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Registration number: 08032283

GEL Engineering Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 May 2024

 

GEL Engineering Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Consolidated Profit and Loss Account

9

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 29

 

GEL Engineering Limited

Company Information

Directors

Mr Lee Colston Andrews

Mr Oisin Gibson

Mr Matthew James Ratman Velupillai

Registered office

Suite 62, The Wenta Business Centre
1 Electric Avenue
Enfield
EN3 7XU

Auditors

Paul Winston Limited
Chartered Accountants and Statutory AuditorSilver Rose Unit 21
East Lodge Village
East Lodge Lane
Enfield
EN2 8AS

 

GEL Engineering Limited

Strategic Report for the Year Ended 31 May 2024

The directors present their strategic report for the year ended 31 May 2024.

Principal activity

The principal activity of the group is construction

Fair review of the business

The business has performed well meeting growth targets. The team at gel is what it's all about and maintains low staff turnover while increasing staff numbers on a very challenging environment has been a great success of this financial year. Further development of our innovative Gelnet system and maintaining high scores and standards during external audits have all contributed to a very positive working environment and one that can facilitate further growth.

Principal risks and uncertainties

Expansion of the client base is important and while Gel maintains great performance on its existing frameworks Gel does need to expand into further client frameworks. The water sector remains solid with the spend requirements across water companies remaining at current levels and growing. With a focus driven by ofwat on delivering value for money this is being seen as more being spent in our target areas on improvements to existing infrastructure and refurbishment rather than new builds. The budgets of the frameworks Gel work on are increasing year on year with further increases likely into the rest of the AMP period (2020-2025). Price of materials and cost of living are two major risks that affect the core of our business but thankfully we have mechanisms that can assist with recovery in these areas.

Approved and authorised by the Board on 9 April 2025 and signed on its behalf by:
 

.........................................
Mr Oisin Gibson
Director

 

GEL Engineering Limited

Directors' Report for the Year Ended 31 May 2024

The directors present their report and the for the year ended 31 May 2024.

Directors of the group

The directors who held office during the year were as follows:

Mr Lee Colston Andrews

Mr Glyn Eric Weeks (resigned 30 September 2024)

Mr Oisin Gibson

The following director was appointed after the year end:

Mr Matthew James Ratman Velupillai (appointed 28 November 2024)

Financial instruments

Objectives and policies

Gels objectives into 2023 and beyond include but aren't limited to expansion of our fabrication facilities and
staff to meet rising demand by clients. Expand to other clients including Additional water authorities

Price risk, credit risk, liquidity risk and cash flow risk

Cash flow and credit risk remain low. Pricing risk remains medium but above mentioned mechanisms allow
each job to be priced at current levels reducing material price increase. Liquidity remains stable and the
directors work hard to monitor all these risks and maintain a stable business to keep the risks to the minimum.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 9 April 2025 and signed on its behalf by:
 

.........................................
Mr Oisin Gibson
Director

 

GEL Engineering Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 the 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 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 financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

GEL Engineering Limited

Independent Auditor's Report to the Members of GEL Engineering Limited

Opinion

We have audited the financial statements of GEL Engineering Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 May 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

GEL Engineering Limited

Independent Auditor's Report to the Members of GEL Engineering Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the 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 requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

GEL Engineering Limited

Independent Auditor's Report to the Members of GEL Engineering Limited

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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the compamy that could be contrary to these laws and regulations, including fraud.

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, UK tax legislation and equivalent local laws and regulations.

We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the directorsl meetings.

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We also completed the following procedures:

• Performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• In addressing the risk of fraud through management override of controls, we tested journal entries and other adjustments for inappropriate or unusual journals outside of our expectations, as well as for any significant transactions outside the normal course of business, taking into consideration the scope for management to manipulate financial results;
• Assessed the appropriateness of key estimates and judgements made by management and challenged the assumptions used in accounting estimates.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

 

GEL Engineering Limited

Independent Auditor's Report to the Members of GEL Engineering Limited

......................................
Paul Winston (Senior Statutory Auditor)
For and on behalf of Paul Winston Limited, Statutory Auditor
 Silver Rose Unit 21
East Lodge Village
East Lodge Lane
Enfield
EN2 8AS

9 April 2025

 

GEL Engineering Limited

Consolidated Profit and Loss Account for the Year Ended 31 May 2024

Note

2024
£

2023
£

Turnover

3

26,511,684

22,594,901

Cost of sales

 

(20,572,186)

(16,480,705)

Gross profit

 

5,939,498

6,114,196

Administrative expenses

 

(3,712,959)

(3,002,880)

Operating profit

5

2,226,539

3,111,316

Other interest receivable and similar income

6

16,827

1,455

Interest payable and similar expenses

7

(57,163)

(51,185)

   

(40,336)

(49,730)

Profit before tax

 

2,186,203

3,061,586

Tax on profit

11

(86,746)

(317,302)

Profit for the financial year

 

2,099,457

2,744,284

Profit/(loss) attributable to:

 

Owners of the company

 

1,902,347

2,744,284

Minority interests

 

197,110

-

 

2,099,457

2,744,284

The group has no recognised gains or losses for the year other than the results above.

