Company registration number 13698882 (England and Wales)
GVAV GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
GVAV GROUP LIMITED
COMPANY INFORMATION
Directors
D Abrahams
L Cutting
B Abrahams
K Cutting
N Cutting
M Shepherd-Endersby
Secretary
D Abrahams
Company number
13698882
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 GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 32
GVAV GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair Review of the business

The group continues to go from strength to strength, posting record turnover and profits for a third successive year. Strong gross margin improvement has contributed to these results as the group 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 group'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 Group 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 Groups 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

GVAV 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 GROUP 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 group’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:

 

 

2024

2023

 

£

£

Turnover

52,737,759

50,109,147

 

 

 

Gross profit

15,498,830

13,739,186

 

 

 

Gross profit margin %

29.39%

27.42%

 

 

 

Profit before tax

2,907,443

2,524,023

 

S.172 Statement

In accordance with 'The Companies (Miscellaneous Reporting) Regulations 2018' for the financial periods commencing 1 January 2019, the directors are required to explain how they complied with the reporting standards appropriate to a group of its size.

GVAV GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

As Directors of the company, we, together with our senior team, are committed to promoting the success of our company for the benefit and security of all. In doing so, we consider key factors and long-term consequences of our strategic decisions. This extends to a focus on sustainable operations, growth and continuous improvement across our business.

We prioritise and support employees with national and local training, development and support. Using hybrid technologies and both central and local communications to help drive engagement across all branches nationally, developing a supportive and inclusive work environment.

Supply chain and customer trust is critical to our business. We therefore further develop strong, collaborative relationships with our customers based on integrity and value.

Through leadership, communication and actions we demonstrate to all key stakeholders our environmental and social commitment.

The Board aims to lead by example and uphold the highest standards of business ethics and integrity across all operations, ensuring transparency and accountability. As we grow, develop and continuously improve our business, we can be seen to act fairly during our decision-making processes.

These principles allow us to drive the success of the Company for the benefit of all our relevant stakeholders, communities and the environment.

The directors have complied with the requirements of s172 of the Companies Act 2006.

On behalf of the board

D Abrahams
Director
21 October 2024
GVAV GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the group is that of a supplier and installer/integrator of audio visual equipment. GVAV Group Limited was incorporated on 22 October 2021 and commenced trading on 26 October 2021 when it acquired all of the share capital of GVMM Group Limited, which became a wholly owned subsidiary.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £550,000. The directors do not recommend payment of a further dividend.

Directors

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

D Abrahams
L Cutting
B Abrahams
K Cutting
N Cutting
M Shepherd-Endersby
Energy and carbon report

At the date of signing these financial statements, the latest period for which a report was available relates to the year ended 31 March 2023.

2023
Energy consumption
kWh
Aggregate of energy consumption in the year
203,905
2023
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
20.12
- Fuel consumed for owned transport
448.64
468.76
Scope 2 - indirect emissions
- Electricity purchased
17.17
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
153.85
Total gross emissions
639.78
Intensity ratio
Tonnes CO2e per employee
6.15
GVAV GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee the recommended ratio for the sector.

Measures taken to improve energy efficiency

GVAV Group is committed to achieving Carbon Net Zero emissions by 2045.

We are targeting our carbon emissions to decrease over the years from the base line to circa 298 tCO2e by 2035.

Our plans to reduce carbon include :-

 

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

 

 

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

Statement of disclosure to auditor

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

GVAV GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
On behalf of the board
D Abrahams
Director
21 October 2024
GVAV GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GVAV GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of GVAV Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

 

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 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:

GVAV GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GVAV GROUP LIMITED
- 8 -
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 their 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:

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 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 parent 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.

 

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

 

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

 

•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 GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GVAV GROUP LIMITED
- 9 -

•Obtain sufficient appropriate audit evidence regarding the financial information of the business activities to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

 

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

•the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

•we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates;

•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 group, including, but not limited to, laws covering the Companies Act 2006 and relevant taxation legislation;

•we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting relevant documentation; and

•identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group and company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

•understanding the business model as part of the control and business environment;

•making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

•considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

•performed analytical procedures to identify any unusual or unexpected relationships;

•tested journal entries to identify unusual transactions;

•assessed whether judgements and assumptions made in determining the accounting estimates and judgements identified in note 2 were indicative of potential bias; and

•investigated the rationale behind significant or unusual transactions.

GVAV GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GVAV GROUP LIMITED
- 10 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

•agreeing financial statement disclosures to underlying supporting documentation;

•reading the minutes of meetings of those charged with governance;

•enquiring of management as to actual and potential litigation and claims; and

•reviewing documentation and enquiring with the company of actual and potential non-compliance with laws and regulations.

