Company registration number 03814913 (England and Wales)
GARNER OSBORNE CIRCUITS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GARNER OSBORNE CIRCUITS LIMITED
COMPANY INFORMATION
Directors
Mr S J Honeybun
Mr D Curran
(Appointed 4 July 2024)
Mrs C Lambourne
(Appointed 22 July 2024)
Company number
03814913
Registered office
Unit 10 Hambridge Business Centre
Hambridge Lane
Newbury
Berkshire
United Kingdom
RG14 5TU
Auditor
Azets Audit Services
Elizabeth House
13-19 London Road
Newbury
Berkshire
United Kingdom
RG14 1JL
GARNER OSBORNE CIRCUITS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 26
GARNER OSBORNE CIRCUITS 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 business has been acquired by new owners as of 4 July 2024. The company’s core activities remained unchanged throughout the 12 month period under review.

The Turnover of the business of £12,834,355 for the year ending 30 September 2024 decreased by 0.6% from £12,908,478 in the year ending September 2023. The Gross Profit was close to prior year at 35% versus 34.5% in 2023. The Profit before tax of £2,569,115 (2023: £2,131,806) is 20.0% (2023: 16.5%) of the company’s turnover in the 2024 period.

Distributable reserves have increased from £4,210,224 to £4,223,853.

Principal risks and uncertainties

There are several risks and uncertainties that can impact the performance of the company and not be directly influenced by the business and its directors. The main risks and uncertainties are as follows:

Competition

The competition in the PCB manufacture and assembly industry remains high.

Resources

Availability of materials in general has improved compared to the prior year and recruitment of skilled and unskilled staff has been successful.

Financial Risk Management

The company is aiming to neither seek profit nor loss from exposure to currency or interest rate risks. Its policy is to finance working capital through retained earnings and within reason through borrowing at prevailing market interest rates. The company does not use hedge accounting.

Key performance indicators

The company and its directors are monitoring the business performance, development and position by reviewing the order book, revenue, profitability, net working capital and cash levels as its main key performance indicators.

 

On behalf of the board

Mr D Curran
Director
5 February 2025
GARNER OSBORNE CIRCUITS 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 principle business activity is the manufacture of printed circuit boards, PCB prototypes and large scale, small run and individual PCB's.

Results and dividends

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

Ordinary dividends were paid amounting to £2,989,496. 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:

Mr M J Garner
(Resigned 4 July 2024)
Mr N I Priest
(Resigned 4 July 2024)
Mr R Pike
(Resigned 4 July 2024)
Mrs J L Garner
(Resigned 4 July 2024)
Mr S J Honeybun
Mr D Curran
(Appointed 4 July 2024)
Mrs C Lambourne
(Appointed 22 July 2024)

Directors' Share Options

Stephen Honeybun exercised his option to purchase 110,000 shares prior to a sale of the business.

Auditor

Azets Audit Services were appointed auditors during the period.

 

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D Curran
Director
5 February 2025
GARNER OSBORNE CIRCUITS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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.

GARNER OSBORNE CIRCUITS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GARNER OSBORNE CIRCUITS LIMITED
- 4 -
Opinion

We have audited the financial statements of Garner Osborne Circuits Limited (the 'company') for the year ended 30 September 2024 which comprise 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

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

 

GARNER OSBORNE CIRCUITS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GARNER OSBORNE CIRCUITS LIMITED
- 5 -
Matters on which we are required to report by exception

Except for the matter descrive in the basis for qualified opinion section of our report, 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 and the directors' report.

 

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:

 

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.

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.

GARNER OSBORNE CIRCUITS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GARNER OSBORNE CIRCUITS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Sam Thomas
Senior Statutory Auditor
For and on behalf of Azets Audit Services
5 February 2025
2025-02-05
Chartered Accountants
Statutory Auditor
Elizabeth House
13-19 London Road
Newbury
Berkshire
United Kingdom
RG14 1JL
GARNER OSBORNE CIRCUITS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
12,834,355
12,908,478
Cost of sales
(8,347,668)
(8,454,884)
Gross profit
4,486,687
4,453,594
Administrative expenses
(1,872,866)
(2,255,197)
Other operating income
1,047
1
Operating profit
4
2,614,868
2,198,398
Interest receivable and similar income
7
3,652
-
0
Interest payable and similar expenses
8
(49,405)
(66,592)
Profit before taxation
2,569,115
2,131,806
Tax on profit
9
(502,827)
(467,704)
Profit for the financial year
2,066,288
1,664,102
Other comprehensive income
Revaluation of tangible fixed assets
(936,837)
-
0
Tax relating to other comprehensive income
234,209
-
0
Total comprehensive income for the year
1,363,660
1,664,102

