REGISTERED NUMBER: 02500029 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GEORGE ABRAHAMS LIMITED |
REGISTERED NUMBER: 02500029 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
GEORGE ABRAHAMS LIMITED |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
GEORGE ABRAHAMS LIMITED |
COMPANY INFORMATION |
for the year ended 31 December 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
The director presents his strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group had a challenging year with supply chain issues and input costs rising on its imports from abroad. In addition, the continued effects of the aftermath of the global pandemic lockdowns on the casual dining, event catering, airline and cruise lines sectors was still being felt, significantly affecting the business as its operations are mainly focused on these areas. |
During the year, expensive stock built up pre pandemic had to be liquidated at huge losses in order to create working capital to take advantage of the UK's FTA with Australasia and purchase replacement stock at much cheaper levels. This made the business competitive in the new oncoming financial year. Our current financial performance is proving that the strategy was correct. We have outperformed our total 2024 budgeted forecast in the first six months of the year. The stock write down is shown as an exceptional cost in the accounts. |
As part of a strategic move during the year to reconstruct the business and minimise the effects that the COVID lockdowns had taken on the business, the company sold its leasehold premises as part of a deal with the City of London. This allowed its debt to be reduced significantly to ensure it was well placed to take advantage of new opportunities going forward. |
Group turnover reduced by 10.8% to £30.7m (2022: £34.4m) with gross margin reducing to 5.30% (2022:7.31%), mainly due to increased costs within the supply chain. |
Operating loss for the year was at £676k (FY 22: £190k). Profit after exceptionals and before tax was at £558k (FY 22 £4.59m). The previous year included an exceptional gain of £4.8m on the sale of part of the leasehold premises it owned. |
The state of affairs at the balance sheet date is considered to be strong with group net assets increasing to £9.24m (2022: £9.02m). |
A review of the components of the Group is given below:- |
George Abrahams Limited |
The company trades from premises within Smithfield Meat Market. The business supplies the high-end restaurant sector in London and across the UK. |
The business had a challenging year mainly due to supply chain issues and increased input costs from abroad that could not fully be passed on to customers, depressing margins across the range of products. |
As such issues subside in the current financial year, margins are expected to recover. |
GA Europe BV |
The company is based in Holland and was formed several years ago to mitigate any Brexit risk across the Group by having an entity based within the EU. The company's revenue was £5.2m (FY 22 £9m). The business is well placed to continue to take advantage of opportunities within the EU. |
The key financial performance indicators for the group are as follows:- |
KPI | 2023 | 2022 | Measure |
Gross Profit Margin | 5.30 % | 7.31% | Gross Profit/Turnover |
Debtors days | 42 days | 29 days | Trade Debtors/Turnover |
Creditors days | 19 days | 27 days | Trade Creditors/Cost of Sales |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
GROUP STRATEGIC REPORT |
for the year ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties affecting the business include:- |
- Retention of customers - the group maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels. |
- Competitive risk - the group offers a range of products to meet the demands of its customer base. Its cost base is kept under constant review to ensure it is efficient. |
- Market conditions - the group's ability to adapt quickly to changes in the marketplace mitigates the risk of this area. |
- Exchange rate risk - the group has exchange risk on imports and exports. The director monitors trading and their exposure to such risk and takes action needed to hedge such risk. |
- Brexit risk -the Netherlands based GAE Europe BV subsidiary is positioned to take advantage of prevailing market and regulatory conditions post Brexit, minimising such risks.. |
- Resources risk - the director believes that the group has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately. |
FUTURE DEVELOPMENTS |
The group has repositioned itself post COVID and 2024 has seen pre pandemic levels of trade return. The director is confident of delivering sustainable future growth in its sector. |
EMPLOYEES |
The group operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability. |
Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the group become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training. |
The group maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that thegroup is responsive to the needs of the employees and the environment. |
The group is a BRCGS independently audited group which monitors all aspects in regards to personnel, animal welfare and public health as well as the environment and the companies attitude in a broad criteria of subjects which include statements on culture and slave labour. |
FINANCIAL INSTRUMENTS |
The group has banking facilities in place with HSBC Bank and operates within its facility limits. |
The group entered into forward exchange contracts to hedge its forward commitments in foreign currencies. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end. |
ON BEHALF OF THE BOARD: |
Director |
8 October 2024 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
REPORT OF THE DIRECTOR |
for the year ended 31 December 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Raffingers LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GEORGE ABRAHAMS LIMITED |
Opinion |
We have audited the financial statements of George Abrahams Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 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 Auditors' 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GEORGE ABRAHAMS LIMITED |
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 Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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 has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GEORGE ABRAHAMS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company's sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation. |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected transactions; |
- tested the appropriateness of journal entries; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
To address the risk that revenue could be misstated due to fraud. we: |
- we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard; |
- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions; |
- tested a sample of revenue transactions to supporting evidence; and |
- tested, on a sample basis, revenue related balances in the balance sheet. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and relevant regulators. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GEORGE ABRAHAMS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 30,686,375 | 34,400,343 |
Cost of sales | (29,059,967 | ) | (31,884,683 | ) |
GROSS PROFIT | 1,626,408 | 2,515,660 |
Administrative expenses | (2,422,438 | ) | (2,706,218 | ) |
(796,030 | ) | (190,558 | ) |
Other operating income | 120,000 | - |
OPERATING LOSS | 4 | (676,030 | ) | (190,558 | ) |
Stock write off | 5 | (705,340 | ) | - |
Profit on sale of tangible |
fixed assets | 5 | 2,214,865 | 4,841,037 |
833,495 | 4,650,479 |
Interest receivable and similar income | 6 | 127,792 | 253,126 |
961,287 | 4,903,605 |
Interest payable and similar expenses | 7 | (403,090 | ) | (305,787 | ) |
PROFIT BEFORE TAXATION | 558,197 | 4,597,818 |
Tax on profit | 8 | (351,750 | ) | (1,083,851 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 206,447 | 3,513,967 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 206,447 | 3,513,967 |
OTHER COMPREHENSIVE INCOME |
Reserves | 10,135 | (42,928 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
10,135 |
(42,928 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
216,582 |
3,471,039 |
Total comprehensive income attributable to: |
Owners of the parent | 216,582 | 3,471,039 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONSOLIDATED BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 59,143 | 15,630 |
Investments | 12 | - | - |
59,143 | 15,630 |
CURRENT ASSETS |
Stocks | 13 | 3,141,728 | 4,298,529 |
Debtors | 14 | 10,171,948 | 13,085,864 |
Cash at bank and in hand | 912,048 | 1,630,738 |
14,225,724 | 19,015,131 |
CREDITORS |
Amounts falling due within one year | 15 | 4,282,087 | 8,627,052 |
NET CURRENT ASSETS | 9,943,637 | 10,388,079 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,002,780 |
10,403,709 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(750,000 |
) |
(1,378,390 |
) |
PROVISIONS FOR LIABILITIES | 20 | (14,786 | ) | (3,907 | ) |
NET ASSETS | 9,237,994 | 9,021,412 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100,100 | 100,100 |
Retained earnings | 22 | 9,137,894 | 8,921,312 |
SHAREHOLDERS' FUNDS | 9,237,994 | 9,021,412 |
The financial statements were approved by the director and authorised for issue on 8 October 2024 and were signed by: |
Mr G C Abrahams - Director |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
COMPANY BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 657,912 | 3,812,994 |
