REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 October 2023 |
for |
G.W.MARTIN & CO. LIMITED |
REGISTERED NUMBER: |
Report of the Directors and |
Unaudited Financial Statements for the Year Ended 31 October 2023 |
for |
G.W.MARTIN & CO. LIMITED |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Contents of the Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Income Statement | 3 |
Balance Sheet | 4 |
Notes to the Financial Statements | 6 |
G.W.MARTIN & CO. LIMITED |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Ashleigh, |
3 Lakewood Close |
Chandlers Ford |
Hampshire |
SO53 1EY |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company for the year ended 31 October 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Income Statement |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,547,431 | 2,684,166 |
OPERATING LOSS | 4 | ( |
) | ( |
) |
Interest payable and similar expenses |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 5 | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Balance Sheet |
31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 6 |
Investments | 7 |
CURRENT ASSETS |
Stocks |
Debtors | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
10 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | ( |
) | ( |
) |
NET ASSETS |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Balance Sheet - continued |
31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Revaluation reserve | 11 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The financial statements were approved by the Board of Directors and authorised for issue on |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
G.W.MARTIN & CO. LIMITED is a |
2. | ACCOUNTING POLICIES |
Basis of preparing 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. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | OPERATING LOSS |
The operating loss is stated after charging: |
31.10.23 | 31.10.22 |
£ | £ |
Depreciation - owned assets |
5. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
31.10.23 | 31.10.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on loss | ( |
) |
UK corporation tax has been charged at 23.52% . |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
5. | TAXATION - continued |
There is high accounts charge to Corporation Tax on the loss when one would expect a negative charge as we had on last years loss. . This is due partly to the large fixed asset disposal of £360,000 on an asset that was fully written off for tax purposes, coupled with the increase in the deferred taxation reserve from 18% to 25%. |
6. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 November 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Cost or valuation at 31 October 2023 is represented by: |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
Valuation in 2016 | 2,076,798 | - | 2,076,798 |
Cost | 2,218,561 | 6,422,698 | 8,641,259 |
4,295,359 | 6,422,698 | 10,718,057 |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | TANGIBLE FIXED ASSETS - continued |
The freehold site and land occupied by the Company was valued by Patrick Warwick-Smith MRICS of Warwick Martel on 25th November 2016. The valuation was made on a current use basis and took no account of the significant development value of the site. The valuation of the 22,000 square feet factory site, and approximately 2 acres of land that it occupies amounted to £2,000,000. The company owns a further 11 acres of land behind the factory site and the directors have decided to attribute a further £175,000 to this to value the whole site at a conservative £2,175,000. We receive many letters every year looking to purchase the combined land for development |
On the 16th March 2015, a new freehold site of two properties were acquired at a cost of £1,699,832. These properties were occupied by our commercial printing subsidiary company and were also valued by Patrick Warwick-Smith MRICS in November 2016. There are two buildings, and they have a floor space of 16,760 square feet with adequate car parking and support land. These buildings were, by coincidence, also valued at £2,000,000 based on current use basis. |
On the10th August 2022, the March 2015 properties were valued by Vail Williams in connection with the Alicca Bank loan. This valuation has come in at £2,300,000. These buildings were used by the printing subsidiary that ceased to trade on 31st July 2023. The buildings were placed on the market and were sold on 14th June 2024 for £2,350,000. The Alicca Bank mortgage was repaid in full on sale. |
Barclays bank now only hold a fixed charges against the Bishopstoke Road freehold property but not the land. This allows them to grant the overdraft facility. Barclays are therefore well secured with the GW Martin commissioned 25th November 2016 valuation of £2m against a maximum potential borrowing of £275,000 being the overdraft facility. At the date of this report, we are not using this facility and have substantial funds on deposit account after the property sale. |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
etc |
£ |
COST OR VALUATION |
At 1 November 2022 |
Transfer to ownership | (1,767,914 | ) |
At 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
Transfer to ownership | (529,799 | ) |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
7. | FIXED ASSET INVESTMENTS |
31.10.23 | 31.10.22 |
£ | £ |
Shares in group undertakings |
Loans to group undertakings |
Additional information is as follows: |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
7. | FIXED ASSET INVESTMENTS - continued |
Loans to |
group |
undertakings |
£ |
At 1 November 2022 |
Repayment in year | ( |
) |
At 31 October 2023 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.23 | 31.10.22 |
£ | £ |
Trade debtors |
Other debtors |
We ceased to use CID for the first time in January 2021, however as part of our reorganization of our funding we returned to Lloyds just over a year later on 1st March 2022 but again cease to use CID in August 2024 after the cash injection from the sale of the buildings.. This method of funding, whilst expensive has proved to be very flexible and whilst it looks unlikely at the moment, we do not rule out returning to it again if we need to build work in progress and stocks.. |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.23 | 31.10.22 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts |
Trade creditors |
Taxation and social security |
Other creditors |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.10.23 | 31.10.22 |
£ | £ |
Bank loans |
Hire purchase contracts |
Other creditors |
G.W.MARTIN & CO. LIMITED (Registered number: 00686373) |
Notes to the Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | RESERVES |
Revaluation |
reserve |
£ |
At 1 November 2022 |
and 31 October 2023 |
12. | POST BALANCE SHEET EVENTS |
As mentioned in last year's report, our printing subsidiary lost its major customer worth over 50% of its annual turnover in April 2023, and that meant the closure of this subsidiary. At the time of this report, all their assets have been realised, and all the creditors, other than the holding company have been paid in full. There are a couple of issues still to resolve but we are now a matter of weeks away from starting the process to have the company struck off Companies house register. |
As their holding company we will suffer the loss of the investment of £500,000 in the share capital, and we will write off the remaining part of our loan account, but these will be mitigated by the profit on the sale of the properties. Had the buildings been sold at the agents first estimate, there would have been no net loss to GW Martin. |
The year to 31st October 2024, will not be a financial success, due to shortage of work, and the sorting out of the printing subsidiary, together with repairs. There has been a lot of activity that will serve us well in the future. We have used some of the funds raised from the property sales to repair the building which was showing its sixty-year age. At the time of writing, we have invested £250,000 in two new machines and are considering a third. With funds on deposit, we have been able to buy these with out the use of finance. We will finish the year with £500,000 on deposit and a £4m order book. Most of the orders are for delivery in 2025, and when you add the other orders that come in monthly, we can forecast a minimum of £5m in turnover, which with our low overhead base and next to no interest, we forecast we will return to a good profit in 2025. |