Company registration number 05486641 (England and Wales)
GERDA SECURITY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
GERDA SECURITY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
A J Thompson
A D Pealling
Company number
05486641
Registered office
54 Chiswick Avenue
Mildenhall
Bury St Edmunds
IP28 7AY
Auditor
Ensors Accountants LLP
Victory House
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
GERDA SECURITY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
GERDA SECURITY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The group’s principal activity continues to be the supply of high quality fire doors, acoustic doors and associated products and services.

Total turnover grew to £34.4m, which is up 7% on last year’s £32.2m.

While the group continues to maintain a strong order book the current politico/economic outlook at both a domestic and international level saw the entire sector affected by delayed order conversion, tighter margins and higher interest costs, leading to lower profitability.

The group is focusing on developing core brands, their profit streams and to considering profitable, cash generative potential acquisitions as they become available.

Principal risks and uncertainties

The management of the business and the execution of the Group’s strategic plans are subject to a number of risks. The principle risks are subject to weekly and monthly reviews, as appropriate, with prompt action taken to mitigate risk.

The key risk areas and actions taken to manage those risks are considered to be as follows:

Credit risk – The principle risk arises from Trade Debtors where a policy of credit limit management based upon credit rating and experience is followed combined with credit insurance.

Liquidity – The company ensures that it has sufficient liquidity available through a number of credit facilities to fund long term and short term assets, which support the growth of the business.

Interest rate risk – Investments are funded through retained profits and borrowings, which are managed through a variety of fixed and floating facilities, as appropriate.

Economic risk –The ongoing risk of a variety of outcomes relating to Brexit & the Ukraine is under regular review and close relationships with partner suppliers being a key element combined with a steady increase in the stockholding of critical components.

Key performance indicators

The group reports on a number of key performance indicators (KPIs) to monitor and manage performance

 

In 2023-24 these KPIs were as follows:

 

The group also uses certain non-financial indicators, the most significant of which is the number of employees and most importantly their associated skill sets with a strong emphasis wherever possible of developing and promoting our people from within the organisation.

GERDA SECURITY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

This report was approved by the board and signed on its behalf by:

A J Thompson
Director
30 January 2025
GERDA SECURITY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company and group continued to be that of the supply of high quality fire doors and associated security products and services.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

A J Thompson
A D Pealling
G J Collingwood-Hall
(Resigned 31 May 2023)
Financial instruments

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

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

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

 

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

Post reporting date events

A 100% subsidiary, Expert Access Solutions Ltd acquired the assets, staff and client base from a profitable door maintenance business, which will in a full year grow group sales and profits.

Auditor

In accordance with the company's articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditor of the group will be put at a General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

GERDA SECURITY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
On behalf of the board
A J Thompson
Director
30 January 2025
GERDA SECURITY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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.

GERDA SECURITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GERDA SECURITY HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Gerda Security Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

 

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

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 our audit:

GERDA SECURITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GERDA SECURITY HOLDINGS LIMITED
- 7 -
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 their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

GERDA SECURITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GERDA SECURITY HOLDINGS 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.

