Company Registration No. SC369620 (Scotland)
GRAY & ADAMS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2024
GRAY & ADAMS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
James J Gray
Peter Gray
Marie F Philpot
Andrew Sutherland
Secretary
Andrew Sutherland
Company number
SC369620
Registered office
South Road
Fraserburgh
AB43 9HU
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
Solicitors
Brown & McRae
Anderson House
9-11 Frithside Street
Fraserburgh
AB43 9AB
GRAY & ADAMS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Group profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 38
GRAY & ADAMS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 26 APRIL 2024
- 1 -

The directors present the strategic report for the period from 29 April 2023 to 26 April 2024.

Principal activities

Established in 1957 in Fraserburgh, Scotland, Gray & Adams is a family owned business. The principal activity of the company continued to be that of a holding company where our results are consolidated. The group operates mainly in the UK and its principal activity continues to be that of the design, manufacture and repair of temperature controlled and dry freight equipment for the transport industry. Our portfolio of customers include blue chip names from the Supermarket, food retail and food distribution segments. Our dry freight products are used in the parcel delivery market and we also manufacture custodial prison vehicles, cold stores and game larders. The group has assembly plants in Dunfermline, Doncaster and Belfast.

The directors are not aware, at the date of this report, of any likely major changes in the company's or group's activities in the next year.

Strategic Management

Since its founding Gray & Adams has developed as a manufacturer to provide bespoke vehicles. We strive to build exceptional products that are well engineered, innovative and of a supreme build quality. We never over promise and work with our clients to ensure that we deliver. The board has consistently followed these principals to ensure we both generate and preserve value.

We are the UK’s leading supplier of refrigerated transport products and have been for some time. Our business model has driven us to this position and our objective is to hold that position.

Business review

The period ended 26 April 2024 saw turnover increase from £187,409k to £208,332k. The group has managed its way through the impact of the recent globally impacting events of the Coronavirus Pandemic and the Ukraine conflict and good management during these times has resulted in the group continuing to trade, although not without its challenges, and invest profits back into the business.

Over the last three years Sales and Profit Before Tax have averaged £189m and £12.1m respectively. With a strong order book we have prepared a forecast for the full year ended April 2025 and can expect strong levels of activity to continue, however we are mindful of both price inflation and supply issues. In addition, we extended our forecast by a further seven months and we expect business to remain extremely positive.

Our financial performance is a result of our business model, the quality of our industry-renowned products and the dedication of the wider Gray & Adams team. This success has been recognised by the industry through no less than seventeen TCS&D (Temperature Controlled Storage and Distribution) awards since 2016, including Refrigerated Trailer of the Year (seven years running), Innovation (three times), Refrigerated Rigid of the Year (three times), OEM of the Year, Customer Service (two times) and a Lifetime Achievement Award. We received a Queen’s Award for Enterprise in Innovation (2020) and an award for Innovation from the Export & Freight Transport & Logistics (2018) and we were honoured to be selected as a regional finalist in the Make UK awards for our dedication to training young people and apprenticeships. Our financial performance and overseas sales have seen the Sunday Times include us in both their Top Track 250 and International Track 200 league tables.

GRAY & ADAMS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 2 -
Results

Sales turnover increased by 11.2% to £208m. Demand remained strong in the period resulting in another busy year across both our trailer and rigid products. Profit Before Tax grew to £18.5m (2023 - £9.4m), see page 13.

The balance sheet shows that the net assets position of the group at the period ended 26 April 2024 has increased by over £13.1m to £70.2m, see page 14.

The Group statement of cash flows (page 18) shows a net increase in cash of £1.5m after capital expenditure of £2.4m. Significant investment of around £3m at our Fraserburgh site will continue in 2025 with new machinery, building extensions and site enhancements. Cash at bank at the end of the year was £14.1m.

To assist in monitoring the performance of the group, the following key performance indicators are used:

 

2024

2023

2022

3 Year Avg

£'000

£'000

£'000

£'000

Turnover

208,332

187,409

170,559

188,767

Gross Profit

39,267

26,815

24,328

30,137

GP %

18.8%

14.3%

14.3%

16.0%

Profit Before Tax

18,650

9,402

8,510

12,157

PBT %

8.9%

5.0%

5.0%

6.4%

Equity Shareholder Funds

70,239

57,042

51,970

59,750

Productive Hours

830,313

813,656

797,668

813,879

Units Produced

3,417

3,489

3,445

3450

Net Increase/(Decrease) In Cash

1,485

(1,718)

(4,905)

(1,713)

Avg No. Of Employees

756

752

744

751

Factory Cost Rate/Hour*

146%

129%

115%

130%

* Movement in factory cost rate annually expressed as a percentage with base year 2021.

