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REGISTERED NUMBER: 12182644 (England and Wales)

















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 May 2024

for

Gardner Newton Limited

Gardner Newton Limited (Registered number: 12182644)






Contents of the Consolidated Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


Gardner Newton Limited

Company Information
for the Year Ended 31 May 2024







DIRECTORS: D Chambers
T Roberts





REGISTERED OFFICE: 24-26 Mansfield Road
Rotherham
S60 2DT





REGISTERED NUMBER: 12182644 (England and Wales)





AUDITORS: Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

Gardner Newton Limited (Registered number: 12182644)

Group Strategic Report
for the Year Ended 31 May 2024

The directors present their strategic report of the company and the group for the year ended 31 May 2024.

REVIEW OF BUSINESS
During the year ended 31 May 2024 the group generated sales of £9.1m which were 6.81% lower than the £9.8m in the previous financial year. Profit before taxation was £452,190 compared to £1,400,992 in the previous financial year.

The group monitors its financial performance through key performance indicators, which are as follows:

2024 2023

Turnover (£) 9,136,142 9,803,494
Operating profit (£) 450,498 1,443,634
Profit before taxation (£) 452,190 1,400,992

Gross profit (%) 44.30 44.80
Net profit (%) 3.40 11.20
Current ratio 2.36 2.23
Acid test ratio 1.79 1.76
Interest coverage 15.60 28.99

The directors are happy with the results for the year.

All companies traded well in the market despite remaining economic pressures on the industry and the challenges of rising costs; increased wages, material costs and energy charges. The group's business activity continued to benefit from the diversity of the commercial, construction, trade & domestic markets.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties affecting the group are normally considered to relate to the competition, however the group acknowledges the current economic climate and the pressure of inflation and cost of living has contributed to a level of insecurity amongst the consumer market.

We expect the coming year to remain challenging however due to our diversity and investment to drive sales development and new business and we are confident that we will remain in a strong position within the next financial year.

SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS
There have been no events to the date of this report which have materially affected the company.

ON BEHALF OF THE BOARD:





D Chambers - Director


22 October 2024

Gardner Newton Limited (Registered number: 12182644)

Report of the Directors
for the Year Ended 31 May 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2024.

PRINCIPAL ACTIVITY
The principal activities of the group in the year under review were that of glass & mirror processors, distributors & merchants and furniture manufacturers.

DIVIDENDS
The total distribution of dividends for the year ended 31 May 2024 will be £126,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report.

D Chambers
T Roberts

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Gardner Newton Limited (Registered number: 12182644)

Report of the Directors
for the Year Ended 31 May 2024


AUDITORS
The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



D Chambers - Director


22 October 2024

Report of the Independent Auditors to the Members of
Gardner Newton Limited

Opinion
We have audited the financial statements of Gardner Newton Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Gardner Newton Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Gardner Newton Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach.

In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Policies and controls relating to the risk of material misstatement as a result of fraud are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches.Testing of income recognition and cut off, along with stock valuation is also completed. Consolidation adjustments and indicators of impairment are also reviewed.

We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Jonathon Dickens FCA (Senior Statutory Auditor)
for and on behalf of Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

22 October 2024

Gardner Newton Limited (Registered number: 12182644)

Consolidated
Income Statement
for the Year Ended 31 May 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 9,136,142 9,803,494

Cost of sales 5,091,935 5,415,531
GROSS PROFIT 4,044,207 4,387,963

Distribution costs 383,545 365,904
Administrative expenses 3,218,660 2,591,353
3,602,205 2,957,257
442,002 1,430,706

Other operating income 8,496 12,928
OPERATING PROFIT 5 450,498 1,443,634

Interest receivable and similar income 32,657 7,412
483,155 1,451,046

Interest payable and similar expenses 6 30,965 50,054
PROFIT BEFORE TAXATION 452,190 1,400,992

Tax on profit 7 143,766 300,525
PROFIT FOR THE FINANCIAL YEAR 308,424 1,100,467
Profit attributable to:
Owners of the parent 308,424 1,100,467

