Company Registration No. SC685782 (Scotland)
GMSS HOLDINGS (2) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
GMSS HOLDINGS (2) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
GMSS HOLDINGS (2) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr G F Smith
Mr M A Smith
Mr A Bone
Mr M Woods
Company number
SC685782
Registered office
Unit 2
Moorfield North Industrial Park
Kilmarnock
Scotland
KA2 0FJ
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
GMSS HOLDINGS (2) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present the strategic report for the year ended 30 June 2024.
Review of Business and Key Performance Indicators
The consolidated results as presented in these financial statements reflect the performance of the Group for the full year to 30 June 2024. The main trading Company within the Group is Scotia Double Glazing Limited (‘SDG’) and the performance of this Company for both full financial years to 30 June 2024 and 30 June 2023 can be viewed in its financial statements.
Sustained inflationary pressures and tight fiscal constraints continued throughout the year, with interest rates remaining stubbornly high and the UK entering a technical recession. As a result, home buyers faced higher mortgage costs and restricted access to borrowing. With the added prospect of a general election and a change of Government to follow, the net effect of this was the erosion of consumer confidence, with demand for new houses in Scotland suffering a 14% decrease during the course of the year. Inevitably, this led to a reduction in sales of windows and doors, with revenues falling to £24.2m (2023: £28.1m).
The contraction in activity in the Scottish housebuilding sector eventually claimed a number of casualties, the biggest of these easily being the demise of Stewart Milne immediately after the Christmas shutdown.
In spite of these pressures, gross profit margins on continuing operations rose again slightly to 24.4% (2023: 23.8%), reflecting further efficiencies achieved in material usage and labour management. Ongoing focus on fulfilling greater processing improvements and accuracies offset continued cost pressures from suppliers and the effects of the increase during the year in the Real Living Wage (RLW), to which the SDG has been committed since 2021. However, there are concerns that RLW rates will continue to rise at a pace that outstrips the falling inflation calculations announced by the ONS which will bring pressure to bear on costs of production going forward.
Energy and transport expenditure for the year was largely kept in check despite ongoing pressures from Ukraine and elsewhere. Looking ahead to YE2025, however, SDG’s annual gas and electricity consumption will no longer benefit from historically low unit costs as these fixed rate contracts migrate to new levels more reflective of current market conditions.
The emphasis placed on stock and quality management initiatives in the YE2023 continued with SDG’s commitment to a new net zero growth accelerator programme during the year. This initiative will eventually present SDG with a validated carbon measurement scheme, prioritising more efficient use of carbon-based resources, compliant with the increasing sustainability demands made by national housebuilding companies.
The requirement to maintain a competitive edge in manufacturing led to a comprehensive study of production techniques and the potential improvements which could be achieved with further capital investment. The consequence of this was the Board’s decision to proceed with the order of a new automated line for delivery in FY2025. The efficiencies eventually achieved should go some way to offsetting the sustained impact of higher labour and energy charges, as well as improving quality of output and future-proofing the business for the eventual recovery in the housing market.
Elsewhere, SDG’s non-core activities experienced mixed fortunes during the year. Whilst sales of PVCu products to Trade customers were less affected by the downturn in the home improvement sector, the Aluminium and Architectural divisions both suffered setbacks which, ultimately, lead to the decision to unwind the latter of these and withdraw from this market completely in YE2025. Installation teams will be redeployed elsewhere in SDG, but provisions will have to be made for redundancies amongst the sales and design team and for dilapidations at the Alva showroom, which will be closed down.
GMSS HOLDINGS (2) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Principal risks and uncertainties
Although SDG continues to nurture a healthy pipeline of tendered work awarded, the anticipation of interest rate reductions may do little, initially, to enhance the current demand for new housing. It may be that further incentives are required for potential house buyers to see these orders turn into sales at an increased rate.
The New Build sector is also embarking on a prolonged period of evolution, with sweeping regulatory changes, ongoing consolidation, and new housebuilding techniques using offsite practices to produce significantly fewer carbon emissions and reduce expenditure. The supply chain will have to respond accordingly, be adaptable to new demands and be able to demonstrate compliance with the requirements of the new Future Homes Standard.
Whilst some fabricators have fallen foul of the housing downturn, opportunities for others to prosper will arise, and there remains the risk of new entrants emerging from other geographical areas and competing on cost. The directors are conscious of the need to protect the SDG’s reputation by continuous investment in quality and service. This is becoming increasingly important with the introduction of the Quality Homes Board and as NHBC enhances the protection of house buyers through its Buildmark claims process.
