Gulmay Holdings Limited and its subsidiaries
Annual Report and Consolidated audited Financial Statements
For the year ended 31 March 2024
Company Registration No. 06161141 (England and Wales)
Gulmay Holdings Limited and its subsidiaries
Company Information
Directors
J.K. Duncan
M Jewell
(Appointed 7 March 2024)
S Steven-Cozens
(Appointed 7 March 2024)
Secretary
J.K. Duncan
Company number
06161141
Registered office
Cyan House
1 Canada Road
Byfleet
Surrey
KT14 7JL
Auditor
THP Chartered Accountants and Statutory Auditors
34-40 High Street
Wanstead
London
E11 2RJ
Business address
Cyan House
1 Canada Road
Byfleet
Surrey
United Kingdom
KT14 7JL
Bankers
National Westminster Bank plc
25 King Street
Twickenham
Middlesex
TW1 3SU
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 37
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Strategic Report
For the year ended 31 March 2024
Page 1
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
The directors consider the performance in the year to be satisfactory, with revenue increasing by 8.6% to £26,285,723, although there has been significant pressure on the margin given the supply chain increases and currency fluctuations.
Principal risks and uncertainties
The group aims to minimise all reasonable business risks through the control mechanisms operated within the group.
The group and its employees work hard to comply with the required standards imposed by Governments, Regulatory Authorities and relevant international and local codes. They are committed to minimising such business risks through internal controls and staff training and make use of training external to the company where necessary.
The directors consider the group’s main commercial and financial risks to be:
- Exchange rate fluctuations
The group maintains bank accounts in foreign currencies to minimise exposure to exchange rate risks.
- Global slow down in demand
The group mitigates the risk by supplying a variety of markets whereby often if one sector is slowing, another is growing.
- Cost inflation
This has been mitigated by some of the following measures:
The group has seen utility costs increase significantly inline with market movements.
-Supply chain
The group has seen an improvement in supply chain shortages, particularly with regards to electronic components, as a result of the reducing impact of the pandemic and regular lockdowns within the supply base. The Ukraine crisis has also given rise to an increase in commodity pricing, especially for materials such as steel and copper where sanctions have been applied to the producers in the Russian federation. Some materials continue to be on extended lead-times, especially semi-conductors and high-voltage electrical components, and these will continue to be mitigated by holding increased inventory levels.
The supply chain issues have also been responsible for some of the cost inflation issues referred to above.
Future developments
The directors are optimistic of continued growth in activity levels in subsidiary businesses in China, USA and Germany, which will result in an increase in the group sales. The group continues to develop its product range, an activity carried out mainly in the United Kingdom, which will together with an increase in global activities provide an opportunity for continuing increased global sales.
Key performance indicators
The directors consider that the key financial performance indicators are turnover and gross profit margin. The turnover for the year ended 31 March 2024 increased by 8.6% to £26,285,723 (2023: £24,211,865), and there was an decrease in the gross profit margin to 36.4% (2023: 38.8%), which was driven by cost inflation.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Strategic Report (Continued)
For the year ended 31 March 2024
Page 2
Research and development
The group continues to invest significantly in research and development, relating to the continuing manufacture and development of their product ranges.
J.K. Duncan
Director
21 November 2024
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Directors' Report
For the year ended 31 March 2024
Page 3
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the group continued to be that of designers, manufacturers and distribution of high power electronic engineering, particularly in the field of X-ray electronics. The principal activity of the company remains that of a holding company.
Results and dividends
The results for the year are set out on page 9.
A dividend of £1,000,000 was declared during the year (2023: £1,000,000). The Directors do not recommend the payment of a final dividend (2023: £Nil).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J.K. Duncan
M Jewell
(Appointed 7 March 2024)
S Steven-Cozens
(Appointed 7 March 2024)
Auditor
The auditor, THP Accountants, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Inclusion in the strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's trueStrategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of research and development and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
J.K. Duncan
Director
21 November 2024
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Directors' Responsibilities Statement
For the year ended 31 March 2024
Page 4
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Independent Auditor's Report
To the Members of Gulmay Holdings Limited And Its Subsidiaries
Page 5
Opinion
We have audited the financial statements of Gulmay Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including 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 FRS 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 the parent company's affairs as at 31 March 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard , and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Independent Auditor's Report (Continued)
To the Members of Gulmay Holdings Limited And Its Subsidiaries
Page 6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Strategic Report and the Directors' Report.