 

GEL Engineering Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 May 2024

2024
£

2023
£

Profit for the year

2,099,457

2,744,284

Total comprehensive income for the year

2,099,457

2,744,284

Total comprehensive income attributable to:

Owners of the company

1,902,347

2,744,284

Minority interests

197,110

-

2,099,457

2,744,284

 

GEL Engineering Limited

(Registration number: 08032283)
Consolidated Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

1,723,390

1,713,568

Other financial assets

13

609,724

1,022,209

 

2,333,114

2,735,777

Current assets

 

Stocks

14

64,595

-

Debtors

15

9,621,310

9,716,952

Cash at bank and in hand

 

2,319,899

1,997,392

 

12,005,804

11,714,344

Creditors: Amounts falling due within one year

17

(5,009,653)

(6,758,074)

Net current assets

 

6,996,151

4,956,270

Total assets less current liabilities

 

9,329,265

7,692,047

Creditors: Amounts falling due after more than one year

17

(3,146,345)

(2,777,274)

Provisions for liabilities

18

(421,280)

(418,587)

Net assets

 

5,761,640

4,496,186

Capital and reserves

 

Called up share capital

20

3

3

Capital redemption reserve

1,000

1,000

Retained earnings

5,647,527

4,495,183

Equity attributable to owners of the company

 

5,648,530

4,496,186

minority interests

 

113,110

-

Shareholders' funds

 

5,761,640

4,496,186

Approved and authorised by the Board on 9 April 2025 and signed on its behalf by:
 

.........................................
Mr Oisin Gibson
Director

 

GEL Engineering Limited

(Registration number: 08032283)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

1,583,639

1,550,149

Other financial assets

13

618,724

1,031,209

 

2,202,363

2,581,358

Current assets

 

Stocks

14

64,595

-

Debtors

15

9,840,456

8,760,559

Cash at bank and in hand

 

1,549,955

1,493,125

 

11,455,006

10,253,684

Creditors: Amounts falling due within one year

17

(4,880,257)

(5,886,448)

Net current assets

 

6,574,749

4,367,236

Total assets less current liabilities

 

8,777,112

6,948,594

Creditors: Amounts falling due after more than one year

17

(3,104,519)

(2,709,280)

Provisions for liabilities

18

(394,727)

(387,537)

Net assets

 

5,277,866

3,851,777

Capital and reserves

 

Called up share capital

20

3

3

Retained earnings

5,277,863

3,851,774

Shareholders' funds

 

5,277,866

3,851,777

The company made a profit after tax for the financial year of £2,176,089 (2023 - profit of £2,427,800).

Approved and authorised by the Board on 9 April 2025 and signed on its behalf by:
 

.........................................
Mr Oisin Gibson
Director

 

GEL Engineering Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 May 2024
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 June 2023

3

1,000

4,495,180

4,496,183

Profit for the year

-

-

1,902,347

1,902,347

Dividends

-

-

(750,000)

(750,000)

At 31 May 2024

3

1,000

5,647,527

5,648,530

Non-controlling interests - Equity
£

Total equity
£

At 1 June 2023

-

4,496,183

Profit for the year

197,110

2,099,457

Dividends

(84,000)

(834,000)

At 31 May 2024

113,110

5,761,640

 

GEL Engineering Limited

Statement of Changes in Equity for the Year Ended 31 May 2024

Share capital
£

Retained earnings
£

Total
£

At 1 June 2023

3

3,851,774

3,851,777

Profit for the year

-

2,176,089

2,176,089

Dividends

-

(750,000)

(750,000)

At 31 May 2024

3

5,277,863

5,277,866

Share capital
£

Retained earnings
£

Total
£

At 1 June 2022

3

1,423,974

1,423,977

Profit for the year

-

2,427,800

2,427,800

At 31 May 2023

3

3,851,774

3,851,777

 

GEL Engineering Limited

Consolidated Statement of Cash Flows for the Year Ended 31 May 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,099,457

