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REGISTERED NUMBER: 03494214 (England and Wales)












STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29 FEBRUARY 2024

FOR

GEOSYNTHETICS LIMITED

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 29 February 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 3

Independent Auditors' Report 5

Statement of Comprehensive Income 7

Statement of Financial Position 8

Statement of Changes in Equity 9

Statement of Cash Flows 10

Notes to the Statement of Cash Flows 11

Notes to the Financial Statements 12


GEOSYNTHETICS LIMITED

COMPANY INFORMATION
for the year ended 29 February 2024







DIRECTORS: C Foxton
T Woods





SECRETARY: T Woods





REGISTERED OFFICE: Unit 2, Charnwood Edge Business Park
Syston Road
Cossington
Leicestershire
LE7 4UZ





BUSINESS ADDRESS: Unit 3 Hinckley Park
Avery Way
Hinckley
Leicestershire
LE10 3FF





REGISTERED NUMBER: 03494214 (England and Wales)





AUDITORS: Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

STRATEGIC REPORT
for the year ended 29 February 2024


The directors present their strategic report for the year ended 29 February 2024.

REVIEW OF BUSINESS
The result of the year and financial position at the year end were considered satisfactory by the directors. The directors believe the company is well positioned to maintain a good stronghold in the sector.

PRINCIPAL RISKS AND UNCERTAINTIES
There are a number of possible risk and uncertainties the company may face that could have a material impact on the company's performance. The directors believe the principal risks and uncertainties to be price exchange rates and confidence within the economy.

Given the nature of the business, oil prices and exchange rates can lead to price increases which increases cannot always be passed onto the customer. It is important that we remain competitive, satisfy customer needs and be able to react to market changes, achieving this and maintaining margin can be challenging.

The industry within which the company operates has some dependency on the level of confidence in the economy. Reductions in the confidence can lead to large cuts in spending and investment which can affect our market opportunities and success.

These risks and uncertainties are outside the control of the company and can affect the future of the company. In view of this the directors regularly review the operating controls to help minimise the impact of changes by allowing the business to react quickly thereby reducing the effect on the future development and success of the company.

KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margins and operating profit.

The company's turnover has decreased to £10,840,512 from £12,219,406. Operating profit has decreased to £521,056 from £872,750, largely as a result of an increase in investments in our people and premises as part of our future plans.

ON BEHALF OF THE BOARD:





T Woods - Director


28 November 2024

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

DIRECTORS' REPORT
for the year ended 29 February 2024


The directors present their report with the financial statements of the company for the year ended 29 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the supply of civil engineering materials.

DIVIDENDS
Interim dividends were paid amounting to £240,000 (2023: £840,000). The directors recommend that no final dividends will be paid.

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

C Foxton
T Woods

FINANCIAL INSTRUMENTS
Interest rate risk
The company reviews its exposure to interest rates regularly and considers the benefit (or otherwise) of hedging against adverse interest rate movements as part of these reviews.

Foreign currency risk
Foreign currency exposure resulting from trade with customers and suppliers abroad is mitigated by a hedging policy adopted by the company.

Credit risk
Managing cashflow and credit risk is a priority of the company. All customers are subject to credit checks to reduce exposure to bad debts and to maintain cashflow to support the working capital required for the operations within the business.

Supply chain disruption risk
The ability to deliver to our customers in a timely manner is a key priority for the business. We are working with our suppliers to give greater visibility to our requirements whilst reviewing the level of stock holding.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

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

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

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

DIRECTORS' REPORT
for the year ended 29 February 2024


AUDITORS
The auditors, Magma Audit LLP (part of the Dains Group), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T Woods - Director


28 November 2024

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
GEOSYNTHETICS LIMITED


Opinion
We have audited the financial statements of Geosynthetics Limited (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
GEOSYNTHETICS LIMITED


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

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

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included:

- Enquiries with management for consideration of known or suspected instances of non-compliance with laws and
regulations and fraud.
- Challenging assumptions made by management in their accounting estimates, in particular in relation to the
depreciation of fixed assets, impairment of stock and dilapidation provisions.
- Identifying and testing material journal entries, in particular those journal entries posted with unusual account
combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific
defined descriptions.