A greater focus is also demanded on raw materials and working with a wider selection of suppliers to ensure consistency of quality. The decision taken in YE2023 to source insulated glass units from a secondary manufacturer was extended in the past year to a third supplier, and this will offer an element of added protection against potential disruption to this vital component of SDG’s output.
Elsewhere, cyber security continues to dominate concerns about business interruption and ransomware attacks and, after an extensive review process, the directors implemented the migration of SDG’s IT managed service and support to an alternative provider. Going forward, there will more resource invested in the security of SDG’s IT estate, as well as greater ambition to embrace digital and cloud-based solutions to remove waste and improve document management.
Financial risk management
The prudent fiscal controls deployed since the COVID-19 pandemic have continued with renewed focus on collection of cash, securing proforma payments from new customers and moving the last remaining standard invoice accounts to payment applications.
By the year end, SDG has all but fully repaid the debt arising from the rebanking exercise undertaken to HSBC in 2019, leaving only a relatively small HP obligation and the remainder of the two Government-backed loans secured in the aftermath of the pandemic.
Mr A Bone
Director
26 March 2025
GMSS HOLDINGS (2) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the Group in the period under review was that of manufacture and installation of windows and doors to both the new build and trade markets.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £8,842 (2023: £17,684). 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 G F Smith
Mr M A Smith
Mr A Bone
Mr M Woods
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
GMSS HOLDINGS (2) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr A Bone
Director
26 March 2025
GMSS HOLDINGS (2) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GMSS HOLDINGS (2) LIMITED
- 6 -
Opinion
We have audited the financial statements of GMSS Holdings (2) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's 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.
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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
GMSS HOLDINGS (2) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GMSS HOLDINGS (2) LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the group through discussions with directors and management and from our knowledge of the regulatory environment relevant to the company.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.
GMSS HOLDINGS (2) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GMSS HOLDINGS (2) LIMITED
- 8 -
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
David Holt (Senior Statutory Auditor)
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
Date:
26 March 2025
GMSS HOLDINGS (2) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Continuing
Discontinued
30 June
Continuing
Discontinued
30 June
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
22,760,952
1,441,067
24,202,019
25,729,083
2,408,520
28,137,603
Cost of sales
(17,197,869)
(1,045,182)
(18,243,051)
(19,606,695)
(1,690,587)
(21,297,282)
Gross profit
5,563,083
395,885
5,958,968
6,122,388
717,933
6,840,321
Distribution costs
(594,833)
(121,584)
(716,417)
(614,652)
(158,150)
(772,802)
Administrative expenses
(3,269,139)
(693,236)
(3,962,375)
(2,929,953)
(554,375)
(3,484,328)
Other operating income
24,996
-
24,996
29,255
-
29,255
Operating profit
3
1,724,107
(418,935)
1,305,172
2,607,038
5,408
2,612,446
Interest receivable and similar income
7
32,219
-
32,219
-
-
-
Interest payable and similar expenses
8
(109,782)
-
(109,782)
(157,504)
-
(157,504)
Profit before taxation
1,646,544
(418,935)
1,227,609
2,449,534
5,408
2,454,942
Tax on profit
9
(431,092)
104,734
(326,358)
(541,902)
(1,109)
(543,011)
Profit for the financial year
1,215,452
(314,201)
901,251
1,907,632
4,299
1,911,931
Total comprehensive income attributable to owners of the parent company in the year is £901,251 (2023: £1,926,727).
Total comprehensive income attributable to non-controlling interests in the year is £nil (2023: £14,796 loss).
The notes on pages 15 to 31 form part of these financial statements.
GMSS HOLDINGS (2) LIMITED
GROUP BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,962,119
2,256,209
Current assets
Stocks
15
938,350
836,387
Debtors
16
5,083,097
6,155,164
Cash at bank and in hand
3,206,554
2,891,462
9,228,001
9,883,013
Creditors: amounts falling due within one year
17
(4,868,195)
(6,156,719)
Net current assets
4,359,806
3,726,294
Total assets less current liabilities
6,321,925
5,982,503
Creditors: amounts falling due after more than one year
18
(526,379)
(1,131,248)
Provisions for liabilities
Provisions
21
97,265
Deferred tax liability
22
360,270
405,653
(457,535)
(405,653)
Net assets
5,338,011
4,445,602
Capital and reserves
Called up share capital
25
25,846
25,846
Share premium account
941,594
941,594
Profit and loss reserves
4,370,571
3,478,162
Total equity
5,338,011
4,445,602
The notes on pages 15 to 31 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
26 March 2025
Mr A Bone
Director
GMSS HOLDINGS (2) LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
1,295,812
1,295,812
Current assets
Debtors
16
2,345,089
1,780,821
Cash at bank and in hand
2,060,766
814,288
4,405,855
2,595,109
Creditors: amounts falling due within one year
17
(1,759,930)
(356,929)
Net current assets
2,645,925
2,238,180
Total assets less current liabilities
3,941,737
3,533,992
Creditors: amounts falling due after more than one year
18
(68,750)
(143,750)
Net assets
3,872,987
3,390,242
Capital and reserves
Called up share capital
25
25,846
25,846
Share premium account
941,594
941,594
Profit and loss reserves
2,905,547
2,422,802
Total equity
3,872,987
3,390,242
The notes on pages 15 to 31 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £491,587 (2023 - £1,460,920 profit).
