REGISTERED NUMBER: 04203292 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
GRT GROUP LIMITED |
REGISTERED NUMBER: 04203292 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
GRT GROUP LIMITED |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
GRT GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
45a Station Road |
Willington |
Bedfordshire |
MK44 3QL |
BANKERS: | Handelsbanken |
2nd Floor Clifton House |
4a Goldington Road |
Bedford |
MK40 3NF |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The Group's principal focus during the year continued to be that of a specialist building and scaffolding provider, successfully completing large contracts with various clients. |
The directors are pleased to report a steady year for the 12 month period ending 30 April 2024, given a tough economic landscape with rising costs and increased competition for work. Despite this, the group has still achieved profits in excess of £1.2m, slightly higher than last year.. |
The directors have been implementing increasing controls on costs, which has meant that the gross profit achieved this year is higher than 2023, despite the reduction in turnover, due to better margins being achieve. |
The Group maintains a strong financial position, with net assets of over £6m across the Group, an increase of 4.5% since the same time last year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
In line with other building and scaffolding providers, key risks and uncertainties remain centred around the current market conditions and potential volatility in the property market. In the last two years, the base rate increases and the effect on the mortgage market and caused some stagnation in the market. Although they have been fairly steady over the last year, there is still considerable uncertainty on the current trajectory of house prices, leading to general hesitancy in the marketplace regarding future developments. |
The Directors are monitoring the situation closely and believe that any disruption to the construction industry will be short term. The Directors will assess any risks on a project by project basis, in order to minimise any risk to the business. The is still a shortage of housing stock in the UK and the directors believe the demand for housing will continue to support the necessity for new housing developments. |
Price inflation may continue to be an issue facing the company in the next 12 months, however supply issues are having less impact as materials become easier to obtain. |
The Directors will continue to evaluate supply issues and will mitigate risk by raising prices and minimising the impact on profitability. |
FUTURE DEVELOPMENTS |
The year to 30 April 2024 ended with a reasonable pipeline of construction contracts, as well as a number of ongoing projects making good progress. The Group's pipeline for new projects is assisted by the group gaining future phases when contracts are finished. The directors expect that turnover in the next 12 months will be similar to the current year. |
POST BALANCE SHEET EVENTS |
There were no significant post balance sheet events. |
ON BEHALF OF THE BOARD: |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of scaffolding and bricklaying services. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
Ordinary £0.01 shares |
31 July 2023 | £100,980 |
30 October 2023 | £100,980 |
31 January 2024 | £100,980 |
30 April 2024 | £100,980 |
£403,920 |
'A' Ordinary £0.01 shares |
27 March 2024 | £606,118.40 |
The directors recommend that no final dividend be paid. |
The total distributions of dividends for the year ended 30 April 2024 will be £1,010,038.40. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Future developments and post Balance Sheet events disclosures are disclosed within the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, BN Audit Services Limited (Statutory Auditors), 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 |
GRT GROUP LIMITED |
Opinion |
We have audited the financial statements of GRT Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 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 30 April 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRT GROUP 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 Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRT GROUP 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: |
- We identified the laws and regulations applicable to the company through discussions with directors and key personnel, and from our knowledge and experience of the industry. 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 and taxation legislation, while also giving consideration to data protection regulations, employment law and health and safety legislation. |
- 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 and the team remained alert to the possibility of fraud and non-compliance throughout the audit. |
