REGISTERED NUMBER: 11884270 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
GSMT Holdings Limited |
REGISTERED NUMBER: 11884270 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
GSMT Holdings Limited |
GSMT Holdings Limited (Registered number: 11884270) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company information | 1 |
Group strategic report | 2 |
Report of the directors | 3 | to | 4 |
Report of the independent auditors | 5 | to | 8 |
Consolidated income statement | 9 |
Consolidated statement of financial position | 10 |
Company statement of financial position | 11 |
Consolidated statement of changes in equity | 12 |
Company statement of changes in equity | 13 |
Consolidated statement of cash flows | 14 |
Notes to the consolidated statement of cash flows | 15 |
Notes to the consolidated financial statements | 16 | to | 29 |
GSMT Holdings Limited |
Company Information |
for the Year Ended 31 March 2024 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
27 Market Place |
Market Deeping |
Peterborough |
Cambridgeshire |
PE6 8EA |
GSMT Holdings Limited (Registered number: 11884270) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
We aim to present a balanced review of the group's performance and development during the year that is consistent with the size and nature of our business and that also covers the principal risks and uncertainties faced by the group. |
Review of business |
The Invasion of Ukraine by Russia in February 2022 pushed the demand for various raw materials to unprecedented highs which in turn lead to a huge spike in both the demand and the price during 2022. The group has continued to trade strongly. |
Principal risks and uncertainties |
The management of the business and the execution of the group's strategy are subject to a number of risks. |
The key business risks affecting the group are considered to relate to maintaining the customer base, matching product supply to demand throughout the year in an ever changing market place. The supply demand of material has been somewhat restricted shipping constraints, imminent cost increases with the ban of use of rebated fuels and increasing regulatory burden. |
The group uses various financial instruments including loans/overdrafts, cash and management of working capital in order to finance its operations. The directors review and agree policies to manage the key risks envisaged in respect of each instrument, these policies remain unchanged from previous years. |
Liquidity Risk - The group manages it's liquidity risk by maintaining adequate reserves and bank facilities, including stock loans with its bankers HSBC, by monitoring cash flows and its working capital requirements. |
Credit Risk - The group's main financial assets are trade receivables and cash and bank balances. Those assets represent the company's main exposure to credit risk, which is that a counterparty will fail to discharge its obligations, resulting in financial loss to the company. The directors believe that credit risk is both limited and mitigated as a result of a significant proportion of credit sales being paid prior to stock being released. |
Foreign Currency Risk - The group does conduct a growing level of trade outside the UK, the group would undertake hedging/forward currency contracts where appropriate to minimise the exchange rate exposure. |
Interest Rate Risk - The group funds its operations through a combination of retained profits, internally generated cash, asset-backed finance arrangements and banking facilities. Interest rate swap instruments would be utilised to mitigate this risk where appropriate. |
Financial key performance indicators |
KPI's for the group are measured on daily cash flow forecasts and monthly management information, monthly meetings take place by both management and Directors to assess the KPI. The group is also assessed regularly by the Environment Agency and FORS to ensure compliance of the highest level. |
Other key performance indicators |
Where appropriate the directors set indicators to measure its non-financial performance in a number of ways in line with other groups similar in size and nature to GSMT Holdings Ltd. |
On behalf of the board: |
28 March 2025 |
GSMT Holdings Limited (Registered number: 11884270) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
Principal activity |
The principal activity of the company during the period was a holding company to the Group. |
Dividends |
