Company registration number 07031955 (England and Wales)
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
P A Dooley
(Appointed 25 January 2023)
B Gowdy
(Appointed 4 January 2023)
Company number
07031955
Registered office
Gallium House
Unit 2 Station Court
Borough Green
Sevenoaks
Kent
TN15 8AD
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Company statement of cash flows
18
Notes to the financial statements
19 - 33
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present their strategic report of the company and the group for the year ended 30 June 2023.

Review of the business

During the year end, Mr Peter Dooley and Mr Barry Gowdy were appointed directors of Gallium Fund Solutions Group Limited on 25 January 2023 and 4 January 2023 respectively. Mr Bailey was appointed as a director on 4 November 2022 and resigned on 4 February 2023.

 

Gallium Fund Solutions Group Limited was owned by Mr Peter Dooley and Mr Anthony Norris who each had a 50% shareholding. On 4 November 2022 Anthony Norris was declared bankrupt and his 50% shareholding is now held by his trustee in bankruptcy. Mr Peter Dooley continues to hold his 50% interest.

 

Following the appointment of Mr Dooley and Mr Gowdy as directors it was considered necessary to remove the directors and management of the subsidiary companies to enable a full review of the financial and trading position of the group to be undertaken. This has now been completed. All former management have been removed and have had their contracts terminated. This was completed by June 2023. These roles have now been successfully filled by a combination of external appointments and internal promotions of employees not associated with the previous management team.

 

Appropriate measures have been implemented to stabilise the group structurally and financially. This is enabling the group to continue to operate in the best interest of clients and investors.

 

Moving into financial year ended 30 June 2024, the management team are confident of further improvement.

 

Gallium is in the process of pursuing claims against a number of third parties surrounding the previous abuse of shareholder funds.

 

Though the details are confidential given the stage of each claim, these will have, should they prove to be successful, a beneficial material impact on the capital reserves of the Company.

 

A first tranche of settlements are expected before the calendar year ended 2024.

 

A further number of other claims are in the preliminary stages of drafting.

 

With Gallium’s capital position now secure along with its share structure now under the sole ownership of Peter Dooley, new clients are now starting to be actively engaged.

 

The Company is seeking to pursue corporate client work.

 

All known regulatory difficulties stemming from the previous management activities seem to be known and in collaboration with the relevant regulator, has been successfully managed and largely behind Gallium.

 

As Gallium’s position improves, insurance premiums have halved from the level they were in financial year ended 30 June 2023 moving into financial year ended 30 June 2024. Though significantly more than before a series of poor previous management decisions and strategy, the premium now being paid is continuing to fall in line with other costs whilst the company continues to de-risk and to build its capital position.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Principal risks and uncertainties

The Company is exposed to liquidity risk, credit risk and interest rate risk. However, there are no external borrowings of the company, and therefore the liquidity and interest rate risks are not considered material.

 

The Company's principal financial assets are cash and trade receivables. Therefore, the Company's credit risk is primarily attributable to its trade receivables. The Company's approach to managing the credit risk is to monitor these trade receivables and make an allowance for impairment when there is objective evidence that the Company will not be able to collect all amounts according to the general terms of the receivables concerned.

 

Regulatory risk

 

This is the risk of non-compliance with the regulatory environment the Company operates in. The Company monitors the regulatory environment closely. The Company also holds compliance meetings regularly to ensure the Company remains compliant with existing and upcoming regulatory changes. The Company promotes transparency and openness when working with regulatory parties. During the year there were a number of complaints made to the Financial Ombudsman Service that were in progress, the Company has been fully cooperative in respect of these matters and is working to resolve these issues.

Key performance indicators

Group Group

2023 2022

Operating Profit Margin (28)% 12%

Net fee and commission income £2,270,957 £1,889,523

Return on capital employed 3,152% 37%

Other performance indicators

The directors have identified that the issues arising from the activities of the previous appointed representatives increased the operational risk. Historically the company has managed around thirty appointed representative contracts and at the date of this report only two were active.

Other information and explanations

Directors' statement of compliance with duty to promote the success of the company

 

The current directors consider, both individually and collectively, that they have acted in the way that would most likely promote success for the benefit of its members as a whole in the decisions taken during the year ended 30 June 2023.

 

The directors engage in setting, approving and executing the agreed strategic vision and direction and related policies. Other areas are regularly reviewed during each financial year including business performance, risk and compliance, shareholder engagement, health and safety and corporate responsibility matters. This is undertaken by the consideration of reports in board meetings.

 

In reaching this conclusion the directors have considered their engagement with the following stakeholders and issues:

 

Customers: The company seeks to build long-term trusted relationships with customers and seeks regular feedback on performance.