- We assessed the susceptibility of the company's financial statements to material misstatements including obtaining an understanding of how fraud might occur. We did so through discussions with management as to their assessment of areas where fraud or non-compliance might occur, as well as considering the internal controls in place to mitigate risks of fraud and non-compliance. |
- In order to ascertain the extent of compliance with laws and regulations, we made enquiries with management as to whether there was any actual or potential litigation, we reviewed legal correspondence, we inspected tax correspondence and we performed analytical procedures to identify any unusual or unexpected activity. |
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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 |
45a Station Road |
Willington |
Bedfordshire |
MK44 3QL |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
TURNOVER | 6 | 15,810,302 | 17,755,017 |
Cost of sales | 11,575,536 | 13,638,948 |
GROSS PROFIT | 4,234,766 | 4,116,069 |
Administrative expenses | 2,549,496 | 2,451,283 |
OPERATING PROFIT | 8 | 1,685,270 | 1,664,786 |
Interest receivable and similar income | 7,282 | 2,150 |
1,692,552 | 1,666,936 |
Interest payable and similar expenses | 10 | 13,500 | 3,480 |
PROFIT BEFORE TAXATION | 1,679,052 | 1,663,456 |
Tax on profit | 11 | 447,191 | 420,146 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,231,861 | 1,243,310 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,231,861 | 1,243,310 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,231,861 |
1,243,310 |
Total comprehensive income attributable to: |
Owners of the parent | 1,231,861 | 1,243,310 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 15 | 2,117,453 | 2,088,007 |
Investments | 16 | - | - |
2,117,453 | 2,088,007 |
CURRENT ASSETS |
Debtors | 17 | 5,199,450 | 5,537,141 |
Cash at bank | 940,979 | 739,254 |
6,140,429 | 6,276,395 |
CREDITORS |
Amounts falling due within one year | 18 | 1,576,438 | 2,072,010 |
NET CURRENT ASSETS | 4,563,991 | 4,204,385 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,681,444 |
6,292,392 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(163,493 |
) |
(12,249 |
) |
PROVISIONS FOR LIABILITIES | 23 | (506,909 | ) | (490,924 | ) |
NET ASSETS | 6,011,042 | 5,789,219 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 66 | 66 |
Capital redemption reserve | 25 | 33 | 33 |
Retained earnings | 25 | 6,010,943 | 5,789,120 |
SHAREHOLDERS' FUNDS | 6,011,042 | 5,789,219 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED BALANCE SHEET - continued |
30 APRIL 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on 8 October 2024 and were signed on its behalf by: |
R Dickens - Director |
G Paxton - Director |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 15 |
Investments | 16 |
CURRENT ASSETS |
Debtors | 17 |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 23 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Capital redemption reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,199,610 | 1,168,431 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
COMPANY BALANCE SHEET - continued |
30 APRIL 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 | 66 | 5,696,772 | 33 | 5,696,871 |
Changes in equity |
Dividends | - | (1,150,962 | ) | - | (1,150,962 | ) |
Total comprehensive income | - | 1,243,310 | - | 1,243,310 |
Balance at 30 April 2023 | 66 | 5,789,120 | 33 | 5,789,219 |
Changes in equity |
Dividends | - | (1,010,038 | ) | - | (1,010,038 | ) |
Total comprehensive income | - | 1,231,861 | - | 1,231,861 |
Balance at 30 April 2024 | 66 | 6,010,943 | 33 | 6,011,042 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2024 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
30.4.24 | 30.4.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,593,589 | 1,882,708 |
Interest paid | (1,339 | ) | (1,336 | ) |
Interest element of hire purchase payments paid |
(12,161 |
) |
(2,144 |
) |
Tax paid | (225,178 | ) | (174,892 | ) |
Net cash from operating activities | 2,354,911 | 1,704,336 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (193,745 | ) | (751,256 | ) |
Sale of tangible fixed assets | 14,669 | 9,596 |
Interest received | 7,282 | 2,150 |
Net cash from investing activities | (171,794 | ) | (739,510 | ) |
Cash flows from financing activities |
Capital repayments in year | (87,041 | ) | (29,132 | ) |
Amount withdrawn by directors | (21,188 | ) | 6,279 |
Equity dividends paid | (1,010,038 | ) | (1,150,962 | ) |
Net cash from financing activities | (1,118,267 | ) | (1,173,815 | ) |
Increase/(decrease) in cash and cash equivalents | 1,064,850 | (208,989 | ) |
Cash and cash equivalents at beginning of year |
2 |
(123,871 |
) |
85,118 |
Cash and cash equivalents at end of year | 2 | 940,979 | (123,871 | ) |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.4.24 | 30.4.23 |
£ | £ |
Profit before taxation | 1,679,052 | 1,663,456 |
Depreciation charges | 432,247 | 376,180 |
Profit on disposal of fixed assets | (10,502 | ) | (3,438 | ) |
Amounts recoverable on contracts | 42,713 | 49,474 |
