REGISTERED NUMBER: 15218861 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 18 OCTOBER 2023 TO 31 JULY 2024 |
FOR |
GRAND FIR HOLDINGS LIMITED |
REGISTERED NUMBER: 15218861 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 18 OCTOBER 2023 TO 31 JULY 2024 |
FOR |
GRAND FIR HOLDINGS LIMITED |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Period 18 October 2023 to 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
GRAND FIR HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Period 18 October 2023 to 31 July 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
GROUP STRATEGIC REPORT |
for the Period 18 October 2023 to 31 July 2024 |
The directors present their strategic report of the company and the group for the period 18 October 2023 to 31 July 2024. |
REVIEW OF BUSINESS |
Grand Fir Holdings Limited was incorporated on 18 October 2023 and acquired Grand Fir Limited and The Environment Partnership (TEP) Limited (TEP) in that same month, together forming 'The Group'. The Group was setup to continue the aims of the initial MBO in the acquired companies in 2018. This involved the share for share repurchase from the founding directors and at the same time invited the senior management team to become shareholders (those who were not already). Two new Directors joined the Board and the founding directors have taken on the role of Technical Directors advising the Board and delivering services. |
The Group had a good financial performance showing EBITDA of £690K from sales of £8.62M, net current assets of £2.26M and total equity of £2.89M. |
The Homes England Framework for Estate Management Services incorporating Vacant Property Management is an important part of our work portfolio. The framework was due to end in March 2024 but was extended to March 2025. An invitation to tender for a new 2 plus 1 year framework has been issued and the deadline for tendering is early December with a decision anticipated in early 2025. TEP has retained the framework since 1998 and is in a strong position across knowledge, skills, experience, performance and financial proposition to be successful again. Should TEP not retain the framework, it is anticipated that a phased handover will be required that is likely last to the end of TEP's 24/25 financial year. |
We continue to market and promote services so that as long-running projects close we are well-placed to secure other opportunities to deploy staff. Nearly 1,000 projects were opened in the 2023-2024 financial year, during that period we worked for 470 clients with c. 180 being new clients or ones we had not worked with for three years or more. We have also been successful on several new or retendered frameworks that will run for multiple years. The directors are confident that the performance and growth potential of the business will be fulfilled and consider that the business has a strong and stable financial footing. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Staff retention and recruitment, competition for the provision of environmental services and external economic factors are the key business risks for the Group. The increases in employers National Insurance, the predicted small inflation rise in early 2025 and the limited growth predicted across 2025 have the potential to affect our running costs and impact our client base. |
Staff retention is promoted through the provision of stimulating work, attention to personal development and competitive rewards. Recruitment, while challenging, continues to be successful with new appointments made across a variety of TEP offices, teams and grades. Salaries have been increased again this year to aid staff retention. Increased running costs including salaries and the upcoming rise in employer's National Insurance have been factored into our budgets and targets. |
Our client base is varied including government, utilities, infrastructure, commercial, leisure and house breaking clients and is, therefore, resilient to factors that might affect only specific sectors. Government priorities on renewable energy and water quality improvements remain. These are important markets for our services. Public sector investment announced in the latest budget is another positive sign for some of the markets we operate in. We continue to focus on frameworks and have been successful in this area. These are an important source of work with many clients moving to frameworks for procurement of services and not least because competition is greatly reduced, and this is borne out by the framework-related commissions on our books. Notwithstanding our high quality work, market conditions may yet adversely affect financial performance and this has been considered in the targets set for the 2024-2025 FY. Overall, the market is currently buoyant, client retention is high, the pipeline of long running projects runs beyond this FY and the company continues to expand services, foster new relationships and attract new clients. |
DEVELOPMENT AND PERFORMANCE |
The directors' future plans are to retain the core business focus on environmental consultancy and landscapearchitecture and related services, supporting a wide range of clients in chosen markets. We will continue to look foropportunities to grow the business and consolidate markets showing continued high demand. Most recently this hasincluded expansion of services in the area of ecohydrology, carbon, climate change & resilience and nature recovery. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
GROUP STRATEGIC REPORT |
for the Period 18 October 2023 to 31 July 2024 |
KEY PERFORMANCE INDICATORS |