The total distribution of dividends for the year ended 31 March 2024 will be £735,039. |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Streamlined energy and carbon reporting |
Carbon footprint |
2023 - 2024 | 2022 - 2023 |
Value |
Carbon (tonnes) |
Value |
Carbon (tonnes) |
Scope 1 - Emissions from operations that are owned or controlled by the reporting group |
Company vehicles |
1,063,672 litres |
2,840 |
1,091,423 litres |
2,903 |
Total scope 1 | 2,840 | 2,903 |
Scope 2 - Emissions from the generation of purchased or acquired electricity |
Purchased electricity |
105,670 kWh |
21.88 |
88,631 kWh |
18.24 |
Renewable energy | 476 kWh | (0.10) |
Total scope 2 | 21.88 | 18.14 |
Total carbon emissions (tonnes) | 2,862 | 2,921 |
Intensity factor |
Tonnes CO2e/£Turnover | 0.00003 | 0.00003 |
We continue to evaluate the most accurate way to capture and report carbon for a business of our type, that |
is heavily reliant on travel. The other key element is our use of 100% renewable electricity. The registered office premises, the groups head office, is powered completely by renewable energy via an on site wind turbine. Therefore the groups carbon footprint is lower than what is stated above. The wind turbine is owned by a third party and access to reach the wind turbine is via the head office's premises. In exchange for access, the head office has permission from the owner to use the wind turbine for all site power. Unfortunately, there is no way of measuring the renewable energy usage because the group does not have access to this data. We regularly reinvests in newer, more energy efficient vehicles with lower emissions, in order to reduce our carbon footprint. As an organisation we will continue to embrace the use of virtual meetings where appropriate to our business. |
As required by the legislation we have also included one intensity measure for both periods of reporting. This |
measure is tonnes of CO2e/£. We will consider the development of further intensity measures in the future. |
We have used the relevant DEFRA carbon conversion factor based on the year of reporting. |
GSMT Holdings Limited (Registered number: 11884270) |
Report of the Directors |
for the Year Ended 31 March 2024 |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Auditors |
The auditors, Moore Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
GSMT Holdings Limited |
Disclaimer of opinion |
We were engaged to audit the financial statements of GSMT Holdings Limited (the ‘parent company’) and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated income statement, Consolidated other comprehensive income, Consolidated statement of financial position, Company statement of financial position, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated statement of cash flows and Notes to the consolidated statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. |
Basis for disclaimer of opinion |
We were unable to obtain all evidence for a non-trading subsidiary company, Propco (Stoke) Ltd, during the year. We were unable to confirm the year end bank balance, VAT liability, directors loan account or bank loans balance. We requested access to the bank statements multiple times together with the accounting records and they have not been provided. We are aware that the bank account has been closed but do not know whether any further bank accounts exist. The shareholders also approached the director of Propco (Stoke) Ltd to obtain the bank statements and accounting records but the director failed to respond. Two shareholders of the parent company were appointed as directors of this non-trading subsidiary in October 2024 to ensure that the company complies with it's filing deadlines and to make an attempt to obtain information which has not been provided by the original director. The original director of this subsidiary is in breach of the Companies Act s.499 and the group continues to take legal advice in relation to this. Consequently we were unable to determine whether the assets and liabilities of Propco (Stoke) Ltd are misstated. We have not been able to obtain sufficient and appropriate evidence to support the closing bank balance, directors loan account, VAT liability or bank loans of Propco (Stoke) Ltd. From the information we have obtained directly from the bank where the closed bank account was held, it is believed that the balances stated above are both material and pervasive. |
There are no material errors to report for any other subsidiaries. All other subsidiary audit reports are unmodified. |
