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REGISTERED NUMBER: 04936450 (England and Wales)
















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 October 2024

for

Global Machinery Solutions Limited

Global Machinery Solutions Limited (Registered number: 04936450)






Contents of the Financial Statements
for the Year Ended 31 October 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


Global Machinery Solutions Limited

Company Information
for the Year Ended 31 October 2024







DIRECTORS: J K Buckle
E C M Baker
G Westwood





SECRETARY: P Andrews





REGISTERED OFFICE: Dairy Farm Office
Dairy road
Semer
Ipswich
Suffolk
IP7 6RA





REGISTERED NUMBER: 04936450 (England and Wales)





AUDITORS: Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

Global Machinery Solutions Limited (Registered number: 04936450)

Strategic Report
for the Year Ended 31 October 2024

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

REVIEW OF BUSINESS
For the year ended 31 October 2024 revenues were £16.6m (2023 - £19.4m) with Gross Margin 8.3% (2023 - 11.4%)

The principal activity of the business remains importing machinery for industrial use; providing sales, service and hire within the forestry, confi-shred, recycling, construction and aggregates industries.

The company's focus was on consolidation following a restructure with training and development being a key element to this. The company embarked on a journey of business improvement in response to a tightened market following the post-pandemic boom and continues to recognise the importance of face to face relationships and how these affect customers purchasing requirements. The company has spent time analysing the required resources to properly service the distribution territories, as well ensuring it carries suitable product lines to support our current and future customers and achieve sustainable profitability.

The company encountered a challenging year as customers were more cautious on placing orders for capital equipment as the UK continued to battle with inflation, interest rates and changes in government. With tough market conditions also faced by customers and industries which we operate within, the company found many businesses looking towards repairing and servicing rather than replacing. When businesses looked to purchase, the availability of competitor stock acted to drive margins down.

The delivery of wholegood stock is back to normal industry expectations. The business intends to carry decent levels of machinery stock aided by a combination of well secured payment terms and supply chain relationships. The company is well placed to provide services via maintenance contracts and strong engineering -in-house resources.

Demand in the aftersales sector consisting of service and parts was as expected. The company achieved similar results to that over the prior year, with further planned expansion in the coming years through the business improvement plan and roll out of the strategy.

Despite the ongoing cost of running a business within the capital equipment sector, and challenges faced in a time of uncertainty and competition, the board of directors are confident in the structure and management level within the business to weather the period and come out stronger the other side.

PRINCIPAL RISKS AND UNCERTAINTIES
Other than the financial risks detailed below, other risks to the company include, but are not limited to, the failure to comply with legislative and regulatory requirements including environmental and litigation failures, business continuity and the actions of customers and competitors. The company has implemented risk controls and loss mitigation plans against these to address where possible.


Global Machinery Solutions Limited (Registered number: 04936450)

Strategic Report
for the Year Ended 31 October 2024

FINANCIAL RISK MANAGEMENT POLICIES
The overall aim of the company financial risk management policy is to minimise potential adverse effects on financial performance and net assets. In the course of the business, the company is exposed primarily to foreign exchange risk, liquidity risk and credit risk. Interest rate is not considered significant as the company does not have any liabilities that accrue significant interest and interest income on bank deposits is not material.

The company manages the principal financial risk within policies and operating parameters approved by the board of directors. The company does not enter into speculative transactions.

i) Foreign currency risk

The Company operates domestically and overseas. The company does hedge certain cash flows when the directors believe this to be appropriate.

ii) Liquidity risk

The Company's policy on liquidity risk is to ensure that sufficient cash is available to fund on-going operations without the need to carry significant net debt. Where appropriate financing can be negotiated, assets may be purchased under finance lease agreement. The extent of this financing is not considered material.

iii) Credit risk

Credit risk arises on financial instruments such as trade receivables. Policies and procedures exist to ensure that
customers have an appropriate credit history. Machinery is generally not released to customers until payment is received in full. Overall, the company considers that it is not exposed to a significant amount of credit risk.

ON BEHALF OF THE BOARD:





E C M Baker - Director


11 July 2025

Global Machinery Solutions Limited (Registered number: 04936450)

Report of the Directors
for the Year Ended 31 October 2024

The directors present their report with the financial statements of the company for the year ended 31 October 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of sourcing and trading in equipment and machinery to be used in the recycling industry.

DIVIDENDS
No dividends will be distributed for the year ended 31 October 2024.

RESEARCH AND DEVELOPMENT
The company remains committed to research and development in pursuit of its strategy and objectives and undertakes work together with its primary suppliers in these areas whenever it is anticipated that a competitive advantage is to be achieved in terms of its principal activity of the import, sub-assembly, stocking, distribution, and export of various forestry, confi-shred, recycling, and construction equipment.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2023 to the date of this report.