Other key performance indicators used on a regular basis include product margins, productivity, material costs, overhead absorption rate, order book, win rate and customer satisfaction, all of which we are satisfied with the performance achieved in each area.

Principal risks and uncertainties

Market and economic risk

The transport sector remains extremely competitive from both national and international operators. The group will continue to follow its business model and stay cost focused. The rules governing the new relationship between the EU and UK took effect on 1st January 2021. It was always unclear how the business would be impacted. As a precautionary measure we had increased stock levels from EU suppliers. Sending goods from Fraserburgh to Belfast required additional paperwork and bringing goods into the UK from mainland Europe has also had its issues. The business has managed to continue production with less disruption than what was possible, and plans to continue with higher stock levels of certain materials going forward to assist with keeping this risk minimal.

GRAY & ADAMS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 3 -
Liquidity risk

Short and medium-term cash projections identify funding for ongoing operations and future development for the group with surplus cash funds held at the bank. The group has sufficient financial resources and is well placed to maintain liquidity for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and financial statements.

Financial risk

The group’s principal financial assets are cash balances held at the bank and trade debtors. The group’s credit risk is primarily attributed to trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debtors. The credit risk on liquid funds held at banks is considered to be limited. The management team monitor concentration of credit risk carefully, and as a result the company has no significant levels of concentration.

Foreign exchange risk

The group imports raw materials from other EU countries and is therefore exposed to the movement in the euro to sterling exchange rate. The current economic outlook for the UK has introduced a greater degree of uncertainty however the group continues to manage this risk through appropriate treasury management.

Future developments

The directors believe the company is well placed to take further steps forward with each of its primary product lines. We continually review the requirements at each of our facilities to identify further investment projects. Product development expenditure will continue to rise with the company utilising the advantages and opportunities provided by both Patent Box tax relief and R&D Tax Credits.

Section 172(1) statement

The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so had regard, amongst other matters, to:

 

The Board and senior management team engages with the following stakeholders:

GRAY & ADAMS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 4 -
Energy and carbon reporting

Consumption (kWh) and Greenhouse Gas emissions (tCO2e) Totals

2024 is the fifth year Gray & Adams were required to report this information and now we have our first comparative against our baseline year 2020.

Scope 1 consumption and emissions relate to direct combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets, and grey fleet.

Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day-to-day business operations.

Totals

The total consumption (kWh) figures for energy supplies reportable by Gray & Adams are as follows:

Utility and Scope

2023/24 UK Consumption (kWh)

2022/23 UK Consumption (kWh)

Grid-Supplied Electricity (Scope 2)

4,136,331

4,412,079

Gaseous and other fuels (Scope 1)

8,002,736

7,674,560

Transportation (Scope 1)

4,453,659

3,789,729

Total

16,592,726

15,876,368

The total emission (tCO2e) figures for energy supplies reportable by Gray & Adams are as follows.

Utility and Scope

2023/24 UK Emission (tCO2e)

2022/23 UK Emission (tCO2e)

Grid-Supplied Electricity (Scope 2)

856

853

Gaseous and other fuels (Scope 1)

1,561

1,481

Transportation (Scope 1)

1,005

878

Total

3,422

3,212

Intensity Metric

An intensity metric of tCO2e per Full Time Employee and tCO2e per £m Total Sales Revenue have been applied for the annual total emissions of Gray & Adams. The results of this analysis are as follows:

Intensity Metric

2023/24 UK Emission (tCO2e)

2022/23 UK Emission (tCO2e)

tCO2e / Full Time Employees

4.53

4.27

tCO2e / £m Sales Turnover

16.43

17.14

GRAY & ADAMS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 5 -
Energy efficiency improvements

Gray & Adams are committed to year-on-year improvements in their operational energy efficiency. As such, a register of energy efficiency measures available to Gray & Adams has been compiled, with a view to implementing these measures in the next five years.