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 Director's Responsibilities statement set out on page 4, the director is 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 director determine are 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 director is 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 director either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Independent Auditor's Report (Continued)
To the Members of Gulmay Holdings Limited And Its Subsidiaries
Page 7
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the group operates;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, trading standards and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and any other relevant regulators as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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/auditors responsibilities. This description forms part of our Report of the Auditors.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Independent Auditor's Report (Continued)
To the Members of Gulmay Holdings Limited And Its Subsidiaries
Page 8
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Green LLB FCA (Senior Statutory Auditor)
for and on behalf of THP Limited Chartered Accountants and Statutory Auditors
21 November 2024
Chartered Accountants
34-40 High Street
Statutory Auditor
Wanstead
London
E11 2RJ
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Group Statement of Comprehensive Income
For the year ended 31 March 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
26,285,723
24,211,865
Cost of sales
(16,709,929)
(14,810,304)
Gross profit
9,575,794
9,401,561
Administrative expenses
(8,573,019)
(7,903,367)
Other operating income
227,926
59,336
Operating profit
4
1,230,701
1,557,530
Interest receivable and similar income
8
4,167
3,249
Interest payable and similar expenses
9
(119,626)
(65,707)
Profit before taxation
1,115,242
1,495,072
Tax on profit
10
(125,948)
(246,830)
Profit for the financial year
989,294
1,248,242
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Group Balance Sheet
As at 31 March 2024
Page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
855,914
1,139,204
Other intangible assets
12
110,608
94,371
Total intangible assets
966,522
1,233,575
Tangible assets
13
1,169,273
1,291,490
2,135,795
2,525,065
Current assets
Stocks
16
5,928,839
5,963,498
Debtors
18
9,578,182
7,722,414
Cash at bank and in hand
945,724
1,114,604
16,452,745
14,800,516
Creditors: amounts falling due within one year
19
(9,145,494)
(7,711,590)
Net current assets
7,307,251
7,088,926
Total assets less current liabilities
9,443,046
9,613,991
Creditors: amounts falling due after more than one year
20
(36,077)
(15,038)
Provisions for liabilities
Provisions
23
(242,247)
(287,885)
Deferred tax liability
24
(163,665)
(169,057)
(405,912)
(456,942)
Net assets
9,001,057
9,142,011
Capital and reserves
Called up share capital
26
5,000
5,000
Share premium account
4,522,622
4,522,622
Other reserves
340,395
470,643
Profit and loss reserves
4,133,040
4,143,746
Total equity
9,001,057
9,142,011
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Group Balance Sheet (Continued)
As at 31 March 2024
Page 11
The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
21 November 2024
J.K. Duncan
Director
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Company Balance Sheet
As at 31 March 2024
31 March 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
9,793,150
9,793,150
Current assets
Debtors
18
1,860,689
1,552,488
Cash at bank and in hand
40,719
40,251
1,901,408
1,592,739
Creditors: amounts falling due within one year
19
(2,731,177)
(2,422,508)
Net current liabilities
(829,769)
(829,769)
Net assets
8,963,381
8,963,381
Capital and reserves
Called up share capital
26
5,000
5,000
Share premium account
4,522,622
4,522,622
Profit and loss reserves
4,435,759
4,435,759
Total equity
8,963,381
8,963,381
The company has taken advantage of the exemption in section 408 of the Companies Act 2006 from disclosing its individual profit and loss accounts. The profit for the company for the year was £1,000,000 (2023: £1,000,000).