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

GARNER OSBORNE CIRCUITS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,126,713
4,241,172
Current assets
Stocks
13
3,389,023
2,755,584
Debtors
14
2,451,282
2,339,631
Cash at bank and in hand
912,417
171,954
6,752,722
5,267,169
Creditors: amounts falling due within one year
15
(2,793,900)
(2,350,228)
Net current assets
3,958,822
2,916,941
Total assets less current liabilities
6,085,535
7,158,113
Creditors: amounts falling due after more than one year
18
(259,146)
(564,902)
Provisions for liabilities
Deferred tax liability
19
492,536
680,359
(492,536)
(680,359)
Net assets
5,333,853
5,912,852
Capital and reserves
Called up share capital
21
1,110,000
1,000,000
Revaluation reserve
-
0
702,628
Distributable profit and loss reserves
4,223,853
4,210,224
Total equity
5,333,853
5,912,852
The financial statements were approved by the board of directors and authorised for issue on 5 February 2025 and are signed on its behalf by:
Mr D Curran
Director
Company Registration No. 03814913
GARNER OSBORNE CIRCUITS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
1,000,000
702,628
2,869,817
4,572,445
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
1,664,102
1,664,102
Dividends
10
-
-
(323,695)
(323,695)
Balance at 30 September 2023
1,000,000
702,628
4,210,224
5,912,852
Year ended 30 September 2024:
Profit for the year
-
-
2,066,288
2,066,288
Other comprehensive income:
Revaluation of tangible fixed assets
-
(936,837)
936,837
-
Tax relating to other comprehensive income
-
234,209
-
0
234,209
Total comprehensive income for the year
-
(702,628)
3,003,125
2,300,497
Issue of share capital
21
110,000
-
-
110,000
Dividends
10
-
-
(2,989,496)
(2,989,496)
Balance at 30 September 2024
1,110,000
-
0
4,223,853
5,333,853
GARNER OSBORNE CIRCUITS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,887,778
1,295,199
Interest paid
(49,405)
(66,592)
Income taxes paid
(93,011)
(79,327)
Net cash inflow from operating activities
1,745,362
1,149,280
Investing activities
Purchase of tangible fixed assets
(569,696)
(806,469)
Proceeds from disposal of tangible fixed assets
13
16,251
Repayment of loans
24,659
75,000
Interest received
3,652
-
0
Net cash used in investing activities
(541,372)
(715,218)
Financing activities
Proceeds from issue of shares
110,000
-
0
Repayment of bank loans
(237,876)
(19,092)
Payment of finance leases obligations
(119,224)
(77,518)
Dividends paid
(216,427)
(323,695)
Net cash used in financing activities
(463,527)
(420,305)
Net increase in cash and cash equivalents
740,463
13,757
Cash and cash equivalents at beginning of year
171,954
158,197
Cash and cash equivalents at end of year
912,417
171,954
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information

Garner Osborne Circuits Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10 Hambridge Business Centre, Hambridge Lane, Newbury, Berkshire, United Kingdom, RG14 5TU.

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 £.

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 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 20 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.

1.5
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.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -

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
Not depreciated
Plant and equipment
- 10% on cost
Fixtures and fittings
- 20% on cost
Computers
- 33% on cost
Motor vehicles
- 10% on cost
Improvements to property
- 15% on cost

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.

Freehold property and subsequent improvements are not depreciated on the grounds that the estimated residual value is sufficiently large to make any depreciation charge immaterial.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.8
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.

1.9
Financial instruments
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 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.

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.

 

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.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Taxation

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

Current tax

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

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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
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 leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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.

Critical judgements

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

Revenue recognition

The key judgements made by management in respect of revenue is the point at which that revenue should be recognised. Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which to recognise revenue based upon the these terms and in particular where the risks and rewards of ownership transfer.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessment consider issues such as the remaining life of the asset and the projected disposal value.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
12,834,355
12,908,478
2024
2023
£
£
Other revenue
Interest income
3,652
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,177
18,858
Fees payable to the company's auditor for the audit of the company's financial statements
17,280
14,850
Depreciation of owned tangible fixed assets
281,183
225,050
Depreciation of tangible fixed assets held under finance leases
106,052
110,330
Profit on disposal of tangible fixed assets
(703,093)
(14,858)
Operating lease charges
77,266
37,295
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Direct
115
108
Administrative
3
3
Sales
5
5
Directors
3
3
Total
126
119

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,947,778
3,425,347
Social security costs
375,970
330,357
Pension costs
83,773
74,419
4,407,521
3,830,123
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
369,452
268,282
Company pension contributions to defined contribution schemes
20,186
18,282
389,638
286,564

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
94,631
86,880
Company pension contributions to defined contribution schemes
1,321
1,321
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,652
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,652
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
10,070
15,252
Other interest on financial liabilities
-
0
6,063
10,070
21,315
Other finance costs:
Interest on finance leases and hire purchase contracts
32,509
43,094
Other interest
6,826
2,183
49,405
66,592
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
456,441
364,425
Adjustments in respect of prior periods
-
0
3,260
Total current tax
456,441
367,685
Deferred tax
Origination and reversal of timing differences
46,386
100,019
Total tax charge
502,827
467,704
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 19 -