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
26 March 2025
Mr A Bone
Director
Company Registration No. SC685782
GMSS HOLDINGS (2) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2022
24,004
890,920
1,569,119
2,484,043
321,321
2,805,364
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
1,926,727
1,926,727
(14,796)
1,911,931
Issue of share capital
25
1,842
50,674
-
52,516
-
52,516
Dividends
11
-
-
(17,684)
(17,684)
-
(17,684)
Redemption of shares in subsidiary entity
-
-
-
-
(306,525)
(306,525)
Balance at 30 June 2023
25,846
941,594
3,478,162
4,445,602
4,445,602
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
901,251
901,251
-
901,251
Dividends
11
-
-
(8,842)
(8,842)
-
(8,842)
Balance at 30 June 2024
25,846
941,594
4,370,571
5,338,011
5,338,011
The notes on pages 15 to 31 form part of these financial statements.
GMSS HOLDINGS (2) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
24,004
890,920
979,566
1,894,490
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
1,460,920
1,460,920
Issue of share capital
25
1,842
50,674
-
52,516
Dividends
11
-
-
(17,684)
(17,684)
Balance at 30 June 2023
25,846
941,594
2,422,802
3,390,242
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
491,587
491,587
Dividends
11
-
-
(8,842)
(8,842)
Balance at 30 June 2024
25,846
941,594
2,905,547
3,872,987
The notes on pages 15 to 31 form part of these financial statements.
GMSS HOLDINGS (2) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,114,037
3,371,861
Interest paid
(109,782)
(155,800)
Income taxes paid
(643,292)
(278,388)
Net cash inflow from operating activities
1,360,963
2,937,673
Investing activities
Purchase of tangible fixed assets
(46,782)
(143,727)
Interest received
32,219
Net cash used in investing activities
(14,563)
(143,727)
Financing activities
Proceeds from issue of shares
-
52,516
Repayment of loan notes
(75,000)
(75,000)
Repayment of other borrowings
(31,472)
(47,579)
Proceeds of new bank loans
-
315,000
Repayment of bank loans
(485,725)
(466,555)
Amounts repaid to directors
(228,536)
(119,832)
Payment of finance leases obligations
(201,733)
(283,498)
Redemption of shares
-
(306,525)
Dividends paid to equity shareholders
(8,842)
(17,684)
Dividends paid to non-controlling interests
-
(180,078)
Net cash used in financing activities
(1,031,308)
(1,129,235)
Net increase in cash and cash equivalents
315,092
1,664,711
Cash and cash equivalents at beginning of year
2,891,462
1,226,751
Cash and cash equivalents at end of year
3,206,554
2,891,462
The notes on pages 15 to 31 form part of these financial statements.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information
GMSS Holdings (2) Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Unit 2, Moorfield North Industrial Park, Kilmarnock, Scotland, KA2 0FJ.
The group consists of GMSS Holdings (2) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and all group undertakings. Group accounting policies are consistently applied across all group companies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over 5 years from the year of acquisition. Negative goodwill is written off in the year of acquisition. The results of the companies acquired or disposed of are included in the Consolidated Statement of Comprehensive Income published, a separate income statement for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
The turnover shown in the Statement of Comprehensive Income represents the value of all goods sold during the year exclusive of Value Added Tax. Sales are recognised at the point at which the Group has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the term of the lease
Plant and equipment
10% straight line
Office equipment
10-33% straight line
Motor vehicles
10% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in or .
1.8
Stocks
Stocks are valued at the lower of cost and net realisable value. Cost consists of purchase invoice costs. Work in progress is valued based on costs incurred plus an attributable value of profit to reflect the stage of completion. Cost consists of direct materials, labour and attributable overheads. Net realisable value is based on estimated selling price, less further costs expected to be incurred on completion and disposal.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
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.