Measures ongoing and undertaken through 2024:

Day lights in various roof spaces across our sites have been replaced in order to increase natural light in our workspaces. This, working in conjunction with smart lighting systems, allows for lights to automatically turn off when total light is above the required threshold, therefore reducing energy consumption. Some large manual doors have been replaced in our sites with electrically operated units to make it easier for the workforce to open and close these, and thus resulting in these being closed more often and allowing buildings to retain heat. New more efficient CNC machines have been installed which have the ability to work more efficiently than their older predecessors, and thus reduce energy consumption.

Measures prioritised for implementation in 2025:

The group continues to invest in renewing large pieces of plant to both improve on an already high standard of manufacturing in both quality and efficiency. The group has already made purchase commitments for plant within the steel manufacturing plants and hopes to see these new pieces of machinery installed and operational before the end of FY25. This modern equipment will generate energy consumption savings in our manufacturing process in addition to many other benefits this will bring.

On behalf of the board

James J Gray
Director
6 November 2024
GRAY & ADAMS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 26 APRIL 2024
- 6 -

The directors present their annual report and financial statements for the period from 29 April 2023 to 26 April 2024.

 

Although the company's accounting reference date is 30 April, the company has taken advantage of the option available under s390(3) of the Companies Act 2006 and prepared these financial statements up to the last trading day of April, which for the current period is the 26 April 2024. Accordingly the current trading period covers 29 April 2023 to 26 April 2024 and the balance sheets represent the group's and company's financial position as at that date.

Directors

The directors who held office during the period and up to the date of approval of the financial statements were as follows:

James J Gray
Peter Gray
Marie F Philpot
Andrew Sutherland
Results and dividends

The results for the period are set out on page 12.

Dividends were declared amounting to £2,305,000 (2023: £2,005,000).

Disabled persons

The group's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Strategic Report

The group has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the strategic 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 been done so in respect of future developments, financial risk management, engagement with employees, suppliers, customers and others as well as energy carbon reporting.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
James J Gray
Director
6 November 2024
GRAY & ADAMS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 26 APRIL 2024
- 7 -

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). 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:

 

 

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.

GRAY & ADAMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRAY & ADAMS HOLDINGS LIMITED
- 8 -
Opinion

We have audited the financial statements of Gray & Adams Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 26 April 2024 which comprise the Group Profit and Loss Account, Group Statement of Comprehensive Income, Group Balance Sheet, Company Balance Sheet, Group Statement of Changes in Equity, Company Statement of Changes in Equity, Group 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 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 or parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The Directors are 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 the audit:

 

GRAY & ADAMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS HOLDINGS LIMITED
- 9 -
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 or the Directors’ 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 directors

As explained more fully in the Directors’ responsibilities statement, 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 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 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

GRAY & ADAMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS HOLDINGS LIMITED
- 10 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

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

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of board meeting minutes. We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

GRAY & ADAMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS HOLDINGS LIMITED
- 11 -
Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further 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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Kaye (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
7 November 2024
Chartered Accountants
Statutory Auditor
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
GRAY & ADAMS HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 26 APRIL 2024
- 12 -
Period
Period
ended
ended
26 April
28 April
2024
2023
Notes
£
£
Turnover
3
208,331,875
187,408,973
Cost of sales
(169,064,454)
(160,593,941)
Gross profit
39,267,421
26,815,032
Administrative expenses
(20,819,112)
(17,444,158)
Other operating income
3
27,129
-
Operating profit
4
18,475,438
9,370,874
Interest receivable and similar income
7
84,326
30,747
Interest payable and similar expenses
8
(1,260)
-
0
Profit before taxation
18,558,504
9,401,621
Tax on profit
10
(3,058,134)
(1,679,509)
Profit for the financial period
21
15,500,370
7,722,112
Profit for the financial period is attributable to:
- Owners of the parent company
14,127,553
6,991,988
- Non-controlling interests
1,372,817
730,124
15,500,370
7,722,112