The financial statements were approved by the director and authorised for issue on |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 100,100 | 3,950,273 | 1,500,000 | 5,550,373 |
Changes in equity |
Total comprehensive income | - | 4,971,039 | (1,500,000 | ) | 3,471,039 |
Balance at 31 December 2022 | 100,100 | 8,921,312 | - | 9,021,412 |
Changes in equity |
Total comprehensive income | - | 216,582 | - | 216,582 |
Balance at 31 December 2023 | 100,100 | 9,137,894 | - | 9,237,994 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,651,179 | (16,789 | ) |
Interest paid | (403,090 | ) | (305,787 | ) |
Tax paid | (18,626 | ) | 19,754 |
Net cash from operating activities | 2,229,463 | (302,822 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (54,133 | ) | - |
Sale of tangible fixed assets | 2,214,865 | 2,316,636 |
Interest received | 127,792 | 253,126 |
Net cash from investing activities | 2,288,524 | 2,569,762 |
Cash flows from financing activities |
Loan repayments in year | (500,000 | ) | (500,000 | ) |
Amount introduced by directors | 23,747 | 169,423 |
Amount withdrawn by directors | (759,115 | ) | (23,747 | ) |
Net cash from financing activities | (1,235,368 | ) | (354,324 | ) |
Increase in cash and cash equivalents | 3,282,619 | 1,912,616 |
Cash and cash equivalents at beginning of year |
2 |
(2,548,062 |
) |
(4,417,750 |
) |
Effect of foreign exchange rate changes | 10,136 | (42,928 | ) |
Cash and cash equivalents at end of year | 2 | 744,693 | (2,548,062 | ) |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 558,197 | 4,597,818 |
Depreciation charges | 10,619 | 2,899 |
Profit on disposal of fixed assets | (2,214,865 | ) | (4,841,037 | ) |
Finance costs | 403,090 | 305,787 |
Finance income | (127,792 | ) | (253,126 | ) |
(1,370,751 | ) | (187,659 | ) |
Decrease/(increase) in stocks | 1,156,801 | (499,312 | ) |
Decrease in trade and other debtors | 3,776,685 | 297,334 |
(Decrease)/increase in trade and other creditors | (911,556 | ) | 372,848 |
Cash generated from operations | 2,651,179 | (16,789 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 912,048 | 1,630,738 |
Bank overdrafts | (167,355 | ) | (4,178,800 | ) |
744,693 | (2,548,062 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,630,738 | 892,986 |
Bank overdrafts | (4,178,800 | ) | (5,310,736 | ) |
(2,548,062 | ) | (4,417,750 | ) |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,630,738 | (718,690 | ) | 912,048 |
Bank overdrafts | (4,178,800 | ) | 4,011,445 | (167,355 | ) |
(2,548,062 | ) | 3,292,755 | 744,693 |
Debt |
Debts falling due within 1 year | (584,194 | ) | (128,390 | ) | (712,584 | ) |
Debts falling due after 1 year | (1,378,390 | ) | 628,390 | (750,000 | ) |
(1,962,584 | ) | 500,000 | (1,462,584 | ) |
Total | (4,510,646 | ) | 3,792,755 | (717,891 | ) |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 December 2023 |
1. | STATUTORY INFORMATION |
George Abrahams Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The directors believe that the company is well placed to manage its business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The group financial statements consolidate the results and balance sheets of the parent and its material subsidiaries at the year end. The results of the material subsidiaries acquired are consolidated for the period from which control passed to the parent company using the acquisition basis of accounting. The results of the material subsidiaries disposed of during the period are consolidated up to the date of disposal. |
In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the |
circumstances. |
The items in the financial statements where these judgements and estimates have been made include: |
- assessing the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge, |
- the provision required for any bad or doubtful debts and |
- any provision for slow moving or obsolete stock |
- the directors revaluation of leasehold buildings. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company 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: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the company has transferred the significant risks and rewards of ownership to the buyer; |
- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
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. |
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. |
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. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
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. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Debtors and creditors |
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. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
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 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 company's cash management. |