There are inherent limitations in the audit procedures described above. The more removed non-compliance with laws and regulations is, from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 forgery or intentional misrepresentation, for example, 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/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.




Paul Orton FCA FCCA (Senior Statutory Auditor)
for and on behalf of Magma Audit LLP (part of the Dains Group)
Chartered Accountants
Statutory Auditor
Unit 2, Charnwood Edge Business Park
Syston Road
Leicestershire
LE7 4UZ

28 November 2024

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

STATEMENT OF COMPREHENSIVE
INCOME
for the year ended 29 February 2024

2024 2023
Notes £    £   

TURNOVER 4 10,840,512 12,219,406

Cost of sales (6,827,118 ) (7,941,109 )
GROSS PROFIT 4,013,394 4,278,297

Administrative expenses (3,492,338 ) (3,405,547 )
OPERATING PROFIT 6 521,056 872,750

Exceptional item 7 (49,888 ) (368,694 )
471,168 504,056

Interest receivable and similar income 4,841 -
PROFIT BEFORE TAXATION 476,009 504,056

Tax on profit 8 (162,086 ) (119,868 )
PROFIT FOR THE FINANCIAL YEAR 313,923 384,188

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

313,923

384,188

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

STATEMENT OF FINANCIAL POSITION
29 February 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 10 294,576 44,772

CURRENT ASSETS
Stocks 11 1,385,230 1,712,733
Debtors: amounts falling due within one year 12 2,570,261 2,961,876
Debtors: amounts falling due after more than
one year

12

1,460,901

1,056,363
Cash at bank and in hand 648,068 386,272
6,064,460 6,117,244
CREDITORS
Amounts falling due within one year 13 (3,871,369 ) (3,090,836 )
NET CURRENT ASSETS 2,193,091 3,026,408
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,487,667

3,071,180

CREDITORS
Amounts falling due after more than one
year

14

(913,851

)

(1,324,184

)

PROVISIONS FOR LIABILITIES 17 (257,159 ) (144,800 )
NET ASSETS 1,316,657 1,602,196

CAPITAL AND RESERVES
Called up share capital 18 100 100
Retained earnings 1,316,557 1,602,096
SHAREHOLDERS' FUNDS 1,316,657 1,602,196

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2024 and were signed on its behalf by:





C Foxton - Director


GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

STATEMENT OF CHANGES IN EQUITY
for the year ended 29 February 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 100 2,057,908 2,058,008

Changes in equity
Dividends - (840,000 ) (840,000 )
Total comprehensive income - 384,188 384,188
Balance at 28 February 2023 100 1,602,096 1,602,196

Changes in equity
Dividends - (240,000 ) (240,000 )
Total comprehensive income - 313,923 313,923
Distribution - (359,462 ) (359,462 )
Balance at 29 February 2024 100 1,316,557 1,316,657

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

STATEMENT OF CASH FLOWS
for the year ended 29 February 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,342,000 291,681
Interest paid 110,150 73,251
Tax paid (219,898 ) (454,066 )
Net cash from operating activities 1,232,252 (89,134 )

Cash flows from investing activities
Purchase of tangible fixed assets (279,018 ) (15,880 )
Interest received 4,841 -
Net cash from investing activities (274,177 ) (15,880 )

Cash flows from financing activities
Capital repayments in year (260,000 ) (260,000 )
Amount withdrawn by directors (404,538 ) (351,399 )
Movement in invoice financing facility 208,259 714,871
Equity dividends paid (240,000 ) (840,000 )
Net cash from financing activities (696,279 ) (736,528 )

Increase/(decrease) in cash and cash equivalents 261,796 (841,542 )
Cash and cash equivalents at beginning
of year

2

386,272

1,227,814

Cash and cash equivalents at end of year 2 648,068 386,272

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE STATEMENT OF CASH FLOWS
for the year ended 29 February 2024


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

2024 2023
£    £   
Profit before taxation 476,009 504,056
Depreciation charges 29,214 20,821
Loss on disposal of fixed assets - 185
Finance costs (110,150 ) (73,251 )
Finance income (4,841 ) -
390,232 451,811
Decrease/(increase) in stocks 327,503 (20,632 )
Decrease/(increase) in trade and other debtors 310,036 (355,843 )
Increase in trade and other creditors 314,229 216,345
Cash generated from operations 1,342,000 291,681