Finance costs | 13,500 | 3,480 |
Finance income | (7,282 | ) | (2,150 | ) |
2,149,728 | 2,087,002 |
Decrease in trade and other debtors | 294,978 | 105,890 |
Increase/(decrease) in trade and other creditors | 148,883 | (310,184 | ) |
Cash generated from operations | 2,593,589 | 1,882,708 |
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 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 940,979 | 739,254 |
Bank overdrafts | - | (863,125 | ) |
940,979 | (123,871 | ) |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 739,254 | 385,049 |
Bank overdrafts | (863,125 | ) | (299,931 | ) |
(123,871 | ) | 85,118 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
Other |
non-cash |
At 1.5.23 | Cash flow | changes | At 30.4.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 739,254 | 201,725 | 940,979 |
Bank overdrafts | (863,125 | ) | 863,125 | - |
(123,871 | ) | 1,064,850 | 940,979 |
Debt |
Finance leases | (36,705 | ) | 87,041 | (272,115 | ) | (221,779 | ) |
(36,705 | ) | 87,041 | (272,115 | ) | (221,779 | ) |
Total | (160,576 | ) | 1,151,891 | (272,115 | ) | 719,200 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | GENERAL INFORMATION |
GRT Group Limited (‘the Company’) and its subsidiaries (together ‘the Group’) operate in the United Kingdom. |
2. | STATUTORY INFORMATION |
GRT Group Limited is a |
3. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. These consolidated and separate financial statements are prepared on a going concern basis, under the historical cost convention in accordance with Financial Reporting Standard 102 the Financial Reporting Standard applicable in the UK and the Republic of Ireland and Companies Act 2006. |
The company's functional and presentation currency is GBP. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group and Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 5. |
4. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
(a) the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv); |
(b) the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
(c) the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
(d) the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
Basis of consolidation |
The Group consolidated financial statements include the financial statements of the Company and all of its subsidiary undertakings made up to 30 April 2024. |
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the Group’s interest in the entity. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The majority of the Group's turnover consists of construction contracts. |
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. |
Variations in contract work are included to the extent that the amount can be measured reliably and its receipt is considered probable. |
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. |
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Financial instruments |
Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and investments are recognised at transaction price. Such assets are subsequently carried at amortised cost using the effective interest method. |
Trade receivables are obligations for customers to pay for services that have been provided by the group in the ordinary course of business. Trade receivables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies are classified as debt, and initially recognised at transaction price. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | ACCOUNTING POLICIES - continued |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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 and cash equivalents includes cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
Related party transactions |
The Group discloses transactions with related parties which are not wholly owned within the same Group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the Group financial statements. |
Investments in subsidiaries |
Investment in subsidiary undertakings are recognised at cost. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
5. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Bad Debt Provision |
Management continually assess contracts and associated debtors, and a provision is made for any debts that are considered doubtful at the year end. The provision is calculated on a contract by contract basis. |
Contracts and Work in Progress |
Management assess the progress of each contract regularly, and recognise the revenue and profit on each contract by reference to stage of completion. Any contract work in progress at the year end is recognised on the balance sheet. |
6. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30.4.24 | 30.4.23 |
£ | £ |
Building services | 10,961,164 | 12,742,187 |
Scaffolding services | 4,849,138 | 5,012,830 |
15,810,302 | 17,755,017 |
An analysis of turnover by geographical market is given below: |
30.4.24 | 30.4.23 |
£ | £ |
United Kingdom | 15,810,302 | 17,755,017 |
15,810,302 | 17,755,017 |
7. | EMPLOYEES AND DIRECTORS |
30.4.24 | 30.4.23 |
£ | £ |
Wages and salaries | 991,395 | 932,037 |