Sufficient and appropriate audit evidence has been obtained for the parent company, GSMT Holdings Ltd. Propco (Stoke) Ltd does not require an audit in its own right, therefore, as an individual entity it has no requirement to submit an audit report. However, the potential balance sheet balances for Propco (Stoke) Ltd are material to the group and therefore audit work is required upon consolidation. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
Opinions on other matters prescribed by the Companies Act 2006 |
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on work undertaken in the course of the audit: |
- the information given in the strategic report and directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the strategic report and directors' report have been prepared in accordance with applicable legal standards. |
Report of the Independent Auditors to the Members of |
GSMT Holdings Limited |
Matters on which we are required to report by exception |
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors’ report. |
Arising from the limitation of our work referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; |
- we were unable to determine whether adequate accounting records have been kept; and |
- returns adequate for our audit have not been received from branches not visited by us. |
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: |
- the parent company financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law have not been made. |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our responsibility is to conduct an audit of the company’s financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report. |
However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. |
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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
Report of the Independent Auditors to the Members of |
GSMT Holdings Limited |
Other matters which we are required to address |
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: |
- | the engagement partner 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the client group's sector. |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company. |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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, their knowledge of actual, suspected and alleged fraud; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journals entries to identify unusual transactions; |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; |
- | reviewing correspondence with HMRC and the company's legal advisors. |
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, if any. |
Material misstatement that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
Report of the Independent Auditors to the Members of |
GSMT Holdings Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
27 Market Place |
Market Deeping |
Peterborough |
Cambridgeshire |
PE6 8EA |
GSMT Holdings Limited (Registered number: 11884270) |
Consolidated Income Statement |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Turnover | 93,026,634 | 96,728,788 |
Cost of sales | 83,877,625 | 88,108,242 |
Gross profit | 9,149,009 | 8,620,546 |
Administrative expenses | 5,713,997 | 7,060,567 |
3,435,012 | 1,559,979 |
Other operating income | 1,029,888 | 90,952 |
Operating profit | 5 | 4,464,900 | 1,650,931 |
Interest receivable and similar income | 32,857 | - |
4,497,757 | 1,650,931 |
Interest payable and similar expenses | 7 | 795,650 | 419,223 |
Profit before taxation | 3,702,107 | 1,231,708 |
Tax on profit | 8 | 136,306 | 1,288,837 |
Profit/(loss) for the financial year | ( |
) |
GSMT Holdings Limited (Registered number: 11884270) |
Consolidated Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 | 248,208 | 281,313 |
Tangible assets | 12 | 17,275,919 | 17,697,470 |
Investments | 13 | 846,455 | - |
Investment property | 14 | - | 495,239 |
18,370,582 | 18,474,022 |
Current assets |
Stocks | 15 | 3,341,426 | 3,795,217 |
Debtors | 16 | 6,186,537 | 6,463,542 |
Cash at bank | 6,727,374 | 3,742,250 |
16,255,337 | 14,001,009 |
Creditors |
Amounts falling due within one year | 17 | 12,734,900 | 13,629,233 |
Net current assets | 3,520,437 | 371,776 |
Total assets less current liabilities | 21,891,019 | 18,845,798 |
Creditors |
Amounts falling due after more than one year |
18 |
(8,095,722 |
) |
(8,058,075 |
) |
Provisions for liabilities | 22 | (1,782,149 | ) | (1,605,338 | ) |
Net assets | 12,013,148 | 9,182,385 |
Capital and reserves |