The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
21 November 2024
J.K. Duncan
Director
Company Registration No. 06161141 (England and Wales)
Gulmay Holdings Limited and its subsidiaries
Group Statement of Changes in Equity
For the year ended 31 March 2024
Page 13
Share capital
Share premium account
Forex reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
5,000
4,522,622
175,407
3,895,504
8,598,533
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
1,248,242
1,248,242
Dividends
11
-
-
-
(1,000,000)
(1,000,000)
Other movements
-
-
295,236
-
295,236
Balance at 31 March 2023
5,000
4,522,622
470,643
4,143,746
9,142,011
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
-
989,294
989,294
Dividends
11
-
-
-
(1,000,000)
(1,000,000)
Other movements
-
-
(130,248)
-
(130,248)
Balance at 31 March 2024
5,000
4,522,622
340,395
4,133,040
9,001,057
Gulmay Holdings Limited And Its Subsidiaries
Gulmay Holdings Limited and its subsidiaries
Company Statement of Changes in Equity
For the year ended 31 March 2024
Page 14
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
5,000
4,522,622
4,435,759
8,963,381
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,000,000
1,000,000
Dividends
11
-
-
(1,000,000)
(1,000,000)
Balance at 31 March 2023
5,000
4,522,622
4,435,759
8,963,381
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
1,000,000
1,000,000
Dividends
11
-
-
(1,000,000)
(1,000,000)
Balance at 31 March 2024
5,000
4,522,622
4,435,759
8,963,381
Gulmay Holdings Limited and its subsidiaries
Group Statement of Cash Flows
For the year ended 31 March 2024
Page 15
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,387,131
312,435
Interest paid
(119,626)
(65,707)
Income taxes (paid)/refunded
(245,260)
96,198
Net cash inflow from operating activities
1,022,245
342,926
Investing activities
Purchase of intangible assets
(31,058)
(57,537)
Purchase of tangible fixed assets
(223,385)
(183,409)
Interest received
4,167
3,249
Net cash used in investing activities
(250,276)
(237,697)
Financing activities
Net (payments)/ proceeds from borrowings
24,486
(11,732)
Dividends paid to equity shareholders
(1,000,000)
(1,000,000)
Net cash used in financing activities
(975,514)
(1,011,732)
Net decrease in cash and cash equivalents
(203,545)
(906,503)
Cash and cash equivalents at beginning of year
1,034,348
1,654,612
Effect of foreign exchange rates
7,831
(8,997)
Effect of foreign exchange rate differences on consolidation
(130,248)
295,236
Cash and cash equivalents at end of year
708,386
1,034,348
Relating to:
Cash at bank and in hand
945,724
1,114,604
Bank overdrafts included in creditors payable within one year
(237,338)
(80,256)
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements
For the year ended 31 March 2024
Page 16
1
Accounting policies
Company information
Gulmay Holdings Limited and its subsidiaries (“the Group”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Cyan House, 1 Canada Road, Byfleet, Surrey, KT14 7JL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard" applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. Accounting standards have been applied consistently, unless otherwise stated.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
The consolidated financial statements incorporate those of Gulmay Holdings Limited and its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the equity accounting method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2024.
All subsidiary undertakings have been included within the financial statements.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The company has taken advantage of the exemption Section 1 of FRS102 from the requirement to present its individual company cashflow statement.
Subsidiary audit exemption
One wholly owned subsidiary, West-Tek Limited has taken the available exemption from audit under section 479A of the Companies Act 2006.
1.3
Going concern
At the balance sheet date, the group made a profit after tax for the year of £989,294 and had net assets at that date of £9,001,057. The directors have considered the impact of current economic conditions, and the group has still managed to trade strongly during the year, with revenue increasing to £26,285,723. Due to the strong balance sheet, continued profitability, cash position and continuing demand for the group’s products, the directors believe the group is well placed to continue trading strongly.
As a result the directors believe that the group and company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. Therefore, the financial statements have been prepared on a going concern basis.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 17
1.4
Turnover
Turnover represents amounts receivable for goods and services net of sales taxes and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually of despatch of goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue for service repairs is recognised in line with their completion and subsequent dispatch to the customer.
1.5
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 20 years.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs
4-10 years
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings short leasehold
straight line over the period to the first break of the lease
Plant and machinery
25% reducing balance, 20% - 33% straight line
Fixtures, fittings & equipment
15% to 25% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 18
1.8
Impairment of fixed assets
At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stock of raw materials and consumables are held on an actual costing system and finished goods represent complete X-ray Generator units.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 19
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.
Loans and other receivables
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow group companies, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.
Other financial liabilities
Derivatives, including 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 the profit or loss account.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 20
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 21
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants are recognised as income over the periods when the related costs are incurred.
1.19
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Gains and losses arising on translation are included in the profit and loss account for the period.
