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Registered Number:01461583













GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)






ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024











 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONTENTS



Pages
Company Information
1
Group Strategic Report
2 - 3
Director's Report
4 - 5
Independent Auditor's Report
6 - 10
Consolidated Statement of Comprehensive Income
11 - 12
Consolidated Balance Sheet
13 - 14
Company Balance Sheet
15 - 16
Consolidated Statement of Changes in Equity
17
Company Statement of Changes in Equity
18
Consolidated Statement of Cash Flows
19 - 20
Consolidated Analysis of Net Debt
21
Notes to the Financial Statements
22 - 47



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
COMPANY INFORMATION


Director
Mr R J Butler 




Company secretary
H Butler



Registered number
01461583



Registered office
2 Water Lane

Bures

Suffolk

CO8 5DE




Independent auditor
Sumer Auditco Limited
Statutory Auditor

Fitzroy House

Crown Street

Ipswich

Suffolk

IP1 3LG




Bankers
Barclays Bank Plc
1 Churchill Place

Canary Wharf

London

E14 5HP





- 1 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The Director presents his Strategic Report together with the audited financial statements for the year ended 30 April 2024.

Business review and financial key performance indicators
 
Gladwell Commercial Holdings Limited continues to be a holding company for the Group's investments in its subsidiary undertakings, investment property and the Group's freehold properties.
Waterhouse was the only subsidiary with any external trade and ceased operations during the year.
At the period end the group had net assets of £1,996,176.

Principal risks and uncertainties
 
The following principal risks and uncertainties impact the business in the foreseeable future:
Business
The sole remaining business activity of the group is the letting of its main investment property located in Chelmsford.
Liquidity and cashflow
The Group prepares financial forecasts to ensure it will meet its financial obligations as they fall due: at the period end the group had cash at bank of £1,512,647.

Financial key performance indicators
 
The financial key performance indicators for the Group were revenue and gross profit.
                                                                                                                    
2024               2023
Revenue          
 £318,182            £34,368,557
Gross profit          
 £418,610  £2,453,635
Gross margin         
 131.56%  7.14% 
Operating costs         
 £176,402  £1,375,905
Exceptional items         
 £199,099  £291,977
Other operating income        
 £92,920  £Nil
Operating profit           
 £136,029  £785,753
Operating margin           
 42.75%            2.23%
Interest payable            
 £30,701  £37,849
Profit before tax          
 £136,246  £747,904
Cash at bank and in hand        
 £1,512,647  £1,659,734
Net assets            
 £1,996,176    £2,032,312
The table of Financial Key Performance Indicators for the Group demonstrates the very substantial reduction in business activity. 


- 2 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


This report was approved by the Board on 20 September 2024 and signed on its behalf.



Mr R J Butler
Director


- 3 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The Director presents his report and the financial statements for the year ended 30 April 2024.                    
On 29 February 2024 the Company changed its name to GCH Associates Ltd.

Director's responsibilities statement

The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the Director to prepare financial statements for each financial year. Under that law the Director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Director must not approve the financial statements unless he is 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 Director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £32,232 (2023 - £608,631).

During the period, the Company declared interim dividends amounting to £163,800 (16 months ended 31 December 2023 - £163,800). The Director does not recommend the payment of a final dividend (16 months ended 31 December 2023 - £Nil).

Director

The Director who served during the year was:

Mr R J Butler 

Qualifying third party indemnity provisions

The Group made qualifying third party indemnity provisions for the benefit of the Director during the period which remain in force at the date of this report.


- 4 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Matters covered in the Strategic Report

Details of the Group's principal risks and uncertainties to which it is exposed are included in the Strategic Report.

Disclosure of information to auditor

The Director at the time when this Director's Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since 30 April 2024 to the date of this report.

Auditor

On 28 March 2024 our auditor, SB Audit LLP, merged with Sumer Auditco Limited.
Accordingly SB Audit LLP formally resigned as the Company's auditor with the directors duly appointing Sumer Auditco Limited to fill the vacancy arising. The auditor, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the Board on 20 September 2024 and signed on its behalf.
 