Jayson Lawson
For and on behalf of
30 January 2025
Ensors Accountants LLP
Chartered Accountants
Statutory Auditor
Victory House
Vision Park
Chivers Way, Histon
Cambridge
CB24 9ZR
GERDA SECURITY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
34,379,211
32,244,662
Cost of sales
(21,326,641)
(19,529,601)
Gross profit
13,052,570
12,715,061
Administrative expenses
(12,130,374)
(11,306,632)
Operating profit
4
922,196
1,408,429
Interest receivable and similar income
8
155
6,956
Interest payable and similar expenses
9
(382,758)
(232,286)
Profit before taxation
539,593
1,183,099
Tax on profit
10
(274,225)
(348,079)
Profit for the financial year
25
265,368
835,020
Profit for the financial year is all attributable to the owners of the parent company.
GERDA SECURITY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
£
£
Profit for the year
265,368
835,020
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
265,368
835,020
Total comprehensive income for the year is all attributable to the owners of the parent company.
GERDA SECURITY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
3,317,998
3,732,748
Other intangible assets
11
18,750
65,406
Total intangible assets
3,336,748
3,798,154
Tangible assets
12
2,697,718
2,510,191
6,034,466
6,308,345
Current assets
Stocks
15
4,253,627
4,557,282
Debtors
16
6,719,212
6,813,514
Cash at bank and in hand
1,261,239
1,111,730
12,234,078
12,482,526
Creditors: amounts falling due within one year
17
(11,574,795)
(11,960,174)
Net current assets
659,283
522,352
Total assets less current liabilities
6,693,749
6,830,697
Creditors: amounts falling due after more than one year
18
(992,051)
(1,427,224)
Provisions for liabilities
Provisions
21
84,173
84,746
Deferred tax liability
22
362,190
328,760
(446,363)
(413,506)
Net assets
5,255,335
4,989,967
Capital and reserves
Called up share capital
24
855
855
Share premium account
25
429,539
429,539
Capital redemption reserve
25
351
351
Other reserves
25
59,385
59,385
Profit and loss reserves
25
4,765,205
4,499,837
Total equity
5,255,335
4,989,967
GERDA SECURITY HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024
30 April 2024
- 12 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
30 January 2025
A J Thompson
Director
Company registration number 05486641 (England and Wales)
GERDA SECURITY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
18,750
65,406
Tangible assets
12
464,439
502,629
Investments
13
6,161,206
6,161,206
6,644,395
6,729,241
Current assets
Debtors
16
135,303
100,640
Cash at bank and in hand
53,960
108,610
189,263
209,250
Creditors: amounts falling due within one year
17
(5,877,749)
(5,267,657)
Net current liabilities
(5,688,486)
(5,058,407)
Total assets less current liabilities
955,909
1,670,834
Creditors: amounts falling due after more than one year
18
(459,053)
(1,164,625)
Net assets
496,856
506,209
Capital and reserves
Called up share capital
24
855
855
Share premium account
25
429,539
429,539
Capital redemption reserve
25
351
351
Other reserves
25
59,385
59,385
Profit and loss reserves
25
6,726
16,079
Total equity
496,856
506,209

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,353 (2023 - £915 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
30 January 2025
A J Thompson
Director
Company registration number 05486641 (England and Wales)
GERDA SECURITY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Merger relief reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 May 2022
855
429,539
351
59,385
3,664,817
4,154,947
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
835,020
835,020
Balance at 30 April 2023
855
429,539
351
59,385
4,499,837
4,989,967
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
-
265,368
265,368
Balance at 30 April 2024
855
429,539
351
59,385
4,765,205
5,255,335
GERDA SECURITY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
Share capital
Share premium account
Capital redemption reserve
Merger relief reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 May 2022
855
429,539
351
59,385
16,995
507,125
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
-
-
-
(916)
(916)
Balance at 30 April 2023
855
429,539
351
59,385
16,079
506,209
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
-
(9,353)
(9,353)
Balance at 30 April 2024
855
429,539
351
59,385
6,726
496,856
GERDA SECURITY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,810,328
2,389,772
Interest paid
(382,758)
(232,286)
Income taxes paid
(333,546)
(742,864)
Net cash inflow from operating activities
1,094,024
1,414,622
Investing activities
Purchase of intangible assets
-
(65,104)
Purchase of tangible fixed assets
(440,717)
(478,767)
Proceeds from disposal of tangible fixed assets
46,288
68,404
Repayment of loans to related parties
302,094
394,359
Interest received
155
6,956
Net cash used in investing activities
(92,180)
(74,152)
Financing activities
New bank loans
518,845
-
Repayment of borrowings
(540,000)
(1,090,368)
Repayment of bank loans
-
(421,380)
Payment of finance leases obligations
(195,718)
(103,231)
Net cash used in financing activities
(216,873)
(1,614,979)
Net increase/(decrease) in cash and cash equivalents
784,971
(274,509)
Cash and cash equivalents at beginning of year
(783,121)
(508,612)
Cash and cash equivalents at end of year
1,850
(783,121)
Relating to:
Cash at bank and in hand
1,261,239
1,111,730
Bank overdrafts included in creditors payable within one year
(1,259,389)
(1,894,851)
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
1
Accounting policies
Company information

Gerda Security Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 54 Chiswick Avenue, Mildenhall, Bury St Edmunds, IP28 7AY.

 

The group consists of Gerda Security 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 £.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gerda Security Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents
10 years
1.8
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% - 10% straight line
Leasehold land and buildings
10% straight line
Plant and machinery
25% reducing balance or 10% - 33% straight line
Fixtures and fittings
25% reducing balance or 10% straight line
Motor vehicles
25% reducing balance or 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.11
Stocks

Stocks 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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
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 creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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.