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

GRAY & ADAMS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 26 APRIL 2024
- 13 -
Period
Period
ended
ended
26 April
28 April
Notes
2024
2023
£
£
Profit for the period
15,500,370
7,722,112
Other comprehensive expense
Actuarial loss on defined beneift pension scheme
20
-
0
(770,000)
Deferred tax arising on contributions made to defined benefit pension scheme
-
0
125,000
Other comprehensive expense for the period
-
0
(645,000)
Total comprehensive income for the period
15,500,370
7,077,112
Total comprehensive income for the period is attributable to:
- Owners of the parent company
14,127,553
6,346,988
- Non-controlling interests
1,372,817
730,124
15,500,370
7,077,112
GRAY & ADAMS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
26 APRIL 2024
26 April 2024
- 14 -
26 April
28 April
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
17,739,314
17,754,367
Current assets
Stocks
15
41,512,242
42,736,578
Debtors
16
31,298,564
28,283,590
Cash at bank and in hand
14,098,976
12,613,925
86,909,782
83,634,093
Creditors: amounts falling due within one year
17
(33,553,829)
(43,437,311)
Net current assets
53,355,953
40,196,782
Total assets less current liabilities
71,095,267
57,951,149
Provisions for liabilities
Deferred tax liability
18
857,820
909,072
(857,820)
(909,072)
Net assets
70,237,447
57,042,077
Capital and reserves
Called up share capital
19
14,000
14,000
Other reserves
21
(379,510)
(379,510)
Profit and loss reserves
21
66,789,184
54,061,631
Equity attributable to owners of the parent company
66,423,674
53,696,121
Non-controlling interests
3,813,773
3,345,956
70,237,447
57,042,077
The financial statements were approved by the board of directors and authorised for issue on 6 November 2024 and are signed on its behalf by:
06 November 2024
James J Gray
Director
GRAY & ADAMS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 26 APRIL 2024
26 April 2024
- 15 -
26 April
28 April
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
9,774,000
9,774,000
Current assets
Cash at bank and in hand
6,057
5,824
Creditors: amounts falling due within one year
17
(8,011,669)
(8,098,704)
Net current liabilities
(8,005,612)
(8,092,880)
Total assets less current liabilities
1,768,388
1,681,120
Capital and reserves
Called up share capital
19
14,000
14,000
Profit and loss reserves
21
1,754,388
1,667,120
Total equity
1,768,388
1,681,120
The financial statements were approved by the board of directors and authorised for issue on 6 November 2024 and are signed on its behalf by:
06 November 2024
James J Gray
Director
Company Registration No. SC369620
GRAY & ADAMS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 26 APRIL 2024
- 16 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 30 April 2022
14,000
(379,510)
49,114,642
48,749,132
3,220,832
51,969,964
Period ended 28 April 2023:
Profit for the period
-
-
6,991,988
6,991,988
730,124
7,722,112
Other comprehensive expense:
-
Actuarial losses on defined benefit plans
-
-
(770,000)
(770,000)
-
(770,000)
Deferred tax arising on contributions made to defined benefit pension scheme
-
-
125,000
125,000
-
125,000
Total comprehensive income for the period
-
-
6,346,988
6,346,988
730,124
7,077,112
Dividends
11
-
-
(1,400,000)
(1,400,000)
(605,000)
(2,005,000)
Balance at 28 April 2023
14,000
(379,510)
54,061,631
53,696,121
3,345,956
57,042,077
Period ended 26 April 2024:
Profit and total comprehensive income for the period
-
-
14,127,553
14,127,553
1,372,817
15,500,370
Dividends
11
-
-
(1,400,000)
(1,400,000)
(905,000)
(2,305,000)
Balance at 26 April 2024
14,000
(379,510)
66,789,184
66,423,674
3,813,773
70,237,447
GRAY & ADAMS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 26 APRIL 2024
- 17 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance as at 30 April 2022
14,000
1,667,077
1,681,077
Period ended 28 April 2023:
Profit and total comprehensive income for the period
-
1,400,043
1,400,043
Dividends
11
-
(1,400,000)
(1,400,000)
Balance at 28 April 2023
14,000
1,667,120
1,681,120
Period ended 26 April 2024:
Profit and total comprehensive income for the period
-
1,487,268
1,487,268
Dividends
11
-
(1,400,000)
(1,400,000)
Balance at 26 April 2024
14,000
1,754,388
1,768,388
GRAY & ADAMS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 26 APRIL 2024
- 18 -
Period
Period
ended
ended
26 April
28 April
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
9,971,472
4,858,705
Interest paid
(1,260)
-
Income taxes paid
(4,290,066)
(1,837,780)
Net cash inflow from operating activities
5,680,146
3,020,925
Investing activities
Purchase of tangible fixed assets
(2,446,059)
(3,257,097)
Proceeds on disposal of tangible fixed assets
471,638
492,056
Interest received
84,326
30,747
Net cash used in investing activities
(1,890,095)
(2,734,294)
Financing activities
Dividends paid to equity shareholders
(1,400,000)
(1,400,000)
Dividends paid to non-controlling interests
(905,000)
(605,000)
Net cash used in financing activities
(2,305,000)
(2,005,000)
Net increase/(decrease) in cash and cash equivalents
1,485,051
(1,718,369)
Cash and cash equivalents at beginning of period
12,613,925
14,332,294
Cash and cash equivalents at end of period
14,098,976
12,613,925
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2024
- 19 -
1
Accounting policies
Company information

Gray & Adams Holdings Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office and trading address is South Road, Fraserburgh, AB43 9HU. The company's registered number is SC369620.

