Company registration number 00775059 (England and Wales)
G.B. FARRAR & CO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
G.B. FARRAR & CO LIMITED
COMPANY INFORMATION
Directors
Mr K Corderoy
Mr D Clack
Mr A Jacobs
Mr P Smith
Secretary
Mr K Corderoy
Company number
00775059
Registered office
182 Manor Lane
London
SE12 8LP
Auditor
Bryden Johnson Limited
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
G.B. FARRAR & CO LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
G.B. FARRAR & CO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Review of the business

The directors are pleased to report significant growth over the last 12 months, with turnover increasing by 30% £27.9m (2023: £21.5m). This was predominantly organic growth, generated through our existing client base. We continue to benefit from having a consistent, long standing relationship with our clients. This in turn allows us to continually employ quality resources, both internal and external to maintain the expected high level of project delivery, that, our clients expect.

Over the last 12 months we have seen a reduction in our gross margin from (24.9%: 2023) to 22.2%. Accepting that 22.2% is a pleasing return, an element of the reduction is as a result of a slight change in the customer mix regarding our turnover. Our expectations for the year ahead are that to maintain a 22% gross margin will continue to be a challenge. An important element of our business remains one of maintaining the required level and quality of resource to service our clients. In line with our turnover growth we have employed additional quality individuals and also expanded our supplier base.

Our balance sheet continues to remain in an excellent position with working capital at the year-end of £5.13m (2023: £4.16m) and a ratio of current assets to current liabilities of 1.73 (2023: 1.78). Our working capital levels allow us to comfortably support our business going forward and gives us the confidence that we can look to organically grow the business further.

 

Principal risks and uncertainties

The risks to our business continues to be matching our growth in turnover with our ability to employ reliable and quality of resource required to meet our high delivery standards. The impact of price inflation would appear to be easing.

However, we believe there is continued uncertainty surrounding the economy within the UK. With the strength of our balance sheet and our business model, we have an agility within our business to keep the impact of any potential challenge to a minimum.

 

Key performance indicators

Our key performance indicators are our sales and the margins achieved (please see above). Sales are monitored against our sales forecast, which is prepared on a monthly basis from work orders received and for at least three months forward. Our margin is monitored per project, ensuring that it is within expectations. If outside of these, we investigate any variance.

Future Developments

The Company’s focus in the coming year is to maintain the financial strength of the business, to continue to allow us to grow and support our loyal client base. In addition we will look to add to our current client base. We look to continue to secure sales, maintain our high levels of performance with regards to margin, manage our fixed cost base and ensure our continued high standard of project delivery.

On behalf of the board

Mr A Jacobs
Director
10 February 2025
G.B. FARRAR & CO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of specialist refurbishment fitters.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,737,222. The directors do not recommend payment of a final dividend.

Directors

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

Mr K Corderoy
Mr L Baker
(Resigned 15 December 2023)
Mr D Clack
Mr A Jacobs
Mr P Smith
Auditor

The auditor, Bryden Johnson Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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 company and of 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.

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.

G.B. FARRAR & CO LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Medium-sized companies exemption

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

On behalf of the board
Mr A Jacobs
Director
10 February 2025
G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 our audit:

G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED (CONTINUED)
- 5 -
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's responsibilities for the audit of the financial statements

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

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

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

 

- Reviewing minutes of meetings of those charged with governance;

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, and

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness and testing accounting estimates (because of the risk of management bias).

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

G.B. FARRAR & CO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G.B. FARRAR & CO LIMITED (CONTINUED)
- 6 -

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.

Jackie Wilding
Senior Statutory Auditor
For and on behalf of Bryden Johnson Limited
13 February 2025
Chartered Accountants
Statutory Auditor
Kings Parade
Lower Coombe Street
Croydon
Surrey
CR0 1AA
G.B. FARRAR & CO LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
27,878,523
21,467,730
Cost of sales
(21,669,309)
(16,119,526)
Gross profit
6,209,214
5,348,204
Administrative expenses
(2,790,269)
(2,660,500)
Operating profit
4
3,418,945
2,687,704
Interest receivable and similar income
7
163,624
81,068
Interest payable and similar expenses
8
(25,303)
(19,950)
Profit before taxation
3,557,266
2,748,822
Tax on profit
9
(909,788)
(599,470)
Profit for the financial year
2,647,478
2,149,352