The financial statements of foreign subsidiaries are translated into sterling at the closing rates of exchange and the differences arising from the translation of the opening net investment in subsidiaries at the closing rate and matched long-term foreign exchange borrowings are taken directly to reserves.
1.20
Investment income comprises of interest receivable on bank deposits and unlisted investments.
1.21
Research and development expenditure is written off to the profit and loss account in the year in which it is incurred.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 22
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Depreciation policy of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of tangible fixed assets and note 1.7 for the useful economic lives for each class of asset.
Amortisation policy of intangible fixed assets
The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed when necessary. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 12 for the carrying amount of the intangible assets and note 1.6 for the useful economic lives for each class of asset.
Stocks
Stocks are valued at the lower cost and estimated selling price less costs to complete and sell. selling price less costs to complete and sell includes, where necessary, provisions for slow moving and obsolete stocks. When assessing the provision required, management considers factors including historic demand, projected demand and the economic environment in making these judgements.
Recoverability of trade and other debtors
The group makes an estimate of the recoverable value of trade and other debtors, When assessing impairment of trade and other debtors, management considers factors including current credit rating of the debtor, the ageing profile of debtors and historical experience.
Deferred tax asset
Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 23
Provisions
Provisions have been made for dilapidations and customer warranty obligations. These provisions are estimates and the actual costs and timing of future cash flows are dependant on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made.
The group has an obligation to return the leasehold property to its original condition at the end of the lease term. The dilapidations provision represents management's best estimate of the future costs likely to be incurred based on business knowledge, industry averages and anticipated rates of inflation within the sector.
The warranty provision represents management's best estimate of the company's liability under warranties granted on products, based on past experience and industry averages for defective products.
Investments
Investments held on the company balance sheet are also reviewed annually for any indicators of impairment as described for intangibles above. See note 14 for the value of investments held on the company balance sheet.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
26,285,723
24,211,865
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,041,046
2,310,265
Europe
7,107,437
4,917,271
North America
8,136,235
9,898,230
Africa
116,626
155,086
Asia
7,727,198
6,749,114
Rest of the World
157,181
181,899
26,285,723
24,211,865
2024
2023
£
£
Other revenue
Interest income
4,167
3,249
Grants received
207,521
57,113
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 24
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
519,613
(128,703)
Research and development costs
951,291
788,927
Government grants
(207,521)
(57,113)
Depreciation of owned tangible fixed assets
335,374
307,572
Depreciation of tangible fixed assets held under finance leases
4,898
6,576
Amortisation of intangible assets
295,610
287,693
Operating lease charges
780,616
713,700
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,025
10,500
Audit of the financial statements of the company's subsidiaries
32,975
26,500
44,000
37,000
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Research and development
16
12
-
-
Production and sales
96
98
-
-
Administration and management
27
23
-
-
Total
139
133
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
6
Employees
(Continued)
Page 25
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,533,680
5,935,722
Social security costs
704,281
764,229
-
-
Pension costs
187,836
166,567
7,425,797
6,866,518
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
240,681
213,944
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
218,242
213,944
There are no retirement benefits are accruing for directors under defined contribution schemes.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,167
3,249
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
4,167
3,249
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 26
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
112,341
64,971
Other finance costs:
Interest on finance leases and hire purchase contracts
1,417
736
Other interest
5,868
-
Total finance costs
119,626
65,707
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(20,984)
(71,282)
Foreign current tax on profits for the current period
264,975
235,003
Total current tax
243,991
163,721
Deferred tax
Origination and reversal of timing differences
(118,043)
83,109
Total tax charge
125,948
246,830
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,115,242
1,495,072
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
278,811
284,064
Tax effect of expenses that are not deductible in determining taxable profit
6,594
4,307
Research and development tax credit
(75,188)
(172,743)
Effect of overseas tax rates
(17,765)
61,862
Patent box deductions
(155,828)
Other movements
89,324
69,340
Taxation charge
125,948
246,830
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 27
