Company Registration No. SC128013 (Scotland)
GRAY & ADAMS (DONCASTER) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2024
GRAY & ADAMS (DONCASTER) LIMITED
COMPANY INFORMATION
Directors
James J Gray
Peter Gray
Thomas Taylor
Andrew Sutherland
Secretary
Andrew Sutherland
Company number
SC128013
Registered office
South Road
Fraserburgh
AB43 9HU
Auditor
Johnston Carmichael LLP
Bishop's Court
29 Albyn Place
Aberdeen
AB10 1YL
Business address
York Road
Doncaster
DN5 9EL
Solicitors
Brown & McRae
Anderson House
9-11 Frithside Street
Fraserburgh
AB43 9AB
GRAY & ADAMS (DONCASTER) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
GRAY & ADAMS (DONCASTER) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 26 APRIL 2024
- 1 -

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

Principal activities

The company operates mainly in the UK and its principal activity continues to be that of the manufacture and repair of temperature-controlled bodies for rigid trucks and trailers for the transport industry. The company also assembles panel vans and .com delivery vehicles and has a sizeable repairs operation. The directors are not aware, at the date of this report, of any likely major changes in the 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 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 £23,484k to £30,052k. The company 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 company 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 £24.0m and £2.2m 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. In addition, we extended our forecast by a further seven months and we expect business to remain extremely positive.

As shown in the company's statement of comprehensive income on page 9, turnover increased by 28.0% to £30,052k and Profit Before Tax of £3,432k represented an 11.4% profit margin (2023 – 8.0%). On page 10 of the financial statements, the balance sheet shows that the net assets position of the company at the period ended 26 April 2024 has increased by £896k to £9,261k.

Capital expenditure for the year was £320k (2023k - £327k).

 

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

 

 

2024

2023

2022

3 Year Avg

 

£'000

£'000

£'000

£'000

Turnover

30,052

23,484

18,571

24,036

Profit before tax

3,432

1,875

1,295

2,201

PBT%

11.4%

8.0%

7.0%

9.2%

Equity shareholder funds

9,261

8,365

8,052

8,559

 

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.

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

Liquidity risk

Short- and medium-term cash projections identify funding for ongoing operations and future development for the company with surplus cash funds held at the bank. The company 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 company’s principal financial assets are cash balances held at the bank and trade debtors. The company’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 company 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 company 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 are in the process of reviewing significant investment projects at our four manufacturing & assembly plants. 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.

On behalf of the board

James J Gray
Director
6 November 2024
GRAY & ADAMS (DONCASTER) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 26 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the period 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 sheet represents the 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
Thomas Taylor
Andrew Sutherland
Results and dividends

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

Ordinary dividends were paid amounting to £2,262,500 (2023: £1,512,500). The directors do not recommend payment of a further dividend.

Disabled persons

The company'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.

Auditor

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

 

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's 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 and financial risk management objectives.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
James J Gray
Director
6 November 2024
GRAY & ADAMS (DONCASTER) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 26 APRIL 2024
- 4 -

The directors are responsible for preparing the strategic report, 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 company and the profit or loss of the company 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 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.

GRAY & ADAMS (DONCASTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRAY & ADAMS (DONCASTER) LIMITED
- 5 -
Opinion

We have audited the financial statements of Gray & Adams (Doncaster) Limited ('the company') for the period ended 26 April 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the 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 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 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 (DONCASTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS (DONCASTER) LIMITED
- 6 -
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 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 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.

Extent to which the audit is 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.

GRAY & ADAMS (DONCASTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS (DONCASTER) LIMITED
- 7 -

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to 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 relevant 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:

 

 

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.