2,744,284

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

572,898

571,203

Loss on disposal of tangible assets

4

72,808

128,494

Profit from disposals of investments

4

(67,516)

-

Finance income

6

(16,827)

(1,455)

Finance costs

7

57,163

51,185

Income tax expense

11

86,746

317,302

 

2,804,729

3,811,013

Working capital adjustments

 

Increase in stocks

14

(64,595)

-

Decrease/(increase) in trade debtors

15

95,641

(3,078,349)

(Decrease)/increase in trade creditors

17

(2,128,001)

1,295,420

Cash generated from operations

 

707,774

2,028,084

Income taxes paid

11

(13,813)

(124,733)

Net cash flow from operating activities

 

693,961

1,903,351

Cash flows from investing activities

 

Interest received

16,827

1,455

Acquisitions of tangible assets

(655,529)

(1,460,538)

Proceeds from sale of tangible assets

 

-

4,500

Proceeds from disposal of financial investments other than trading investments

 

412,484

-

Net cash flows from investing activities

 

(226,218)

(1,454,583)

Cash flows from financing activities

 

Interest paid

7

(57,163)

(51,185)

Repayment of other borrowing

 

317,598

(540,935)

Payments to finance lease creditors

 

428,329

(64,171)

Dividends paid

(834,000)

-

Net cash flows from financing activities

 

(145,236)

(656,291)

Net increase/(decrease) in cash and cash equivalents

 

322,507

(207,523)

Cash and cash equivalents at 1 June

 

1,997,392

2,204,915

Cash and cash equivalents at 31 May

 

2,319,899

1,997,392

 

GEL Engineering Limited

Statement of Cash Flows for the Year Ended 31 May 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,176,089

2,427,800

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

526,313

516,730

Loss on disposal of tangible assets

4

72,808

128,494

Profit from disposals of investments

4

(67,516)

-

Finance income

(416,514)

(50,822)

Finance costs

50,027

45,217

Income tax expense

11

67,301

288,188

 

2,408,508

3,355,607

Working capital adjustments

 

Increase in stocks

14

(64,595)

-

Increase in trade debtors

15

(1,079,897)

(2,996,528)

(Decrease)/increase in trade creditors

17

(1,385,451)

1,344,267

Cash generated from operations

 

(121,435)

1,703,346

Income taxes paid

11

(1)

(113,443)

Net cash flow from operating activities

 

(121,436)

1,589,903

Cash flows from investing activities

 

Interest received

416,514

50,822

Proceeds from sale of subsidiaries

 

67,516

-

Acquisitions of tangible assets

(632,612)

(1,396,792)

Proceeds from sale of tangible assets

 

-

75,030

Proceeds from disposal of financial investments other than trading investments

 

412,484

-

Net cash flows from investing activities

 

263,902

(1,270,940)

Cash flows from financing activities

 

Interest paid

(50,027)

(45,217)

Repayment of other borrowing

 

250,084

(540,935)

Payments to finance lease creditors

 

464,307

(95,635)

Dividends paid

(750,000)

-

Net cash flows from financing activities

 

(85,636)

(681,787)

Net increase/(decrease) in cash and cash equivalents

 

56,830

(362,824)

Cash and cash equivalents at 1 June

 

1,493,125

1,855,949

Cash and cash equivalents at 31 May

 

1,549,955

1,493,125

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Suite 62, The Wenta Business Centre
1 Electric Avenue
Enfield
EN3 7XU

These financial statements were authorised for issue by the Board on 9 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 May 2024.

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

26,511,684

22,594,901

4

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2024
£

2023
£

Loss on disposal of tangible assets

(72,808)

(128,494)

Gain from disposals of investments

67,516

-

(5,292)

(128,494)

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

572,898

571,203

Loss on disposal of property, plant and equipment

72,808

128,494

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

16,827

1,455

7

Interest payable and similar expenses

2024
£

2023
£

Interest on obligations under finance leases and hire purchase contracts

57,163

51,185

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

2024
£

2023
£

Wages and salaries

4,668,301

3,956,945

Social security costs

528,533

467,956

Other short-term employee benefits

8,400

6,000

Pension costs, defined contribution scheme

410,848

111,678

Other employee expense

249,898

124,591

5,865,980

4,667,170

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

125

89

Administration and support

5

10

130

99

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

75,346

50,224

Contributions paid to money purchase schemes

316,396

30,000

391,742

80,224

10

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

6,500

2,500


 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

2024
£

2023
£

Current taxation

UK corporation tax

84,053

80,450

UK corporation tax adjustment to prior periods

-

138

84,053

80,588

Deferred taxation

Arising from origination and reversal of timing differences

2,693

236,714

Tax expense in the income statement

86,746

317,302

Deferred tax

Group

Company

12

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

171,972

2,779,220

2,951,192

Additions

32,429

623,100

655,529

Disposals

(20,530)

