Company registration number 04141235 (England and Wales)
GVAV LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GVAV LIMITED
COMPANY INFORMATION
Directors
L Cutting
B Abrahams
D Abrahams
M Shepherd-Endersby
K Cutting
N Cutting
Company number
04141235
Registered office
676 River Gardens
North Feltham Trading Estate
London
TW14 0RB
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
GVAV LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 24
GVAV LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 2024.
Fair Review of the business
The Company continues to go from strength to strength, posting record turnover and profits for a 3rd successive year. Strong gross margin improvement has contributed to these results as the Company enjoys the operational gains made from its larger branch footprint following its investment and relocation to larger sites in its London Head Office and its facility in the South West of England.
Furthermore, the growth of its Scottish business following its selection by Advanced Procurement for Universities and Colleges (APUC) as top scoring Solutions Integrator has led to the opening of new premises in Dundee in February 2024, which is 5 times the size of the previous site.
The Company’s position has been further strengthened by its success in renewing several of its key customers’ sole supply agreements and it continues to invest heavily in its people with more technical expertise recruited across the country.
Principal risks and uncertainties
GVAV Limited operations are exposed to a variety of potential market, financial and operational risks in the course of day to day activity. Key considerations are illustrated below.
Financial & Market Risk
Given the company’s financial independence, and current non-reliance on external funding for business activities, it is considered to be less exposed than many competitors where this may not be the case.
It is considered that the company's exposure to financial risks is therefore not significant as the business model deployed ensures the company has sufficient cash reserves in place to mitigate potential financial risks and ensure continuity of operations on a sustainable basis.
Economic Risk
The company is exposed to a variety of potential economic risks based on legislative changes made by Government. The group continues to engage widely and deeply within its focus sectors to mitigate such and to place the company in a strong position to counter such risks as may be required.
Operational Risk
Identifying best quality talent is an on-going and highly relevant activity for the company nationally. To this end there has been increased investment in Human Resources and Seek/Search capability internally and also the work with external specialists in the field. This is already making great progress in a key operational area of the business.
Competitor Risk
The company understands its focus markets and recognises the relevant competitors within. Given the national approach and infrastructure the company is well placed to further surpass its customer expectations with value added capability, solutions and local service, nationally. Offering value and a deep understanding of its customers needs helps ensure success over the competition whenever that is influenceable.
Summary of Approach to Mitigate Risk
The business continues to focus on creating and developing partnerships and professional relationships at a customer and supply chain level.
The company looks to leverage its number one recognition across a range of key framework agreements in England, Scotland and Wales and ensure that its go to market strategy is understood, of value and relevant to the customers with whom it engages.
This approach is all against a backdrop of ensuring the company maintains the infrastructure, skills, cash reserves and credit lines, with all necessary parties, for continued, measured growth and success.
GVAV LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Development and performance
Post March 24, the Company has continued to see strong performance across all its regions, achieving well over double digit turnover growth in the 6 months to September 2024.
NWUPC Award
The Company is now well positioned for further success with the announcement in August 2024 that it has been Ranked number 1 by the North West University Purchasing Consortia (NWUPC), also incorporating the Crescent Purchasing Consortia (CPC) members nationally, for both AV Supply plus AV Supply, Design & Installation.
NEUPC Award
In September 2024 the Company was awarded its place on the North East University Purchasing Consortia (NEUPC) framework (AVI2007NE) for Audio Visual: System Design/Consultancy, Supply, Installation and Maintenance.
To be independently assessed and Ranked number 1 for Quality, Technical, Design and Services nationally, out performing the UK’s strongest competition by a significant margin, is an important endorsement and testament as to how the Company has developed and strengthened its Audio Visual business approach and capabilities.
This engagement includes both England and Wales, as covered by SUPC, LUPC and HEPCW agreements, which are all part of this, the Company’s most significant and successful, commercial framework.
Continued Investment
The Company continues to invest in its infrastructure to support future growth and in August 2024 signed an agreement on a new facility in the Midlands and anticipate finalising our branch replenishment with a new facility in the North West of England in the second half of 2024. The Company’s work on the development of a new ERP system has continued which is anticipated will go live in 2025.
Supply constraints seen since the COVID era resulting from the scarcity of semi-conductor chips has eased in the last 12 months, easing demands on working capital and enabling more efficient completion of large-scale projects. The demand from the Company’s growing customer base shows no sign of slow down and the directors therefore remain confident that the business will continue its profitable growth.