Mr R J Butler
Director


- 5 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)

Opinion


We have audited the financial statements of Gladwell Commercial Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Balance Sheets, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 30 April 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Emphasis of matter property valuations


We draw your attention to the disclosures in note 18 of the financial statements.  As described in this note, the Directors have not obtained an independent value of the Company’s investment property and have based the property valuation of £764,118 on the historic depreciated rate of the asset. Our opinion is not modified in respect of this matter.



- 6 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)

Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Director's 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 or 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 Director 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 Annual Report other than the financial statements and our Auditor's Report thereon. The Director is responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.



- 7 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)

Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.


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 Director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of the Director
 

As explained more fully in the Director's Responsibilities Statement set out on page 4, the Director is 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 Director determines 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 Director is 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 Director either intends to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.



- 8 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)

Auditor's 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 these Group financial statements.


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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience and through discussions and enquiries of the Director and management. During the engagement team briefing, the outcomes of these discussions were shared with the team, as well as consideration as to where and how fraud may occur in the Group.
The following laws and regulations were identified as being of significance to the Group:
• Those laws and regulations considered to have a direct effect on the consolidated financial statements including UK financial reporting standards, UK Company Law and taxation legislation; and
•  Those laws and regulations considered to have an indirect effect on the financial statements including The Health & Safety Act 1974, vehicle inspection regulations, GDPR, anti-bribery and corruption, human rights and Employment law.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the Group complies with such regulations; enquiries of management and those charged with governance concerning any actual or potential litigation or claims, inspection of relevant legal documentation, review of Board minutes, testing the appropriateness of journal entries and the performance of analytical review to identify any unexpected movements in account balances which may be indicative of fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the consolidated financial statements, the less likely we would become aware of it. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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.



- 9 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED) (CONTINUED)

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 2006Our 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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





John Perry (Senior Statutory Auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditor
  
Fitzroy House
Crown Street
Ipswich
Suffolk
IP1 3LG

24 September 2024

- 10 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

Continuing operations
Discontin'd operations
Total
Continuing operations
Discontinued operations
Total
12 months ended
30 April
12 months ended
30 April
12 months ended
30 April
As restated
16 months ended
30 April
As restated
16 months ended
30 April
As restated
16 months ended
30 April
2024
2024
2024
2023
2023
2023
Notes
£
£
£
£
£
£

  

Turnover
 4 
101,476
174,956
276,432
1,189
34,367,368
34,368,557

Cost of sales
  
-
100,428
100,428
-
(31,914,922)
(31,914,922)

Gross profit
  
101,476
275,384
376,860
1,189
2,452,446
2,453,635

Administrative expenses
  
(86,609)
(104,865)
(191,474)
(183,925)
(1,169,861)
(1,353,786)

Exceptional administrative expenses
  
-
(199,099)
(199,099)
-
(291,977)
(291,977)

Other operating income
 5 
-
92,920
92,920
-
-
-

Operating profit
 6 
14,867
64,340
79,207
(182,736)
990,608
807,872

Interest receivable and similar income
 11 
47,947
217
48,164
-
-
-

Interest payable and similar expenses
 12 
-
-
-
-
(37,849)
(37,849)

Profit before taxation
  
62,814
64,557
127,371
(182,736)
952,759
770,023

Tax on profit
 13 
(64,438)
(30,701)
(95,139)
(1,541)
(159,851)
(161,392)

Profit for the financial year
  
(1,624)
33,856
32,232
(184,277)
792,908
608,631

Profit for the year attributable to:
  

Owners of the parent Company
  
32,232
-
32,232
(184,277)
792,908
608,631

  
32,232
-
32,232
(184,277)
792,908
608,631


- 11 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 22 to 47 form part of these financial statements.


