Registered number: 02718451
De Gournay Limited
Annual report and financial statements
For the Year Ended 30 June 2024
|
De Gournay Limited
Company Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants & Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
De Gournay Limited
Contents
|
|
|
|
|
|
Independent auditors' report
|
|
Statement of income and retained earnings
|
|
|
|
|
|
Notes to the financial statements
|
|
|
De Gournay Limited
Strategic Report
For the Year Ended 30 June 2024
De Gournay Limited sells the finest quality wallcoverings and other interior furnishings to both interior designers and retail clients. The company was founded in 1992 by Mr Claud Cecil Gurney and has grown to be a market leader in our field in both the UK and globally.
The principal activity of the company is that of importing hand painted and/or hand embroidered wallpapers for resale.
Considering prevailing economic and geo-political circumstances, the year on year sales have been impacted, however, the management and employees are constantly involved in extensive marketing activities to bring in sales growth in existing and newer markets.
We continue to build on existing relationships with major international designer clients including entering into collaborations with major global influencers.
The company is working on expansion of production capabilities and training of production staff to bring in efficiencies and also prepare for future requirements.
Routine accounting, sales support, IT and other administrative functions have been centralized within the group to achieve cost-efficiency.
Principal risks and uncertainties
|
We provide products of the finest quality and so we continually monitor the quality of production and look for ways of improvement. The development and maintenance of relationships with market-leading interior designers is a major contributory factor to our success.
Due to the international nature of our operations exchange rate fluctuations can have impacts on both revenues and costs.
There are also possible political risks associated with operations in a third-country/jurisdiction and we try to mitigate such risks by having operations in multiple locations.
Financial key performance indicators
|
|
|
|
Sales (Third Party) (£'000)
|
|
|
|
|
|
|
|
|
Net Profit Before Tax (£'000)
|
|
|
|
|
|
This report was approved by the board and signed on its behalf.
................................................
D R C Evans-Freke
Director
|
|
Page 1
|
De Gournay Limited
Directors' Report
For the Year Ended 30 June 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
Directors' responsibilities statement
|
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
Principal activity is disclosed in the strategic report.
The profit for the year, after taxation, amounted to £593,986 (2023 - £1,487,449).
No dividends were paid in respect of the year (2023 - no dividend).
The directors who served during the year were:
We continue to look for more suitable opportunities to expand the range of designs we offer, the range of surfaces and therefore applications we offer them for use with and the markets we can reach with them from the UK.
Page 2
|
De Gournay Limited
Directors' Report (continued)
For the Year Ended 30 June 2024
The company is funded from internal resources with no use of external debt, and as such there is no exposure to interest rate risk.
The company is exposed to liquidity and cash flow risk, however under normal circumstances these have relatively low variability. The risk is mitigated by the company maintaining significant cash reserves.
In addition, the company is exposed to normal commercial risks in terms of pricing pressure, however gross profit margins remain particularly strong so the level of risk here is considered to be low.
Finally, the company is exposed to foreign exchange risk, however it does not currently employ any hedging techniques to mitigate this risk.
Matters covered in the Strategic Report
|
The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal activities.
Disclosure of information to auditors
|
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
|
There have been no events since 30 June 2024 that have had a significant impact on the business.
The auditors, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
................................................
D R C Evans-Freke
Director
|
|
Page 3
|
De Gournay Limited
Independent auditors' report to the members of De Gournay Limited
We have audited the financial statements of De Gournay Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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, except for the possible effects of the matters described in the basis for qualified opinion section of our report, the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year 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 qualified opinion
|
Included in other debtors falling due within one year are amounts owed by companies related to a director amounting to £4,128,234 (30 June 2023: £2,885,852). We have received confirmations from these counterparties of the accuracy of these debtor balances, but we have been unable to obtain sufficient appropriate audit evidence regarding the recoverability of these debts in full. There were no alternative audit procedures that we could perform to satisfy ourselves as to whether the amounts due from the companies are recoverable. Our audit opinion on the Company's financial statements for the year ended 30 June 2023 in respect of this matter was also modified for the same reason.
In addition to the above, we were unable to obtain a closing stock report to determine whether any adjustment to closing stock, comprising finished goods and goods for resale, included in the balance sheet as at 30 June 2022 of £693,432 was necessary. Since the opening stock balance affects the determination of the results of operations, we were unable to determine whether adjustments to the results of operations and opening retained earnings might be necessary for the year ended 30 June 2023. Our audit opinion on the financial statements for the year ended 30 June 2023 was modified accordingly. Our audit opinion on the financial statements for the current financial year is also modified, because of the possible effect of this matter on the comparability of the current year’s figures and the corresponding figures.
In addition, were any adjustments to (i) the other debtors balance as at 30 June 2024 and 2023; or (ii) the opening retained earnings for the year ended 30 June 2023 to be required, the Strategic Report and the Directors’ Report would also need to be amended.
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified opinion.