Internal KPIs relate to percentage of submissions converted to commissions, achievement of financial targets (monitored monthly), employee involvement and incident-free targets in respect of health, quality, safety and environmental performance. The directors and senior managers monitor client satisfaction with our performance on other projects. We continue to sustain external accreditation's in respect of Quality, Health and Safety, Environmental Management, Carbon Neutrality, Investors in People (Gold) and Cyber Essentials. This year we maintained external accreditation's with ISO 9001, 45001 and 14001. The climate and ecological emergencies that have been declared by the UK parliament and many of our public sector clients remind us of the need to plan for, and respond to, environmental decline. We have recently published a Carbon Reduction Plan on our website and are committed to continuing to reduce our emissions on our journey to net zero. Our bank (Handelsbanken) is a signatory of the Principles of Responsible Banking promoted by the UN Environment Programme's Finance Initiative. The company pension scheme includes ethically based investment options. We will continue to work with all parties in our supply-chain "ecosystem" to promote sustainability in our business activity. |
ON BEHALF OF THE BOARD: |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
REPORT OF THE DIRECTORS |
for the Period 18 October 2023 to 31 July 2024 |
The directors present their report with the financial statements of the company and the group for the period 18 October 2023 to 31 July 2024. |
COMMENCEMENT OF TRADING |
The company was incorporated on 18 October 2023 and commenced trading under the group on the same date. More information in respect to this can be found in the Strategic Report. |
DIVIDENDS |
No dividends will be distributed for the period ended 31 July 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 18 October 2023 to the date of this report. |
All the directors, being eligible, offer themselves for election at the forthcoming first Annual General Meeting. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
REPORT OF THE DIRECTORS |
for the Period 18 October 2023 to 31 July 2024 |
AUDITORS |
In accordance with section 485 of the Companies Act 2006, Xeinadin Audit Limited will be proposed for reappointment. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Grand Fir Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 July 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2024 and of the group's profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
- | The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets; |
- | Results of the enquiries of management about their own identification and assessment of the risks of irregularities; |
- | Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: timing of revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GRAND FIR HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
Xeinadin Audit Limited |
Statutory Auditors |
100 Barbirolli Square |
Manchester |
M2 3BD |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
CONSOLIDATED PROFIT AND LOSS ACCOUNT |
for the Period 18 October 2023 to 31 July 2024 |
Notes | £ |
TURNOVER | 8,616,739 |
Cost of sales | 6,157,731 |
GROSS PROFIT | 2,459,008 |
Administrative expenses | 1,924,180 |
534,828 |
Other operating income | 168 |
OPERATING PROFIT | 6 | 534,996 |
Interest receivable and similar income | 6,791 |
541,787 |
Interest payable and similar expenses | 7 | 74,718 |
PROFIT BEFORE TAXATION | 467,069 |
Tax on profit | 8 | 181,302 |
PROFIT FOR THE FINANCIAL PERIOD |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
CONSOLIDATED BALANCE SHEET |
31 July 2024 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 1,595,633 |
Tangible assets | 11 | 123,259 |
Investments | 12 | - |
1,718,892 |
CURRENT ASSETS |
Debtors | 13 | 3,722,928 |
Cash at bank | 458,508 |
4,181,436 |
CREDITORS |
Amounts falling due within one year | 14 | 1,923,183 |
NET CURRENT ASSETS | 2,258,253 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 3,977,145 |
CREDITORS |
Amounts falling due after more than one year | 15 | (1,061,424 | ) |
PROVISIONS FOR LIABILITIES | 18 | (21,716 | ) |
NET ASSETS | 2,894,005 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2,479,414 |
Share premium | 20 | 128,824 |
Retained earnings | 20 | 285,767 |
SHAREHOLDERS' FUNDS | 2,894,005 |
The financial statements were approved by the Board of Directors and authorised for issue on 4 March 2025 and were signed on its behalf by: |
Ms E J Seal - Director |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
COMPANY BALANCE SHEET |
31 July 2024 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 128,652 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Period 18 October 2023 to 31 July 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Profit for the period | - | 285,767 | - | 285,767 |
Total comprehensive income | - | 285,767 | - | 285,767 |
Issue of share capital | 2,479,414 | - | 128,824 | 2,608,238 |
Balance at 31 July 2024 | 2,479,414 | 285,767 | 128,824 | 2,894,005 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Period 18 October 2023 to 31 July 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Profit for the period | - | 128,652 | - | 128,652 |
Total comprehensive income | - | - |
Issue of share capital | - |
Balance at 31 July 2024 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Period 18 October 2023 to 31 July 2024 |
Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 22 | (48,042 | ) |
Interest paid | (74,718 | ) |
Tax paid | (281,411 | ) |
Net cash from operating activities | (404,171 | ) |
Cash flows from investing activities |