Gardner Newton Limited (Registered number: 12182644)

Consolidated
Other Comprehensive Income
for the Year Ended 31 May 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 308,424 1,100,467


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

308,424

1,100,467

Total comprehensive income attributable to:
Owners of the parent 308,424 1,100,467

Gardner Newton Limited (Registered number: 12182644)

Consolidated Balance Sheet
31 May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 660,521 792,132
Tangible assets 11 1,061,294 1,000,146
Investments 12 - -
1,721,815 1,792,278

CURRENT ASSETS
Stocks 13 939,251 884,010
Debtors 14 1,173,446 1,143,165
Cash at bank and in hand 1,787,829 2,151,591
3,900,526 4,178,766
CREDITORS
Amounts falling due within one year 15 1,670,422 1,876,739
NET CURRENT ASSETS 2,230,104 2,302,027
TOTAL ASSETS LESS CURRENT LIABILITIES 3,951,919 4,094,305

CREDITORS
Amounts falling due after more than one
year

16

(227,565

)

(573,370

)

PROVISIONS FOR LIABILITIES 21 (244,340 ) (223,345 )
NET ASSETS 3,480,014 3,297,590

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Share premium 370,000 370,000
Capital redemption reserve 1 1
Retained earnings 3,109,013 2,926,589
SHAREHOLDERS' FUNDS 3,480,014 3,297,590

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2024 and were signed on its behalf by:




D Chambers - Director



T Roberts - Director


Gardner Newton Limited (Registered number: 12182644)

Company Balance Sheet
31 May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 2,696,521 2,696,521
2,696,521 2,696,521

CURRENT ASSETS
Cash at bank 29,941 1,937

CREDITORS
Amounts falling due within one year 15 1,446,803 1,218,490
NET CURRENT LIABILITIES (1,416,862 ) (1,216,553 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,279,659 1,479,968

CREDITORS
Amounts falling due after more than one
year

16

140,000

380,000
NET ASSETS 1,139,659 1,099,968

CAPITAL AND RESERVES
Called up share capital 22 1,000 1,000
Share premium 370,000 370,000
Retained earnings 768,659 728,968
SHAREHOLDERS' FUNDS 1,139,659 1,099,968

Company's profit for the financial year 165,691 447,161

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2024 and were signed on its behalf by:




D Chambers - Director



T Roberts - Director


Gardner Newton Limited (Registered number: 12182644)

Consolidated Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 June 2022 1,000 2,116,122 370,000 1 2,487,123

Changes in equity
Dividends - (290,000 ) - - (290,000 )
Total comprehensive income - 1,100,467 - - 1,100,467
Balance at 31 May 2023 1,000 2,926,589 370,000 1 3,297,590

Changes in equity
Dividends - (126,000 ) - - (126,000 )
Total comprehensive income - 308,424 - - 308,424
Balance at 31 May 2024 1,000 3,109,013 370,000 1 3,480,014

Gardner Newton Limited (Registered number: 12182644)

Company Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 June 2022 1,000 571,807 370,000 942,807

Changes in equity
Dividends - (290,000 ) - (290,000 )
Total comprehensive income - 447,161 - 447,161
Balance at 31 May 2023 1,000 728,968 370,000 1,099,968

Changes in equity
Dividends - (126,000 ) - (126,000 )
Total comprehensive income - 165,691 - 165,691
Balance at 31 May 2024 1,000 768,659 370,000 1,139,659

Gardner Newton Limited (Registered number: 12182644)

Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 797,444 1,180,962
Interest paid (18,351 ) (36,548 )
Interest element of hire purchase payments
paid

(12,614

)

(13,506

)
Tax paid (376,114 ) (295,831 )
Net cash from operating activities 390,365 835,077

Cash flows from investing activities
Purchase of intangible fixed assets (13,586 ) (1,760 )
Purchase of tangible fixed assets (315,031 ) (253,424 )
Sale of tangible fixed assets 21,268 21,741
Interest received 32,657 7,412
Net cash from investing activities (274,692 ) (226,031 )

