Company registration number 07815981 (England and Wales)
GULF CENTRAL MERCHANT BANK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
GULF CENTRAL MERCHANT BANK LTD
COMPANY INFORMATION
Director
Mr H Azaiez
Secretary
Davanti Business Solutions Ltd
Company number
07815981
Registered office
22a St. James's Square
London
England
SW1Y 4LB
Auditor
Fisher, Sassoon & Marks
43-45 Dorset Street
London
W1U 7NA
GULF CENTRAL MERCHANT BANK LTD
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 22
GULF CENTRAL MERCHANT BANK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The director presents the strategic report for the year ended 28 February 2024.

Fair Review of the Business

The director of Gulf Central Merchant Bank Ltd (GCMB) considers the February 2024 results to be satisfactory, reflecting resilience and progress across key areas of the business. The outlook for the company remains positive, with director anticipating sustained growth in the foreseeable future.

Performance across GCMB’s divisions was mixed:

For the financial year ended February 2024, the company reported a turnover of £2,801,343 (2023: £3,523,883). A notable achievement was the increase in the gross profit margin to 29.03%, compared to 11.47% in the previous year. This improvement was primarily driven by the robust performance of our Fixed Income Global Absolute Return Strategy, reflecting the effectiveness of our investment approach.

Financial Risk and Management Objectives

As a provider of merchant banking services and investment management solutions, GCMB’s director identify the primary financial risk exposure as operational risk and the need to maintain adequate liquidity. Ensuring sufficient liquidity is essential to meet both regulatory capital requirements and working capital needs.

To mitigate these risks, GCMB has implemented comprehensive financial risk management strategies, including:

  1. Clearly Defined Terms of Business: Rigorous agreements with counterparties to minimise exposure to transactional risks.

  2. Stringent Credit Controls: Effective oversight of credit exposure across all transactions.

  3. Active Monitoring: Regular review of cash flow and management accounts to ensure compliance with regulatory capital requirements and to maintain sufficient working capital reserves.

The company remains committed to delivering sustainable growth while adhering to robust risk management practices and regulatory standards. Director is confident that these measures will support continued progress and resilience in an evolving market environment.

The company is authorised and regulated by the FCA and has permission to advise on, arrange and manage investments.

Principal Risks and Uncertainties

Risk management

The director determines the company's business strategy and risk appetite along with designing and implementing a risk management framework that recognizes the risks that the business faces. He also determines how those risks may be mitigated and assess on an ongoing basis the arrangements to manage those risks. As merchant banking services and investment management providers, the director consider that the key financial risk exposure faced by the company is related to operational risk and the need to maintain sufficient liquidity to satisfy regulatory capital requirements and working capital needs. Another important consideration by the director is the counterparty risk. In order to mitigate this, they use rigorous KYC processes and aim to work with Tier 1 counterparties mainly. The management meet on a regular basis and discuss current projections for profitability and regulatory capital management, business planning and risk management. The directors manage the firm’s risks though a framework of policy and procedures having regard to relevant laws, standards, principles and rules (including FCA principles and rules) with the aim to operate a defined and transparent risk management framework. These policies and procedures are updated as required. The firm is small with an operational infrastructure appropriate to its size. It carries no market risk, other than foreign exchange risk on its accounts receivable in foreign currency, and credit risk from management and performance fees receivable.

 

 

GULF CENTRAL MERCHANT BANK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
Development and Performance

Dear Valued Investors,

The principal activity of the company remains focused on delivering high-quality financial services, specialising in investment management and merchant banking. As an entity authorised by the Financial Conduct Authority, we are committed to maintaining the highest standards in all aspects of our operations.

Over the past year, the company has made significant progress toward achieving the objectives outlined in our 2023/2024 strategy. While the COVID-19 pandemic has caused delays in certain areas, we are on track to complete these goals in the current fiscal year. Key highlights include:

Looking ahead, the board has outlined strategic priorities for 2024/2025 to drive growth and enhance value creation:

We extend our gratitude to our clients and business partners for the trust and confidence they place in our company. Your continued support is invaluable, and we remain committed to exceeding your expectations as we navigate the year ahead.