Provisions and liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i)the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
(ii)the company and the party are subject to common control; |
(iii)the party is an associate of the company or a joint venture in which the company is a venturer; |
(iv)the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v)the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; |
(vi)the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
(vii)the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,150,235 | 1,357,505 |
Social security costs | 139,715 | 170,653 |
Other pension costs | 25,421 | 32,536 |
1,315,371 | 1,560,694 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Selling and distribution | 10 | 14 |
Office | 12 | 12 |
2023 | 2022 |
£ | £ |
Director's remuneration | 100,000 | 100,000 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
4. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 6,657 | 7,221 |
Depreciation - owned assets | 10,620 | 2,899 |
Auditors' remuneration | 51,485 | 43,485 |
Foreign exchange differences | 95,435 | 299,480 |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Stock write off | (705,340 | ) | - |
Profit on sale of tangible |
fixed assets | 2,214,865 | 4,841,037 |
1,509,525 | 4,841,037 |
Exceptional item relates to stock write off due to Covid and profit on sale of leasehold premises during the year. |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 127,792 | 253,126 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 352,161 | 305,787 |
Bank loan interest | 6,839 | - |
Other interest | 44,090 | - |
403,090 | 305,787 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 340,871 | 1,167,415 |
Deferred tax | 10,879 | (83,564 | ) |
Tax on profit | 351,750 | 1,083,851 |
UK corporation tax has been charged at 25 % . |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 558,197 | 4,597,818 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
131,288 |
873,585 |
Effects of: |
Expenses not deductible for tax purposes | 3,262 | 902 |
Capital allowances in excess of depreciation | (10,351 | ) | - |
Depreciation in excess of capital allowances | - | 551 |
Utilisation of tax losses | - | (31,965 | ) |
Deferred tax | 10,879 | (83,564 | ) |
Profit/(Loss) on disposal of fixed assets | - | 267,526 |
Subsidiary losses not affecting UK tax | 106,187 | 56,816 |
Over/Under provision | 110,485 | - |
Total tax charge | 351,750 | 1,083,851 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Reserves | 10,135 | - | 10,135 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Reserves | (42,928 | ) | - | (42,928 | ) |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 69,730 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 | 69,730 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | - |
Company |
Computer |
software |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 85,936 | 539,398 | 150,003 | 775,337 |
Additions | 6,650 | 43,658 | 3,825 | 54,133 |
At 31 December 2023 | 92,586 | 583,056 | 153,828 | 829,470 |
DEPRECIATION |
At 1 January 2023 | 70,803 | 538,901 | 150,003 | 759,707 |
Charge for year | 3,268 | 6,778 | 574 | 10,620 |
At 31 December 2023 | 74,071 | 545,679 | 150,577 | 770,327 |
NET BOOK VALUE |
At 31 December 2023 | 18,515 | 37,377 | 3,251 | 59,143 |
At 31 December 2022 | 15,133 | 497 | - | 15,630 |
Company |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 2 Wageningselaan. 3903LA, Veenendaal, Netherlands |
Nature of business: |
% |
Class of shares: | holding |
GA Europe B.V. represents a direct investment. |
Registered office: 218 London Central Markets, London, EC1A 9LH |
Nature of business: |
% |
Class of shares: | holding |
Market Provisions (Smithfield) Ltd has been dormant since 28th June 2019. Mr George Abrahams holds the shares of Market Provisions (Smithfield) Limited on trust on behalf of George Abrahams Limited. |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 3,141,728 | 4,298,529 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,519,075 | 2,778,080 |
Amounts owed by group undertakings | - | - |
Other debtors | 4,655,452 | 9,236,682 |
Directors' current accounts | 1,057,762 | 322,394 | 1,002,440 | 298,647 |
Tax | 403,136 | 275,735 |
VAT | 37,463 | 4,367 |
Prepayments | 499,060 | 468,606 |
10,171,948 | 13,085,864 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 667,355 | 4,678,800 |
Other loans (see note 17) | 212,584 | 84,194 |
Trade creditors | 1,548,565 | 2,409,496 |
Tax | 1,679,598 | 1,229,952 |
Social security and other taxes | 49,745 | 78,290 |
Other creditors | 5,537 | 7,373 |
Accrued expenses | 118,703 | 138,947 |
4,282,087 | 8,627,052 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 750,000 | 1,250,000 |
Other loans (see note 17) | - | 128,390 |
750,000 | 1,378,390 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 167,355 | 4,178,800 |
