of claim costs and adjust the estimates when appropriate. The Company believes the use of actuarial methods to account for these liabilities provides a consistent and effective way to measure these judgmental accruals. |
The claims provision for the subsidiary is based on historical performance for the product assuming a 100% loss ratio. |
Profit-Sharing Arrangements |
Pursuant to certain agreements with its underwriters, the Company may share a portion of the underwriters' profits or losses on the policies that it underwrites. Profit-sharing arrangements represent a form of variable consideration recognized as revenue or loss as performance obligations are satisfied. The amounts to be received or paid, if any, are determined using actuarial methods based on historical and expected ultimate losses and recognised within turnover. Subsequent differences arising on such estimates are recorded in the period in which they are determined. |
Cash and cash equivalents |
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand. |
Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Claims provisions |
The claim provision for the Company is recorded using internal actuarial projections, which are based on current and historical claim experience. The Company's in-house actuary performs an accrual analysis utilizing actuarial methods that incorporate historical claim experience. The Company regularly reviews the estimates of claim costs and adjust the estimates when appropriate. The Company believes the use of actuarial methods to account for these liabilities provides a consistent and effective way to measure these judgmental accruals. |
The claims provision for the subsidiary is based on historical performance for the product assuming a 100% loss ratio. |
Profit-Sharing Arrangements |
Pursuant to certain agreements with its underwriters, the Company may share a portion of the underwriters' profits or losses on the policies that it underwrites. Profit-sharing arrangements represent a form of variable consideration recognized as revenue or loss as performance obligations are satisfied. The amounts to be received, if any, are determined using actuarial methods based on historical and expected ultimate losses. Subsequent differences arising on such estimates are recorded in the period in which they are determined. |
Deferred income |
Fees, excluding Value Added Tax and Insurance Premium Tax, receivable for the administration and claims handling of fabric and furniture protection insurance policies are recognised in proportion to the Company's average experience of costs incurred to set-up, maintain, and manage claims handling over the life of such policies. |
4. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
31.12.23 | 31.12.22 |
£ | £ |
UK | 11,287,741 | 12,308,698 |
Europe | 1,281,256 | 1,022,723 |
12,568,997 | 13,331,421 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 2,649,357 | 2,679,046 |
Social security costs | 266,638 | 300,707 |
Other pension costs | 152,410 | 155,274 |
3,068,405 | 3,135,027 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Administrative staff | 6 | 6 |
Sales | 70 | 72 |
76 | 78 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | - | - |
Directors' remuneration for the years ended 31 December 2022 and 2021 has been borne by another company within the Group. |
6. | OPERATING (LOSS)/PROFIT |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery | 88,816 | 87,586 |
Depreciation - owned assets | 15,601 | 20,827 |
Other operating leases | 178,676 | 199,459 |
7. | AUDITORS' REMUNERATION |
31.12.23 | 31.12.22 |
£ | £ |
Fees payable to the auditor for the audit of the Company's current year's accounts |
129,052 |
129,948 |
Fees payable to the auditor for the audit of the subsidiary | 19,442 | 17,113 |
Total | 148,494 | 147,061 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | 2,101 | 4,266 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit/(loss) for the year was as follows: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
UK corporation tax | - | - | - | - |
Republic of Ireland corporation tax | 37,984 | 43,972 | - | - |
Adjustments in respect of previous periods | - | - | - | - |
37,984 | 43,972 | - | - |
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. The difference is explained below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Profit/(Loss) before tax | (447,573 | ) | 706,058 | (739,482 | ) | 283,376 |
(Loss)/Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%) |
(140,502 |
) |
53,841 |
(140,502 |
) |
53,841 |