Page 4
|
De Gournay Limited
Independent auditors' report to the members of De Gournay Limited (continued)
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
As described in the basis for qualified opinion section above, we were unable to obtain sufficient appropriate evidence about (i) the recoverability of amounts owed by companies related to a director; and (ii) the comparability of the current year’s figures and the corresponding figures. Accordingly, we are unable to conclude whether or not the other information is materially misstated with respect to these matters.
Opinion on other matters prescribed by the Companies Act 2006
|
Except for the possible effects of the matters described in the basis for qualified opinion section of our report, in
our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Page 5
|
De Gournay Limited
Independent auditors' report to the members of De Gournay Limited (continued)
Matters on which we are required to report by exception
|
Except for the matters described 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 or the Directors' Report.
Arising solely from the limitation on the scope of our work relating to other debtors as at 30 June 2024 and opening stock as at 1 July 2022, referred to above:
∙we have not obtained all the information and explanations that we consider necessary for the purpose of our audit; and
∙we were unable to determine whether adequate accounting records had been kept.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made.
Responsibilities of directors
|
As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.
Page 6
|
De Gournay Limited
Independent auditors' report to the members of De Gournay Limited (continued)
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 as well as taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure. Audit procedures performed by the engagement team included:
∙Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud, and review of the reports made by management; and
∙Assessment of identified fraud risk factors; and
∙Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
∙Performing analytical procedures with automated data analytics tools to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud; and
∙Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation.
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.
Page 7
|
De Gournay Limited
Independent auditors' report to the members of De Gournay Limited (continued)
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
∙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. 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.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Auditors' 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.
Graham Hunt BA FCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
Horsham
26 March 2025
Page 8
|
De Gournay Limited
Statement of Income and Retained Earnings
For the Year Ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings at the beginning of the year
|
|
|
|
|
|
|
|
Retained earnings at the end of the year
|
|
|
|
The notes on pages 12 to 25 form part of these financial statements.
|
Page 9
|
De Gournay Limited
Registered number: 02718451
Balance Sheet
As at 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due after more than one year
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Provisions for liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
D R C Evans-Freke
|
|
|
The notes on pages 12 to 25 form part of these financial statements.
Page 10
|
De Gournay Limited
Statement of Cash Flows
For the Year Ended 30 June 2024
Cash flows from operating activities
|
|
|
Profit for the financial year
|
|
|
|
|
|
Depreciation of tangible assets
|
|
|
Loss on disposal of tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in stocks
|
|
|
|
|
|
Decrease in amounts owed by groups
|
|
|
|
|
|
Increase in amounts owed to groups
|
|
|
|
|
|
Net cash generated from operating activities
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
Purchase of tangible fixed assets
|
|
|
Sale of tangible fixed assets
|
|
|
|
|
|
Net cash from investing activities
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
Cash and cash equivalents at the end of year
|
|
|
|
|
|
Cash and cash equivalents at the end of year comprise:
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 12 to 25 form part of these financial statements.
|
Page 11
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
The company is a private company limited by share capital incorporated in England and Wales.
The address of its registered office is:
9 Donnington Park
85 Birdham Road
Chichester
West Sussex
PO20 7AJ
The principal trading address is:
112 Old Church Street
London
SW3 6EP
2.Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company keeps its trading performance and funding requirements under constant review, and these are incorporated into its forecasting. Having performed such a review for a period of twelve months from the approval date of the financial statements, the directors have concluded that, based on the financial forecast for the period, the company will have sufficient funding available to continue to finance its operations and, therefore, consider it appropriate to prepare the financial statements on a going concern basis.
Page 12
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
|
|
Foreign currency translation
|
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within administrative expenses.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
These conditions are usually satisfied once a significant deposit is received and once goods are on hand, identified and ready for delivery to the buyer.
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Page 13
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 14
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
|
|
Tangible fixed assets (continued)
|
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line or reducing balance method.
Depreciation is provided on the following basis:
|
|
|
|
Short-term leasehold property
|
|
over the term of the individual leases
|
|
|
|
|
|
|
15% reducing balance or 25% straight line
|
|
|
|
|
|
|
|
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Long-term and short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
|
Provisions for liabilities
|
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 15
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial assets have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the assets original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 16
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
2.Accounting policies (continued)
|
|
Financial instruments (continued)
|
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flows expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
|
Judgments in applying accounting policies and key sources of estimation uncertainty
|
During the year, the Company made further advances of £235,474 (2023: £Nil) to and received loan repayments of £Nil (2023: £120,899) from a company based in India in which certain directors are shareholders. Interest charged on the loan balance in the year amounted to £25,916 (2023: £20,656). The loan amount outstanding at the year end and included within other debtors was £1,063,638 (2023: £857,282). This loan related to start-up costs incurred in India, where the operations are running smoothly and have become a vital part of the group's strategy. It is the judgment of directors that the balance remains recoverable in full.