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 29 February 2024
29/2/24 1/3/23
£    £   
Cash and cash equivalents 648,068 386,272
Year ended 28 February 2023
28/2/23 1/3/22
£    £   
Cash and cash equivalents 386,272 1,227,814


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/3/23 Cash flow At 29/2/24
£    £    £   
Net cash
Cash at bank
and in hand 386,272 (386,272 ) 648,068
386,272 (386,272 ) 648,068
Debt
Debts falling due
within 1 year (1,387,835 ) (468,259 ) (1,596,094 )
Debts falling due
after 1 year (585,000 ) (65,000 ) (325,000 )
(1,972,835 ) (533,259 ) (1,921,094 )
Total (1,586,563 ) (919,531 ) (1,273,026 )

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 29 February 2024


1. STATUTORY INFORMATION

Geosynthetics Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is Unit 2 Charnwood Edge Business Park, Syston Road, Cossington, Leicestershire, LE7 4UZ and the registered number is 03494214.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared financial forecasts, including cashflow forecasts. These demonstrate that the company has sufficient resources to meet its liabilities for at least twelve months from signing these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised as goods are despatched.

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 on dispatch of the 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.

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:

Long leasehold land & buildings20% straight line or 15 years over the life of the lease
Fixtures and fittings20% straight line
Motor vehicles20% straight line
Computer equipment33% straight line

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 credited or charged to profit or loss.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

(i) 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.

(ii) 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.

(iii) 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.

(iv) 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.

Taxation
The tax expense for the year comprises current and deferred tax.

(i) 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.

(ii) 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.

Foreign currencies
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 are included in the profit and loss account for the period.

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


2. ACCOUNTING POLICIES - continued

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

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’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.

Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provisioning
The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock.

Dilapidations provision
The company has a dilapidation provision that refers to a provision for unknown future repairs for the property. The dilapidation provision will be assessed at the outset of each individual lease agreement.

4. TURNOVER

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

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 10,840,512 12,094,545
Europe - 124,861
10,840,512 12,219,406

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,544,722 1,714,186
Social security costs 142,191 188,661
Other pension costs 134,716 155,663
1,821,629 2,058,510

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

Engineering 3 4
Finance and Human Resources 6 8
Management 3 3
Marketing - 2
Operations 8 11
Sales 20 17
Warehouse 7 6
47 51

2024 2023
£    £   
Directors' remuneration 168,204 124,329
Directors' pension contributions to money purchase schemes 48,506 51,990

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. OPERATING PROFIT

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

2024 2023
£    £   
Hire of plant and machinery 22,474 22,058
Other operating leases 540,842 300,297
Depreciation - owned assets 29,214 20,821
Loss on disposal of fixed assets - 185
Auditors' remuneration 15,700 11,950
Foreign exchange differences (19,703 ) 5,914

7. EXCEPTIONAL ITEMS
2024 2023
£    £   
Exceptional item (49,888 ) (368,694 )

The amount contained within exceptional items relates to the settlement of historic tax planning.

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 24,935 184,617
Prior year adjustment - 48
Total current tax 24,935 184,665

Deferred tax 137,151 (64,797 )
Tax on profit 162,086 119,868

UK corporation tax has been charged at 25% (2023 - 19%).

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

2024 2023
£    £   
Profit before tax 476,009 504,056
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

119,002

95,771

Effects of:
Expenses not deductible for tax purposes 36,043 24,606
Capital allowances in excess of depreciation (38,205 ) (5,812 )
Adjustments to tax charge in respect of previous periods - 48
Other adjustments (91,905 ) 5,255
Deferred tax movements 137,151 -
Total tax charge 162,086 119,868