Profit/(loss) multiplied by the standard rate of corporation tax in the Republic of Ireland of 12.5% (2022 - 12.5%) |
37,664 |
43,657 |
- |
- |
Losses carried forward | 137,007 | - | 137,007 | - |
Expenses not deductible for tax purposes | 4,025 | 315 | 3,705 | - |
Pre-trading expenditure qualifying for deduction | - | - | - | - |
Utilisation of tax losses | - | (55,090 | ) | - | (55,090 | ) |
Capital allowances in excess of depreciation | (1,953 | ) | (75 | ) | (1,953 | ) | (75 | ) |
Expensive leased cars | 1,743 | 1,324 | 1,743 | 1,324 |
Adjustments in respect of previous periods | - | - | - | - |
Total tax charge | 37,984 | 43,972 | - | - |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income - Continuing operations of the parent company is not presented as part of these financial statements. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 66,043 |
DEPRECIATION |
At 1 January 2023 | 16,839 |
Charge for year | 15,601 |
At 31 December 2023 | 32,440 |
NET BOOK VALUE |
At 31 December 2023 | 33,603 |
At 31 December 2022 | 49,204 |
Company |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 |
and 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 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: Ireland |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Finished goods | 265,053 | 466,810 |
Stocks are stated after provisions for impairment of £47,599 (2022: £63,477). |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 4,628,454 | 6,448,970 |
Tax | 6,250 | - |
Prepayments and accrued income | 880,050 | 825,469 |
5,514,754 | 7,274,439 |
Trade debtors are stated after provisions for impairment of £7,217 (2022: £35,429). |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 1,081,518 | 2,346,023 |
Corporation tax | - | 28,646 |
Social security and other taxes | 927,048 | 1,249,627 |
Accruals and deferred income | 2,058,585 | 2,353,582 |
4,067,151 | 5,977,878 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Accruals and deferred income | 2,769,902 | 3,083,331 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Other provisions |
Profit-sharing arrangements | 3,092,496 | 3,740,212 | 3,092,496 | 3,740,212 |
Claims provision | 1,090,212 | 755,515 | - | - |
4,182,708 | 4,495,727 |
Aggregate amounts | 4,182,708 | 4,495,727 | 3,092,496 | 3,740,212 |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1.00 | 2,002 | 2,002 |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | (5,037,285 | ) | 5,799,998 | 762,713 |
Deficit for the year | (485,557 | ) | - | (485,557 | ) |
At 31 December 2023 | (5,522,842 | ) | 5,799,998 | 277,156 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | ( |
) | 329,188 |
Deficit for the year | ( |
) | - | ( |
) |
At 31 December 2023 | ( |
) | (410,294 | ) |
21. | CONTINGENT LIABILITIES |
Guardsman Europe Limited has identified a potential VAT liability related to the revenue earned through the sale of service plans. Based on professional advice, the directors believe that there is a possibility of a VAT liability relating to the 2022 year end. However, due to the complexity of the VAT legislation an estimated amount cannot be reasonably determined at the present time. |
22. | POST BALANCE SHEET EVENTS |
The Company was party to an agreement with Blue Group UK Retail Limited (Blue Group) in which Blue Group believed they were owed monies. As agents and third-party administrators, any monies due to Blue Group would be recoverable from the carrier, thus the previous year financial statements included both debtor and creditor balances related to the aforementioned. |
On 26 September 2024, Blue Group was dissolved. As a result, these entries were reversed as an adjusting post-balance sheet event. There was no impact on the income statement in the current year financial statements. |
On 26 September 2024, Guardsman Holdco, LLC subscribed for 5,000,000 Ordinary shares of £1 each. The issue of additional share capital was made in order to continue to grow the business of the Company. |
GUARDSMAN INDUSTRIES LIMITED (REGISTERED NUMBER: 02360505) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | ULTIMATE CONTROLLING PARTY |
The Company's immediate parent undertaking is Guardsman Holdco LLC,a company incorporated in the United States of America. |
The Company's ultimate parent undertaking and the controlling party is Amynta Ultimate Holdings LLC, which is incorporated in the United States of America. Copies of its group financial statements, which include the Company, are available from : |
Amynta Ultimate Holdings LLC |
909 3rd Avenue, 33rd Floor |
New York |
NY 10022 |
USA |