1.14
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.

1.15
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

1.18
Retirement benefits

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

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

 

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Manufacture and installation of doors
27,694,327
27,690,945
Locks, keys and other ancillary sales
6,684,884
4,553,717
34,379,211
32,244,662
2024
2023
£
£
Other revenue
Interest income
155
6,956

All turnover arose within the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
473,258
429,554
Depreciation of tangible fixed assets held under finance leases
16,282
-
(Profit)/loss on disposal of tangible fixed assets
(29,599)
36,880
Amortisation of intangible assets
461,406
461,406
Operating lease charges
900,507
718,609
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,400
7,000
Audit of the financial statements of the company's subsidiaries
36,250
34,500
43,650
41,500
For other services
Taxation compliance services
6,900
6,500
All other non-audit services
8,400
8,000
15,300
14,500
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales and administration
83
65
5
5
Factory & survey
122
155
-
-
Directors
2
3
2
3
Total
207
223
7
8

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,309,621
7,203,463
742,340
699,393
Social security costs
783,589
744,658
102,889
96,373
Pension costs
175,016
166,444
20,694
13,776
8,268,226
8,114,565
865,923
809,542
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
328,327
364,733
Company pension contributions to defined contribution schemes
8,426
5,200
336,753
369,933
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
184,727
156,400
Company pension contributions to defined contribution schemes
4,168
-
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
155
6,956
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
302,449
157,676
Interest on finance leases and hire purchase contracts
45,517
34,659
Other interest
34,792
39,951
Total finance costs
382,758
232,286
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
240,795
308,719
Adjustments in respect of prior periods
-
0
45,705
Total current tax
240,795
354,424
Deferred tax
Origination and reversal of timing differences
33,430
(6,345)
Total tax charge
274,225
348,079
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Profit before taxation
539,593
1,183,099
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
134,898
230,586
Tax effect of expenses that are not deductible in determining taxable profit
15,375
17,888
Tax effect of utilisation of tax losses not previously recognised
46
-
0
Unutilised tax losses carried forward
45
-
0
Change in unrecognised deferred tax assets
-
0
(3,550)
Adjustments in respect of prior years
(1)
45,705
Effect of change in corporation tax rate
-
5,211
Permanent capital allowances in excess of depreciation
20,174
(25,000)
Amortisation on assets not qualifying for tax allowances
103,688
77,239
Taxation charge
274,225
348,079
11
Intangible fixed assets
Group
Goodwill
Patents
Total
£
£
£
Cost
At 1 May 2023
4,147,498
423,470
4,570,968
Disposals
-
0
(15,970)
(15,970)
At 30 April 2024
4,147,498
407,500
4,554,998
Amortisation and impairment
At 1 May 2023
414,750
358,064
772,814
Amortisation charged for the year
414,750
46,656
461,406
Disposals
-
0
(15,970)
(15,970)
At 30 April 2024
829,500
388,750
1,218,250
Carrying amount
At 30 April 2024
3,317,998
18,750
3,336,748
At 30 April 2023
3,732,748
65,406
3,798,154
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Intangible fixed assets
(Continued)
- 27 -
Company
Patents
£
Cost
At 1 May 2023 and 30 April 2024
407,500
Amortisation and impairment
At 1 May 2023
342,094
Amortisation charged for the year
46,656
At 30 April 2024
388,750
Carrying amount
At 30 April 2024
18,750
At 30 April 2023
65,406
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
784,092
35,926
2,711,596
1,155,993
321,002
5,008,609
Additions
-
0
-
0
439,013
128,928
125,815
693,756
Disposals
-
0
-
0
(77,811)
-
0
(61,620)
(139,431)
At 30 April 2024
784,092
35,926
3,072,798
1,284,921
385,197
5,562,934
Depreciation and impairment
At 1 May 2023
261,735
4,863
1,423,682
623,096
185,042
2,498,418
Depreciation charged in the year
37,026
3,472
247,788
120,785
80,469
489,540
Eliminated in respect of disposals
-
0
-
0
(77,811)
-
0
(44,931)
(122,742)
At 30 April 2024
298,761
8,335
1,593,659
743,881
220,580
2,865,216
Carrying amount
At 30 April 2024
485,331
27,591
1,479,139
541,040
164,617
2,697,718
At 30 April 2023
522,357
31,063
1,287,914
532,897
135,960
2,510,191
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023 and 30 April 2024
598,753
111,132
34,340
744,225
Depreciation and impairment
At 1 May 2023
171,932
54,640
15,024
241,596
Depreciation charged in the year
18,492
11,113
8,585
38,190
At 30 April 2024
190,424
65,753
23,609
279,786
Carrying amount
At 30 April 2024
408,329
45,379
10,731
464,439
At 30 April 2023
426,821
56,492
19,316
502,629