Acquisition of subsidiary | 1,098,274 |
Purchase of tangible fixed assets | (6,512 | ) |
Interest received | 6,791 |
Net cash from investing activities | 1,098,553 |
Cash flows from financing activities |
Repayment of shareholder loans | (235,874 | ) |
Net cash from financing activities | (235,874 | ) |
Increase in cash and cash equivalents | 458,508 |
Cash and cash equivalents at beginning of period |
23 |
- |
Cash and cash equivalents at end of period |
23 |
458,508 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Period 18 October 2023 to 31 July 2024 |
1. | STATUTORY INFORMATION |
Grand Fir Holdings Limited is a private company limited by share capital, incorporated in England and Wales, registration number 15218861. The addresses of its registered office and the principal place of business is 401 Faraday Street, Birchwood, Warrington, England, WA3 6GA. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
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 £. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31st July 2024. A subsidiary entity that is controlled by the parent. The results of the subsidiary undertakings are included in the profit or loss and other comprehensive income from the date that control commences until the date that control ceases. Control is established when the company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential voting rights that currently exercisable. |
In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
Turnover |
Turnover represents amounts recognised by the company in respect of services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of income relating to the provision of environmental consultancy services which are recognised at the point of which the services are provided. |
Revenue from contracts for the provision of consultancy services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered. |
Goodwill |
Goodwill is the difference between amounts paid on acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account over its estimated economic life which is currently 10 years. |
At each reporting date, the company reviews the carrying amounts to determine whether there is any indication of an impairment loss. If any such exists, the recoverable amount is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount is estimated to be less than its carrying amount, an impairment loss is recognised as an expense immediately. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation on tangible fixed assets is charged to the profit and loss so as to write off their value, over their estimated useful lives, using the following methods: |
Leasehold property improvements | over the term of the lease |
Fixtures, fittings and equipment | 25% reducing balance |
Computer equipment | 33% reducing balance |
Tangible fixed assets are depreciated from the date they are utilised in generating income. |
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised 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 trade and other debtors, gross amounts owed buy contract customers, amounts owed by group undertakings 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
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 occured 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 occuring 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, which include trade and other creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transition, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividend payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
Contributions to defined contribution plans are recognised as an expense in the period in which the related |
service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand. |
Interest bearing loans and borrowings |
All interest bearing loans and borrowings are initially recognised at net proceeds. After initial recognition, debt is increased by the finance cost in respect of the reporting period and reduced by repayments made in the year. Finance costs of debt are allocated over the term of the debt at a constant rate on the carrying amount. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies,. the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Categorisation of leases |
In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee. |
Revenue recognition - stage of completion |
In determining the revenue and costs to be recognised in relation to work completed on long term contracts management must make judgements regarding the stage of completion of the work being undertaken. This judgement is based around the level of costs incurred on a particular job, in comparison to the total expected costs to complete the work. A significant deviation in the estimated costs to complete could have a significant impact on the level of revenue recognised. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Useful life of fixed assets |
In making decisions regarding the depreciation of fixed assets, management must estimate the useful life of said assets to the business. A change in estimate would result in a change in the depreciation charged to the statement of total comprehensive income in each year. |
4. | EMPLOYEES AND DIRECTORS |
£ |
Wages and salaries | 3,997,564 |
Social security costs | 388,862 |
Other pension costs | 245,651 |
4,632,077 |
The average number of employees during the period was as follows: |
Management | 37 |
Administration | 22 |
Consultancy | 101 |
The average number of employees by undertakings that were proportionately consolidated during the period was 160 . |
5. | DIRECTORS' EMOLUMENTS |
£ |
Directors' remuneration | 328,585 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