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 mistatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities 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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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 GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
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
(12,738,280)
(11,063,597)
Operating profit
4
2,742,789
2,650,756
Interest receivable and similar income
8
256,903
22,875
Interest payable and similar expenses
9
(92,249)
(149,608)
Profit before taxation
2,907,443
2,524,023
Tax on profit
10
(850,849)
(605,611)
Profit for the financial year
22
2,056,594
1,918,412
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
GVAV GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,073,617
8,006,402
Tangible assets
12
1,331,527
689,313
8,405,144
8,695,715
Current assets
Stocks
15
1,418,500
2,509,897
Debtors
16
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
17
(13,877,927)
(14,589,337)
Net current assets
1,496,506
1,784,533
Total assets less current liabilities
9,901,650
10,480,248
Creditors: amounts falling due after more than one year
18
-
(2,000,000)
Provisions for liabilities
Provisions
19
240,266
325,458
(240,266)
(325,458)
Net assets
9,661,384
8,154,790
Capital and reserves
Called up share capital
21
1,500
1,500
Other reserves
22
6,248,500
6,248,500
Profit and loss reserves
22
3,411,384
1,904,790
Total equity
9,661,384
8,154,790
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:
21 October 2024
D Abrahams
Director
Company registration number 13698882 (England and Wales)
GVAV GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
12,310,000
12,310,000
Current assets
Debtors
16
7,490,000
4,490,000
Creditors: amounts falling due within one year
17
(5,044,250)
(2,402,441)
Net current assets
2,445,750
2,087,559
Total assets less current liabilities
14,755,750
14,397,559
Creditors: amounts falling due after more than one year
18
-
(2,000,000)
Net assets
14,755,750
12,397,559
Capital and reserves
Called up share capital
21
1,500
1,500
Other reserves
22
6,248,500
6,248,500
Profit and loss reserves
22
8,505,750
6,147,559
Total equity
14,755,750
12,397,559

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,908,191 (2023 - £3,643,392 profit).

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:
21 October 2024
D Abrahams
Director
Company registration number 13698882 (England and Wales)
GVAV GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,500
6,248,500
161,378
6,411,378
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,918,412
1,918,412
Dividends
-
-
(175,000)
(175,000)
Balance at 31 March 2023
1,500
6,248,500
1,904,790
8,154,790
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
2,056,594
2,056,594
Dividends
-
-
(550,000)
(550,000)
Balance at 31 March 2024
1,500
6,248,500
3,411,384
9,661,384
GVAV GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,500
6,248,500
2,679,167
8,929,167
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
3,643,392
3,643,392
Dividends
-
-
(175,000)
(175,000)
Balance at 31 March 2023
1,500
6,248,500
6,147,559
12,397,559
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
2,908,191
2,908,191
Dividends
-
-
(550,000)
(550,000)
Balance at 31 March 2024
1,500
6,248,500
8,505,750
14,755,750
GVAV GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,767,975
3,645,013
Interest paid
(92,249)
(93,811)
Income taxes paid
(703,554)
(617,062)
Net cash inflow from operating activities
1,972,172
2,934,140
Investing activities
Purchase of tangible fixed assets
(841,085)
(492,635)
Proceeds from disposal of tangible fixed assets
-
992
Repayment of loans
-
(35,007)
Interest received
256,903
22,875
Net cash used in investing activities
(584,182)
(503,775)
Financing activities
Dividends paid to equity shareholders
(550,000)
(175,000)
Net cash used in financing activities
(550,000)
(175,000)
Net increase in cash and cash equivalents
837,990
2,255,365
Cash and cash equivalents at beginning of year
7,355,055
5,099,690
Cash and cash equivalents at end of year
8,193,045
7,355,055
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

GVAV Group Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is 676 River Gardens, North Feltham Trading Estate, London, TW14 0RB.

 

The group consists of GVAV Group Limited and all of its subsidiaries.

1.1
Reporting period

This is the third accounting period for the company since incorporation and covers the period 01 April 2023 to 31 March 2024.

1.2
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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

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

 

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

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Basis of consolidation

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

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
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.

1.7
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.

1.8
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.

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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
Staight line over the initial lease term
Plant and machinery
Straight line over 4 years
Fixtures and fittings & equipment
Straight line over 1-3 years
Computers
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 recognised in the profit and loss account.

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.

1.9
Fixed asset investments

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

 

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

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

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

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 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

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.

1.11
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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Current tax

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

1.16
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 group 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.

 

 

1.17
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.

1.18
Retirement benefits

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

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.19
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.

1.20
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.

1.21

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

2
Judgements and key sources of estimation uncertainty

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

 

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

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 involve the recognition of certain balances which require management and the directors to estimate the value.

 

Provisions

Provisions are recognised when the group 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 group 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 GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
3
Turnover

Analysis of the group’s turnover is as follows –

2024
2023
£
£
Turnover analysed by class of business
Goods and installations
52,737,759
50,109,147
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
197,598
157,923
Loss on disposal of tangible fixed assets
1,273
-
Amortisation of intangible assets
932,785
932,785
Operating lease charges
1,288,227
704,446
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,000
7,000
Audit of the financial statements of the company's subsidiaries
39,750
28,000
46,750
35,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
43
42
-
-
Production
76
59
-
-
Administration
22
21
6
6
Total
141
122
6
6
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,373,607
6,569,269
-
0
-
0
Social security costs
842,556
805,767
-
-
Pension costs
174,542
169,207
-
0
-
0
8,390,705
7,544,243
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,363,275
1,258,730
Company pension contributions to defined contribution schemes
26,930
14,701
1,390,205
1,273,431
Remuneration disclosed above includes 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