Key Performance Indicators

Information concerning the decision-making process.

 

Due to the size of the Firm, we do not consider it appropriate to have a separate remuneration committee. Instead this function is undertaken by the Managing Board. This will be kept under review and should the need arise, the Firm will consider amending this arrangement to provide greater independent review.

 

The Board of Gulf Central Merchant Bank Ltd is responsible for ensuring that the remuneration policy is developed to align with its risk tolerance. No external consultants assisted in this review. Any person with a question regarding the policy or disclosures made under this policy should refer to the Managing Board.

GULF CENTRAL MERCHANT BANK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Directors' statement of compliance with duty to promoting the success of the company

The director of the company has acted in a way that he considers, in good faith, would most likely promote the success of the company for the benefit of its shareholders and customers as a whole. In doing so the director has had regard to (amongst other matters):

 

 

On behalf of the board

Mr H Azaiez
Director
21 November 2024
GULF CENTRAL MERCHANT BANK LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 4 -

The director presents his annual report and financial statements for the year ended 28 February 2024.

Principal activities

The principal activity of the company continued to be that of broking in trade receivable contracts and provision

of investment management services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £78,000. The director does not recommend payment of a further dividend.

Director

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

Mr H Azaiez
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfill credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Post reporting date events

There are no post balance sheet events to report.

Future developments

The company continues to expand its client base and is actively exploring new markets.

Auditor

The auditor, Fisher, Sassoon & Marks, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

GULF CENTRAL MERCHANT BANK LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 5 -
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr H Azaiez
Director
21 November 2024
GULF CENTRAL MERCHANT BANK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GULF CENTRAL MERCHANT BANK LTD
- 6 -
Opinion

We have audited the financial statements of Gulf Central Merchant Bank Ltd (the 'company') for the year ended 28 February 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GULF CENTRAL MERCHANT BANK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GULF CENTRAL MERCHANT BANK LTD (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

 

GULF CENTRAL MERCHANT BANK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GULF CENTRAL MERCHANT BANK LTD (CONTINUED)
- 8 -

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

 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Jonathan Marks
Senior Statutory Auditor
For and on behalf of Fisher, Sassoon & Marks
21 November 2024
Chartered Accountants
Statutory Auditor
43-45 Dorset Street
London
W1U 7NA
GULF CENTRAL MERCHANT BANK LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
2,801,343
3,523,883
Cost of sales
(1,988,150)
(3,119,589)
Gross profit
813,193
404,294
Administrative expenses
(356,215)
(249,105)
Operating profit
4
456,978
155,189
Interest receivable and similar income
8
6
15
Profit before taxation
456,984
155,204
Tax on profit
9
(111,922)
(29,489)
Profit for the financial year
345,062
125,715

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GULF CENTRAL MERCHANT BANK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
2024
2023
£
£
Profit for the year
345,062
125,715
Other comprehensive income
-
-
Total comprehensive income for the year
345,062
125,715
GULF CENTRAL MERCHANT BANK LTD
BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
11
97,257
84,612
Cash at bank and in hand
925,236
555,875
1,022,493
640,487
Creditors: amounts falling due within one year
12
(373,949)
(259,005)
Net current assets
648,544
381,482
Capital and reserves
Called up share capital
14
45,000
45,000
Profit and loss reserves
603,544
336,482
Total equity
648,544
381,482
The financial statements were approved and signed by the director and authorised for issue on 21 November 2024
Mr H Azaiez
Director
Company registration number 07815981 (England and Wales)
GULF CENTRAL MERCHANT BANK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
45,000
279,767
324,767
Year ended 28 February 2023:
Profit and total comprehensive income
-
125,715
125,715
Dividends
10
-
(69,000)
(69,000)
Balance at 28 February 2023
45,000
336,482
381,482
Year ended 28 February 2024:
Profit and total comprehensive income
-
345,062
345,062
Dividends
10
-
(78,000)
(78,000)
Balance at 28 February 2024
45,000
603,544
648,544
GULF CENTRAL MERCHANT BANK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
476,844
204,773
Income taxes (paid)/refunded
(29,489)
2,913
Net cash inflow from operating activities
447,355
207,686
Investing activities
Interest received
6
15
Net cash generated from investing activities
6
15
Financing activities
Dividends paid
(78,000)
(69,000)
Net cash used in financing activities
(78,000)
(69,000)
Net increase in cash and cash equivalents
369,361
138,701
Cash and cash equivalents at beginning of year
555,875
417,174
Cash and cash equivalents at end of year
925,236
555,875
GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information