- 12 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
REGISTERED NUMBER:01461583


CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2024

As restated
2024
2023
Notes
£
£

Fixed assets
  

Tangible assets
 16 
17,534
107,783

Investment property
 18 
764,118
764,118

  
781,652
871,901

Current assets
  

Stocks
 19 
-
85,886

Debtors: amounts falling due within one year
 20 
47,388
1,295,947

Cash at bank and in hand
 21 
1,512,647
1,659,734

  
1,560,035
3,041,567

Creditors: amounts falling due within one year
 22 
(418,824)
(1,429,860)

Net current assets
  
 
 
1,141,211
 
 
1,611,707

Total assets less current liabilities
  
1,922,863
2,483,608

Provisions for liabilities
  

Other provisions
 24 
-
(429,177)

Net assets
  
1,922,863
2,054,431


Capital and reserves
  

Called up share capital 
 25 
26,000
26,000

Capital redemption reserve
 26 
24,000
24,000

Profit and loss account
 26 
1,872,863
2,004,431

Total equity
  
1,922,863
2,054,431



- 13 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
REGISTERED NUMBER:01461583

    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 September 2024.




Mr R J Butler
Director

The notes on pages 22 to 47 form part of these financial statements.


- 14 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
REGISTERED NUMBER:01461583


COMPANY BALANCE SHEET
AS AT 30 APRIL 2024

2024
As restated 2023
Note
£
£

Fixed assets
  

Tangible assets
 16 
17,534
82,701

Investments
 17 
1
428,263

Investment Property
 18 
764,118
764,118

  
781,653
1,275,082

Current assets
  

Debtors: amounts falling due within one year
 20 
47,388
8,856

Cash at bank and in hand
 21 
1,512,647
10,236

  
1,560,035
19,092

Creditors: amounts falling due within one year
 22 
(419,827)
(251,557)

Net current assets/(liabilities)
  
 
 
1,140,208
 
 
(232,465)

Total assets less current liabilities
  
1,921,861
1,042,617

  

  

Net assets
  
1,921,861
1,042,617


Capital and reserves
  

Called up share capital 
 25 
26,000
26,000

Capital redemption reserve
 26 
24,000
24,000

Profit and loss account brought forward
  
992,617
1,025,716

Profit for the year
  
1,043,044
130,701

Dividends paid

  

(163,800)
(163,800)

Profit and loss account carried forward
  
1,871,861
992,617

  
1,921,861
1,042,617



- 15 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
REGISTERED NUMBER:01461583

    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 September 2024.


Mr R J Butler
Director

The notes on pages 22 to 47 form part of these financial statements.


- 16 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to owners of Parent Company
Total 
equity

£
£
£
£
£


At 1 January 2022
26,000
24,000
1,559,600
1,609,600
1,609,600


Comprehensive income for the period

Profit for the period
-
-
608,631
608,631
608,631


Distributions to owners

Dividends paid (see note 13)
-
-
(163,800)
(163,800)
(163,800)



At 1 May 2023
26,000
24,000
2,004,431
2,054,431
2,054,431


Comprehensive income for the year

Profit for the year
-
-
32,232
32,232
32,232


Distributions to owners

Dividends paid (see note 13)
-
-
(163,800)
(163,800)
(163,800)


At 30 April 2024
26,000
24,000
1,872,863
1,922,863
1,922,863


The notes on pages 22 to 47 form part of these financial statements.


- 17 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total 
equity

£
£
£
£


At 1 January 2022
26,000
24,000
1,025,716
1,075,716


Comprehensive income for the period

Profit for the period
-
-
130,701
130,701


Distributions to owners

Dividends paid (see note 13)
-
-
(163,800)
(163,800)



At 1 May 2023
26,000
24,000
992,617
1,042,617


Comprehensive income for the year

Profit for the year
-
-
1,043,044
1,043,044


Distributions to owners

 Dividends paid (see note 13)
-
-
(163,800)
(163,800)


At 30 April 2024
26,000
24,000
1,871,861
1,921,861


The notes on pages 22 to 47 form part of these financial statements.