Key performance indicators
The key financial highlights are as follows:
GVAV LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
D Abrahams
Director
21 October 2024
GVAV LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company was that of a supplier and installer/integrator of audio visual equipment.
Results and dividends
The results for the year are set out on page 10.
During the year dividends were declared amounting to £3,000,000 (2023: £3,800,000)
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Cutting
B Abrahams
D Abrahams
M Shepherd-Endersby
K Cutting
N Cutting
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
GVAV LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
D Abrahams
Director
21 October 2024
GVAV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GVAV LIMITED
- 6 -
Opinion
We have audited the financial statements of GVAV Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 31 March 2024 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GVAV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GVAV LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the entity’s financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e. gives a true and fair view).
GVAV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GVAV LIMITED (CONTINUED)
- 8 -
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The extent to which the audit was considered capable of detecting irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
To address the risk of fraud through management bias and override of controls, we:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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 directors 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.
GVAV LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GVAV LIMITED (CONTINUED)
- 9 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Shona Munday BA FCA
Senior Statutory Auditor
For and on behalf of Gravita II LLP
21 October 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
GVAV LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
52,737,759
50,109,147
Cost of sales
(37,238,929)
(36,369,961)
Gross profit
15,498,830
13,739,186
Distribution costs
(17,761)
(24,833)
Administrative expenses
(11,805,495)
(10,123,812)
Operating profit
4
3,675,574
3,590,541
Interest receivable and similar income
7
256,903
22,875
Interest payable and similar expenses
8
(440)
Profit before taxation
3,932,037
3,613,416
Tax on profit
9
(850,849)
(605,611)
Profit for the financial year
3,081,188
3,007,805
GVAV LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,331,527
689,313
Current assets
Stocks
13
1,418,500
2,509,897
Debtors
14
5,762,888
6,508,918
Cash at bank and in hand
8,193,045
7,355,055
15,374,433
16,373,870
Creditors: amounts falling due within one year
15
(12,364,057)
(12,717,276)
Net current assets
3,010,376
3,656,594
Total assets less current liabilities
4,341,903
4,345,907
Provisions for liabilities
Provisions
16
240,266
325,458
(240,266)
(325,458)
Net assets
4,101,637
4,020,449
Capital and reserves
Called up share capital
18
150,000
150,000
Profit and loss reserves
3,951,637
3,870,449
Total equity
4,101,637
4,020,449
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
D Abrahams
K Cutting
Director
Director
Company registration number 04141235 (England and Wales)
GVAV LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
150,000
4,662,644
4,812,644
Year ended 31 March 2023:
Profit and total comprehensive income
-
3,007,805
3,007,805
Dividends
10
-
(3,800,000)
(3,800,000)
Balance at 31 March 2023
150,000
3,870,449
4,020,449
Year ended 31 March 2024:
Profit and total comprehensive income
-
3,081,188
3,081,188
Dividends
10
-
(3,000,000)
(3,000,000)
Balance at 31 March 2024
150,000
3,951,637
4,101,637
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
GVAV Limited is a private company limited by shares incorporated in England and Wales. The registered office is 676 River Gardens, North Feltham Trading Estate, London, TW14 0RB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of GVAV Group Limited. These consolidated financial statements are available from its registered office: 676 River Gardens, North Feltham Trading Estate, London, TW14 0RB.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Income derived from the sale of goods is recognised when the risks and rewards of ownership are transferred to the customer.
Income derived from the provision of services is recognised based on a stage of completion basis.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Acquired goodwill is written off in equal instalments over its estimated useful economic life of 10 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Straight line over the initial lease term
Plant and machinery
Straight line over 4 years
Fixtures, fittings & equipment
Straight line over 1-3 years
Computer equipment
Straight line over 3,7 and 10 years
Motor vehicles
Straight line over 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.12
Provisions
A provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.
The company provides for expected future costs related to dilapidations on locations upon lease expiration under the terms of the underlying lease agreements. The provision is calculated on management's best estimate of the cost required to bring the property to the condition required at the end of the lease under the agreement.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provisions, accruals and other creditors
Provisions, accruals and other creditors involve the recognition of certain balances which require management and the directors to estimate the value.
Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. This obligation may be legal or constructive deriving from regulations, contracts, normal practices or public commitments that lead third parties to reasonably expect that the company will assume certain responsibilities. The amount of the provision is determined based on the best estimate of the outflow of resources required to settle the obligation, taking into account all available information.