5. | DIRECTORS' EMOLUMENTS - continued |
Information regarding the highest paid director is as follows: |
£ |
Emoluments etc | 49,230 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
£ |
Depreciation - owned assets | 34,572 |
Goodwill amortisation | 113,974 |
Auditors' remuneration | 14,496 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
£ |
Other interest paid | 74,718 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
£ |
Current tax: |
UK corporation tax | 185,465 |
Deferred tax | (4,163 | ) |
Tax on profit | 181,302 |
9. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 1,709,607 |
At 31 July 2024 | 1,709,607 |
AMORTISATION |
Amortisation for period | 113,974 |
At 31 July 2024 | 113,974 |
NET BOOK VALUE |
At 31 July 2024 | 1,595,633 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
Additions | - | - | 6,512 | 6,512 |
Companies acquired | 42,727 | 45,620 | 62,972 | 151,319 |
At 31 July 2024 | 42,727 | 45,620 | 69,484 | 157,831 |
DEPRECIATION |
Charge for period | 8,559 | 9,127 | 16,886 | 34,572 |
At 31 July 2024 | 8,559 | 9,127 | 16,886 | 34,572 |
NET BOOK VALUE |
At 31 July 2024 | 34,168 | 36,493 | 52,598 | 123,259 |
12. | FIXED ASSET INVESTMENTS |
The following are subsidiaries undertakings of the company and are included in these financial statements: |
Name |
Country of incorporation |
Class of shares |
Holding |
Principal Activity |
Grand Fir Limited | England | Ordinary | 100% | Holding Company |
The Environment Partnership (TEP) Limited |
England | Ordinary | 100% | Environmental consultancy |
The registered office of the subsidiaries is 401 Faraday Street, Birchwood, Warrington, WA3 6GA. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Trade debtors | 2,475,711 |
Amounts recoverable on contract | 675,007 |
Other debtors | 119 |
Called up share capital not paid | 246,609 |
Prepayments | 325,482 |
3,722,928 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
£ | £ |
Other loans (see note 16) | 471,743 |
Trade creditors | 453,705 |
Amounts owed to group undertakings | - |
Tax | 93,183 |
Social security and other taxes | 107,908 |
VAT | 362,198 | - |
Other creditors | 72,202 |
Accrued expenses | 362,244 |
1,923,183 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
£ | £ |
Other loans (see note 16) | 1,061,424 |
16. | LOANS |
Included within Other loans are loan notes amounting to £681,407 that attract interest at 2.7% over base rate. Also included within Other loans are loan notes amounting to £851,760 that attract interest at 5%. During the year the company was charged loan note interest of £70,336. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non- cancellable | operating leases |
£ |
Within one year | 175,025 |
Between one and five years | 281,796 |
In more than five years | 117,537 |
574,358 |
18. | PROVISIONS FOR LIABILITIES |
Group |
£ |
Deferred tax | 21,716 |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Utilised during period | (4,163 | ) |
Companies acquired | 25,879 |
Balance at 31 July 2024 | 21,716 |
19. | CALLED UP SHARE CAPITAL |
Number: | Class: | Nominal Value: | 2024 |
£ |
429,414 | Ordinary A | £1.00 | 429,414 |
2,050,000 | Preference | £1.00 | 2,050,000 |
2,479,414 |
The following shares were allotted during the period: |
429,414 Ordinary A shares of £1.00 each at a premium of £0.30 per share. |
2,050,000 Preference shares of £1.00 each at par. |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
Profit for the period | 285,767 | 285,767 |
Share issue | - | 128,824 | 128,824 |
At 31 July 2024 | 285,767 | 128,824 | 414,591 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
Profit for the period |
Share issue | - | 128,824 | 128,824 |
At 31 July 2024 | 257,476 |
Share premium |
Consideration received for shares issued above their nominal value net of transaction costs. |
Profit and loss reserves |
Cumulative profit and loss net of distributions to owners |
21. | ULTIMATE CONTROLLING PARTY |
No individual shareholder holds more than 50% of the issued share capital, therefore, there is no ultimate |
controlling party. |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
£ |
Profit before taxation | 467,069 |
Depreciation charges | 34,572 |
Amortisation | 113,974 |
Finance costs | 74,718 |
Finance income | (6,791 | ) |
683,542 |
Decrease in trade and other debtors | 382,192 |
Decrease in trade and other creditors | (1,113,776 | ) |
Cash generated from operations | (48,042 | ) |
23. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 July 2024 |
31.7.24 | 18.10.23 |
£ | £ |
Cash and cash equivalents | 458,508 | - |
24. | ANALYSIS OF CHANGES IN NET DEBT |
At 18.10.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank | - | 458,508 | 458,508 |
- | 458,508 | 458,508 |
Debt |
Debts falling due within 1 year | - | (471,743 | ) | (471,743 | ) |
Debts falling due after 1 year | - | (1,061,424 | ) | (1,061,424 | ) |
- | (1,533,167 | ) | (1,533,167 | ) |
Total | - | (1,074,659 | ) | (1,074,659 | ) |
GRAND FIR HOLDINGS LIMITED (REGISTERED NUMBER: 15218861) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Period 18 October 2023 to 31 July 2024 |
25. | ACQUISITION OF BUSINESS |
Total cost | £4,262,521 |
Net assets acquired: |
£ |
Tangible fixed assets | 151,319 |
Intangible fixed assets | - |
Trade and other debtors | 3,858,511 |
Cash and bank balances | 1,230,127 |
Trade and other creditors | (2,687,043 | ) |
Net assets acquired | 2,552,914 |
Goodwill on acquisition | 1,709,607 |
Satisfied by: | £ |
Cash paid | 70,704 |
Deferred consideration | 61,150 |
Loan notes issued | 1,769,040 |
Ordinary shares issued | 239,714 |
Preference shares issued | 2,050,000 |
Share premium issued | 71,914 |
4,262,521 |