- 18 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
32,232
608,631

Adjustments for:

Depreciation of tangible assets
12,773
237,340

Impairments of fixed assets
71,117
-

(Profit) on disposal of tangible assets
(20,086)
(246,551)

Interest paid
-
37,849

Interest received
(217)
-

Taxation charge
95,139
161,392

Decrease in stocks
85,886
2,063,593

Decrease/(increase) in debtors
1,249,522
(673,411)

(Decrease) in creditors
(906,610)
(1,481,743)

(Decrease)/increase in provisions
(429,177)
357,019

Corporation tax (paid)
(200,528)
(112,972)

Net cash generated from operating activities

(9,949)
951,147


Cash flows from investing activities

Purchase of tangible fixed assets
(87,576)
(406,211)

Sale of tangible fixed assets
114,021
632,973

Interest received
217
-

Net cash from investing activities

26,662
226,762

- 19 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


2024
2023

£
£



Cash flows from financing activities

Dividends paid
(163,800)
(163,800)

Interest paid
-
(37,849)

Net cash used in financing activities
(163,800)
(201,649)

Net (decrease)/increase in cash and cash equivalents
(147,087)
976,260

Cash and cash equivalents at beginning of year
1,659,734
683,474

Cash and cash equivalents at the end of year
1,512,647
1,659,734


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,512,647
1,659,734

1,512,647
1,659,734


The notes on pages 22 to 47 form part of these financial statements.


- 20 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024





At 1 May 2023
Cash flows
Other non-cash changes
At 30 April 2024
£

£

£

£

Cash at bank and in hand

1,659,734

(147,087)

-

1,512,647

Debt due within 1 year

(2,821)

-

2,821

-


1,656,913
(147,087)
2,821
1,512,647

The notes on pages 22 to 47 form part of these financial statements.


- 21 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

GCH Associates Ltd (the "Company") is a private company limited by shares incorporated and domiciled in England and Wales. The address of its registered office is 2 Water Lane, Bures, Suffolk CO8 5DE.
The Company's principal activities during the year were that of an investment holding company, holding of investment property.
Following the sale of its trade and assets within on the subsidiaries, the group ceased operating as a  franchised dealer for Volvo Sales and Aftersales and Mercedes-Benz Aftersales: used car sales are primarily associated with the Volvo franchise. The Group's principal acitivity going forward is the management of investment property. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The Parent Company is included in the consolidated financial statements and has taken advantage of the exemption available to qualifying entities under FRS 102 from presenting its own Statement of Cash Flows in these financial statements.
The discontinued operations reflect the final income and costs of discontinuing the car sales and aftersales businesses. The continuing operations reflect income and costs of the investment property business.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries (the "Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 January 2015.


- 22 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Director has prepared cashflow forecasts for the foreseeable future, being a period of at least 12 months from the date of approval of these financial statements, which indicate that the Group and the Company has sufficient resources available to meet its liabilities as they fall due and to continue to trade in its current form. Accordingly, the Director considers that it is appropriate to prepare the financial statements on a going concern basis.

 
2.4

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the sale of new and used vehicles is recognised when the vehicles are delivered to the customers.
Revenue from vehicle servicing and repairs is recognised when work has been performed and the Group becomes entitled to the income.
Revenue in the form of rent receivable is recognised on a straight-line basis over the term of the leases to which it relates.

 
2.5

Operating leases: the Group as lessee

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

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

  
2.7

Defined contribution pension plan

The Group operates a defined contribution pension scheme for its employees. A defined contribution pension scheme is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.


- 23 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the  period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as Other Comprehensive Income or to an item recognised directly in equity is also recognised in Other Comprehensive Income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to both their size and incidence.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.


- 24 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold buildings
-
3 to 5% straight line
Freehold improvements
-
5 to 10 years straight line
Plant and machinery
-
3 to 10 years straight line
Motor vehicles
-
charged according to the age and condition of the vehicle
Fixtures and fittings
-
3 to 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.12

Investment property

Investment property is carried at fair value, determined annually by the Director. No depreciation is provided. Changes in fair value are recognised in the Consolidated Statement of Comprehensive Income.

 
2.13

Investments

Investments in subsidiary undertakings are measured at cost less accumulated impairment charges.


- 25 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Vehicle stock is based on the purchase costs of the actual vehicles held. Parts stock is based on purchase costs on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
The Group purchased vehicles under a consignment arrangement under which the risks and rewards of ownership do not pass to the Group until the vehicles are delivered to its premises. Accordingly, neither the stock nor the corresponding liabilities are recognised in respect of any vehicles which have been consigned to the company but not received at the year end.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


- 26 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

- 27 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)


Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an Annual General Meeting.