 

The group consists of Gray & Adams Holdings Limited and all of its subsidiaries.

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gray & Adams Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 26 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

1.3
Going concern

The group has net current assets of £57.0m but the company has net current liabilities of £8.0m. However, the net liabilities consist of intragroup indebtedness which is not expected to be settled within twelve months.

 

Therefore, 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. This expectation has been formed having considered the company's financial position and its forecast future cash flows for a period of at least 12 months from the date of approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.4
Reporting period

The group prepares its financial statements up to the last trading day of April, which for the current period is the 26 April 2024. Accordingly the current trading period covers 29 April 2023 to 26 April 2024 and balance sheets represent the company's and group's financial positions as at that date. The comparative reporting period covers the period from 30 April 2022 to 28 April 2023.

1.5
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised at the point at which the group has performed its obligations and is entitled to receive consideration for that performance.

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.

Revenue from the provision of services is recognised in the period in which the service is performed.

1.6
Tangible fixed assets

Tangible fixed assets other than freehold land are stated at cost less depreciation.

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:

Freehold buildings
5% straight line
Residential property
not depreciated (see note 2)
Plant and machinery
25% reducing balance / 12.5% straight line
Fixtures, fittings & equipment
25% reducing balance
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 credited or charged to the profit and loss account.

 

Assets under construction are not depreciated until they are brought into use.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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 company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 21 -

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 the profit and loss account.

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 the statement of comprehensive income.

1.9
Stocks and work in progress

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises 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.

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 the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position 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.

Basic financial assets

Basic financial assets, which include certain 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.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
Impairment of financial assets

Financial assets 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 and loss account.

 

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 the profit and loss account.

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, 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors 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. 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.

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.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 23 -
Current tax

The tax currently payable is based on taxable profit for the period. 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
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.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 24 -
1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The group operated a defined benefit pension scheme. In accordance with FRS 102, Section 28, the service cost of the pension provision relating to the period, together with the cost of any benefits relating to past service, is charged to the profit and loss account. A charge equal to the increase in present value of the scheme's liabilities (because benefits are closer on settlement) and a credit equivalent to the group's long term expected return on assets (based on the market value of the scheme's assets at the start of the period) are included in the profit and loss account under 'other finance costs'. Although the scheme had previously closed to new employees, future service accrual also ceased for all existing members on 5 April 2006.

 

The difference between the market value of the assets of the scheme and the present value of accrued pension liabilities is shown as an asset (where recoverable) or liability on the balance sheet, net of deferred taxation. Any difference between the expected return on assets and that actually achieved is recognised in the profit and loss account, along with the differences which arise from experience or assumption changes.

 

New employees are no longer introduced into the existing scheme above, instead the group makes a contribution, if it chooses to do so, towards individual personal pension plans.

 

The group also operates a defined contribution scheme for certain employees. The amounts charged to the profit and loss account are the contributions payable in the period. The assets of the scheme are held separately from those of the group.

 

Further information on pension arrangements is provided in note 20.

1.16
Leases

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.

1.17
Foreign exchange

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into sterling at the rates of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 25 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Residential property

Residential property with a cost of £449,537 (2023: £449,537) and land and buildings with a cost of £1,669,097 (2023: £1,669,097) have not been depreciated on the basis that residual value is higher than carrying value. Although there is a requirement within FRS 102 to depreciate tangible fixed assets, the directors remain satisfied that the depreciable amount on residential property and land and buildings is £Nil as a result of current residual value assessments.

Key sources of estimation uncertainty
Defined benefit pension liability

As disclosed in notes 1.15 and note 20, management make use of an expert to estimate pension liabilities.

Work in progress

Labour costs are included in work in progress using a standardised hourly labour rate, estimated to allocate the total labour overhead to the total labour hours employed in production. The amount of labour included in work in progress was £4,775,447 (2023: £4,046,052).