Called up share capital | 23 | 100 | 100 |
Other reserves | 24 | 1,840,379 | 1,840,379 |
Retained earnings | 24 | 8,847,496 | 6,487,947 |
10,687,975 | 8,328,426 |
Non-controlling interests | 1,325,173 | 853,959 |
Total equity | 12,013,148 | 9,182,385 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2025 and were signed on its behalf by: |
B Ward - Director |
N Bowers - Director |
GSMT Holdings Limited (Registered number: 11884270) |
Company Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
Current assets |
Debtors | 16 |
Cash at bank |
Creditors |
Amounts falling due within one year | 17 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
18 |
Net assets |
Capital and reserves |
Called up share capital | 23 |
Retained earnings |
Company's profit for the financial year | 438,402 | 271,903 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GSMT Holdings Limited (Registered number: 11884270) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Other |
capital | earnings | reserves |
£ | £ | £ |
Balance at 1 April 2022 | 100 | 6,736,092 | 1,840,379 |
Changes in equity |
Dividends | - | (234,000 | ) | - |
Total comprehensive income | - | (14,145 | ) | - |
Balance at 31 March 2023 | 100 | 6,487,947 | 1,840,379 |
Changes in equity |
Dividends | - | (735,039 | ) | - |
Total comprehensive income | - | 3,094,588 | - |
Balance at 31 March 2024 | 100 | 8,847,496 | 1,840,379 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 April 2022 | 8,576,571 | 896,943 | 9,473,514 |
Changes in equity |
Dividends | (234,000 | ) | - | (234,000 | ) |
Total comprehensive income | (14,145 | ) | (42,984 | ) | (57,129 | ) |
Balance at 31 March 2023 | 8,328,426 | 853,959 | 9,182,385 |
Changes in equity |
Dividends | (735,039 | ) | - | (735,039 | ) |
Total comprehensive income | 3,094,588 | 471,213 | 3,565,801 |
Balance at 31 March 2024 | 10,687,975 | 1,325,172 | 12,013,147 |
GSMT Holdings Limited (Registered number: 11884270) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
GSMT Holdings Limited (Registered number: 11884270) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,328,092 | 4,971,923 |
Interest paid | (659,471 | ) | (262,035 | ) |
Interest element of hire purchase payments paid |
(136,179 |
) |
(157,188 |
) |
Tax paid | (265,085 | ) | (696,127 | ) |
Net cash from operating activities | 3,267,357 | 3,856,573 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (188,457 | ) |
Purchase of tangible fixed assets | (3,901,265 | ) | (5,341,970 | ) |
Revaluation of fixed assets | - | (6,170,102 | ) |
Sale of tangible fixed assets | 2,874,045 | 1,005,587 |
Government grants received | 18,000 | 18,000 |
Interest received | 32,857 | - |
Net cash from investing activities | (976,363 | ) | (10,676,942 | ) |
Cash flows from financing activities |
New loans in year | 3,054,944 | 8,565,152 |
Capital repayments in year | (1,016,554 | ) | (2,461,631 | ) |
Amount introduced by directors | 126,867 | 10,929 |
Amount withdrawn by directors | (599,909 | ) | 88,457 |
Equity dividends paid | (735,039 | ) | (234,000 | ) |
HP interest paid | (136,179 | ) | (157,187 | ) |
Net cash from financing activities | 694,130 | 5,811,720 |
Increase/(decrease) in cash and cash equivalents | 2,985,124 | (1,008,649 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,742,250 |
4,750,899 |
Cash and cash equivalents at end of year |
2 |
6,727,374 |
3,742,250 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 March 2024 |
1. | Reconciliation of operating profit to cash generated from operations |
2024 | 2023 |
£ | £ |
Operating profit | 4,464,900 | 1,650,931 |
Depreciation charges | 1,975,067 | 1,229,534 |
Profit on disposal of fixed assets | (1,339,642 | ) | (537,519 | ) |
Other operating income | - | (442,327 | ) |
(Increase)/decrease owed by associates | (449,587 | ) | (46,874 | ) |
4,650,738 | 1,853,745 |
Decrease in stocks | 453,791 | 1,787,383 |
Decrease in trade and other debtors | 876,914 | 2,479,088 |
Decrease in trade and other creditors | (1,653,351 | ) | (1,148,293 | ) |
Cash generated from operations | 4,328,092 | 4,971,923 |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 6,727,374 | 3,742,250 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 3,742,250 | 4,750,899 |
3. | Analysis of changes in net debt |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,742,250 | 2,985,124 | 6,727,374 |
3,742,250 | 2,985,124 | 6,727,374 |
Debt |
Finance leases | (2,872,912 | ) | (71,614 | ) | (2,944,526 | ) |
Debts falling due within 1 year | (1,887,098 | ) | (447,921 | ) | (2,335,019 | ) |