Gulf Central Merchant Bank Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 22a St. James's Square, London, England, SW1Y 4LB.

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.

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
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Turnover from trading in trade receivable contracts are recognised on a trade date basis and represents the value of the principal contract traded. The corresponding purchase of the trade receivable contracts are recorded as a cost of sale.

 

Turnover earned from providing investment management services during the year, and is split between Management fees and Performance fees.

 

Management fees

Represent fees receivable for investment management services, exclusive of Value Added Tax, which are recognised on an accruals basis.

 

Management fees are recognised when the company obtains rights for consideration in exchange for its investment management services.

 

Performance fees

Represent fees that are payable in the event that the performance of the underlying investment exceeds a predetermined benchmark.

 

Performance fees receivable from funds are recognised in income when the fees crystallise.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
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.

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.

GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.6
Equity instruments

Equity instruments issued by the company 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 company.

1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
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 when the company has 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.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.The director does not consider there to be any critical judgements or key sources of estimation uncertainty involved in the preparation of the company's financial statements.

 

 

GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Trading Margin Income
1,698,081
3,087,491
Investment Management Fee Income
1,103,262
436,392
2,801,343
3,523,883
2024
2023
£
£
Other revenue
Interest income
6
15
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
3,518
1,638
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 company
10,000
6,700
6
Employees

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

2024
2023
Number
Number
Director
1
1
Operations
2
2
Total
3
3
GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
193,784
137,500
Social security costs
12,682
8,893
206,466
146,393
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
160,667
124,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6
15
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6
15
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
111,922
29,489
GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
9
Taxation
(Continued)
- 20 -

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
456,984
155,204
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% & 25% split (2023: 19.00%)
111,922
29,489
Taxation charge in the financial statements
111,922
29,489
10
Dividends
2024
2023
£
£
Final paid
78,000
69,000
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
97,257
76,781
Prepayments and accrued income
-
0
7,831
97,257
84,612
12
Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
111,922
29,489
Other taxation and social security
32,135
34,755
Other creditors
74,415
72,052
Accruals and deferred income
155,477
122,709
373,949
259,005
GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
13
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
97,257
76,781
Carrying amount of financial liabilities
Measured at amortised cost
229,892
194,761
14
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
45,000
45,000
45,000
45,000

The company has one class of ordinary shares which carry full rights in the company with respect to voting, dividends and distributions.

15
Financial commitments, guarantees and contingent liabilities

At the reporting end date, the company had outstanding commitments for future minimum rental licence payments under non-cancellable contact. The amount due within one year £5,000 (2023: £2,600).

16
Events after the reporting date

There are no subsequent events to report.

17
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
160,667
124,000
18
Directors' transactions

At the year end the director was owed £877 by the company (2023: £522). The loan is interest fee and unsecured.

19
Ultimate controlling party

Mr H Azaiez has a controlling interest in the company.

GULF CENTRAL MERCHANT BANK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
20
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
345,062
125,715
Adjustments for:
Taxation charged
111,922
29,489
Investment income
(6)
(15)
Movements in working capital:
(Increase)/decrease in debtors
(12,645)
1,079,505
Increase/(decrease) in creditors
32,511
(1,029,921)
Cash generated from operations
476,844
204,773
21
Analysis of changes in net funds
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
555,875
369,361
925,236
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