Cash flows from financing activities
New loans in year - 48,027
Capital repayments in year (353,435 ) (1,049,741 )
Amount introduced by directors - 162,058
Equity dividends paid (126,000 ) (290,000 )
Net cash from financing activities (479,435 ) (1,129,656 )

Decrease in cash and cash equivalents (363,762 ) (520,610 )
Cash and cash equivalents at beginning of
year

2

2,151,591

2,672,201

Cash and cash equivalents at end of year 2 1,787,829 2,151,591

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 May 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 452,190 1,400,992
Depreciation charges 381,120 366,825
Profit on disposal of fixed assets (3,308 ) (1,682 )
Finance costs 30,965 50,054
Finance income (32,657 ) (7,412 )
828,310 1,808,777
Increase in stocks (55,241 ) (158,196 )
(Increase)/decrease in trade and other debtors (3,850 ) 111,590
Increase/(decrease) in trade and other creditors 28,225 (581,209 )
Cash generated from operations 797,444 1,180,962

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31/5/24 1/6/23
£    £   
Cash and cash equivalents 1,787,829 2,151,591
Year ended 31 May 2023
31/5/23 1/6/22
£    £   
Cash and cash equivalents 2,151,591 2,672,201


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/6/23 Cash flow At 31/5/24
£    £    £   
Net cash
Cash at bank and in hand 2,151,591 (363,762 ) 1,787,829
2,151,591 (363,762 ) 1,787,829
Debt
Finance leases (170,973 ) 83,486 (87,487 )
Debts falling due within 1 year (274,949 ) (507 ) (275,456 )
Debts falling due after 1 year (444,560 ) 270,456 (174,104 )
(890,482 ) 353,435 (537,047 )
Total 1,261,109 (10,327 ) 1,250,782

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Gardner Newton Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of the subsidiary businesses in 2016, 2017 and 2019, is being amortised evenly over its estimated useful life of 10 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 20% on cost
Long leasehold - 10% on cost
Plant and machinery - 25% on reducing balance and 15% on reducing balance
Fixtures and fittings - 25% on reducing balance and 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance and 20% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company 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 company's balance sheet 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.

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.

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

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

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

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

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

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

Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Wholesale of glass and mirror 7,679,999 8,844,936
Manufacture of furniture 1,456,143 958,558
9,136,142 9,803,494

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 9,136,142 9,803,494
9,136,142 9,803,494

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,214,106 1,795,293
Social security costs 154,292 142,312
Other pension costs 45,918 37,160
2,414,316 1,974,765

The average number of employees during the year was as follows:
2024 2023

Directors 2 2
Sales and admin 17 15
Production and processing 58 59
77 76

2024 2023
£    £   
Directors' remuneration 80,320 77,592
Directors' pension contributions to money purchase schemes 190 488

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 11,037 6,682
Depreciation - owned assets 201,984 173,859
Depreciation - assets on hire purchase contracts 33,939 48,320
Profit on disposal of fixed assets (3,308 ) (1,682 )
Goodwill amortisation 139,484 137,485
Computer software amortisation 5,713 7,161
Auditors' remuneration 23,000 23,000
Foreign exchange differences 8 (121 )
Rent 696,872 546,203

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 17,386 34,013
Interest on overdue tax 965 958
Other interest - 1,577
Hire purchase 12,614 13,506
30,965 50,054

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 122,771 262,611

Deferred tax 20,995 37,914
Tax on profit 143,766 300,525

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 452,190 1,400,992
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 19 %)

113,048

266,188

Effects of:
Expenses not deductible for tax purposes - 1,414
Capital allowances in excess of depreciation (1,520 ) -
Depreciation in excess of capital allowances - 35,275
Utilisation of tax losses - (36,505 )
Consolidation timing adjustments (1,814 ) 3,697
Amortisation of goodwill recognised on consolidation 34,871 26,122
Change in tax rates (819 ) 4,334
Total tax charge 143,766 300,525