(188,675)

(209,205)

At 31 May 2024

183,871

3,213,645

3,397,516

Depreciation

At 1 June 2023

111,833

1,125,791

1,237,624

Charge for the year

22,695

550,204

572,899

Eliminated on disposal

(18,724)

(117,673)

(136,397)

At 31 May 2024

115,804

1,558,322

1,674,126

Carrying amount

At 31 May 2024

68,067

1,655,323

1,723,390

At 31 May 2023

60,139

1,653,429

1,713,568

Company

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 June 2023

160,207

2,493,505

2,653,712

Additions

32,429

600,183

632,612

Disposals

(20,530)

(188,675)

(209,205)

At 31 May 2024

172,106

2,905,013

3,077,119

Depreciation

At 1 June 2023

100,068

1,003,495

1,103,563

Charge for the year

22,695

503,619

526,314

Eliminated on disposal

(18,724)

(117,673)

(136,397)

At 31 May 2024

104,039

1,389,441

1,493,480

Carrying amount

At 31 May 2024

68,067

1,515,572

1,583,639

At 31 May 2023

60,139

1,490,010

1,550,149

13

Other financial assets

Group

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2023

1,022,208

1,022,208

Disposals

(412,484)

(412,484)

At 31 May 2024

609,724

609,724

Impairment

Carrying amount

At 31 May 2024

609,724

609,724

Company

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 June 2023

1,031,208

1,031,208

Disposals

(412,484)

(412,484)

At 31 May 2024

618,724

618,724

Impairment

Carrying amount

At 31 May 2024

618,724

618,724

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

64,595

-

64,595

-

Group

Company

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

15

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

7,799,329

8,753,598

7,133,285

8,117,902

Amounts owed by related parties

479,409

119,600

755,900

119,600

Other debtors

 

1,342,572

843,753

1,004,912

523,057

Prepayments

 

-

-

946,359

-

Deferred tax assets

11

-

1

-

-

   

9,621,310

9,716,952

9,840,456

8,760,559

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

542,022

779,067

272,078

401,106

Short-term deposits

1,777,877

1,216,325

1,277,877

1,090,019

Other cash and cash equivalents

-

2,000

-

2,000

2,319,899

1,997,392

1,549,955

1,493,125

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

21

537,497

228,157

511,329

192,179

Trade creditors

 

3,061,925

4,030,566

2,731,237

3,755,987

Amounts due to related parties

(276,491)

76,300

-

76,300

Social security and other taxes

 

228,644

1,518,476

215,340

1,505,212

Other payables

 

299,318

296,723

292,533

290,132

Accruals

 

5,000

10,900

-

-

Income tax liability

11

150,690

80,450

126,748

66,638

Gross amount due to customers for contract work

 

1,003,070

516,502

1,003,070

-

 

5,009,653

6,758,074

4,880,257

5,886,448

Due after one year

 

Loans and borrowings

21

696,983

577,994

655,157

510,000

Other non-current financial liabilities

 

2,449,362

2,199,280

2,449,362

2,199,280

 

3,146,345

2,777,274

3,104,519

2,709,280

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 June 2023

418,587

418,587

Increase (decrease) in existing provisions

2,693

2,693

At 31 May 2024

421,280

421,280

Company

Deferred tax
£

Total
£

At 1 June 2023

387,537

387,537

Increase (decrease) in existing provisions

7,190

7,190

At 31 May 2024

394,727

394,727

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £410,848 (2023 - £111,678).

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary L of £1 each

1

1

1

1

Ordinary G of £1 each

1

1

1

1

Ordinary O of £1 each

1

1

1

1

3

3

3

3

21

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Hire purchase contracts

696,983

577,994

655,157

510,000

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Hire purchase contracts

537,497

228,157

511,329

192,179

 

GEL Engineering Limited

Notes to the Financial Statements for the Year Ended 31 May 2024

22

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £250,000.00 (2023 - £Nil) per each Ordinary L

250,000

-

Interim dividend of £250,000.00 (2023 - £Nil) per each Ordinary G

250,000

-

Interim dividend of £250,000.00 (2023 - £Nil) per each Ordinary O

250,000

-

Interim dividend of £23.33 (2023 - £Nil) per each Ordinary B

84,000

-

834,000

-