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 group's contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.11
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
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.
1.14
Retirement benefits
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions to the Group's defined contribution scheme are charged to the Statement of Comprehensive Income in the year in which they become payable.
1.15
Leases
Leases are classified as finance leases or hire purchase contracts 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 or hire purchase 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 or hire purchase 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.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
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.
1.18
A provision for onerous lease contracts is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the lease contract. Before a provision is established, the company recognises any impairment loss on the assets associated with that lease contract.
2
Judgements and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates. In preparing the financial statements the directors have made the following judgements:
Determine whether leases entered into by the Group as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Determine whether there are indicators of impairment of the Group's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
Determine whether contract revenue and contract costs have been estimated and recognised according to the concepts of prudence and realisation of profits.
Determine whether any stock provision is required via a review of the stock holding for obsolete, damaged and slow moving stock.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(24,996)
(29,255)
Depreciation of owned tangible fixed assets
214,803
226,584
Depreciation of tangible fixed assets held under finance leases
171,015
152,764
Operating lease charges
364,762
275,278
Included within government grants is the release of the deferred government grant of £24,996 (2023: £24,996) plus government grants received in the year of £nil (2023: £4,259).
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
20,400
19,800
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the post acquisition year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
65
64
-
-
Production, installation and sales
180
188
-
-
Total
245
252
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,474,652
5,619,888
Social security costs
650,562
623,645
-
-
Pension costs
269,752
171,577
6,394,966
6,415,110
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
397,192
319,400
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
101,400
90,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
32,219
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
36,523
58,217
Other interest on financial liabilities
49,942
75,478
Interest on finance leases and hire purchase contracts
23,317
23,809
Total finance costs
109,782
157,504
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
383,723
467,726
Adjustments in respect of prior periods
(11,982)
5,220
Total current tax
371,741
472,946
Deferred tax
Origination and reversal of timing differences
(45,383)
70,065
Total tax charge
326,358
543,011
From April 2023 onwards, the main rate of corporation tax rose from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is a new small profits rate. Deferred tax has been calculated at a rate of 25%.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 23 -
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
1,227,609
2,454,942
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
306,902
503,263
Tax effect of expenses that are not deductible in determining taxable profit
17,673
4,156
Fixed asset differences
13,765
(39,693)
Underprovision in previous year
(11,982)
5,220
Change in rate of deferred tax
70,065
Taxation charge
326,358
543,011
10
Discontinued operations
During the current year, the group decided to discontinue its Architectural division as part of the group's broader strategy to streamline operations and focus on its core business. As a result, the Architectural division has been classified separately as a discontinued operation in the financial statements in the current and prior year.
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Dividend payable
8,842
17,684
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
1,410,082
2,511,592
431,403
90,600
4,443,677
Additions
75,728
16,000
91,728
At 30 June 2024
1,410,082
2,587,320
431,403
106,600
4,535,405
Depreciation and impairment
At 1 July 2023
586,238
1,190,098
385,793
25,339
2,187,468
Depreciation charged in the year
135,848
196,976
27,343
25,651
385,818
At 30 June 2024
722,086
1,387,074
413,136
50,990
2,573,286
Carrying amount
At 30 June 2024
687,996
1,200,246
18,267
55,610
1,962,119
At 30 June 2023
823,844
1,321,494
45,610
65,261
2,256,209
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
917,127
988,665
Motor vehicles
55,610
65,261
972,737
1,053,926
-
-
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
1,295,812
1,295,812
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
1,295,812
Carrying amount
At 30 June 2024
1,295,812
At 30 June 2023
1,295,812
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
GMSS Holdings Limited
C/O Scotia Double Glazing Ltd Unit 2, Moorfield Park, Kilmarnock, Scotland, KA2 0FJ
Holding company
Ordinary
100.00
-
Ayrshire Aluminium Co. Limited
C/O Scotia Double Glazing Ltd Unit 2, Moorfield Park, Kilmarnock, Scotland, KA2 0FJ
Holding company
Ordinary
0
100.00
Scotia Double Glazing Limited
Unit 2 Moorfield Park, Kilmarnock, Scotland, KA2 0FJ