J K Buckle
E C M Baker
G Westwood

Other changes in directors holding office are as follows:

C L Flowers ceased to be a director after 31 October 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Global Machinery Solutions Limited (Registered number: 04936450)

Report of the Directors
for the Year Ended 31 October 2024


AUDITORS
The auditors, Hardcastle Burton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





E C M Baker - Director


11 July 2025

Report of the Independent Auditors to the Members of
Global Machinery Solutions Limited

Opinion
We have audited the financial statements of Global Machinery Solutions Limited (the 'company') for the year ended 31 October 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 company's affairs as at 31 October 2024 and of its loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Global Machinery Solutions Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; 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 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 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

Our approach was as follows:-

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that related to the reporting framework (FRS 102 and Companies Act 2006).

We obtained an understanding to how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through correspondence with management and a review of any correspondence received from regulatory bodies.

We assessed the susceptivity of the company's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand the systems and controls of the company.

Based on our understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved; journal entry testing; focusing on manual journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of management and focused testing in relation to revenue and management override.

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
Global Machinery Solutions 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.




Denise Lindsell FCA (Senior Statutory Auditor)
for and on behalf of Hardcastle Burton LLP
Lake House
Market Hill
Royston
Hertfordshire
SG8 9JN

11 July 2025

Global Machinery Solutions Limited (Registered number: 04936450)

Statement of Comprehensive
Income
for the Year Ended 31 October 2024

31.10.24 31.10.23
Notes £    £   

TURNOVER 3 16,560,925 19,400,108

Cost of sales 15,184,660 17,188,514
GROSS PROFIT 1,376,265 2,211,594

Administrative expenses 2,816,544 2,588,298
OPERATING LOSS 5 (1,440,279 ) (376,704 )

Exceptional items 6 - 119,416
(1,440,279 ) (496,120 )


Interest payable and similar expenses 7 218,734 463,906
LOSS BEFORE TAXATION (1,659,013 ) (960,026 )

Tax on loss 8 - -
LOSS FOR THE FINANCIAL YEAR (1,659,013 ) (960,026 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE LOSS FOR
THE YEAR

(1,659,013

)

(960,026

)

Global Machinery Solutions Limited (Registered number: 04936450)

Statement of Financial Position
31 October 2024

31.10.24 31.10.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 14,222 1,875
Tangible assets 10 2,117,918 2,210,227
Investments 11 1 1
2,132,141 2,212,103

CURRENT ASSETS
Stocks 12 9,781,501 10,180,462
Debtors 13 2,233,129 2,097,964
Cash at bank and in hand 296,187 28,145
12,310,817 12,306,571
CREDITORS
Amounts falling due within one year 14 5,265,428 4,621,093
NET CURRENT ASSETS 7,045,389 7,685,478
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,177,530

9,897,581

CREDITORS
Amounts falling due after more than one
year

15

2,618,346

1,679,384
NET ASSETS 6,559,184 8,218,197

CAPITAL AND RESERVES
Called up share capital 19 1,784,800 1,784,800
Share premium 6,400,000 6,400,000
Retained earnings (1,625,616 ) 33,397
SHAREHOLDERS' FUNDS 6,559,184 8,218,197

The financial statements were approved by the Board of Directors and authorised for issue on 11 July 2025 and were signed on its behalf by:





E C M Baker - Director


Global Machinery Solutions Limited (Registered number: 04936450)

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

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 November 2022 1,684,800 993,423 - 2,678,223

Changes in equity
Issue of share capital 100,000 - 6,400,000 6,500,000
Total comprehensive loss - (960,026 ) - (960,026 )
Balance at 31 October 2023 1,784,800 33,397 6,400,000 8,218,197

Changes in equity
Total comprehensive loss - (1,659,013 ) - (1,659,013 )
Balance at 31 October 2024 1,784,800 (1,625,616 ) 6,400,000 6,559,184

Global Machinery Solutions Limited (Registered number: 04936450)

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

1. STATUTORY INFORMATION

Global Machinery Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The principal place of business is Global Way, Long Bennington, Newark, Nottinghamshire, NG23 5TU.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about Global Machinery Solutions Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Heathpatch Limited, Dairy Farm Office, Semer, Ipswich, Suffolk, IP7 6RA.

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

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions which impact on the reported amounts of assets and liabilities. Estimates and judgements 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.