 
2.21

Interest income

Interest income is recognised in profit or loss using the effective interest method.


- 28 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for income and expenditure during the period. However, the nature of estimation means that actual outcomes could differ from those estimates. The critical judgements and key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are mentioned below:
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the useful economic lives and residual values of assets. The economic lives and residual values are re-assessed annually. They are revised when necessary to reflect current estimates, based on recoverability, expected economic utilisation of the asset and the physical condition of the assets.
Valuation of stocks
Until 28 April 2023 the Group sold vehicles and (as part of its servicing and repairs department) vehicle parts. It was therefore subject to changing consumer demands and manufacturer requirements. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of vehicles and parts, and future usage of them.
Lease provisions
Certain of the Group's property leases contain clauses requiring reinstatement and repair of premises upon termination. The Director has estimated the present value of the costs to meet this requirement and a provision has been included in the financial statements. The Director keeps the condition and cost of reinstatement under review with the aim of maintaining their best estimate at each period end. The onerous lease provision relates to the estimated costs that will be incurred in respect of a lease in excess of expected cash flows. The provision is the estimated present value of the rent and rates that will be incurred between vacant possession and expiration of the lease agreement.
Investment property
The freehold investment property is valued at the Director's estimate of fair value. The valuation of property is inherently subjective due to the estimation and judgement involved, as such the amount achieved in a third party sale could differ to the amount disclosed in the financial statements


- 29 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


12 months ended
30 April
16 months ended
30 April
2024
2023
£
£

Vehicle sales and associated income
276,408
29,086,717

Parts and servicing sales
24
5,281,840

276,432
34,368,557


All turnover arose within the United Kingdom.


5.


Other operating income

12 months ended
30 April
16 months ended
30 April
2024
2023
£
£

Reversal of provisions
92,920
-


The other operating income relates to the reversal of provisions which were not required when the liabilities crystallised.


6.


Operating profit

The operating profit is stated after charging/(crediting):

12 months ended
30 April
16 months ended
30 April
2024
2023
£
£

Depreciation of tangible fixed assets
31,701
237,340

Profit on disposal of tangible fixed assets
(41,086)
(75,842)

Other operating lease rentals
9,385
160,161

Exceptional items (see note 7)
199,099
291,977


- 30 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

7.


Exceptional items

12 months ended
30 April
16 months ended
30 April
2024
2023
£
£



Profit on sale of the trade and certain assets
(13,000)
(170,709)

Costs associated with the winding down of the Group's former principal activity
212,099
107,492

Redundancy costs
-
355,194

199,099
291,977

The exceptional items above relate to the sale of the trade and certain assets to Lookers Motor Group Limited on 28 April 2023.


8.


Auditor's remuneration

During the period, the Group obtained the following services from the Company's auditor:


12 months ended
30 April
16 months ended
30 April
2024
2023
£
£

Fees payable to the Company's auditor for the audit of the consolidated and Parent Company's financial statements
9,100
6,325

Fees payable to the Company's auditor for the audit of the subsidiary financial statements
10,100
21,675

Fees payable to the Company's auditor for taxation services
3,200
3,250


- 31 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

9.


Employees

Staff costs, including the Director's remuneration, were as follows:


Group
Group
Company
Company
12 months ended 30 April 2024
16 months ended 30 April 2023
12 months ended 30 April 2024
16 months ended 30 April 2023
£
£
£
£


Wages and salaries
(66,283)
2,440,769
59,642
45,650

Social security costs
(8,950)
264,367
5,238
4,137

Cost of defined contribution pension scheme
148,519
194,894
30,000
30,000

73,286
2,900,030
94,880
79,787


In addition, the Group has incurred redundancy costs in the period amounting to £Nil (16 months ended 30 April 2023 - £355,194).

The average monthly number of employees, including the Director, during the year was as follows:



Group
Group
Company
Company
  12 months ended
       30 April
   16 months ended
        30 April
  12 months ended
       30 April
   16 months ended
        30 April
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Administrative
4
14
2
2



Technical
-
39
-
-

4
53
2
2


- 32 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

10.