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
779,437
670,809
45,379
56,492
Motor vehicles
154,430
119,898
10,731
19,316
Land and buildings
64,224
78,977
24,439
32,585
998,091
869,684
80,549
108,393
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
6,161,206
6,161,206
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
6,161,206
Carrying amount
At 30 April 2024
6,161,206
At 30 April 2023
6,161,206
14
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Gerda Security Products Limited
(a)
Manufacture and sale of fire safety products
Equity
100.00
-
Gerda Facilities Services Limited
(a)
Servicing of fire safety products
Equity
100.00
-
George Wood & Sons Holdings Limited
(a)
Holding company
Equity
100.00
-
George Wood & Sons (Enfield) Limited
(a)
Manufacture and sale of fire safety products
Equity
0
100.00

(a) - 54 Chiswick Avenue, Mildenhall, Bury St Edmunds, IP28 7AY.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
3,358,922
3,688,329
-
-
Work in progress
894,705
868,953
-
-
4,253,627
4,557,282
-
-
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,739,850
1,896,229
-
0
-
0
Other debtors
3,182,004
3,289,585
116,293
87,558
Prepayments and accrued income
1,797,358
1,627,700
7,295
5,642
6,719,212
6,813,514
123,588
93,200
Deferred tax asset (note 22)
-
0
-
0
11,715
7,440
6,719,212
6,813,514
135,303
100,640
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
2,756,017
2,804,292
189,776
258,240
Obligations under finance leases
20
210,146
285,994
3,846
3,845
Other borrowings
19
1,000,000
1,040,000
1,000,000
1,040,000
Trade creditors
3,213,422
3,683,903
64,850
57,351
Amounts owed to group undertakings
-
0
-
0
4,428,755
3,585,274
Corporation tax payable
245,048
337,799
50,022
39,018
Other taxation and social security
721,512
1,213,144
29,881
34,104
Other creditors
1,466,637
1,885,186
36,914
218,307
Accruals and deferred income
1,962,013
709,856
73,705
31,518
11,574,795
11,960,174
5,877,749
5,267,657
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
576,325
644,667
443,263
644,667
Obligations under finance leases
20
415,726
282,557
15,790
19,958
Other borrowings
19
-
0
500,000
-
0
500,000
992,051
1,427,224
459,053
1,164,625
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,072,953
1,554,108
633,039
902,907
Bank overdrafts
1,259,389
1,894,851
-
0
-
0
Other loans
1,000,000
1,540,000
1,000,000
1,540,000
4,332,342
4,988,959
1,633,039
2,442,907
Payable within one year
3,756,017
3,844,292
1,189,776
1,298,240
Payable after one year
576,325
1,144,667
443,263
1,144,667

The bank overdraft and invoice financing facility is secured by a fixed and floating charge over all assets of the Group.

The bank loans are secured by a fixed charge over the groups freehold and leasehold property.

 

Included within Bank loans are secured term loans with balances of £633,039 (2023 - £902,907). Interest varies from 2.85% to 3.3% over the Bank of England base rate. The loans are secured against the registered office and there is a debenture against all group companies.

 

Included within Bank loans are unsecured term loans with balances of £681,935 (2023 - £Nil). Interest on the unsecured loans varies from 13.85% to 23.4% per annum.

 

Included within other borrowings is a balance of £1,000,000 (2023 - £1,540,000) being deferred consideration for the acquisition of a subsidiary. The facility is secured by a fixed and floating charge over all assets of the Group and is repayable by instalments. Interest is charged at a rate of 1% over Bank of England base rate.