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 126,000 290,000

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

10. INTANGIBLE FIXED ASSETS

Group
Computer
Goodwill software Totals
£    £    £   
COST
At 1 June 2023 1,382,341 55,823 1,438,164
Additions 10,000 3,586 13,586
At 31 May 2024 1,392,341 59,409 1,451,750
AMORTISATION
At 1 June 2023 609,912 36,120 646,032
Amortisation for year 139,484 5,713 145,197
At 31 May 2024 749,396 41,833 791,229
NET BOOK VALUE
At 31 May 2024 642,945 17,576 660,521
At 31 May 2023 772,429 19,703 792,132

11. TANGIBLE FIXED ASSETS

Group
Short Long Plant and
leasehold leasehold machinery
£    £    £   
COST
At 1 June 2023 3,010 53,734 3,491,125
Additions - - 286,703
Disposals - - (77,080 )
At 31 May 2024 3,010 53,734 3,700,748
DEPRECIATION
At 1 June 2023 1,204 50,185 2,701,795
Charge for year 602 735 181,414
Eliminated on disposal - - (75,182 )
At 31 May 2024 1,806 50,920 2,808,027
NET BOOK VALUE
At 31 May 2024 1,204 2,814 892,721
At 31 May 2023 1,806 3,549 789,330

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

11. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 June 2023 175,036 381,628 124,206 4,228,739
Additions 4,585 8,050 15,693 315,031
Disposals - (36,338 ) - (113,418 )
At 31 May 2024 179,621 353,340 139,899 4,430,352
DEPRECIATION
At 1 June 2023 142,556 221,427 111,426 3,228,593
Charge for year 7,219 38,384 7,569 235,923
Eliminated on disposal - (20,276 ) - (95,458 )
At 31 May 2024 149,775 239,535 118,995 3,369,058
NET BOOK VALUE
At 31 May 2024 29,846 113,805 20,904 1,061,294
At 31 May 2023 32,480 160,201 12,780 1,000,146

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 June 2023 21,558 176,727 198,285
Disposals - (28,137 ) (28,137 )
At 31 May 2024 21,558 148,590 170,148
DEPRECIATION
At 1 June 2023 577 83,898 84,475
Charge for year 9,946 23,993 33,939
Eliminated on disposal - (14,289 ) (14,289 )
At 31 May 2024 10,523 93,602 104,125
NET BOOK VALUE
At 31 May 2024 11,035 54,988 66,023
At 31 May 2023 20,981 92,829 113,810

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 June 2023
and 31 May 2024 2,696,521
NET BOOK VALUE
At 31 May 2024 2,696,521
At 31 May 2023 2,696,521


The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Wholesale Glass Ltd
Registered office: 24-26 Mansfield Road, Rotherham, South Yorkshire, S60 2DT
Nature of business: Wholesale of glass

Class of shares: Ordinary
% holding: 100.00

The entity is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of s479A of the Act.

Tower Glass (Bournemouth) Ltd
Registered office: 24-28 Mansfield Road, Rotherham, South Yorkshire, England, S60 2DT
Nature of business: Glass merchant

Class of shares: Ordinary
% holding: 100.00

The entity is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of s479A of the Act.

Pureslide Ltd
Registered office: 24-28 Mansfield Road, Rotherham, South Yorkshire, England, S60 2DT
Nature of business: Furniture manufacture

Class of shares: Ordinary
% holding: 100.00

The entity is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of s479A of the Act.

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

12. FIXED ASSET INVESTMENTS - continued


Novaglaze Ltd
Registered office: Ngn House Queens Mill Road, Lockwood, Huddersfield, West Yorkshire, HD1 3PG
Nature of business: Glass merchants

Class of shares: Ordinary
% holding: 100.00

The entity is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of s479A of the Act.