Bank loans | 500,000 | 500,000 |
GA pension fund loan | 212,584 | 84,194 |
879,939 | 4,762,994 |
Amounts falling due between one and two | years: |
Bank loans | 750,000 | 1,000,000 |
GA pension fund loan |
years | - | 128,390 | - |
750,000 | 1,128,390 |
Amounts falling due between two and five | years: |
Bank loans | - | 250,000 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 49,408 | 158,717 |
Between one and five years | 140,877 | 654,558 |
190,285 | 813,275 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 1,250,000 | 1,750,000 |
Bank loans and overdraft | - | 4,178,800 | 167,355 | 4,178,800 |
Other loans | - | 212,584 | 212,584 | 212,584 |
1,250,000 | 6,141,384 |
The bank overdrafts are secured by a fixed and floating charge over the assets of the group. |
Mr G Abrahams has given a personal guarantee to the bank in support of the group's overdraft facilities. |
Within bank overdrafts is an amount totalling £Nil (2022: £755,982) which relates to the group's invoice discounting facility. Invoice discounting amounts are secured over the group's trade debtors and inventory. |
Within bank overdrafts is an amount totalling £Nil (2022: £83,297) which relates to the group's inventory based finance facility. |
Other loans include an amount of £212,584 (2022: £212,584) relating to the loan from the George Abrahams Pension Scheme, a related party, which was renewed on 9 August 2018. The loan bears interest at 5.25% per annum and is due for repayment by annual instalments from August 2019 to August 2024. Of this total, £84,194 (2022: £84,194) is payable within one year and £128,390 (2022: £128,390) is payable after one year. This loan is secured by way of a fixed and floating charge the over the shares and the assets of the group. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 14,786 | 3,907 | 14,786 | 3,907 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 3,907 |
Adjustments during the year | 10,879 |
Balance at 31 December 2023 | 14,786 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Adjustments during the year | 10,879 |
Balance at 31 December 2023 |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
20. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax provision balance in the accounts relates to accelerated capital allowances accounted for at the future tax rate of 25% (2022 25%) |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100,000 | 100,000 |
Ordinary A | £1 | 100 | 100 |
100,100 | 100,100 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 8,921,312 |
Profit for the year | 206,447 |
Foreign exchange differences | 10,135 |
At 31 December 2023 | 9,137,894 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
23. | PENSION COMMITMENTS |
The group operates a fully insured defined contribution pension scheme for certain members of staff and the director. The pension charge represents the amounts paid by the group to the fund during the year. Payments during the year, amounted to £25,421 (2022: £32,536). These contributions are invested separately from the group's assets |
24. | CONTINGENT LIABILITIES |
There were no contingent liabilities at either the beginning or the end of the financial year. |
GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2023 |
25. | RELATED PARTY DISCLOSURES |
Included within other debtors is £4,478,650 (2022: £4,371,779) due from Baycrest Development Limited and Baycrest Property Limited, companies whose sole director is Mr G C Abrahams. Interest is currently being charged at 7% per annum until the loans are repaid. Moreover, the company has charged management fees of £120,000 (2022: £Nil) to Baycrest Property Limited. |
Included within "Debtors" in note 13 is £1,002,440 (2022: £298,648) due from Mr G C Abrahams. During the period the director was advanced amounts totalling £703,792 (2022: £78,112) and repaid amounts totalling nil (2022: £239,140). As at the period end date there was accrued interest receivable of £172,000 (2022: £146,000). |
Included in "Interest receivable and similar income" in Note 5 are interest receivable from the director totalling £26,000 (2022: £24,000) and from Baycrest Development Ltd totalling £100,920 (2022: £102,035). Interest on all related party loans have been charged at the market rate. |
Included in administrative expenses are salaries paid to the director's son and wife amounting to £115,783 (2022: £126,030) and £12,740 (2022: £12,500) respectively. |
26. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The group has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the period ended 31 December 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the member on 5 December 2023 |
27. | ULTIMATE CONTROLLING PARTY |
Mr G C Abrahams, controls the group by virtue of holding 99.9% of the issued share capital and voting rights. |