The Company's machinery which is available for hire has been recognised in both stock and tangible fixed assets. The machinery held in stock is on the basis it is also available for sale, with the remainder being recognised in tangible fixed assets. The machines are assessed for impairment at each reporting date and impairment losses are recognised if their carrying amounts exceed their recoverable amounts. The recoverable amounts of the machines are determined as the higher of their selling prices less costs to sell and values in use i.e. the future net hire income. Consequently, the carrying values of machines are the same when recognised in stock as they would be in tangible fixed assets.

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued

Turnover
Revenue from the sale of goods is recognised when significant risks and rewards of the ownership of the goods have been transferred to the buyer.

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.

Website development is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - 10% on cost
Plant and machinery - 20% on cost and Straight line over 6 years
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are initially recognised at cost and are reviewed annually for impairments.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Cost is determined on a first in first out basis and includes all direct costs incurred. Net realisable value is based upon estimated selling price allowing for further costs of completion and disposal.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors and loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.


Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.10.24 31.10.23
£    £   
United Kingdom 14,636,157 15,762,400
EU & Europe 1,727,656 3,470,417
Rest of the world 197,112 167,291
16,560,925 19,400,108

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

4. EMPLOYEES AND DIRECTORS
31.10.24 31.10.23
£    £   
Wages and salaries 2,442,508 2,375,198
Social security costs 288,166 234,133
Other pension costs 52,307 45,844
2,782,981 2,655,175

The average number of employees during the year was as follows:
31.10.24 31.10.23

Sales staff 11 10
Office staff 17 16
Production / site staff 24 24
52 50

31.10.24 31.10.23
£    £   
Directors' remuneration 185,000 264,537
Directors' pension contributions to money purchase schemes 2,642 2,661

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

31.10.24 31.10.23
£    £   
Other operating leases 152,216 112,177
Depreciation - owned assets 278,223 155,966
Depreciation - assets on hire purchase contracts 220,077 127,822
Profit on disposal of fixed assets (72,059 ) (18,133 )
Website development amortisation 3,753 1,875
Auditors' remuneration 24,053 16,543
Foreign exchange differences (13,666 ) (4,649 )

6. EXCEPTIONAL ITEMS
31.10.24 31.10.23
£    £   
Exceptional items - (119,416 )

During the previous year the company completed their move into new premises in order to expand the capabilities of the business. In the previous year, the exceptional items were all associated with move costs to the new site.

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.10.24 31.10.23
£    £   
Bank loan interest 15,516 14,208
Other loan interest payable 151,073 382,958
Hire purchase 52,145 66,740
218,734 463,906

8. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 October 2024 nor for the year ended 31 October 2023.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.10.24 31.10.23
£    £   
Loss before tax (1,659,013 ) (960,026 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

(414,753

)

(240,007

)

Effects of:
Expenses not deductible for tax purposes 1,229 5,782
Movement in deferred tax not provided 413,524 (134,160 )
Group tax relief surrendered/(claimed) - 335,767
Enhanced costs under capital allowances - (1,161 )
Losses carried forward - 33,779
Total tax charge - -

No liability to UK corporation tax arose for the year ended 31 October 2024 nor the year ended 31 October 2023, due to losses of approximately £2.0m (2023: £0.2m).

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

9. INTANGIBLE FIXED ASSETS
Website
development
£   
COST
At 1 November 2023 9,375
Additions 16,100
At 31 October 2024 25,475
AMORTISATION
At 1 November 2023 7,500
Amortisation for year 3,753
At 31 October 2024 11,253
NET BOOK VALUE
At 31 October 2024 14,222
At 31 October 2023 1,875

10. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and Motor
leasehold machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 November 2023 462,834 1,410,570 51,690 1,186,918 3,112,012
Additions - 390,908 - 507,261 898,169
Disposals - (372,246 ) (2,737 ) (337,155 ) (712,138 )
At 31 October 2024 462,834 1,429,232 48,953 1,357,024 3,298,043
DEPRECIATION
At 1 November 2023 53,572 196,363 30,223 621,627 901,785
Charge for year 48,413 214,186 7,115 228,586 498,300
Eliminated on disposal - (46,996 ) (2,737 ) (189,462 ) (239,195 )
Impairments - 19,235 - - 19,235
At 31 October 2024 101,985 382,788 34,601 660,751 1,180,125
NET BOOK VALUE
At 31 October 2024 360,849 1,046,444 14,352 696,273 2,117,918
At 31 October 2023 409,262 1,214,207 21,467 565,291 2,210,227