 

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
210,146
285,994
3,846
3,845
In two to five years
415,726
282,557
15,790
19,958
625,872
568,551
19,636
23,803

 

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty provision
84,173
84,746
-
-
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Warranty provision
Group
£
At 1 May 2023
84,746
Additional provisions in the year
84,173
Utilisation of provision
(84,746)
At 30 April 2024
84,173

The Company gives warranties at the time of sale to purchasers of its product. Under the terms of the contract for sale, the Company undertakes to make good, by repair or replacement, manufacturing defects that become apparent within one year from the date of sale. On the basis of experience and historic information, the annual cost of these repairs is provided for.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
362,190
328,760
-
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
11,715
7,440
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 May 2023
328,760
(7,440)
Charge/(credit) to profit or loss
33,430
(4,275)
Liability/(Asset) at 30 April 2024
362,190
(11,715)

The deferred tax liability set out above is expected to reverse over 1 year after the balance sheet date and relates to accelerated capital allowances that are expected to mature within the same period.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,016
166,444

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represented contributions payable by the group of £175,016 (2023 - £166,444). At the year end £35,858 (2023 - £32,965) in contributions were owing to the pension fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
855
855
855
855
25
Reserves
Share premium

The share premium account records the amount above the nominal value received for shares, less transaction costs. This is non-distributable.

Capital redemption reserve

Capital redemption reserves represent the nominal value of its own shares repurchased by the Company.

Merger relief reserve

The merger relief reserve represents the use of merger relief following the group reorganisation which occurred in August 2011.

Profit and loss account

The profit and loss account includes all current and prior periods retained profits and losses, net of dividends paid.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
795,683
669,396
67,700
67,700
Between two and five years
2,607,016
2,488,294
270,800
270,800
In over five years
1,146,267
1,757,067
22,567
90,267
4,548,966
4,914,757
361,067
428,767
GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
27
Events after the reporting date

On 1 December 2024, the Group acquired the trade and assets of a new business division specialising in door maintenance. The financial impact currently cannot be reliably determined, however the acquisition is expected to significantly enhance the Group's market position and contribute to future growth.

28
Related party transactions

The Company has taken advantage of the exemptions contained within FRS 102 paragraph 33.1A not to disclose transactions with wholly owned group undertakings.

 

Transactions with Gerda Security Holdings Limited

 

Included within other debtors is a loan balance of £4,300 (2023 - £4,300) due from a company under common control. The loan is interest free and repayable on demand.

 

Transactions with Gerda Security Products Limited

 

Included within other debtors are loan balances of £217,446 (2023 - £118,341) due from companies under common control. The loans are interest free and repayable on demand.

 

During the year, the company incurred consultancy fees of £212,893 (2023 - £201,433) from a company under common control.

 

Transactions with George Wood & Sons (Enfield) Limited

 

During the year, the company incurred consultancy fees of £64,200 (2023 - £64,042) from a company under common control.

29
Directors' transactions

Transactions with Gerda Security Holdings Limited

 

Included within other debtors is a loan balance of £75,000 (2023 - £75,000) due from a shareholder. The loan is interest free and repayable on demand.

 

Transactions with Gerda Security Products Limited

 

Included within other debtors are loans totalling £1,595,090 (2023 - £2,095,371) due from directors. The loans are unsecured and repayable on demand. No interest is charged on the balances.

30
Entities for which Gerda Security Holdings Limited assumes full liability

The following subsidiaries of the Company are exempt from the requirements of the audit under section 479A of the Companies Act 2006:

 

- Gerda Facilities Services Limited

 

Under section 497C of the Companies Act 2006, Gerda Security Holdings Limited has given a statutory guarantee relating to all outstanding liabilities of the subsidiary to which companies are subject at 30 April 2024. This guarantee has been filed at Companies House.

GERDA SECURITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
265,368
835,020
Adjustments for:
Taxation charged
274,225
348,079
Finance costs
382,758
232,286
Investment income
(155)
(6,956)
(Gain)/loss on disposal of tangible fixed assets
(29,599)
36,880
Amortisation and impairment of intangible assets
461,406
461,406
Depreciation and impairment of tangible fixed assets
489,540
429,554
(Decrease)/increase in provisions
(573)
12,486
Movements in working capital:
Decrease/(increase) in stocks
303,655
(772,831)
Increase in debtors
(207,792)
(333,009)
(Decrease)/increase in creditors
(128,505)
1,146,857
Cash generated from operations
1,810,328
2,389,772
32
Analysis of changes in net debt - group
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
1,111,730
149,509
-
1,261,239
Bank overdrafts
(1,894,851)
635,462
-
(1,259,389)
(783,121)
784,971
-
1,850
Borrowings excluding overdrafts
(3,094,108)
21,155
-
(3,072,953)
Obligations under finance leases
(568,551)
195,718
(253,039)
(625,872)
(4,445,780)
1,001,844
(253,039)
(3,696,975)
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