GRAY & ADAMS (DONCASTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRAY & ADAMS (DONCASTER) LIMITED
- 8 -

Use of our report

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

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 (DONCASTER) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 26 APRIL 2024
- 9 -
Period
Period
ended
ended
26 April
28 April
2024
2023
Notes
£
£
Turnover
3
30,051,754
23,483,750
Cost of sales
(24,779,695)
(20,009,409)
Gross profit
5,272,059
3,474,341
Administrative expenses
(1,876,363)
(1,610,237)
Operating profit
4
3,395,696
1,864,104
Interest receivable and similar income
7
36,348
10,480
Profit before taxation
3,432,044
1,874,584
Tax on profit
8
(273,551)
(49,275)
Profit and total comprehensive income for the financial period
3,158,493
1,825,309

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

GRAY & ADAMS (DONCASTER) LIMITED
BALANCE SHEET
AS AT
26 APRIL 2024
26 April 2024
- 10 -
26 April
28 April
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,888,338
2,836,648
Current assets
Stocks
11
5,071,983
5,979,998
Debtors
12
3,726,540
5,007,831
Cash at bank and in hand
2,937,907
1,987,136
11,736,430
12,974,965
Creditors: amounts falling due within one year
13
(5,316,682)
(7,406,962)
Net current assets
6,419,748
5,568,003
Total assets less current liabilities
9,308,086
8,404,651
Provisions for liabilities
Deferred tax
14
47,205
39,763
(47,205)
(39,763)
Net assets
9,260,881
8,364,888
Capital and reserves
Called up share capital
16
50,000
50,000
Capital redemption reserve
17
50,000
50,000
Profit and loss reserves
18
9,160,881
8,264,888
Total equity
9,260,881
8,364,888
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:
James J Gray
Director
Company Registration No. SC128013
GRAY & ADAMS (DONCASTER) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 26 APRIL 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 30 April 2022
50,000
50,000
7,952,079
8,052,079
Period ended 28 April 2023:
Profit and total comprehensive income for the period
-
-
1,825,309
1,825,309
Dividends
9
-
-
(1,512,500)
(1,512,500)
Balance at 28 April 2023
50,000
50,000
8,264,888
8,364,888
Period ended 26 April 2024:
Profit and total comprehensive income for the period
-
-
3,158,493
3,158,493
Dividends
9
-
-
(2,262,500)
(2,262,500)
Balance at 26 April 2024
50,000
50,000
9,160,881
9,260,881
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 26 APRIL 2024
- 12 -
1
Accounting policies
Company information

Gray & Adams (Doncaster) Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered office is South Road, Fraserburgh, AB43 9HU, and the trading address is York Road, Doncaster, DN5 9EL. The company's registered number is SC128013.

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” 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.

This 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 (where applicable):

 

 

The financial statements of the company are consolidated in the financial statements of Gray & Adams Holdings Limited. These consolidated financial statements are available from its registered office, South Road, South Road, Fraserburgh, Aberdeenshire, AB43 9HU.

1.2
Going concern

Atruet 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.

1.3
Reporting period

The company 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 the balance sheet represents the company's financial position as at that date. The comparative reporting period covers the period from 30 April 2022 to 28 April 2023.

1.4
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Turnover is recognised at the point at which the company has performed its obligations and is entitled to receive consideration for that performance.
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 13 -

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.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
- 5% straight line
Residential property
- not depreciated (see note 2)
Plant and machinery
- 25% reducing balance
Fixtures, fittings & equipment
- 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 statement of comprehensive income.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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 statement of comprehensive income.

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.

1.7
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is measured on a first in, first out basis. 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.

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 14 -

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 statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and held at banks.

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include 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.

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 the statement of comprehensive income.

 

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 statement of comprehensive income.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the statement of comprehensive income 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.

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 statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

The company participated in a defined benefit pension scheme, operated by its immediate holding company Gray & Adams Limited. The assets of the pension scheme are held in a separate trustee administered fund. The employees eligible for the scheme were contracted out of the state pension scheme and both they and the company contributed to the scheme at rates recommended by the scheme's consulting actuary. Such rates are based on the actuary's triennial assessment of the scheme's financial position which is carried out in accordance with the trust deeds and rules. Although the scheme had been previously closed to new employees, future service accrual also ceased for all existing members on 5 April 2006. The company will continue to contribute to the scheme in order to fully fund existing benefits.

 

Although the scheme is of a defined benefit nature it has, as explained in note 15, been treated as a multi-employer scheme. Accordingly the pension costs charged in the financial statements represents the contributions payable by the company during the period.