Debts falling due after 1 year | (6,086,544 | ) | (6,266 | ) | (6,092,810 | ) |
(10,846,554 | ) | (525,801 | ) | (11,372,355 | ) |
Total | (7,104,304 | ) | 2,459,323 | (4,644,981 | ) |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | Statutory information |
GSMT Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Income and Retained Earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. |
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | Accounting policies - continued |
Significant judgements and estimates |
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
ii) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience. |
iii) Stock |
Wholesale waste and scrap metals are held on the Kings Lynn and March sites |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | Accounting policies - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Government grants |
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to statement of income and retained earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Consolidated Statement of Income and Retained Earnings in the same period as the related expenditure. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | 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 statement of income and retained earnings except when deferred in other comprehensive income as qualifying cash flow hedges. |
4. | Employees and directors |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,514,270 | 2,398,952 |
Social security costs | 285,325 | 310,039 |
Other pension costs | 58,009 | 59,004 |
2,857,604 | 2,767,995 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production and drivers | 55 | 19 |
Administrative | 10 | 11 |
Management | 13 | 15 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2023 - NIL). |
2024 | 2023 |
£ | £ |
Directors' remuneration | 188,949 | 253,082 |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes | 4 | 6 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | (111,821 | ) | (246,572 | ) |
Depreciation - owned assets | 1,941,958 | 1,196,428 |
Profit on disposal of fixed assets | (1,339,642 | ) | (537,519 | ) |
Goodwill amortisation | 33,105 | 33,106 |
Auditors' remuneration | 73,500 | 70,000 |
Foreign exchange differences | (141,968 | ) | (100,626 | ) |
6. | Exceptional items |
Costs included in the previous years consolidated income statement totalling £2,158,534 relates to security and waste management fees invoiced by the Environment Agency to the non trading subsidiary Propco (Stoke) Ltd. The fees and debt incurred are subject to legal action being taken against the Environment Agency in relation to the manner in which the debt and costs have been incurred. |
7. | Interest payable and similar expenses |
2024 | 2023 |
£ | £ |
Bank interest | - | 12,439 |
Bank loan interest | 619,734 | 241,418 |
Other interest payable | 39,737 | 1,677 |
Interest payable | - | 6,501 |
Hire purchase | 136,179 | 157,188 |
795,650 | 419,223 |
8. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 254,978 | 149,064 |
Tax effect on losses | - | 1,496 |
Over provision from prior year | (295,483 | ) | - |
Total current tax | (40,505 | ) | 150,560 |
Deferred tax | 176,811 | 1,138,277 |
Tax on profit | 136,306 | 1,288,837 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
8. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 3,702,107 | 1,231,708 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
925,527 |
234,025 |
Effects of: |
Expenses not deductible for tax purposes | 25,231 | 11,235 |
Capital allowances in excess of depreciation | (695,780 | ) | (251,862 | ) |
Utilisation of tax losses | - | 157,162 |
Adjustments to tax charge in respect of previous periods | (295,483 | ) | - |
Deferred tax movement | 176,811 | 1,138,277 |
Total tax charge | 136,306 | 1,288,837 |
9. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income statement of the parent company is not presented as part of these financial statements. |
10. | Dividends |
2024 | 2023 |
£ | £ |
Dividends paid on equity capital | 735,039 | 284,000 |
11. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 April 2023 |
and 31 March 2024 | 331,056 |
Amortisation |
At 1 April 2023 | 49,743 |
Amortisation for year | 33,105 |
At 31 March 2024 | 82,848 |
Net book value |
At 31 March 2024 | 248,208 |
At 31 March 2023 | 281,313 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | Tangible fixed assets |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Cost |
At 1 April 2023 | 10,253,462 | 565,748 | 6,286,722 |