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
1,000,000
1,000,000
12
Intangible fixed assets
Group
Goodwill
Development Costs
Total
£
£
£
Cost
At 1 April 2023
5,665,816
99,203
5,765,019
Additions
31,058
31,058
Exchange adjustments
(2,747)
(2,747)
At 31 March 2024
5,665,816
127,514
5,793,330
Amortisation and impairment
At 1 April 2023
4,526,612
4,832
4,531,444
Amortisation charged for the year
283,290
12,320
295,610
Exchange adjustments
(246)
(246)
At 31 March 2024
4,809,902
16,906
4,826,808
Carrying amount
At 31 March 2024
855,914
110,608
966,522
At 31 March 2023
1,139,204
94,371
1,233,575
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 28
13
Tangible fixed assets
Group
Land and buildings short leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,263,711
1,551,443
1,033,898
33,307
3,882,359
Additions
107,639
83,467
32,279
223,385
Exchange adjustments
(1,284)
(20,874)
(17,452)
(39,610)
At 31 March 2024
1,262,427
1,638,208
1,099,913
65,586
4,066,134
Depreciation and impairment
At 1 April 2023
509,203
1,269,176
796,537
15,953
2,590,869
Depreciation charged in the year
174,806
120,152
40,394
4,920
340,272
Exchange adjustments
(649)
(26,115)
(7,516)
(34,280)
At 31 March 2024
683,360
1,363,213
829,415
20,873
2,896,861
Carrying amount
At 31 March 2024
579,067
274,995
270,498
44,713
1,169,273
At 31 March 2023
754,508
282,267
237,361
17,354
1,291,490
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
44,283
15,961
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
9,793,150
9,793,150
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
14
Fixed asset investments
(Continued)
Page 29
Company
Shares in group undertakings
£
Cost or valuation
At 1 April 2023 and 31 March 2024
9,793,150
Carrying amount
At 31 March 2024
9,793,150
At 31 March 2023
9,793,150
15
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking and country of
Nature of business
Class of
Effective
incorporation or residency
shareholding
% Held
Gulmay GmbH
Germany
Distribution
Ordinary
100
Gulmay Incorporated
USA
Sales and manufacturing
Ordinary
100
Gulmay Limited
England and Wales
Design and manufacturing
Ordinary
100
Gulmay Electronic Equipment (Shanghai) Co. Ltd*
China
Sales and distribution
Ordinary
100
West-Tek Limited*
England and Wales
Dormant
Ordinary
100
* investment in subsidiary held by Gulmay Limited
The results for Gulmay Incorporated were originally reported in US dollars.
The results for Gulmay Electronic Equipment (Shanghai) Co. Ltd were originally reported in Chinese renminbi.
The results for Gulmay GmbH were originally reported in euros.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
15
Subsidiaries
(Continued)
Page 30
The registered office for the subsidiaries are as follows
Gulmay Limited: Cyan House, 1 Canada Road, Byleet, Surrey, KT14 7JL
West-Tek Limited: Cyan House, 1 Canada Road, Byleet, Surrey, KT14 7JL
Gulmay Incorporated: 480 Brogdon Road, Suite 100 Suwanee, GA 30024, USA
Gulmay GmbH: Fürstenhof, Werne 59368, Germany
Gulmay Electronic Equipment (Shanghai) Co. Ltd: Room 101 Building A North Gate, 55 Chunguang Road, Minhang District, Shanghai 201108, P.R. China
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,896,159
2,176,399
-
-
Finished goods and goods for resale
4,032,680
3,787,099
5,928,839
5,963,498
-
-
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
8,633,311
6,731,694
1,860,689
1,552,488
Equity instruments measured at cost less impairment
-
-
9,793,150
9,793,150
Carrying amount of financial liabilities
Measured at amortised cost
9,008,412
7,573,184
2,731,177
2,422,508
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 31
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,378,690
6,563,666
Corporation tax recoverable
108,180
87,196
Amounts owed by group undertakings
-
-
1,860,689
1,552,488
Other debtors
333,588
441,646
Prepayments and accrued income
539,476
530,298
9,359,934
7,622,806
1,860,689
1,552,488
Deferred tax asset (note 24)
212,259
99,608
9,572,193
7,722,414
1,860,689
1,552,488
Amounts falling due after more than one year:
Other debtors
5,989
Total debtors
9,578,182
7,722,414
1,860,689
1,552,488
Amounts owed by subsidiary undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
237,338
80,256
Obligations under finance leases
22
7,007
3,560
Trade creditors
2,660,190
2,592,829
Other taxation and social security
173,159
153,444
-
-
Other creditors
5,148,164
3,699,451
2,731,177
2,422,508
Accruals and deferred income
919,636
1,182,050
9,145,494
7,711,590
2,731,177
2,422,508
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 32
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
22
36,077
15,038
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
237,338
80,256
Payable within one year
237,338
80,256
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
7,007
3,560
In two to five years
36,077
15,038
43,084
18,598
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years and interest is payable at 11.48%. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
23
Provisions for liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Provisions for liabilities
242,247
287,885
-
-
Deferred tax liabilities
24
163,665
169,057
405,912
456,942
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
23
Provisions for liabilities
(Continued)
Page 33
Movements on provisions apart from deferred tax liabilities:
Group
£
At 1 April 2023
287,885
Reversal of provision
(45,638)
At 31 March 2024
242,247
As part of the group's property leasing arrangements there is an obligation to repair damages which incur during the life of the lease. Included within provisions is £200,000 (2023: £245,638) which was charged to the profit and loss when the obligation arose. The provision is expected to be utilised on termination of the lease.