Director's remuneration

12 months ended
30 
April
16 months ended
30 April
2024
2023
£
£

Director's emoluments
5,995
5,034


During both the current and prior periods, the Director did not accrue retirement benefits to the Group's defined contribution pension scheme.

The total key management personnel compensation for the year to £240,741 (16 months ended 31 December 2023 - £204,683).


11.


Interest receivable

12 months ended
30 April
16 months ended
30 April
2024
2023
£
£


Other interest receivable
48,164
-


12.


Interest payable and similar expenses

12 months ended
30 
April
16 months ended
30 April
2024
2023
£
£


Vehicle stocking loan interest payable
-
37,849


- 33 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Taxation


12 months ended
30 April
16 months ended
30 April
2024
2023
£
£

Current tax


UK Corporation tax on profit for the period
91,441
200,333

Adjustments in respect of previous periods
4,661
-


Total current tax
96,102
200,333

Deferred tax


Origination and reversal of timing differences
(963)
(38,941)

Total deferred tax
(963)
(38,941)


Taxation on profit on ordinary activities
95,139
161,392

- 34 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
13.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the year/period is higher than (2023 - higher than) the standard rate of Corporation tax in the UK of 25% (16 months ended 30 April 2023 - 19.76%). The differences are explained below:

12 months ended
30 April
As restated
16 months ended
30 April
2024
2023
£
£


Profit on ordinary activities before tax
127,371
770,023


Profit on ordinary activities multiplied by standard rate of Corporation tax in the UK of 25.00% (16 months ended 30 April 2023 - 19.76%)
31,843
152,157

Effects of:


Expenses not deductible for tax purposes
46,160
18,989

Adjustments to tax charge in respect of prior periods
4,661
-

Effect of changes in tax rates
-
(5,292)

Loss on disposal of ineligible fixed assets
12,475
-

Other differences leading to an increase (decrease) in the tax charge
-
(4,462)

Total tax charge for the period
95,139
161,392


Factors that may affect future tax charges

In the Spring Budget 2021 the UK Government announced that the rate of UK Corporation tax would increase to 25% from 1 April 2023 with an introduction of a small profits rate of 19% at the same point in time. These changes were substantively enacted into law when the Finance Act 2021 was given Royal Assent on 10 June 2021.
Accordingly deferred tax assets and liabilities are stated at 25% (30 April 2023 - 25%).


14.


Dividends

2024
2023
£
£


Interim dividends paid on Ordinary shares
163,800
163,800


- 35 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

15.


Parent Company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the year/period was £1,043,044 (2023 - £130,701).


- 36 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

16.


Tangible fixed assets

Group






Freehold property
Freehold improve-ments
Plant 
and 
machinery
Motor vehicles
Fixtures
 and 
fittings
Total

£
£
£
£
£
£



Cost


At 1 May 2023 (as restated)
77,901
25,514
214,922
129,406
125,123
572,866


Additions
-
-
-
85,886
1,690
87,576


Disposals
(77,901)
(25,514)
(213,577)
(129,406)
(100,932)
(547,330)



At 30 April 2024

-
-
1,345
85,886
25,881
113,112



Depreciation


At 1 May 2023 (as restated)
-
25,514
214,435
113,372
111,762
465,083


Charge for the year
-
-
487
2,154
10,132
12,773


Disposals
-
(25,514)
(213,577)
(113,372)
(100,932)
(453,395)


Impairment charge
-
-
-
71,117
-
71,117



At 30 April 2024

-
-
1,345
73,271
20,962
95,578



Net book value



At 30 April 2024
-
-
-
12,615
4,919
17,534



At 30 April 2023 (as restated)
77,901
-
487
16,034
13,361
107,783

Included in the cost of freehold property is land amounting to £Nil (2023 - £77,901) which is not depreciated.