Social security costs | 41,351 | 43,211 |
Other pension costs | 11,061 | 8,635 |
1,043,807 | 983,883 |
The average number of employees during the year was as follows: |
30.4.24 | 30.4.23 |
Directors and Management | 2 | 2 |
Administration | 10 | 11 |
Direct staff | 3 | 3 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
7. | EMPLOYEES AND DIRECTORS - continued |
30.4.24 | 30.4.23 |
£ | £ |
Directors' remuneration | 59,243 | 17,503 |
Directors' pension contributions to money purchase schemes | 7,200 | 7,200 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.4.24 | 30.4.23 |
£ | £ |
Other operating leases | 205,610 | 161,902 |
Depreciation - owned assets | 365,444 | 344,217 |
Depreciation - assets on hire purchase contracts | 66,803 | 31,963 |
Profit on disposal of fixed assets | (10,502 | ) | (3,438 | ) |
9. | AUDITORS' REMUNERATION |
The audit fee for the year for GRT Group Limited and the consolidation was £9,975 (2023: £10,475). |
Other Services |
The audit fee for the subsidiary undertaking GRT Scaffolding Services Limited was £3,385 (2023: £3,235). |
The audit fee for the subsidiary undertaking GRT Builders Limited was £3,385 (2023: £3,235). |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.4.24 | 30.4.23 |
£ | £ |
Bank interest | 1,308 | 60 |
Interest on late paid tax | 31 | 1,276 |
Hire purchase | 12,161 | 2,144 |
13,500 | 3,480 |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.4.24 | 30.4.23 |
£ | £ |
Current tax: |
UK corporation tax | 431,206 | 225,222 |
Deferred tax | 15,985 | 194,924 |
Tax on profit | 447,191 | 420,146 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | 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: |
30.4.24 | 30.4.23 |
£ | £ |
Profit before tax | 1,679,052 | 1,663,456 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
419,763 |
316,057 |
Effects of: |
Expenses not deductible for tax purposes | 27,407 | 18,752 |
Income not taxable for tax purposes | (2,625 | ) | (653 | ) |
Capital allowances in excess of depreciation | (13,339 | ) | (114,599 | ) |
Movements in deferred tax | 15,985 | 194,924 |
FY2023 increase in tax rate 01/04/2023 to 25% | - | 5,699 |
Marginal rate relief FY2023 | - | (34 | ) |
Total tax charge | 447,191 | 420,146 |
12. | 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. |
13. | DIVIDENDS |
30.4.24 | 30.4.23 |
£ | £ |
Ordinary share of £0.01 each | Interim | 403,920 | 403,920 |
A' Ordinary share of £0.01 | Interim | 606,118 | 747,042 |
1,010,038 | 1,150,962 |
14. | DEFINED CONTRIBUTION SCHEME |
The Group provides a defined contribution schemes for its employees. The amount recognised as an expense for the defined contribution scheme was: |
£ | £ |
30.4.24 | 30.4.23 |
Current year contributions | 11,061 | 8,635 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 | 3,838,923 | 84,712 | 359,788 | 4,283,423 |
Additions | 141,012 | 3,357 | 321,491 | 465,860 |
Disposals | - | - | (65,075 | ) | (65,075 | ) |
At 30 April 2024 | 3,979,935 | 88,069 | 616,204 | 4,684,208 |
DEPRECIATION |
At 1 May 2023 | 1,852,428 | 60,307 | 282,681 | 2,195,416 |
Charge for year | 332,733 | 9,717 | 89,797 | 432,247 |
Eliminated on disposal | - | - | (60,908 | ) | (60,908 | ) |
At 30 April 2024 | 2,185,161 | 70,024 | 311,570 | 2,566,755 |
NET BOOK VALUE |
At 30 April 2024 | 1,794,774 | 18,045 | 304,634 | 2,117,453 |
At 30 April 2023 | 1,986,495 | 24,405 | 77,107 | 2,088,007 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 May 2023 | 121,740 |
Additions | 272,115 |
Transfer to ownership | (48,565 | ) |
At 30 April 2024 | 345,290 |
DEPRECIATION |
At 1 May 2023 | 249,291 |
Charge for year | 66,803 |
Transfer to ownership | (194,415 | ) |
At 30 April 2024 | 121,679 |
NET BOOK VALUE |
At 30 April 2024 | 223,611 |
At 30 April 2023 | (127,551 | ) |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 May 2023 |
Additions |
Transfer to ownership | (48,565 | ) |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Transfer to ownership | (194,415 | ) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 | ( |
) |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
16. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Cheribourne House, 45A Station Road, Willington, Bedford, Bedfordshire MK44 3QL |
Nature of business: |
% |
Class of shares: | holding |
Registered number: 04200606 |
Registered office: Cheribourne House, 45A Station Road, Willington, Bedford, Bedfordshire MK44 3QL |
Nature of business: |
% |
Class of shares: | holding |
Registered number: 04092018 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.4.24 | 30.4.23 | 30.4.24 | 30.4.23 |
£ | £ | £ | £ |
Trade debtors | 4,016,409 | 4,335,186 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 292,465 | 335,178 |
Other debtors | 528,997 | 506,467 |
VAT | 106,998 | 122,325 |
Prepayments | 254,581 | 237,985 |
5,199,450 | 5,537,141 |
Included in other debtors is an amount owed by Redcrest Developments Limited of £507,151 (2023: £497,288) as disclosed in note 26. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.4.24 | 30.4.23 | 30.4.24 | 30.4.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | - | 863,125 |
