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 |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
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 |
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 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 May 2024 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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. |
Tangible fixed assets |
Short leasehold | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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 |
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 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
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 |
Hire purchase contracts (see note 18) | 45,109 | 61,742 |
Trade creditors | 889,145 | 921,341 |
Amounts owed to group undertakings | - | - |
Tax | - | 226,912 | ( |
) |
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 |
1,670,422 | 1,876,739 |
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 |
Hire purchase contracts (see note 18) | 42,378 | 109,231 |
Deferred government grants | 11,083 | 19,579 |
227,565 | 573,370 |
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 |
275,456 | 274,949 |
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 |
174,104 | 270,456 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 34,104 |
Other loans - 2-5 years | - | 140,000 |
- | 174,104 |
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: | £ | £ |
Ordinary A | £1 | 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. |