- 37 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

           16.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost 


At 1 May 2023 (as restated)
77,901
1,345
-
24,191
103,437


Additions
-
-
14,769
1,690
16,459


Disposals
(77,901)
-
-
-
(77,901)



At 30 April 2024

-
1,345
14,769
25,881
41,995



Depreciation


At 1 May 2023 (as restated)
-
1,345
-
19,391
20,736


Charge for the year
-
-
2,154
1,571
3,725



At 30 April 2024

-
1,345
2,154
20,962
24,461



Net book value



At 30 April 2024
-
-
12,615
4,919
17,534



At 30 April 2023(as restated)
77,901
-
-
4,800
82,701

Included in the cost of freehold property is land amounting to £Nil (2023 - £77,901) which is not depreciated.







- 38 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

17.


Fixed asset investments

Company





Investments in subsidiary under-
takings

£



Cost


At 1 May 2023
1,295,178



At 30 April 2024

1,295,178



Impairment


At 1 May 2023
866,915


Charge for the period
428,262



At 30 April 2024

1,295,177



Net book value



At 30 April 2024
1



At 30 April 2023
428,263


Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Titanstrong Limited
2 Water Lane, Bures, Suffolk CO8 5DE
Intermediate holding company
Ordinary
100


- 39 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Direct subsidiary undertaking (continued)

The aggregate of the share capital and reserves as at 30 April 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit

Titanstrong Limited
1
1,295,001


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Waterhouse Limited
2 Water Lane, Bures, Suffolk CO8 5DE
Car dealer until 28 April 2023
Ordinary
100%

The aggregate of the share capital and reserves as at 30 April 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit

Waterhouse Limited
1
68,918


- 40 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

18.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 May 2023 (as restated)
764,118



At 30 April 2024
764,118

The 2024 valuation was made by Mr R J Butler, a Director who is not a professionally qualified valuer, on an open market value for existing use basis.
The restatement at 1 May 2023 reflects the reclassification of freehold property as investment property (see note 27).



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2024
As restated 2023
£
£


Historic cost
780,011
780,011

As at 30 April 2024, the Profit and Loss Account reserve includes a £15,893 (2023 - £15,893) debit in respect of downward investment property revaluations made in prior years.

The future minimum leases receivable under these non-cancellable operating leases are as follows: 


2024
2023
£
£



Within 1 year
96,049
92,035

In 1 to 5 years
439,969
418,683

After more than 5 years
-
117,335

536,018
628,053


- 41 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

19.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
-
284

Finished goods and goods for resale
-
85,602

-
85,886


The carrying value of stocks are stated net of impairment losses amounting to £Nil (30 April 2023 - £37,530). During the year an impairment gain amounting to £Nil (16 months ended 30 April 2023 -£216,157) was recognised in the Consolidated Statement of Comprehensive Income.


- 42 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

20.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
-
1,229,964
-
-

Other debtors
36,679
23,101
36,679
1,444

Prepayments and accrued income
6,197
39,333
6,197
-

Deferred tax asset (see note 23)
4,512
3,549
4,512
7,412

47,388
1,295,947
47,388
8,856



21.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
1,512,647
1,659,734
1,512,647
10,236



22.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2024
2023
2024
2023
£
£
£
£

Trade creditors
-
168,756
-
-

Amounts owed to indirect subsidiary undertaking
-
-
1
167,571

Corporation tax payable
95,907
200,333
95,907
181

Other taxation and social security
8,321
663,657
8,321
1,190

Other creditors
35,731
38,313
36,733
15,715

Accruals and deferred income
278,865
358,801
278,865
66,900

418,824
1,429,860
419,827
251,557



- 43 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

23.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
3,549
(35,392)


(Credit) to profit or loss
-
38,941


Utilised in year
963
-



At end of year
4,512
3,549

Company


2024
2023


£

£






At beginning of year
7,412
8,175


(Credit) to profit or loss
-
(763)


Utilised in year
(2,900)
-



At end of year
4,512
7,412

The deferred taxation (asset)/liability is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(791)
(6,807)
(791)
(1,061)

Other short term timing differences
1,330
6,383
1,330
4,500

Revaluation of investment property
3,973
3,973
3,973
3,973

4,512
3,549
4,512
7,412


- 44 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

24.