 

In addition the company makes a contribution, if it chooses to do so, towards individual personal pension plans for both new employees and future service of employees within the closed defined benefit scheme. The contributions to these plans during the period are charged to the statement of comprehensive income as they become payable.

1.14
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 leases asset are consumed.

1.15
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 statement of comprehensive income.

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 17 -
2
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. There were no judgements applied during the period.

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 £163,530 (2023: £163,530) has 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 is £Nil as a result of current residual value assessments.

Key sources of estimation uncertainty
Work in progress

Labour costs are included in work in progress using a standardised hourly labour rate, estimated to allocate the total labour overheads to the total labour hours employed in production. The amount included in work in progress at the period end was £693,674 (2023: £488,255).

3
Turnover and other income

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

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
27,059,167
21,035,325
Provision of services
2,992,587
2,448,425
30,051,754
23,483,750
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Turnover analysed by geographical market
UK
30,051,754
23,483,148
Europe
-
602
30,051,754
23,483,750
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 18 -
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
(989)
1,425
Fees payable to the company's auditor for the audit of the company's financial statements
21,500
20,000
Depreciation of owned tangible fixed assets
184,409
160,162
Profit on disposal of tangible fixed assets
(1,544)
(6,089)

The company has taken advantage of the exemption from the disclosure of remuneration paid to its auditors for non-audit services. This exemption is available to the company as the company's ultimate parent company prepares consolidated accounts which are required to include such disclosures.

5
Employees

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

Period
Period
ended
ended
26 April
28 April
2024
2023
Number
Number
Directors and office staff
15
14
Production and distribution staff
82
79
97
93

Their aggregate remuneration comprised:

Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Wages and salaries
3,628,368
3,369,554
Social security costs
489,205
453,408
Pension costs
140,030
128,226
4,257,603
3,951,188
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 19 -
6
Directors' remuneration
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Remuneration for qualifying services
266,317
213,398
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
266,317
213,398

Gray & Adams Limited paid salaries to some directors on behalf of the company during the period. The directors believe that it is impractical to apportion these costs.

7
Interest receivable and similar income
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Interest income
Interest on bank deposits
36,348
10,480
8
Taxation
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
250,562
130,695
Adjustments in respect of prior periods
15,547
(125,188)
Total current tax
266,109
5,507
Deferred tax
Origination and reversal of timing differences
27,390
43,768
Adjustment in respect of prior periods
(19,948)
-
0
Total deferred tax
7,442
43,768
Total tax charge
273,551
49,275
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
8
Taxation
Period
Period
ended
ended
(Continued)
- 20 -

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:

2024
2023
£
£
Profit before taxation
3,432,044
1,874,584
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
858,011
365,356
Tax effect of expenses that are not deductible in determining taxable profit
3,371
4,073
Adjustments in respect of prior years
15,547
(125,188)
Fixed asset differences
11,629
5,851
Deferred tax adjustments in respect of prior years
(19,948)
-
0
Transfer pricing adjustment
(595,059)
(205,195)
Additional deduction for land remediation
-
0
(5,263)
Remeasurement of deferred tax for changes in tax rates
-
0
9,641
Taxation charge for the period
273,551
49,275

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

9
Dividends
Period
Period
ended
ended
26 April
28 April
2024
2023
£
£
Dividends paid & payable
2,262,500
1,512,500
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 21 -
10
Tangible fixed assets
Freehold land and buildings
Residential property
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 29 April 2023
3,725,353
163,530
1,281,701
334,747
5,505,331
Additions
4,503
-
0
289,428
26,274
320,205
Disposals
-
0
-
0
(221,622)
-
0
(221,622)
At 26 April 2024
3,729,856
163,530
1,349,507
361,021
5,603,914
Depreciation and impairment
At 29 April 2023
1,434,302
-
0
975,282
259,099
2,668,683
Depreciation charged in the period
58,595
-
0
105,629
20,185
184,409
Eliminated in respect of disposals
-
0
-
0
(137,516)
-
0
(137,516)
At 26 April 2024
1,492,897
-
0
943,395
279,284
2,715,576
Carrying amount
At 26 April 2024
2,236,959
163,530
406,112
81,737
2,888,338
At 28 April 2023
2,291,051
163,530
306,419
75,648
2,836,648

Included in freehold land and buildings is land and buildings with a cost of £1,669,097 (2023: £1,669,097) which has not been depreciated.