No provision is recognised if the amount of liability cannot be estimated reliably. In this case, the relevant information is disclosed in the notes to the financial statements.
Given the uncertainties inherent in the estimates used to determine the amount of provision, actual outflows of resources may differ from the amounts recognised originally on the basis of the estimates.
Accruals and other creditors
Accruals and other creditors include certain items which are estimated; the value of these items is determined using management's best estimate of these balances. In order to arrive at the carrying value of these items, management use various tools including knowledge of the business and industry as well as previous experience of the nature of the balance.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Goods and installations
52,737,759
50,109,147
2024
2023
£
£
Other revenue
Interest income
256,903
22,875
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
39,750
28,000
Depreciation of owned tangible fixed assets
197,598
157,923
Loss on disposal of tangible fixed assets
1,273
-
Operating lease charges
1,288,227
704,446
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
43
42
Production
76
59
Administration
22
21
Total
141
122
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,373,607
6,569,269
Social security costs
842,556
805,767
Pension costs
174,542
169,207
8,390,705
7,544,243
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,363,276
1,258,730
Company pension contributions to defined contribution schemes
26,930
14,701
1,390,206
1,273,431
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
297,782
347,692
Company pension contributions to defined contribution schemes
6,894
3,995
There are no key management personnel other than the directors.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
256,903
22,875
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
440
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
850,849
605,611
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,932,037
3,613,416
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
983,009
686,549
Tax effect of expenses that are not deductible in determining taxable profit
24,590
20,264
Group relief
(29,756)
Permanent capital allowances in excess of depreciation
(206,149)
(101,261)
Depreciation on assets not qualifying for tax allowances
49,399
30,005
Qualifying Charitable Donations
(190)
Taxation charge for the year
850,849
605,611
10
Dividends
2024
2023
£
£
Final paid
3,000,000
3,800,000
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
189,259
Amortisation and impairment
At 1 April 2023 and 31 March 2024
189,259
Carrying amount
At 31 March 2024
At 31 March 2023
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2023
912,152
1,235,317
45,996
2,193,465
Additions
607,925
233,160
841,085
Disposals
(1,348)
(45,996)
(47,344)
At 31 March 2024
1,518,729
1,468,477
2,987,206
Depreciation and impairment
At 1 April 2023
339,489
1,118,667
45,996
1,504,152
Depreciation charged in the year
129,221
68,377
197,598
Eliminated in respect of disposals
(75)
(45,996)
(46,071)
At 31 March 2024
468,635
1,187,044
1,655,679
Carrying amount
At 31 March 2024
1,050,094
281,433
1,331,527
At 31 March 2023
572,663
116,650
689,313
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,418,500
2,509,897
Stock is stated after provisions for impairment of £107,256 (2023: £18,075).
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,648,515
6,394,137
Other debtors
25,653
26,045
Prepayments and accrued income
88,720
88,736
5,762,888
6,508,918
Trade debtors disclosed above are measured at amortised cost.
Trade debtors are stated after provisions for impairment of £114,224 (2023: £153,516 ).
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,228,748
7,851,735
Amounts owed to group undertakings
572,348
214,156
Corporation tax
460,099
312,804
Other taxation and social security
978,931
811,812
Other creditors
1,718,494
1,025,676
Accruals and deferred income
2,405,437
2,501,093
12,364,057
12,717,276
16
Provisions for liabilities
2024
2023
£
£
-
-
Dilapidation provision
240,266
325,458
Movements on provisions:
Dilapidation provision
£
At 1 April 2023
325,458
Reduction in provision in the year
(85,192)
At 31 March 2024
240,266
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,542
169,207
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £25,262 (2023: £35,085) were payable to the fund at the year end date and are included in other creditors.
GVAV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
150,000
150,000
150,000
150,000
Issued and fully paid
Ordinary shares of £1 each
150,000
150,000
150,000
150,000
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
810,810
606,516
Between two and five years
3,183,638
2,353,791
In over five years
2,304,813
2,190,438
6,299,261
5,150,745
20
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Key management personnel
3,993
5,611
21
Ultimate controlling party
The company is a wholly owned subsidiary of GVMM Group Limited. The company’s ultimate parent company became GVAV Group Limited, a company incorporated in England and Wales, on 26 October 2021.
GVAV Group Limited prepares group financial statements and copies can be obtained from the registered office address 676 River Gardens North Feltham Trading Estate, London, England, TW14 0RB.
The company's results are consolidated into GVAV Group Limited, which is the only entity within the group to prepare consolidated financial statements..
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