3
Turnover and other income

An analysis of the group's turnover is as follows:

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
202,291,412
181,439,082
Provision of services
6,040,463
5,969,891
208,331,875
187,408,973
Period
Period
ended
ended
26 April
28 April
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
3
Turnover and other income
(Continued)
- 26 -
2024
2023
£
£
Other operating  income
Sundry Income
27,129
-
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Turnover analysed by geographical market
UK
201,467,826
183,764,574
Europe and rest of world
6,864,049
3,644,399
208,331,875
187,408,973
4
Operating profit
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange differences
(32,045)
(45,350)
Research and development costs
21,645
28,752
Depreciation of owned tangible fixed assets
2,003,882
1,671,202
Profit on disposal of tangible fixed assets
(14,408)
(80,652)
Operating lease charges
49,407
58,515
5
Auditor's remuneration
Period
Period
ended
ended
26 April
28 April
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
118,965
115,350
For other services
Taxation compliance services
17,800
20,075
Other taxation services
44,735
34,700
62,535
54,775
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 27 -
6
Directors' remuneration
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Remuneration for qualifying services
1,860,584
1,634,460
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
347,271
329,988
7
Interest receivable and similar income
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Interest income
Interest income
84,326
30,747
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
1,260
-
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 28 -
9
Employees
Company
The average number of persons employed by the company during the period was 4 (2023: 4), being the company directors.

The company had no employees other than the directors. No remuneration was paid by the company to the directors in either the current or prior financial period.

Group

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

Period
Period
ended
ended
26 April
28 April
2024
2023
Number
Number
Office staff
81
75
Production and distribution
675
675
756
750

Their aggregate remuneration comprised:

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Wages and salaries
31,403,895
29,686,149
Social security costs
3,471,359
3,291,998
Pension costs
1,057,070
1,046,916
35,932,324
34,025,063
10
Taxation
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,185,029
1,359,838
Adjustments in respect of prior periods
(75,643)
(120,681)
Total current tax
3,109,386
1,239,157
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
10
Taxation
Period
Period
ended
ended
(Continued)
- 29 -
Deferred tax
Origination and reversal of timing differences
(3,789)
314,878
Adjustment in respect of prior periods
(47,463)
125,474
Total deferred tax
(51,252)
440,352
Total tax charge
3,058,134
1,679,509

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Profit before taxation
18,558,504
9,401,621
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
4,639,626
1,832,376
Tax effect of expenses that are not deductible in determining taxable profit
82,847
53,991
Tax effect of income not taxable in determining taxable profit
(16,540)
-
0
Change in unrecognised deferred tax assets
27
-
0
Adjustments in respect of prior years
(75,268)
(120,681)
Group relief
1
62
Fixed asset timing differences
162,188
(41,524)
Other non-reversing timing differences
(2,213)
-
0
Deferred tax adjustments in respect of prior years
(47,463)
125,474
Adjust opening and closing deferred tax to average rate
150,617
-
0
Patent box additional deduction
(1,685,071)
(193,285)
Defined benefit pension adjustments
-
0
(67,500)
Chargeable gains
-
6,415
Remeasurement of deferred tax for changes in tax rates
(150,617)
84,181
Taxation charge
3,058,134
1,679,509
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
10
Taxation
(Continued)
- 30 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Deferred tax arising on:
Contributions made to defined benefit pension scheme
-
(125,000)

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023.

11
Dividends
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Dividends declared (group only)
1,400,000
1,400,000
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
9,774,000
9,774,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 29 April 2023 and 26 April 2024
9,774,000
Carrying amount
At 26 April 2024
9,774,000
At 28 April 2023
9,774,000
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 31 -
13
Subsidiaries