Additions | - | - | 3,426,165 |
Disposals | (545,772 | ) | - | (2,454,734 | ) |
Reclassification/transfer | - | - | - |
At 31 March 2024 | 9,707,690 | 565,748 | 7,258,153 |
Depreciation |
At 1 April 2023 | 309,401 | 192,835 | 1,861,973 |
Charge for year | 99,953 | 109,585 | 1,302,497 |
Eliminated on disposal | (81,132 | ) | - | (1,610,471 | ) |
Reclassification/transfer | - | - | - |
At 31 March 2024 | 328,222 | 302,420 | 1,553,999 |
Net book value |
At 31 March 2024 | 9,379,468 | 263,328 | 5,704,154 |
At 31 March 2023 | 9,944,061 | 372,913 | 4,424,749 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 April 2023 | 52,605 | 2,855,989 | 838,627 | 20,853,153 |
Additions | 15,126 | 421,733 | 38,241 | 3,901,265 |
Disposals | (395 | ) | (716,381 | ) | - | (3,717,282 | ) |
Reclassification/transfer | 8,337 | (846,455 | ) | (8,337 | ) | (846,455 | ) |
At 31 March 2024 | 75,673 | 1,714,886 | 868,531 | 20,190,681 |
Depreciation |
At 1 April 2023 | 52,604 | 798,082 | (59,212 | ) | 3,155,683 |
Charge for year | 4,786 | 362,554 | 62,583 | 1,941,958 |
Eliminated on disposal | (395 | ) | (490,881 | ) | - | (2,182,879 | ) |
Reclassification/transfer | 874 | - | (874 | ) | - |
At 31 March 2024 | 57,869 | 669,755 | 2,497 | 2,914,762 |
Net book value |
At 31 March 2024 | 17,804 | 1,045,131 | 866,034 | 17,275,919 |
At 31 March 2023 | 1 | 2,057,907 | 897,839 | 17,697,470 |
Freehold land and buildings owned by Port Sutton Bridge Ltd has been revalued on an open market basis on 28 June 2022 by Gerald Eve LLP at £8,200,000. If these had not been revalued, the land and buildings would have been included at the historical cost of £2,904.121. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | Tangible fixed assets - continued |
Company |
Freehold |
property |
£ |
Cost |
At 1 April 2023 |
and 31 March 2024 |
Net book value |
At 31 March 2024 |
At 31 March 2023 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
13. | Fixed asset investments |
Subsidiary undertakings |
The following were subsidiary undertakings of the Company: |
Name | Registered office | Class of shares | Holding |
Gold Star Metal Traders Ltd |
Lodge Farm, Knights End Road, Floods Ferry, Cambs, PE15 0YN |
Ordinary |
100% |
GSMT Ltd |
Lodge Farm, Knights End Road, Floods Ferry, Cambs, PE15 0YN |
Ordinary |
76% |
Propco (Stoke) Ltd |
Lodge Farm, Knights End Road, Floods Ferry, Cambs, PE15 0YN |
Ordinary |
75% |
GSMT Services Ltd |
Lodge Farm, Knights End Road, Floods Ferry, Cambs, PE15 0YN |
Ordinary |
100% |
Port Sutton Bridge Ltd |
West Bank, Sutton Bridge, Spalding, Lincs, PE12 9QR |
Ordinary |
100% |
Port Sutton Bridge Agencies Ltd |
West Bank, Sutton Bridge, Spalding, Lincs, PE12 9QR |
Ordinary |
100% |
The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows: |
Name |
Aggregate of share capital and reserves |
Profit/(loss |
) |
Gold Star Metal Traders Ltd | £7,643,811 | £1,310,567 |
GSMT Ltd | £5,726,788 | £1,620,574 |
Propco (Stoke) Ltd | (£1,855,545 | ) | £329,102 |
GSMT Services Ltd | £100 | £nil |
Port Sutton Bridge Ltd | £6,690,805 | £406,144 |
Port Sutton Bridge Agencies Ltd results have been consolidated with it's parent company, Port Sutton Bridge Ltd. |
The accounting reference date for Propco (Stoke) Ltd does not align with the group year end date due to when the company was incorporated. This date has not been changed. Management accounts have been prepared up to the group's year end for audit and consolidation purposes. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
14. | Investment property |
Group |
Total |
£ |
Fair value |
At 1 April 2023 | 495,239 |
Disposals | (495,239 | ) |
At 31 March 2024 | - |
Net book value |
At 31 March 2024 | - |
At 31 March 2023 | 495,239 |
15. | Stocks |
Group |
2024 | 2023 |
£ | £ |
Stocks | 3,186,616 | 3,795,217 |
Goods in transit | 154,810 | - |
3,341,426 | 3,795,217 |
16. | Debtors: amounts falling due within one year |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,708,576 | 3,087,919 |
Amounts owed by group undertakings | - | - |
Other debtors | 65,856 | 44,942 |
Accrued income | 2,277 | - | - | - |
Directors' current accounts | 599,909 | - | - | - |
VAT | - | 760,737 |
Prepayments and accrued income | 1,809,919 | 2,569,944 |
6,186,537 | 6,463,542 |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
17. | Creditors: amounts falling due within one year |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 2,335,019 | 1,887,098 |
Hire purchase contracts (see note 20) | 1,037,114 | 1,007,881 |