Hire purchase contracts (see note 21) | 58,286 | 24,456 |
Trade creditors | 263,593 | 254,824 |
Tax | 344,329 | 138,301 |
Social security and other taxes | 60,878 | 61,788 |
Other creditors | 309,542 | 277,308 |
Net wages | - | 749 | - | - |
Directors' loan accounts | 89,657 | 110,845 | 89,657 | 110,845 |
Accrued expenses | 450,153 | 340,614 |
1,576,438 | 2,072,010 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.4.24 | 30.4.23 | 30.4.24 | 30.4.23 |
£ | £ | £ | £ |
Hire purchase contracts (see note 21) | 163,493 | 12,249 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
30.4.24 | 30.4.23 | 30.4.24 | 30.4.23 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | 863,125 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.4.24 | 30.4.23 |
£ | £ |
Net obligations repayable: |
Within one year | 58,286 | 24,456 |
Between one and five years | 163,493 | 12,249 |
221,779 | 36,705 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
21. | LEASING AGREEMENTS - continued |
Company |
Hire purchase contracts |
30.4.24 | 30.4.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
30.4.24 | 30.4.23 |
£ | £ |
Within one year | 125,000 | 100,000 |
Between one and five years | 125,000 | 100,000 |
250,000 | 200,000 |
Hire purchase contracts are secured on the related assets. |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.4.24 | 30.4.23 | 30.4.24 | 30.4.23 |
£ | £ | £ | £ |
Bank overdraft | - | 863,125 |
Hire purchase contracts | 221,779 | 36,705 | 221,779 | 36,705 |
221,779 | 899,830 |
The company has a bank overdraft which is secured under a personal guarantee by the directors. |
GRT Group Limited cross guarantees the bank overdraft and bank loans in its subsidiary companies. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
23. | PROVISIONS FOR LIABILITIES |
Deferred taxation |
Deferred tax consists of the following deferred tax liabilities (assets): |
Group | 30.4.24 | 30.4.23 |
£ | £ |
Accelerated capital allowances | 506,909 | 490,924 |
Total provision | 506,909 | 490,924 |
Company | 30.4.24 | 30.4.23 |
£ | £ |
Accelerated capital allowances | 506,150 | 489,270 |
Total provision | 506,150 | 489,270 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.4.24 | 30.4.23 |
value: | £ | £ |
Ordinary | £0.01 | 66 | 66 |
'A' Ordinary | £0.01 | - | - |
66 | 66 |
25. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 5,789,120 | 33 | 5,789,153 |
Profit for the year | 1,231,861 | - | 1,231,861 |
Dividends | (1,010,038 | ) | - | (1,010,038 | ) |
At 30 April 2024 | 6,010,943 | 33 | 6,010,976 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 4,220,335 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 April 2024 | 4,409,907 |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
25. | RESERVES - continued |
26. | RELATED PARTY DISCLOSURES |
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. |
Redcrest Developments Limited, a company with common directorship and control |
30.4.24 | 30.4.23 |
£ | £ |
Rent paid to Redcrest Developments | 125,000 | 100,000 |
Amount owed from Redcrest Developments at 30 April 2024 | 507,151 | 497,288 |
Directors |
30.4.24 | 30.4.23 |
£ | £ |
Dividends paid | 105,019 | 105,019 |
Spouses of Directors |
30.4.24 | 30.4.23 |
£ | £ |
Salaries paid | 23,795 | 24,603 |
Dividends paid | 105,019 | 105,019 |
See note 7 for disclosure of the directors’ remuneration. |
See note 22 for details of the bank borrowings secured under personal guarantee by the directors. |
27. | ULTIMATE CONTROLLING PARTY |
The Group is jointly controlled by its directors, Graham Paxton and Robert Dickens. Both are shareholders, and each own less than 50% of the issued shares of GRT Group Limited.. |
GRT GROUP LIMITED (REGISTERED NUMBER: 04203292) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
28. | FINANCIAL RISK MANAGEMENT |
Financial risk management |
The group's operations expose it to a variety of financial risks that include the effects of changes in credit |
risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied. |
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk |
management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
Price risk |
The group is exposed to price risk due to normal inflationary increases in the purchase price of the goods and services purchased in the UK. The group has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Liquidity risk |
The group actively maintains a mixture of debt and equity finance that is designed to ensure that the company has sufficient available funds for operations and planned expansions. |
Credit risk |
The group has both interest bearing assets and interest bearing liabilities. Interest bearing assets include only cash balances which earn interest at a variable rate. The group has a policy of maintaining debt at a fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy if the operations of the company change in size or nature |