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

10. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 November 2023 294,501 659,467 953,968
Additions - 482,814 482,814
Disposals - (203,805 ) (203,805 )
Reclassification/transfer - (190,086 ) (190,086 )
At 31 October 2024 294,501 748,390 1,042,891
DEPRECIATION
At 1 November 2023 - 176,425 176,425
Charge for year 49,093 170,984 220,077
Eliminated on disposal - (61,378 ) (61,378 )
Reclassification/transfer - (120,925 ) (120,925 )
At 31 October 2024 49,093 165,106 214,199
NET BOOK VALUE
At 31 October 2024 245,408 583,284 828,692
At 31 October 2023 294,501 483,042 777,543

11. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 November 2023
and 31 October 2024 1
NET BOOK VALUE
At 31 October 2024 1
At 31 October 2023 1

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

GRS Recycling Machinery Limited
Registered office: 61 Littlewood, Belarmine Avenue, Stepaside, Dublin 18
Nature of business: Sourcing and trading in equipment and machinery
%
Class of shares: holding
Ordinary 100.00

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

12. STOCKS
31.10.24 31.10.23
£    £   
Machine stock 6,514,916 6,604,572
Parts stock 3,077,490 3,284,048
Work-in-progress 189,095 291,842
9,781,501 10,180,462

Included within stock are items with a cost of £241,443 (2023: £728,699) secured against finance agreements.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.24 31.10.23
£    £   
Trade debtors 1,210,643 1,183,761
Amounts owed by group undertakings 1,390 11,500
Other debtors 769,378 692,184
Prepayments and accrued income 251,718 210,519
2,233,129 2,097,964

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.24 31.10.23
£    £   
Bank loans and overdrafts (see note 16) - 963,614
Hire purchase contracts (see note 17) 213,270 237,483
Trade creditors 3,258,179 2,010,979
Amounts owed to group undertakings 32,744 -
Social security and other taxes 57,549 65,342
VAT 310,846 263,393
Other creditors 595,379 566,450
Accruals and deferred income 797,461 513,832
5,265,428 4,621,093

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.10.24 31.10.23
£    £   
Hire purchase contracts (see note 17) 220,346 181,385
Amounts owed to group undertakings 2,398,000 1,497,999
2,618,346 1,679,384

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

16. LOANS

An analysis of the maturity of loans is given below:

31.10.24 31.10.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 476,358
Bank loans - 487,256
- 963,614

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.10.24 31.10.23
£    £   
Net obligations repayable:
Within one year 213,270 237,483
Between one and five years 220,346 181,385
433,616 418,868

Non-cancellable operating leases
31.10.24 31.10.23
£    £   
Within one year 150,000 157,296
Between one and five years 600,000 600,000
In more than five years 400,000 550,000
1,150,000 1,307,296

Global Machinery Solutions Limited (Registered number: 04936450)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2024

18. SECURED DEBTS

The following secured debts are included within creditors:

31.10.24 31.10.23
£    £   
Bank overdraft - 476,358
Bank loans - 487,256
Hire purchase contracts 433,616 418,868
433,616 1,382,482

The company has given a cross guarantee and debenture between Global Machinery Solutions Limited and Heathpatch Limited dated 15 September 2020 to Barclays Bank Plc.

The company has entered into a Composite Accounting Agreement with an unlimited guarantee to Barclays Bank Plc dated 19 February 2021. The participating companies in the guarantee are: Camden Boss Limited, Material Change Limited, Nedging Hall Estate Limited and the ultimate parent company, Heathpatch Limited. The agreement allows for interest to be set off and debit balances to be used in reducing liabilities within the Composite Accounting System.

Hire purchase liabilities are secured by the individual assets to which the liabilities relate.

The company has a secured finance facility available of up to £1,250,000 (2023: £750,000) for the purpose of purchasing stock. This facility is secured on the machines purchased using the facility. At the year end this amounted to £Nil (2023: £487,256).

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.10.24 31.10.23
value: £    £   
1,784,800 Ordinary £1 1,784,800 1,784,800

20. PENSION COMMITMENTS

The company operates a defined pension contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents the contributions payable by the company to the fund and amounted to £52,307 (2023: £45,844). The contributions payable at the year end amounted to £11,083 (2023: £10,286) comprising both employer and employee contributions.

21. ULTIMATE PARENT COMPANY

Heathpatch Limited is the ultimate parent company.

The largest and smallest group of undertakings for which group accounts have been drawn up is headed by Heathpatch Limited, copies of the group accounts can be obtained from Companies House or at the company's registered office.

22. EVENTS SINCE THE YEAR END

After the year end, the company lost a key contract within a division. For the year ended 31 October 2024, the whole division contributed turnover of £1.6m and an operating profit of £236k to the company, which will reduce in future reporting periods following the loss of this contract.