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
256,903
22,875
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
256,903
22,875
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on loan notes
91,809
149,608
Other finance costs:
Other interest
440
-
Total finance costs
92,249
149,608
10
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
2,907,443
2,524,023
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
726,861
479,564
Tax effect of expenses that are not deductible in determining taxable profit
280,738
227,249
Group relief
-
0
(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
Other adjustments
-
0
(190)
Taxation charge
850,849
605,611
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
9,327,847
Amortisation and impairment
At 1 April 2023
1,321,445
Amortisation charged for the year
932,785
At 31 March 2024
2,254,230
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 31 March 2024
7,073,617
At 31 March 2023
8,006,402
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
912,152
1,235,317
45,996
2,193,465
Additions
607,925
233,160
-
0
841,085
Disposals
(1,348)
-
0
(45,996)
(47,344)
At 31 March 2024
1,518,729
1,468,477
-
0
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
-
0
197,598
Eliminated in respect of disposals
(75)
-
0
(45,996)
(46,071)
At 31 March 2024
468,635
1,187,044
-
0
1,655,679
Carrying amount
At 31 March 2024
1,050,094
281,433
-
0
1,331,527
At 31 March 2023
572,663
116,650
-
0
689,313
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
12,310,000
12,310,000
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
12,310,000
Carrying amount
At 31 March 2024
12,310,000
At 31 March 2023
12,310,000
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of shares held
% Held+Indirectly Held
shares held
GVAV Limited
676 River Gardens North Feltham Trading Estate, London, England, TW14 0RB
Ordinary
100.00
GVMM Group Limited
676 River Gardens North Feltham Trading Estate, London, England, TW14 0RB
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,418,500
2,509,897
-
0
-
0

Stock is stated after provisions for impairment of £107,256 (2023: £18,075).

16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,648,515
6,394,137
-
0
-
0
Amounts owed by group undertakings
-
-
7,490,000
4,490,000
Other debtors
25,653
26,045
-
0
-
0
Prepayments and accrued income
88,720
88,736
-
0
-
0
5,762,888
6,508,918
7,490,000
4,490,000
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Debtors
(Continued)
- 29 -

Trade debtors are disclosed above are measured at amortised cost.

 

Trade debtors are stated after provisions for impairment of £114,224 (2023: £153,516).

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
6,228,748
9,851,735
2,725,000
2,175,000
Amounts owed to group undertakings
-
0
-
256,453
164,644
Corporation tax payable
460,099
312,804
-
0
-
0
Other taxation and social security
978,931
811,812
-
-
Other creditors
3,774,291
1,081,473
2,055,797
55,797
Accruals and deferred income
2,435,858
2,531,513
7,000
7,000
13,877,927
14,589,337
5,044,250
2,402,441
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
-
0
2,000,000
-
0
2,000,000

Other creditors includes the figure of £2,000,000 in respect of loan notes issued by the parent company and these are repayable at any time from 27 April 2022 up to 26 October 2025 when they mature by the company giving not less than 20 business days’ notice to the relevant noteholders. The loan notes attract an interest rate of 4.25% per annum.

19
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Dilapidation provision
240,266
325,458
-
-
Movements on provisions:
Dilapidation provision
Group
£
At 1 April 2023
325,458
Reduction in provision in the year
(85,192)
At 31 March 2024
240,266
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,542
169,207

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

 

Contributions totalling £25,262 (2023: £35,085) were payable to the fund at the year end date and are included in other creditors. .

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
112,500
112,500
1,125
1,125
Ordinary C Shares of 1p each
37,500
37,500
375
375
150,000
150,000
1,500
1,500

All shares rank pari passu in all respects except that dividends may be declared at different rates on each class of share.

22
Reserves
Other Reserves

This has arisen on consolidation of the subsidiary under the merger accounting principles which has resulted in a merger reserve which is the fair value of the consideration in excess of the investment in the subsidiary.

Profit and loss reserves

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.

GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
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
-
-
24
Related party transactions
Transactions with related parties

During the period, the parent company had loan notes outstanding totalling £1m each to B Abrahams and L Cutting, who are both directors of the company. Interest totalling £70,329 (2023:£125,521) was accrued in respect of the loan notes.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Loan notes
2,000,000
2,000,000
Key management personnel
3,993
5,611
GVAV GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,056,594
1,918,412
Adjustments for:
Taxation charged
850,849
605,611
Finance costs
92,249
149,608
Investment income
(256,903)
(22,875)
Loss on disposal of tangible fixed assets
1,273
-
Amortisation and impairment of intangible assets
932,785
932,785
Depreciation and impairment of tangible fixed assets
197,598
157,923
(Decrease)/increase in provisions
(85,192)
139,278
Movements in working capital:
Decrease/(increase) in stocks
1,091,397
(259,294)
Decrease/(increase) in debtors
746,030
(891,951)
(Decrease)/increase in creditors
(2,858,705)
915,516
Cash generated from operations
2,767,975
3,645,013
26
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
7,355,055
837,990
8,193,045
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