In addition, during the year the Company made further advances of £1,242,382 (2023: £742,208) to a number of companies based in Croatia in which certain directors are shareholders. The total amount owed by these companies at the year end and included within other debtors was £4,128,234 (2023: £2,885,852). These loans were given to enable these companies in Croatia to buy and develop land and property, with the aim of selling the developed properties for a profit in the forseeable future. It is the judgment of the directors that the balance remains recoverable in full.
Page 17
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
|
|
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Analysis of turnover by country of destination:
|
|
|
The operating profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible fixed assets
|
|
|
|
|
|
|
|
Other operating lease rentals
|
|
|
|
(Profit)/Loss on sale of tangible assets
|
|
|
|
|
|
During the year, the Company obtained the following services from the Company's auditors:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements
|
|
|
|
Fees payable to the Company's auditor and its associates in respect of all other services
|
|
|
Page 18
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
|
|
Staff costs, including directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution pension scheme
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of employees
|
|
|
|
|
|
|
|
Company contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 1 director (2023 -2) in respect of defined contribution pension schemes.
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
|
|
|
|
|
|
|
|
Origination and reversal of timing differences
|
|
|
Page 19
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
9.Taxation (continued)
|
Factors affecting tax charge for the year
|
|
The tax assessed for the year is higher than (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20.5%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20.5%)
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
|
|
|
|
Capital allowances for year in deficit/(excess) of depreciation
|
|
|
|
Other timing differences leading to an increase (decrease) in taxation
|
|
|
|
Total tax charge for the year
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
Page 20
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
|
Short-term leasehold property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
Page 21
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
Due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
Page 22
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
|
|
|
|
Financial assets measured at amortised cost through profit or loss
|
|
|
|
|
|
|
|
Other financial liabilities measured at amortised cost through profit or loss
|
|
|
|
Financial assets that are debt instruments measured at amortised cost comprise cash at bank, trade debtors, other debtors and amounts owed by group undertakings.
|
|
Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors and amounts owed to group undertakings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
35,000 (2023 -35,000) Ordinary shares of £1 each
|
|
|
Profit and loss account
The profit and loss reserve represents cumulative profit or losses, net of dividends paid and other adjustments.
Page 23
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £58,516 (2023 - £50,606). Contributions totalling £11,233 (2023 - £10,198) were due to the fund at the balance sheet date and are included in creditors.
|
Commitments under operating leases
|
|
At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
|
|
|
Page 24
|
De Gournay Limited
Notes to the Financial Statements
For the Year Ended 30 June 2024
|
Related party transactions
|
|
During the year the company received loan repayments from a director of £1,850,000 (2023: £370,000) and made a further loan to a director of £6,552,975, on which interest was charged at a rate of 2%. The amount outstanding at the year end, included within other debtors, was £8,252,287 (2023: £3,485,111).
During the year the company made payments to a director for rental of premises under a lease agreement of £30,000 (2023: £60,000).
During the year the company made payments to a director for rental of another premises under a lease agreement of £60,000 (2023: £60,000).
During the year the company made payments to a director for rental of another premises under a lease agreement of £38,443 (2023: £38,443).
During the year the company received loan repayments from a director of £nil (2023: £3,942) and made a further loan to a director of £1,734 (2023: £nil). The amount outstanding at the year end, included within other creditors was £2,057 (2023: £3,791).
During the year the company made a further loan to a director of £732 (2023: £nil). The amount owed to the director at the year end, included within other creditors was £3,910 (2023: £4,642).
During the year the company advanced a loan of £235,474 (2023: £nil) to a company in which the directors are shareholders. During the year the company was charged £1,978,554 (2023: £1,944,198) for the sale of goods and the provision of project and administration services by this company. The loan amount outstanding at the year end, included within other debtors was £1,063,638 (2023: £857,282). The trading balance outstanding at the year end, included within other creditors was £222,261 (2023: £nil).
During the year the company made purchases totalling £174,810 (2023: £346,582) from a company in which the directors are shareholders. At the year end, included within other debtors were payments on account totalling £44,977 (2023: £9,780).
During the year the company made a loan of £1,204,739 (2023: £109,470) to a company, in which a director is a shareholder. The amount outstanding at the year end, included within other debtors was £2,255,602 (2023: £1,050,863).
During the year the company made a loan of £1,089 (2023: £5,736) to a company in which a director is a shareholder. The amount outstanding at the year end, included within other debtors was £684,565 (2023: £683,476).
During the year the company made a loan of £19,420 (2023: £1,200) to a company in which a director is a shareholder. The amount outstanding at the year end, included within other debtors was £545,132 (2023: £525,712).
During the year the company made a loan of £17,133 (2023: £625,802) to a company in which a director is a shareholder. The amount outstanding at the year end, included within other debtors was £642,935 (2023: £625,802).
Transactions with wholly owned group entities
The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the group.
|
The company's immediate parent undertaking is Cecil Limited registered in Hong Kong. The registered office address of Cecil Limited is Unit 1002, 10/F., 88 Hing Fat Street, Causeway Bay, Hong Kong.
Page 25
|
|