 

Employees: Employees are encouraged to participate in strategic and operational decision making where appropriate. There is regular communication in relation to short and long-term direction by way of staff meeting and informal meetings and social activities.

 

Community and the environment: The Company aims to minimise its impact on the environment and local community.

 

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

On behalf of the board

P A Dooley
Director
16 September 2024
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the group continued to be that of establishing and operating collective investment schemes, providing fund management services as an authorised Alternative Investment Fund Manager and acting as a private equity depositary and professional trustee.

Results and dividends

The loss for the year, after taxation, amounted to £611,250 (2022 - profit £180,106).

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

P A Dooley
(Appointed 25 January 2023)
B Gowdy
(Appointed 4 January 2023)
M W Bailey
(Appointed 4 November 2022 and resigned 7 February 2023)
Mr A C Norris
(Resigned 7 November 2022)
J A Edwards
(Resigned 19 December 2022)
Post reporting date events

Information relating to events since the end of the year is given in the notes to the financial statements.

Future developments

The group seeks to increase its business in its existing market segments and explore new avenues of income through acquisition or organic growth.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going concern

The directors have reviewed cash flow forecasts and budgets, which show that the group has sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
On behalf of the board
P A Dooley
Director
16 September 2024
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
- 7 -

Qualified opinion

We have audited the financial statements of Gallium Fund Solutions Group Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 30 June 2023 which comprise the group Profit and Loss Account, the group Statement of Comprehensive Income, the group Balance Sheet, the parent company Balance Sheet, the group Statement of Changes in Equity, the parent company Statement of Changes in Equity, the group Statement of Cash Flows, the parent company 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 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, except for the possible effects of the matters described in the basis for qualified opinion section of our report, the financial statements:

 

Basis for qualified opinion

As a result of the change in management during the audit of the financial statements for the year ended 30 June 2022, the previous auditors were unable to obtain requested representations on the financial statements of the parent company and the group. Additionally, the previous auditor was unable to obtain information to assess events after the balance sheet date and no information was provided to assess the use of the going concern basis on the preparation of the consolidated financial statements. Consequently, we were unable to determine whether any adjustments as of 30 June 2022 were necessary or whether there was any consequential effect on the financial statements for the year ended 30 June 2023.

 

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.

Material uncertainty relating to going concern

We draw attention to note 1.4 of going concern in the financial statements, which indicates that the parent company made a loss of £611,250 (2022: profit £180,106) during the year ended 30 June 2023 and, as of that date, the parent company’s current liabilities exceeded its total assets by £12,540 (2022: Net Assets £598,710). As stated in the note of going concern, these events or conditions, along with other matters as set forth in the note of going concern, indicate that a material uncertainty exists that may cast significant doubt on the parent company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
- 8 -

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 directors are responsible for the other information contained within the annual report.

 

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.

 

As described in the basis of qualified opinion section of our report, we were unable to satisfy ourselves concerning the impact of any potential adjustments which may be necessary resulting from the audit of 30 June 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and directors’ report.

 

Arising solely from the limitation of our work relating to audit of the financial statements for 30 June 2022, referred to above:

 

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement 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 parent company or to cease operations, or have no realistic alternative but to do so.

 

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
- 9 -
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 financial statements.

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

However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company. Our examination should not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance as may exist.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
- 10 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Bobby Gurdep Bhogal ACA ACCA ATT (Senior Statutory Auditor)
For and on behalf of Arnold Hill & Co LLP
2 October 2024
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
2,270,957
1,889,523
Cost of sales
-
0
(8,000)
Gross profit
2,270,957
1,881,523
Administrative expenses
(2,898,623)
(1,693,160)
Other operating income
1,000
34,141
Exceptional item
4
(1,201)
-
0
Operating (loss)/profit
5
(627,867)
222,504
Interest receivable and similar income
7
50
168
(Loss)/profit before taxation
(627,817)
222,672
Tax on (loss)/profit
8
16,567
(42,566)
(Loss)/profit for the financial year
(611,250)
180,106
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
2023
2022
£
£
(Loss)/profit for the year
(611,250)
180,106
Other comprehensive income
-
-
Total comprehensive income for the year
(611,250)
180,106
Total comprehensive income for the year is all attributable to the owners of the parent company.
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,015
5,955
Current assets
Debtors
12
421,043
493,426
Cash at bank and in hand
108,940
363,557
529,983
856,983
Creditors: amounts falling due within one year
13
(545,535)
(264,228)
Net current (liabilities)/assets
(15,552)
592,755
Total assets less current liabilities
(11,537)
598,710
Provisions for liabilities
Deferred tax liability
14
1,003
-
0
(1,003)
-
Net (liabilities)/assets
(12,540)
598,710
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
(12,542)
598,708
Total equity
(12,540)
598,710
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
16 September 2024
P A Dooley
Director
Company registration number 07031955 (England and Wales)
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
110,013
110,013
Current assets
Debtors
12
1
1
Creditors: amounts falling due within one year
13
(12)
(12)
Net current liabilities
(11)
(11)
Net assets
110,002
110,002
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
110,000
110,000
Total equity
110,002
110,002