Details of the company's subsidiaries at 26 April 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Gray & Adams (Doncaster) Limited
South Road, Fraserburgh, AB43 9HU
Ordinary
0
60.00
Gray & Adams (Dunfermline) Limited
South Road, Fraserburgh, AB43 9HU
Ordinary
0
100.00
Gray & Adams (Ireland) Limited
Houston's Corner, Ballyearl, Newtownabbey, BT36 4TP
Ordinary
0
100.00
Gray & Adams Group Limited
South Road, Fraserburgh, AB43 9HU
Ordinary
100.00
-
Gray & Adams Limited
South Road, Fraserburgh, AB43 9HU
Ordinary and "A" Ordinary
0
100.00
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 32 -
14
Tangible fixed assets
Group
Freehold buildings
Residential property
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 29 April 2023
20,695,362
449,537
-
0
21,699,988
338,943
3,013
43,186,843
Additions
268,104
-
0
121,473
2,030,208
26,274
-
0
2,446,059
Disposals
-
0
-
0
-
0
(1,217,393)
-
0
-
0
(1,217,393)
At 26 April 2024
20,963,466
449,537
121,473
22,512,803
365,217
3,013
44,415,509
Depreciation and impairment
At 29 April 2023
8,418,285
-
0
-
0
16,748,289
262,889
3,013
25,432,476
Depreciation charged in the period
491,450
-
0
-
0
1,492,247
20,185
-
0
2,003,882
Eliminated in respect of disposals
-
0
-
0
-
0
(760,163)
-
0
-
0
(760,163)
At 26 April 2024
8,909,735
-
0
-
0
17,480,373
283,074
3,013
26,676,195
Carrying amount
At 26 April 2024
12,053,731
449,537
121,473
5,032,430
82,143
-
0
17,739,314
At 28 April 2023
12,277,077
449,537
-
0
4,951,699
76,054
-
0
17,754,367
The company had no tangible fixed assets at 26 April 2024 or 28 April 2023.
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
14
Tangible fixed assets
(Continued)
- 33 -

Assets under construction are not depreciated until they are brought into use.

15
Stocks
Group
Company
26 April
28 April
26 April
28 April
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
14,106,136
15,027,996
-
-
Work in progress
27,406,106
27,708,582
-
-
41,512,242
42,736,578
-
-
16
Debtors
Group
Company
26 April
28 April
26 April
28 April
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
24,568,771
22,704,580
-
0
-
0
Corporation tax recoverable
605,625
389,655
-
0
-
0
Other debtors
4,768,123
4,786,109
-
0
-
0
Prepayments and accrued income
1,356,045
403,246
-
0
-
0
31,298,564
28,283,590
-
0
-
0
17
Creditors: amounts falling due within one year
Group
Company
26 April
28 April
26 April
28 April
2024
2023
2024
2023
£
£
£
£
Trade creditors
21,597,062
32,257,085
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
8,011,645
8,098,494
Corporation tax payable
84,232
1,048,942
24
210
Other taxation and social security
1,446,160
2,450,807
-
-
Other creditors
18,060
-
0
-
0
-
0
Accruals and deferred income
10,408,315
7,680,477
-
0
-
0
33,553,829
43,437,311
8,011,669
8,098,704

Amounts owed to group undertakings are interest free and payable on demand.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 34 -
18
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
26 April
28 April
2024
2023
Group
£
£
Accelerated capital allowances
1,040,169
1,084,064
Tax losses
(2,908)
(6,159)
Losses and other deductions
(179,441)
(168,833)
857,820
909,072
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Liability at 29 April 2023
909,072
-
Credit to profit or loss
(51,252)
-
Liability at 26 April 2024
857,820
-

The majority of deferred tax liabilities are expected to reverse over the life of the assets to which they relate.

19
Share capital
Group and company
2024
2023
2024
2023
26 April
28 April
26 April
28 April
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
14,000
14,000
14,000
14,000
20
Retirement benefit schemes
2024
2023
26 April
28 April
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,057,070
1,046,916

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. At the period end the group owed £127,173 (2023: £160,414) to the pension scheme.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
20
Retirement benefit schemes
(Continued)
- 35 -
Defined benefit schemes

The group operates a defined benefit pension scheme. The scheme is now closed, with no further benefits accruing to members beyond 2006. Contributions provided in the financial statements to the scheme in the period were £nil (2023: £770,000).

 

The valuation used for the following disclosures has been based on the most recent full actuarial valuation at 30 April 2021. Scheme assets are stated at their market value at 26 April 2024.

 

In August 2022 the plan purchased a buy-in assurance policy from Legal & General Group plc. As the legal obligation to pay benefits still rests with the plan and hence the company the value of the insurance policy is set equal to the corresponding value of the underlying benefit obligation (as adjusted for GMP equalisation).

26 April
28 April
2024
2023
Key assumptions
%
%
Discount rate
5.27
4.75
Expected rate of increase of pensions in payment
3.33
3.07
Mortality assumptions

The mortality rates used are 100% S3NMA and 100% S3NFA for males and females respectively, with CMI 2023 long term, 1.25% p.a. improvements (2023: 100% S3NMA and 100% S3NFA for males and females respectively, with CMI 2022 long term, 1.25% p.a. improvements).