Infrared Manufacturing Ltd
Registered office: Unit 7 & 8 Sandbeds Trading Estate, Ossett, West Yorkshire, United Kingdom, WF5 9ND
Nature of business: Dormant company

Class of shares: Ordinary
% holding: 100.00

The entity is exempt from the requirements of the Companies Act 2006 relating to the audit of the individual accounts by virtue of s479A of the Act.

13. STOCKS

Group
2024 2023
£    £   
Stocks 420,372 445,404
Raw materials 512,924 417,786
Work-in-progress 5,955 20,820
939,251 884,010

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024 2023
£    £   
Trade debtors 991,741 954,378
Bad debt provision (4,135 ) (12,778 )
Other debtors 1,570 1,570
Tax 26,431 -
Prepayments and accrued income 157,839 199,995
1,173,446 1,143,165

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts (see note 17) 30,456 29,949 - -
Other loans (see note 17) 245,000 245,000 240,000 240,000
Hire purchase contracts (see note 18) 45,109 61,742 - -
Trade creditors 889,145 921,341 2,544 2,232
Amounts owed to group undertakings - - 1,206,500 866,500
Tax - 226,912 (33,260 ) 76,322
Social security and other taxes 40,385 34,619 - -
VAT 157,814 198,325 - -
Other creditors 10,548 10,000 - -
Wages control account 84 9,564 - -
Pension creditor 2,888 6,052 - -
Credit card 1,789 - - -
Directors' current accounts 58 58 58 58
Accruals and deferred income 247,146 133,177 30,961 33,378
1,670,422 1,876,739 1,446,803 1,218,490

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans (see note 17) 34,104 64,560 - -
Other loans (see note 17) 140,000 380,000 140,000 380,000
Hire purchase contracts (see note 18) 42,378 109,231 - -
Deferred government grants 11,083 19,579 - -
227,565 573,370 140,000 380,000

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

17. LOANS

An analysis of the maturity of loans is given below:

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 30,456 29,949 - -
Other loans 245,000 245,000 240,000 240,000
275,456 274,949 240,000 240,000
Amounts falling due between one and two years:
Bank loans - 1-2 years 34,104 30,456 - -
Other loans - 1-2 years 140,000 240,000 140,000 240,000
174,104 270,456 140,000 240,000
Amounts falling due between two and five years:
Bank loans - 2-5 years - 34,104 - -
Other loans - 2-5 years - 140,000 - 140,000
- 174,104 - 140,000

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 45,109 61,742
Between one and five years 42,378 109,231
87,487 170,973

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 264,428 144,521
Between one and five years 864,700 488,867
In more than five years 351,444 455,565
1,480,572 1,088,953

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
2024 2023
£    £   
Bank loans 64,560 94,509
Hire purchase contracts 87,487 170,973
152,047 265,482

Bank loans are secured by a fixed and floating charge over the assets of the company. Hire purchase
obligations are secured against the asset to which they relate.

20. FINANCIAL INSTRUMENTS

The carrying amounts of the group's financial instruments are:

Financial assets - Debt instruments measured at amortised cost of £989,176 (2023: £943,170).
Financial assets - Debt instruments measured at amortised cost of £1,799,973 (2023: £2,151,591).

Financial liabilities - Measured at amortised cost of £1,467,462 (2023: £1,401,266).

21. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax 244,340 223,345

Group
Deferred
tax
£   
Balance at 1 June 2023 223,345
Provided during year 20,995
Balance at 31 May 2024 244,340

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
500 Ordinary A £1 500 500
500 Ordinary B £1 500 500
1,000 1,000

Gardner Newton Limited (Registered number: 12182644)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 May 2024

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2024 and 31 May 2023:

2024 2023
£    £   
Ms T Roberts
Balance outstanding at start of year - 162,000
Amounts repaid - (162,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

24. RELATED PARTY DISCLOSURES

The Directors regard themselves to be key management personnel. Their remuneration is disclosed in note 4.

25. ULTIMATE CONTROLLING PARTY

The controlling party is the directors.