11
Stocks
26 April
28 April
2024
2023
£
£
Raw materials and consumables
667,547
593,044
Work in progress
4,404,436
5,386,954
5,071,983
5,979,998
12
Debtors
26 April
28 April
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,060,736
3,818,010
Corporation tax recoverable
30,383
171,359
Amounts owed by group undertakings
524,450
856,291
Other debtors
-
0
33,264
Prepayments and accrued income
110,971
128,907
3,726,540
5,007,831
GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
12
Debtors
(Continued)
- 22 -

Amounts owed by group undertakings are interest free and repayable on demand.

13
Creditors: amounts falling due within one year
26 April
28 April
2024
2023
£
£
Trade creditors
2,714,908
5,395,656
Amounts due to fellow group undertakings
1,541,027
1,202,966
Corporation tax
-
0
5,507
Other taxation and social security
282,790
97,695
Accruals and deferred income
777,957
705,138
5,316,682
7,406,962

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

14
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

26 April
28 April
2024
2023
Balances:
£
£
Fixed asset timing differences
57,629
51,132
Short term timing differences
(10,424)
(11,369)
47,205
39,763
Period
ended
26 April
2024
Movements in the period:
£
Liability at 29 April 2023
39,763
Charge to profit or loss
7,442
Liability at 26 April 2024
47,205

 

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 23 -
15
Retirement benefit schemes
Period
Period
ended
ended
26 April
28 April
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,030
128,226

At the reporting date the company owed £15,371 (2023: £16,687) to the pension scheme.

The company participated in a group pension scheme, operated by its immediate holding company, Gray & Adams Limited. The scheme is a defined benefit scheme and its assets are held in a separate trustee administered fund. The fund is valued every three years by a professional qualified independent actuary and the rates of contribution payable are determined by the actuary. In the intervening years the actuary reviews the continuing appropriateness of the rates. The latest actuarial assessment of the scheme was at 30 April 2018. Particulars of the valuation are contained in the accounts of Gray & Adams Limited, the company's immediate parent company. The scheme closed to all employees on 5 April 2006.

 

Although the company's pension scheme is of defined benefit nature it has been treated as a defined contribution scheme within these financial statements on the grounds that it is a multi-employer scheme and the assets and liabilities attributable to each employer can not be determined. As a result no share of any pension surplus or deficit has been recognised.

 

All employees who started during recent years were not introduced into the company's existing pension plan. Instead the company now makes a contribution, if it chooses to do so, towards the individual's personal pension plan both for these new employees and for the future service of employees within the closed defined benefit scheme. The cost of these contributions is included in the total pension cost above.

 

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.

16
Share capital
26 April
28 April
2024
2023
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
17
Capital redemption reserve

The capital redemption reserve represents the nominal value of shares repurchased by the company.

18
Profit and loss reserves

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

GRAY & ADAMS (DONCASTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 26 APRIL 2024
- 24 -
19
Related party transactions

No guarantees have been given or received.

 

During the period the company made sales of £3,279,253 (2023: £3,832,835) and purchases of £5,748,205 (2023: £4,052,626) from subsidiaries 100% owned by the group.

 

At the period end the company was due £524,451 (2023: £856,291) and owed £1,541,027 (2023: £1,202,966) to subsidiaries 100% owned by the group.

20
Ultimate controlling party

The immediate parent is Gray & Adams Limited. Gray & Adams Holdings Limited, a company registered in Scotland, both controls and is the ultimate holding company of Gray & Adams (Doncaster) Limited. No one individual controls Gray & Adams Holdings Limited. The largest group in which the results of the company are consolidated is Gray & Adams Holdings Limited. These financial statements are obtainable from Companies House, 4th Floor, Edinburgh Quay, 139 Fountainbridge, Edinburgh, EH3 9FF or online at the Companies House website: https://www.gov.uk/government/organisations/companies-house.

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