The warranty provision of £42,247 (2023: £42,247) represents management's best estimate of the group's liability under warranties granted on products manufactured and sold, based on past experience and industry averages for defective products. The provision is expected to be utilised within the next 12 months.
24
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
163,665
169,057
-
-
Provisions
-
-
212,259
99,608
163,665
169,057
212,259
99,608
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
69,449
-
Credit to profit or loss
(118,043)
-
(Asset) at 31 March 2024
(48,594)
-
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
24
Deferred taxation
(Continued)
Page 34
The deferred tax asset set out above is expected to reverse within 12 months and relates to unrealised profit on intercompany trading. The deferred tax liability set out above relates to accelerated capital allowances that are expected to reverse within 12 months and unutilised provisions that are expected to mature within the same period.
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
187,836
166,567
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
27
Financial commitments, guarantees and contingent liabilities
Guarantees
Gulmay Holdings and Gulmay Limited have provided an unlimited inter-company guarantee in favour of the bank.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 35
28
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the Group in respect of its properties and telephone systems. Leases are negotiated for an average term of 5-10 years and rentals are fixed for the length of the lease.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
609,355
640,958
-
-
Between two and five years
1,208,370
1,640,314
-
-
In over five years
208,904
334,247
-
-
2,026,629
2,615,519
-
-
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
622,880
779,522
Other information
Transactions with Group Companies
The company has taken advantage of the exemption available under FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertakings of the group.
30
Controlling party
The ultimate controlling party of the company and group is J.K. Duncan by virtue of her majority shareholding in the company.
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 36
31
Directors' transactions
Dividends of £250,000 (2023: £250,000) were paid to the directors during the year.
Company
Included within other creditors: amounts falling due within one year is an amount of £1,640,873 (2023: £1,627,508) due to the director, J.K. Duncan from Gulmay Holdings Limited. This has no fixed repayment date and is interest free.
Included within other creditors: amounts falling due within one year is an amount of £1,090,304 (2023: £795,000) due to the Duncan Family Trust from Gulmay Holdings Limited. This has no fixed repayment date and is interest free.
Group
Included within other debtors is an amount of £107,680 (2023: £110,113) due from key management. There is a fixed repayment date of 17/12/2030, and interest is accruing at 1.31% per annum.
32
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
989,294
1,248,242
Adjustments for:
Taxation charged
125,948
246,830
Finance costs
119,626
65,707
Investment income
(4,167)
(3,249)
Amortisation and impairment of intangible assets
295,610
287,693
Depreciation and impairment of tangible fixed assets
340,272
314,148
(Decrease)/increase in provisions
(45,638)
35,031
Movements in working capital:
Decrease/(increase) in stocks
34,659
(1,456,157)
Increase in debtors
(1,722,133)
(1,998,485)
Increase in creditors
1,253,660
1,572,675
Cash generated from operations
1,387,131
312,435
Gulmay Holdings Limited and its subsidiaries
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 37
33
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,114,604
(168,880)
945,724
Bank overdrafts
(80,256)
(157,082)
(237,338)
1,034,348
(325,962)
708,386
Obligations under finance leases
(18,598)
(24,486)
(43,084)
1,015,750
(350,448)
665,302
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