26 April
28 April
2024
2023

Amounts recognised in the profit and loss account

£
£
Net interest on defined benefit (asset)
(4,000)
(74,000)
Gains and losses due to surplus limitation
4,000
74,000
Total costs
-
-
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
20
Retirement benefit schemes
(Continued)
- 36 -
26 April
28 April
2024
2023

Costs/(income) recognised in other comprehensive income

£
£
Actual return on scheme assets
(209,000)
3,595,000
Less: calculated interest element
479,000
503,000
Return on scheme assets excluding interest income
270,000
4,098,000
Actuarial changes related to obligations
(329,000)
(3,073,000)
Gains and losses on settlement
-
2,516,000
Movement in unrecognised plan surplus
59,000
(2,771,000)
Total costs
-
770,000

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

26 April
28 April
2024
2023
Group
£
£
Present value of defined benefit obligations
9,789,000
10,357,000
Fair value of plan assets
(9,934,000)
(10,439,000)
Surplus in scheme
(145,000)
(82,000)
Unrecognised plan surplus
145,000
82,000

 

On 26 April 2024 there was a surplus of £145,000 (2023: £82,000) in the scheme. There is no certainty for the group to recoup the surplus, therefore no pension asset has been recognised in respect of the scheme.

26 April
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 29 April 2023
10,357,000
Benefits paid
(714,000)
Actuarial gains and losses
(329,000)
Interest cost
475,000
At 26 April 2024
9,789,000

The defined benefit obligations arise from plans which are wholly or partly funded.

GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
20
Retirement benefit schemes
(Continued)
- 37 -
26 April
2024

Movements in the fair value of plan assets

£
Fair value of assets at 29 April 2023
10,439,000
Interest income
479,000
Return on plan assets (excluding amounts included in net interest)
(270,000)
Benefits paid
(714,000)
At 26 April 2024
9,934,000
The actual return on plan assets was £209,000 (2023 - (£3,595,000)).

Fair value of plan assets at the reporting period end

26 April
28 April
2024
2023
£
£
Cash/Other
139,000
81,000
Insured annuity policies
9,795,000
10,358,000
9,934,000
10,439,000
21
Reserves

Profit and loss reserves

The profit and loss reserves represent cumulative profits and losses net of dividends and other adjustments.

 

Other reserves

Other reserves relate to differences which have arisen between changes in non-controlling interests and amounts paid by the group in transactions between the equity holders.

22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Aggregate compensation
2,371,881
2,648,152
GRAY & ADAMS HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
22
Related party transactions
(Continued)
- 38 -
Other information

During the period the directors repaid £nil (2023: £28,250) to the group. The group advanced £nil (2023: £nil) to directors. At the year end the group was owed £3,500,000 (2023: £3,500,000) by directors.

 

During the period, 100% owned group companies have made sales of £5,748,205 (2023: £4,123,599) to, and purchases of £3,279,253 (2023: £3,194,129) from group companies that are not 100% owned. The balance due from group companies that are not 100% owned at the balance sheet date was £1,541,027 (2023: £1,202,966) and the balance due to such companies was £524,450 (2023: £856,291).

 

During the period, dividends of £905,000 (2023: £605,000) were paid by a subsidiary company to the directors of the holding company.

 

The group and company have taken advantage of the exemption in FRS 102 Section 33.1A from the requirement to disclose transactions with 100% owned group companies.

23
Cash generated from group operations
26 April
28 April
2024
2023
£
£
Profit for the period after tax
15,500,370
7,722,112
Adjustments for:
Taxation charged
3,058,134
1,679,509
Finance costs
1,260
-
0
Investment income
(84,326)
(30,747)
Gain on disposal of tangible fixed assets
(14,408)
(80,652)
Depreciation of tangible fixed assets
2,003,882
1,671,202
Pension scheme contribution
-
(770,000)
Movements in working capital:
Decrease/(increase) in stocks
1,224,336
(8,900,156)
Decrease/(increase) in debtors
(2,799,004)
(1,246,745)
(Decrease)/increase in creditors
(8,918,772)
4,814,182
Cash generated from operations
9,971,472
4,858,705
24
Analysis of changes in net funds - group
29 April 2023
Cash flows
26 April 2024
£
£
£
Cash at bank and in hand
12,613,925
1,485,051
14,098,976
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