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £8,000 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
16 September 2024
P A Dooley
Director
Company registration number 07031955 (England and Wales)
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2021
2
418,602
418,604
Year ended 30 June 2022:
Profit and total comprehensive income
-
180,106
180,106
Balance at 30 June 2022
2
598,708
598,710
Year ended 30 June 2023:
Loss and total comprehensive income
-
(611,250)
(611,250)
Balance at 30 June 2023
2
(12,542)
(12,540)
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2021
2
102,000
102,002
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
8,000
8,000
Balance at 30 June 2022
2
110,000
110,002
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
0
Balance at 30 June 2023
2
110,000
110,002
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(269,914)
(21,640)
Income taxes paid
(37,411)
-
0
Net cash outflow from operating activities
(307,325)
(21,640)
Investing activities
Purchase of tangible fixed assets
(1,396)
(2,280)
Repayment of loans
54,054
(54,054)
Interest received
50
168
Net cash generated from/(used in) investing activities
52,708
(56,166)
Net decrease in cash and cash equivalents
(254,617)
(77,806)
Cash and cash equivalents at beginning of year
363,557
441,363
Cash and cash equivalents at end of year
108,940
363,557
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 18 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
1
Accounting policies
Company information

Gallium Fund Solutions Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Gallium Fund Solutions Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gallium Fund Solutions Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the

group has adequate resources to continue in operational existence for the foreseeable future. Thus the

directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

At 30 June 2023 the group had net loss of £611,250 (2022: profit of £180,106) and net liabilities of

£12,540 (2022: net assets of £598,710), however the financial statements have been prepared on a going

concern basis. As a result of the previous management legacy matters, going concern issues have been

identified within the group. However, the directors have obtained confirmation of financial support for a period of at least 12 months from the date of approval of the financial statements from the group shareholder. The directors believe this is appropriate in adopting the going concern basis in preparing the financial statements. The financial support provided will enable the group to have sufficient capital adequacy requirements to meet its compliance needs.

 

In line with the comments in the Strategic Report, the Company is also dealing with ongoing claims in relation

to Basset & Gold Limited, a former appointed representative, entering administration. It is the Director's

opinion that there will be no liability due payable by Gallium Fund Solutions Limited however, should such

liability occur, professional indemnity insurance will fully cover any costs and therefore there is no effect on the

going concern basis of preparation of the financial statements.

 

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25%
Computers
25%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial liabilities

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

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 25 -
1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Operation of investment scheme
1,527,021
1,113,985
AIFM/investment management fee
387,604
450,004
Depositary fees
-
143,225
Compliance monitoring fees
56,381
40,120
Trustee services
298,655
141,131
Operator fees
1,296
1,058
2,270,957
1,889,523
2023
2022
£
£
Other revenue
Interest income
50
168
Grants received
-
34,141
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
4
Exceptional item
2023
2022
£
£
Income
Exceptional item - Sales
-
8,000
Expenditure
Write-off of intercompany loans
1,201
-
1,201
-
5
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange gains
-
(447)
Government grants
-
(34,141)
Depreciation of owned tangible fixed assets
3,336
3,305
Operating lease charges
26,849
27,848
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
12
17
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
903,804
885,309
-
0
-
0
Social security costs
56,749
149,851
-
-
Pension costs
15,440
20,089
-
0
-
0
975,993
1,055,249
-
0
-
0
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
50
168
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
50
168
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
42,566
Adjustments in respect of prior periods
(37,443)
-
0
Total current tax
(37,443)
42,566
Deferred tax
Origination and reversal of timing differences
1,003
-
0
Write down or reversal of write down of deferred tax asset
19,873
-
0
Total deferred tax
20,876
-
0
Total tax (credit)/charge
(16,567)
42,566
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Taxation
(Continued)
- 28 -