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

G.B. FARRAR & CO LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
2,647,478
2,149,352
Other comprehensive income
-
-
Total comprehensive income for the year
2,647,478
2,149,352
G.B. FARRAR & CO LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
337,457
400,285
Current assets
Stocks
11
157,006
174,477
Debtors
12
8,197,943
7,335,540
Cash at bank and in hand
3,721,700
1,952,365
12,076,649
9,462,382
Creditors: amounts falling due within one year
13
(6,947,374)
(5,306,191)
Net current assets
5,129,275
4,156,191
Total assets less current liabilities
5,466,732
4,556,476
Creditors: amounts falling due after more than one year
14
(570,000)
(570,000)
Net assets
4,896,732
3,986,476
Capital and reserves
Called up share capital
17
163,650
163,650
Capital redemption reserve
14,350
14,350
Profit and loss reserves
4,718,732
3,808,476
Total equity
4,896,732
3,986,476

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

The financial statements were approved by the board of directors and authorised for issue on 10 February 2025 and are signed on its behalf by:
Mr K Corderoy
Mr A Jacobs
Director
Director
Company registration number 00775059 (England and Wales)
G.B. FARRAR & CO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
163,650
14,350
3,708,295
3,886,295
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
2,149,352
2,149,352
Dividends
-
-
(2,049,171)
(2,049,171)
Balance at 30 September 2023
163,650
14,350
3,808,476
3,986,476
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
2,647,478
2,647,478
Dividends
-
-
(1,737,222)
(1,737,222)
Balance at 30 September 2024
163,650
14,350
4,718,732
4,896,732
G.B. FARRAR & CO LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
4,872,351
946,466
Interest paid
(25,303)
(19,950)
Corporation tax paid
(784,391)
(790,002)
Net cash inflow from operating activities
4,062,657
136,514
Investing activities
Purchase of tangible fixed assets
(62,895)
(211,837)
Proceeds from disposal of tangible fixed assets
28,171
41,708
Interest received
163,624
81,068
Net cash generated from/(used in) investing activities
128,900
(89,061)
Financing activities
Loans made to directors
(685,000)
-
0
Dividends paid
(1,737,222)
(2,049,171)
Net cash used in financing activities
(2,422,222)
(2,049,171)
Net increase/(decrease) in cash and cash equivalents
1,769,335
(2,001,718)
Cash and cash equivalents at beginning of year
1,952,365
3,954,083
Cash and cash equivalents at end of year
3,721,700
1,952,365
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

G.B. Farrar & Co Limited is a private company limited by shares incorporated in England and Wales. The registered office is 182 Manor Lane, London, SE12 8LP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover represents amounts recoverable from clients for work performed during the year, and is stated net of VAT. Revenue is recognised when the amounts can be reliably measured and it is probable that future economic benefits will flow to the company.

 

In some circumstances the scope on projects will be altered after the initial contract is signed. Where the scope change is trivial, new contracts are not signed. For significant variations, a new project would be setup and turnover recognised on the basis of the new contract, separating out the existing and new projects in place.

1.4
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:

Leasehold land and buildings
Over remaining length of lease
Plant and machinery
25% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% reducing balance

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

1.5
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.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
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.

 

Work in progress in the accounts represents both labour and material costs incurred for projects on which substantial work had not commenced at the year end.

1.7
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.

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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.

1.9
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.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Taxation

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

Current tax

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

1.11
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.

1.12
Retirement benefits

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

1.13
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.

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.

 

Amounts recoverable on long term contract

Amounts recoverable on long term contract is recognised on a contract by contract basis and is reflected in the profit and loss account by turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for profit earned to date. Recoverable costs on contracts are carried less amounts received as progress payments on account. Amounts billed on account of contracts are included in creditors as deferred income to the extent that they exceed the value of the related amounts recoverable on long term contract. Full provision is also made for all known or expected losses on individual contracts.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction
27,878,523
21,467,730
2024
2023
£
£
Turnover analysed by geographical market
UK
27,878,523
21,467,730
2024
2023
£
£
Other revenue
Interest income
163,624
81,068
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
14,200
Depreciation of owned tangible fixed assets
110,957
101,984
Profit on disposal of tangible fixed assets
(13,405)
(3,225)
Operating lease charges
116,544
118,179
5
Employees