Double glazing products
Ordinary
0
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
660,411
563,325
-
-
Work in progress and finished goods
277,939
273,062
-
-
938,350
836,387
-
-
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,433,551
4,532,567
Gross amounts owed by contract customers
1,421,946
1,248,356
Amounts owed by group undertakings
-
-
2,318,972
1,780,821
Other debtors
169,682
257,238
26,117
Prepayments and accrued income
57,918
117,003
5,083,097
6,155,164
2,345,089
1,780,821
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loan notes
75,000
75,000
75,000
75,000
Bank loans
19
289,401
614,015
128,476
232,441
Obligations under finance leases
20
178,015
189,246
Other borrowings
19
18,206
31,472
Trade creditors
2,413,202
2,514,603
Amounts owed to group undertakings
1,528,895
Corporation tax payable
209,125
480,676
16,791
8,007
Other taxation and social security
169,704
188,115
-
-
Government grants
23
25,000
25,000
Other creditors
10,768
43,853
10,768
41,481
Accruals and deferred income
1,479,774
1,994,739
4,868,195
6,156,719
1,759,930
356,929
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loan notes
68,750
143,750
68,750
143,750
Bank loans and overdrafts
19
190,000
351,111
Obligations under finance leases
20
160,384
305,940
Other borrowings
19
19,723
37,929
Government grants
23
87,522
112,518
Other creditors
180,000
526,379
1,131,248
68,750
143,750
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
479,401
965,126
128,476
232,441
Other loans
37,929
69,401
517,330
1,034,527
128,476
232,441
Payable within one year
307,607
645,487
128,476
232,441
Payable after one year
209,723
389,040
The Group's bank loan is secured by a floating charge over all assets of the Group.
One of the Group's other loans is secured by a floating charge over all of the assets of the Group.
Amounts payable after more than one year relating to the Group's loans are repayable in monthly instalments. Interest is payable at 3.5% - 6%.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
178,016
189,246
In two to five years
131,329
163,036
In over five years
29,054
142,904
338,399
495,186
-
-
Hire purchase or finance lease liabilities are secured over the assets to which they relate.
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Onerous lease
97,265
-
-
-
Movements on provisions:
Onerous lease
Group
£
Additional provisions in the year
97,265
During the year certain properties that the group once traded from have ceased trading resulting in losses which are expected to continue until the end of the lease period. The directors reviewed the future operating cashflows from each property and made a provision for the future obligations under the lease contract until the lease expires. These costs are included within discontinued operations.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
360,270
405,653
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
405,653
-
Credit to profit or loss
(45,383)
-
Liability at 30 June 2024
360,270
-
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
23
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
112,522
137,518
-
-
Deferred income is included in the financial statements as follows:
Current liabilities
25,000
25,000
Non-current liabilities
87,522
112,518
112,522
137,518
-
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
269,752
171,577
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
25,846
25,846
25,846
25,846
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
376,875
357,809
-
-
Between two and five years
1,255,380
1,020,205
-
-
In over five years
-
140,750
-
-
1,632,255
1,518,764
-
-
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
27
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
1,175,000
-
-
-
28
Related party transactions
Transactions with related parties
At the year end, the Company had amounts due by directors of £19,527 (2023: £21,120).
At the year end, the Company had amounts due to the directors of £7,842 (2023: £60,897).
At the year end, the Group had amounts due by directors of £19,527 (2023: £21,120).
At the year end, the Group had amounts due to directors of £7,842 (2023: £240,897).
Other information
The Group 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.
No other transactions were undertaken such as are required to be disclosed under Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
29
Ultimate controlling party
The Group is under the control of the shareholders. No individual shareholder has a controlling interest.
30
Contingent liabilities
The Company has given a cross guarantee in respect of the bank loan of Scotia Double Glazing Limited. As at 30 June 2024 the outstanding balance was £20,925 (2023: £262,685).
GMSS HOLDINGS (2) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
901,251
1,911,931
Adjustments for:
Taxation charged
326,358
543,011
Finance costs
109,782
157,504
Investment income
(32,219)
Depreciation and impairment of tangible fixed assets
385,818
379,348
Movements in working capital:
(Increase)/decrease in stocks
(101,963)
500,988
Decrease in debtors
1,091,594
853,555
Decrease in creditors
(663,849)
(974,476)
Increase in provisions
(97,265)
-
Cash generated from operations
2,114,037
3,371,861
32
Analysis of changes in net funds - group
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
2,891,462
315,092
-
3,206,554
Borrowings excluding overdrafts
(1,034,527)
517,197
-
(517,330)
Obligations under finance leases
(495,186)
201,733
(44,946)
(338,399)
Convertible loan notes
(218,750)
75,000
-
(143,750)
1,142,999
1,109,022
(44,946)
2,207,075
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.300Mr G F SmithMr M A SmithMr A BoneMr M 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