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
2,569,115
2,131,806
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
642,279
532,952
Tax effect of expenses that are not deductible in determining taxable profit
(138,941)
9,657
Effect of change in corporation tax rate
-
0
(49,539)
Permanent capital allowances in excess of depreciation
(511)
(44,539)
Depreciation on assets not qualifying for tax allowances
-
0
15,913
Under/(over) provided in prior years
-
0
3,260
Taxation charge for the year
502,827
467,704

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

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
(234,209)
-
10
Dividends
2024
2023
£
£
Dividend in specie
2,773,069
-
0
Interim paid
216,427
323,695
2,989,496
323,695
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023
711,162
Disposals
(711,162)
At 30 September 2024
-
0
Amortisation and impairment
At 1 October 2023
711,162
Disposals
(711,162)
At 30 September 2024
-
0
Carrying amount
At 30 September 2024
-
0
At 30 September 2023
-
0
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Improvements to property
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
2,200,000
3,645,798
396,218
202,899
-
0
337,197
6,782,112
Additions
15,093
504,619
10,011
27,273
12,700
-
0
569,696
Disposals
(2,215,093)
(12,920)
(2,527)
-
0
-
0
(337,197)
(2,567,737)
At 30 September 2024
-
0
4,137,497
403,702
230,172
12,700
-
0
4,784,071
Depreciation and impairment
At 1 October 2023
-
0
1,862,412
304,743
140,353
-
0
233,432
2,540,940
Depreciation charged in the year
-
0
298,784
29,424
30,458
1,164
27,405
387,235
Eliminated in respect of disposals
-
0
(9,475)
(505)
-
0
-
0
(260,837)
(270,817)
At 30 September 2024
-
0
2,151,721
333,662
170,811
1,164
-
0
2,657,358
Carrying amount
At 30 September 2024
-
0
1,985,776
70,040
59,361
11,536
-
0
2,126,713
At 30 September 2023
2,200,000
1,783,386
91,475
62,546
-
0
103,765
4,241,172
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -

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

2024
2023
£
£
Plant and equipment
921,704
1,080,370

 

 

13
Stocks
2024
2023
£
£
Raw materials and consumables
2,097,091
1,761,845
Work in progress
1,291,932
993,739
3,389,023
2,755,584
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,989,192
2,003,302
Corporation tax recoverable
23,622
23,622
Amounts owed by group undertakings
271,875
-
0
Other debtors
56,426
275,547
Prepayments and accrued income
110,167
37,160
2,451,282
2,339,631
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
-
0
37,259
Hire purchase contracts
17
253,285
267,370
Trade creditors
1,007,814
1,065,226
Corporation tax
727,855
364,425
Other taxation and social security
450,584
372,799
Other creditors
204,888
151,952
Accruals and deferred income
149,474
91,197
2,793,900
2,350,228

 

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
237,876
Payable within one year
-
0
37,259
Payable after one year
-
0
200,617
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
253,284
267,370
In two to five years
259,145
364,285
512,429
631,655

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
-
0
200,617
Hire purchase contracts
17
259,146
364,285
259,146
564,902
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
38,551
GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
492,536
446,150
Revaluations
-
234,209
492,536
680,359
2024
Movements in the year:
£
Liability at 1 October 2023
680,359
Charge to profit or loss
46,386
Credit to equity
(234,209)
Liability at 30 September 2024
492,536

The deferred tax liability set out above is expected to reverse after 12 months.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,773
74,419

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,110,000
1,000,000
1,110,000
1,000,000

110,000 Ordinary shares were allotted in the year with an aggregate nominal value of £110,000 which is fully paid up.

 

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
22
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
210,064
19,501
Between two and five years
774,483
31,324
In over five years
886,666
-
0
1,871,213
50,825
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
-
31,653
24
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

25
Directors' transactions

Dividends totalling £201,427 (2023 - £323,695) were paid in the year in respect of shares held by the company's directors.

 

26
Ultimate controlling party

The parent company of Garner Osborne Circuits Limited is GOCL BidCo Limited, the ultimate parent company is PJ George TopCo Ltd. The address of PJ George TopCo Ltd is Unit 10 Hambridge Business Centre, Hambridge Lane, Newbury, Berkshire, RG14 5TU.

GARNER OSBORNE CIRCUITS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,066,288
1,664,102
Adjustments for:
Taxation charged
502,827
467,704
Finance costs
49,405
66,592
Investment income
(3,652)
-
0
Gain on disposal of tangible fixed assets
(703,093)
(14,858)
Depreciation and impairment of tangible fixed assets
387,235
335,380
Movements in working capital:
Increase in stocks
(633,439)
(15,136)
(Increase)/decrease in debtors
(136,310)
332,143
Increase/(decrease) in creditors
358,517
(1,540,728)
Cash generated from operations
1,887,778
1,295,199
28
Analysis of changes in net funds/(debt)
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
171,954
740,463
912,417
Borrowings excluding overdrafts
(237,876)
237,876
-
Obligations under finance leases
(631,655)
119,224
(512,431)
(697,577)
1,097,563
399,986
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