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

2024
2023
Number
Number
Administration
18
18
Directors
4
5
Fitters
21
21
Total
43
44
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,626,661
2,676,172
Social security costs
317,862
323,374
Pension costs
54,958
47,416
2,999,481
3,046,962
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
426,265
547,749
Company pension contributions to defined contribution schemes
4,192
5,432
430,457
553,181

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
166,915
201,835
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
163,624
81,068
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
163,624
81,068
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Dividends on preference shares not classified as equity
19,950
19,950
Other finance costs:
Other interest
5,353
-
0
25,303
19,950
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
909,788
599,470

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
3,557,266
2,748,822
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
889,317
605,016
Tax effect of expenses that are not deductible in determining taxable profit
10,339
2,993
Permanent capital allowances in excess of depreciation
-
0
(505)
Movement in deferred tax not recognised
10,132
7,372
General provisions
-
0
(15,406)
Taxation charge for the year
909,788
599,470
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
10
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
13,479
61,967
59,954
663,267
798,667
Additions
-
0
-
0
-
0
62,895
62,895
Disposals
-
0
-
0
-
0
(81,216)
(81,216)
At 30 September 2024
13,479
61,967
59,954
644,946
780,346
Depreciation and impairment
At 1 October 2023
13,479
61,672
32,445
290,786
398,382
Depreciation charged in the year
-
0
295
11,106
99,556
110,957
Eliminated in respect of disposals
-
0
-
0
-
0
(66,450)
(66,450)
At 30 September 2024
13,479
61,967
43,551
323,892
442,889
Carrying amount
At 30 September 2024
-
0
-
0
16,403
321,054
337,457
At 30 September 2023
-
0
295
27,509
372,481
400,285
11
Stocks
2024
2023
£
£
Raw materials and consumables
1,000
1,000
Work in progress
156,006
173,477
157,006
174,477
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,554,560
6,375,950
Gross amounts owed by contract customers
890,478
867,775
Other debtors
694,085
-
0
Prepayments and accrued income
58,820
91,815
8,197,943
7,335,540
G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,523,079
2,730,853
Corporation tax
472,288
346,891
Other taxation and social security
1,396,870
976,872
Dividends payable
19,950
19,950
Other creditors
48,117
32,872
Accruals and deferred income
1,487,070
1,198,753
6,947,374
5,306,191
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
15
570,000
570,000
15
Loans and overdrafts
2024
2023
£
£
Preference shares
570,000
570,000
Payable after one year
570,000
570,000

The preference shares shown above pay an annual dividend of 3.5%.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,958
47,416

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.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
22,000
22,000
22,000
22,000
Ordinary A shares of £1 each
120,401
120,401
120,401
120,401
Ordinary B shares of £1 each
7,083
7,083
7,083
7,083
Ordinary C shares of £1 each
7,083
7,083
7,083
7,083
Ordinary D shares of £1 each
7,083
7,083
7,083
7,083
163,650
163,650
163,650
163,650
18
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
112,250
106,250
Between two and five years
190,917
217,666
303,167
323,916
19
Directors' transactions

At the year end, included within other debtors is an amount of £685,000 (2023 : £NIL) due from a director of the company. This loan is interest free.

20
Ultimate controlling party

The ultimate controlling party of the company is J.M Jacobs by virtue of his shareholding in the company.

G.B. FARRAR & CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,647,478
2,149,352
Adjustments for:
Taxation charged
909,788
599,470
Finance costs
25,303
19,950
Investment income
(163,624)
(81,068)
Gain on disposal of tangible fixed assets
(13,405)
(3,225)
Depreciation and impairment of tangible fixed assets
110,957
101,984
Movements in working capital:
Decrease/(increase) in stocks
17,471
(80,880)
Increase in debtors
(177,403)
(371,599)
Increase/(decrease) in creditors
1,515,786
(1,387,518)
Cash generated from operations
4,872,351
946,466
22
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,952,365
1,769,335
3,721,700
Borrowings excluding overdrafts
(570,000)
-
(570,000)
1,382,365
1,769,335
3,151,700
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