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(627,817)
222,672
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 21.00% (2022: 19.00%)
(131,842)
42,308
Tax effect of expenses that are not deductible in determining taxable profit
74,955
1,683
Tax effect of income not taxable in determining taxable profit
(47,489)
-
0
Unutilised tax losses carried forward
106,583
-
0
Adjustments in respect of prior years
(36,440)
-
0
Group relief
(2,548)
(1,490)
Permanent capital allowances in excess of depreciation
341
65
Deferred tax adjustments in respect of prior years
19,873
-
0
Taxation (credit)/charge
(16,567)
42,566
9
Tangible fixed assets
Group
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2022
38,585
40,821
79,406
Additions
-
0
1,396
1,396
At 30 June 2023
38,585
42,217
80,802
Depreciation and impairment
At 1 July 2022
36,039
37,412
73,451
Depreciation charged in the year
573
2,763
3,336
At 30 June 2023
36,612
40,175
76,787
Carrying amount
At 30 June 2023
1,973
2,042
4,015
At 30 June 2022
2,546
3,409
5,955
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
110,013
110,013
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
110,013
Carrying amount
At 30 June 2023
110,013
At 30 June 2022
110,013
11
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Gallium Fund Solutions Limited
Gallium House Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN158AD
Ordinary
100.00
Gallium PE Depositary Limited
Gallium House Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN158AD
Ordinary
100.00
GFS Trustee Limited
Gallium House Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN158AD
Ordinary
100.00
Gallium Fund Solutions Administration Limited
Gallium House Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN158AD
Ordinary
100.00
Gallium Capital Limited
Gallium House Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN158AD
Ordinary
100.00
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
12
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
76,034
33,899
-
0
-
0
Unpaid share capital
2
2
1
1
Corporation tax recoverable
37,443
-
0
-
0
-
0
Amounts owed by group undertakings
-
72,214
-
-
Other debtors
11,114
35,343
-
0
-
0
Prepayments and accrued income
296,450
332,095
-
0
-
0
421,043
473,553
1
1
Amounts falling due after more than one year:
Deferred tax asset (note 14)
-
0
19,873
-
0
-
0
Total debtors
421,043
493,426
1
1
13
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
83,731
78,376
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
12
12
Corporation tax payable
30,063
67,474
-
0
-
0
Other taxation and social security
77,738
16,274
-
-
Other creditors
4,232
-
0
-
0
-
0
Accruals and deferred income
349,771
102,104
-
0
-
0
545,535
264,228
12
12
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
1,003
-
-
-
Tax losses
-
-
-
19,873
1,003
-
-
19,873
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
14
Deferred taxation
(Continued)
- 31 -
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 July 2022
(19,873)
-
Charge to profit or loss
20,876
-
Liability at 30 June 2023
1,003
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,440
20,089

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
2
2
2
2
GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
17
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
26,848
26,848
-
-
Between two and five years
12,505
40,273
-
-
39,353
67,121
-
-
18
Events after the reporting date

On the 19 August 2024, the ownership of the the ultimate parent company of the group Gallium Fund Solutions Group Limited was transferred to Peter Dooley. As a result, Peter Dooley has effective control of the group.

 

Gallium is in the process of pursuing claims against a number of third parties surrounding the previous abuse of shareholder funds. Though the details are confidential given the stage of each claim, these will have a beneficial material impact on the capital reserves of the Company if successful. A further number of other claims are in the preliminary stages of drafting.

19
Related party transactions
Transactions with related parties

During the year, the group made net write-off of sales of £10,645.86 (2022: sales of £10,540) to Oaksmore Portfolio AIFM Limited, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

 

During the year, the group made net write-off of sales of £94 (2023: sales of £12,000) to Oaksmore Trustee Limited, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

 

During the year, the group made net write-off of sales of £1,220 (2022: £nil) to Oaksmore Heritage Property Holding Limited, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

 

During the year, the group made sales of £nil (2022: £225) to Freshers PBSE Chester Nominee Limited, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

 

During the year, the group made net write-off of sales of £142 (2022: £nil) to Vedius Pension Trust, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

 

During the year, a connected persons of a 50% shareholder of Gallium Fund Solutions Group Limited were paid £nil (2022: £46,897) in relation to services rendered to the group,

 

During the year, the group made purchases of £17,918 (2022: £nil) to Hartstream Limited, a company in which the director of Gallium Fund Solutions Group Limited was a director and shareholder.

GALLIUM FUND SOLUTIONS GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
20
Cash absorbed by group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(611,250)
180,106
Adjustments for:
Taxation (credited)/charged
(16,567)
42,566
Investment income
(50)
(168)
Depreciation and impairment of tangible fixed assets
3,336
3,305
Movements in working capital:
Decrease in debtors
35,899
208,222
Increase/(decrease) in creditors
318,718
(455,671)
Cash absorbed by operations
(269,914)
(21,640)
21
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
-
8,000
Movements in working capital:
Decrease in creditors
-
(8,000)
Cash absorbed by operations
-
-
22
Analysis of changes in net funds - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
363,557
(254,617)
108,940
23
Analysis of changes in net funds - company
1 July 2022
30 June 2023
£
£
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