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 240,000 840,000

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


10. TANGIBLE FIXED ASSETS
Long
leasehold Fixtures
land & and Motor Computer
buildings fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2023 196,037 159,430 - 222,555 578,022
Additions 96,837 161,407 16,995 3,779 279,018
At 29 February 2024 292,874 320,837 16,995 226,334 857,040
DEPRECIATION
At 1 March 2023 182,560 144,655 - 206,035 533,250
Charge for year 7,253 13,735 1,416 6,810 29,214
At 29 February 2024 189,813 158,390 1,416 212,845 562,464
NET BOOK VALUE
At 29 February 2024 103,061 162,447 15,579 13,489 294,576
At 28 February 2023 13,477 14,775 - 16,520 44,772

11. STOCKS
2024 2023
£    £   
Finished goods 1,385,230 1,712,733

12. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 1,755,688 1,705,532
Amounts owed by group undertakings 670 670
Other debtors - 6,323
Directors' current accounts - 500,000
Corporation tax 487,092 485,520
VAT 18,006 -
Deferred tax asset - 83,151
Prepayments 308,805 180,680
2,570,261 2,961,876

Amounts falling due after more than one year:
Directors' current accounts 1,460,901 1,056,363

Aggregate amounts 4,031,162 4,018,239

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 260,000 260,000
Trade creditors 1,626,319 800,396
Corporation tax 129,276 322,667
Social security and other taxes 198,051 183,938
VAT - 170,831
Other creditors 1,445,992 1,141,802
Amounts due to related parties 44,980 44,980
Accruals and deferred income 166,751 166,222
3,871,369 3,090,836

Included in other creditors is £1,336,094 (2023: £1,127,835) relating to amounts due to the invoice finance company. These amounts are secured by a fixed charge over the trade debtors of the company. The bank loan is secured by a legal assignment given to HSBC Bank Plc.

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 325,000 585,000
Social security and other taxes 588,851 739,184
913,851 1,324,184

The bank loan is secured by a legal assignment given to HSBC Bank Plc.

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 260,000 260,000

Amounts falling due between two and five years:
Bank loans 325,000 585,000

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 656,612 756,272
Between one and five years 2,300,505 2,359,072
In more than five years 5,168,592 5,742,880
8,125,709 8,858,224

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 54,000 -
Other provisions 203,159 144,800
257,159 144,800

Deferred
tax
£   
Balance at 1 March 2023 (83,151 )
Charge to Statement of Comprehensive Income during year 137,151
Balance at 29 February 2024 54,000

It was determined during the year that a dilapidations provision of £203,159 included within accruals should be reclassified as a provision in the accounts. A corresponding entry has been recognised in the prior year to reflect this adjustment. This adjustment has no effect on the profit and loss account.

The movement in deferred tax for the following period, based on current rates and information, is estimated to be a reduction of £10,000. This primarily relates to the reversal of timing differences on capital allowances.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £86,210 (2023 - £103,673) were paid in the year in respect of the defined contribution scheme.

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Advances or credits have been granted by the company to its a director subsisted during the years ended 29 February 2024 and 28 February 2023:

2024 2023
£    £   
C Foxton
Balance outstanding at start of year 1,556,363 1,204,964
Amounts advanced 899,160 1,191,399
Amounts repaid (640,001 ) (840,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,815,522 1,556,363

The directors loan account as disclosed in note 12 has been measured at amortised cost using the effective interest method, whereas the above disclosure reflects the cash movements.

C Foxton has given a personal guarantee to the company's bankers HSBC of £130,000 (2023: £130,000).

GEOSYNTHETICS LIMITED (REGISTERED NUMBER: 03494214)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 29 February 2024


21. RELATED PARTY DISCLOSURES

Transactions with related parties

2024 2023
£ £
Stormwater Management Ltd
Sales to them 230,866 433,468
Amount owed included in trade debtors 80,125 26,716
Amounts due to them (41,200 ) (41,200 )

Geo Solutions Uk Limited
Amounts owed by them 670 670

Hansam Group Ltd
Amounts due to them (3,780 ) (3,780 )
Dividends paid 240,000 840,000

Key management personnel

During the year, a total of key management personnel compensation of £494,200 (2023: £515,309) was paid.

22. ULTIMATE CONTROLLING PARTY

C Foxton is considered to be the ultimate controlling party due to his controlling interest in the equity share capital of Hansam Group Ltd, the company's ultimate parent company.