Trade creditors | 5,572,231 | 7,201,476 |
Amounts owed to group undertakings | - | - |
Amounts owed to associates | 449,587 | - | - | - |
Corporation tax | 782,937 | 1,088,527 |
Social security and other taxes | 105,047 | 93,919 |
VAT | 15,386 | - | 15,988 | 28,217 |
Other creditors | 644,530 | 1,108,042 |
Directors' loan accounts | 698,956 | 572,089 | - | 4,000 |
Accruals and deferred income | 1,094,093 | 670,201 |
12,734,900 | 13,629,233 |
Obligations under finance lease and hire purchase contracts of £1,037,114 (2023 - £1,007,881) are secured on the assets to which they relate. |
The bank loan of £2,659,283 (2023 - £1,887,098) are secured by a charge on the group's land and buildings and by a fixed floating charge over all other assets which are held by the group. |
An Unlimited Multilateral Guarantee dated 27 May 2020 has been given to the company bankers by GSMT Holdings Ltd in respect of all loans and facilities within the group. |
18. | Creditors: amounts falling due after more than one year |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 19) | 6,092,810 | 6,086,544 |
Hire purchase contracts (see note 20) | 1,907,412 | 1,865,031 |
Payments on account | 7,000 | - |
Deferred government grants | 88,500 | 106,500 |
8,095,722 | 8,058,075 |
Obligations under finance lease and hire purchase contracts of £1,907,412 (2023 - £1,865,031) are secured on the assets to which they relate. |
The bank loan of £5,768,546 (2023 - £6,086,544) are secured by a charge of the group's land and buildings and by a fixed floating charge over all other assets which are held by the group. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
19. | Loans |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 2,335,019 | 1,887,098 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 24,310 | 756,929 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 6,068,500 | 5,329,615 |
20. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 1,037,114 | 1,007,881 |
Between one and five years | 1,907,412 | 1,865,031 |
2,944,526 | 2,872,912 |
21. | Secured debts |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 8,427,829 | 7,973,642 |
Hire purchase contracts | 2,944,526 | 2,872,912 |
11,372,355 | 10,846,554 |
The bank loans are secured by a charge of the group's land and buildings and by a fixed and floating charge over all other assets of the group. |
The obligations due under finance lease and hire purchase contracts are secured upon the individual assets to which the liability relates. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
22. | Provisions for liabilities |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 1,782,149 | 1,605,338 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 1,605,338 |
Provided during year | 176,811 |
Balance at 31 March 2024 | 1,782,149 |
The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate to from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse. |
23. | Called up share capital |
Allotted, called up and fully paid | 2023 | 2022 |
£ | £ |
Ordinary shares of £1 each | 40 | 40 |
Ordinary A shares of £1 each | 40 | 40 |
Ordinary B shares of £1 each | 10 | 10 |
Ordinary C shares of £1 each | 10 | 10 |
100 | 100 |
Voting rights - all shares rank equally for voting purposes. On a show of hands each member has one vote and on a poll each member has one vote per share held. |
Dividend rights - each share ranks equally for any dividend declared. |
Rights to capital - each share ranks equally for any distribution made on a winding up. |
Rights to redemption - the shares are not redeemable. |
24. | Reserves |
Other reserves |
The merger reserve arose as a result of the group reconstruction in a previous year which has been accounted for as a merger reserve. The amount represents the difference between the consideration and fair value of the assets transferred. |
Profit and loss account |
Includes all current and prior period retained profits and losses less any dividends paid. |
GSMT Holdings Limited (Registered number: 11884270) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
25. | Business combinations |
During the previous year, the group acquired 100% of Port Sutton Bridge Ltd and Port Sutton Bridge Agencies Ltd. The business combination is consolidated as at 27 October 2022 and the goodwill in respect of this acquisition is being written off over ten years. |
26. | Ultimate controlling party |
The ultimate controlling party is B Ward and N Bowers who between them own 80% of the issued share capital. |