Provisions


Group



Lease reinst'ment provision
Onerous lease provision
Redundancyprovision
Total

£
£
£
£





At 1 May 2023
60,561
27,566
341,050
429,177


Utilised in year
(60,561)
(27,566)
(341,050)
(429,177)



At 30 April 2024
-
-
-
-

The lease reinstatement provision relates to the estimated costs of reinstating the premises occupied by the Group's subsidiary at the termination of the lease to the condition detailed within the lease agreement. The provision is the estimated present value of the works required based on the condition of the premises at the period end.
The onerous lease provision related to the estimated costs that will be incurred in respect of a lease in excess of expected cash flows. The provision is the estimated present value of the rent and rates that will be incurred between vacant possession and expiration of the lease agreements.
The redundancy provision relates to costs associated with the termination of contracts for employees who were not transferred to Lookers Motor Group Limited on 28 April 2023.
All of the provisions have been utilised or reversed with the winding down of the Group's former principal activity.


25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



26,000 ordinary shares of £1 each
26,000
26,000



- 45 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

26.


Reserves

Capital redemption reserve

The Group and Company Capital Redemption Reserve represents the nominal value of the share capital redeemed by the Parent Company in prior periods.

Profit and loss account

The Profit and Loss Account reserve represents the Group's and the Company's accumulated profits and losses, less dividends paid.


27.


Prior year adjustment

During the year, it was identified that accruals in previous periods had been materially overstated in respect of overheads. Accordingly the comparatives have been restated resulting in a decrease to overheads and accruals of £22,119, resulting in a net increase to profit of £22,119. Equity brought forward as at 1 May 2023 has been adjusted accordingly.
Furthermore, following a review of the arrangements and recognition criteria as set out within FRS 102 in respect of the Freehold property, it was determined that the freehold property held pertains to investment property as following the sale of trade and assets to Lookers Motor Group Limited, the property was held to obtain income under an operating lease arrangement. Accordingly, the comparatives have been restated to transfer freehold property costs of £1,089,454 and freehold property depreciation of £475,336, resulting in an increase of investment property of £614,118. There is no impact on equity brought forward as at 1 May 2023 as a result. 


28.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge for the period represents contributions payable by the Group to the fund and amounted to £148,519 (16 months ended 30 April 2023 - £164,894). Contributions amounting to £Nil (2023 - £13,031) were payable to the fund at the balance sheet date and are included in Other Creditors.


29.


Commitments under operating leases

At 30 April 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Not later than 1 year
-
25,200
-
25,200


- 46 -



 
GCH ASSOCIATES LTD (FORMERLY GLADWELL COMMERCIAL HOLDINGS LIMITED)
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

30.


Related party transactions

During the year, the Group paid rent to the occupational pension scheme of the Company amounting to £Nil (16 months ended 3 April 2023 - £51,333). At the balance sheet date, the Group owed £Nil (30 April 2023 - £Nil) to the occupational pension scheme.
During the year, the Group sold a motor vehicle to the Director for £12,000 (16 months ended 30 April 2023 - £Nil). 
During the year, the Group sold land to a related pension scheme for £28,000 (16 months ended 30 April 2023 - £Nil). 
During the year, the Group paid wages of £125,235 (16 months ended 30 April 2023 - £105,456) to close family members of the Director and other key management personnel.
During the year, the Company declared dividends of £39,369 (16 months ended 30 April 2023 - £39,369) payable to a trust for the benefit of family members of the Director.
During the year, the Company declared dividends of £7,875 (16 months ended 30 April 2023 - £7,875) payable to the Director.
During the year, the Company declared dividends of £38,852 (16 months ended 30 April 2023 - £38,852) payable to key management personnel.
During the year, the Company declared dividends of £77,704 (16 months ended 30 April 2023 - £77,704) to close family members of the Director and other key management personnel.
At the year end, the Group was owed a current account balance from the Director of £6,679 (2023 - the Group owed to the Director £2,821).
At the year end, the Group was owed a balance from a close family member of the Director of £30,000 (2023 - £Nil).


31.


Controlling party

The Group's ultimate controlling parties are Mr R J Butler, Mrs A Wood and Mr H Butler by virtue of their shareholding in the Company.

 

- 47 -