Company Registration No. 06895104 (England and Wales)
GFW LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 NOVEMBER 2024
30 November 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
GFW LIMITED
COMPANY INFORMATION
Director
Mr J S Ponsonby
Company number
06895104
Registered office
Waterside Business Park
Johnson Road
Eccleshill
Darwen
England
BB3 3RT
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
GFW LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
GFW LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -

The director presents the strategic report for the year ended 30 November 2024.

Principal activities

The principal activity of the trading company continues to be the designing, sourcing, import and distribution of household furniture to the UK consumer market, to major online and high street retailers.

Business Review

The directors were moderately satisfied with the results of FY24 in light of the considerable micro and macro-economic factors at play within the market. A severely disrupted supply chain impacted the company’s ability to maintain a stable cost base during the trading year as freight rates continued to fluctuate significantly due to issues with direct trade routes from the far east. This also adversely affected the company’s ability to achieve acceptable levels of product availability consistently throughout the year. Despite the uncontrollable headwinds the business was still able to increase sales to £21,132, 038 and 8.57% from FY23 and continued YoY increase in revenue for the third year in a row post Covid. The unexpected increase in cost of sales, driven primarily by freight costs, meant operating profit remained flat from the previous year at £2.461,475 a decrease of -4.59%.

During the final months of the financial year a shareholding and management restructure took place to support the pending retirement of the company’s co-founder and second largest shareholder. This resulted in the de-merger from the group of the property subsidiary, from the perspective of the trading’s company’s balance sheet an exceptional item (note 8) arose regarding the waiver of an intercompany loan amount of £2,471,837 resulting in a net loss for the year of (£739,564). Full disclosures relating to the restructure are available in the groups holding company accounts, GFW Holdings Limited.

The business has an aggressive growth plan in place for the next three years and will continue to invest in people, product and process to facilitate this.

Principal Risks and Uncertainties

The director considers the key risks for the business continue to principally be around uncertainty with the global and local markets, driven by factors beyond its control and consistent with any other import business.

The market is predicted to remain unstable with varying consumer demand born from the instability and cost rises within the economy.

Future Developments

Despite the challenges that lie ahead the Director believes the business is well positioned to capitalise on significant opportunities due to the price points at which the business supplies it products.

The agility and dynamism the business is able to utilise to adapt to the market demands will underpin the future growth. At time of writing in FY25 the business has completed it’s first six months trading and is on target to achieve +25% growth in FY25 with record monthly revenues achieved three of the first six periods.

A clear plan for growth is in place with further development of systems and process to ensure the business solidifies it position as a key player within the supply of household furniture to the UK’s largest and most renowned retailers.

Financial Instruments

Details of financial instruments are provided in the balance sheet.

On behalf of the board

Mr J S Ponsonby
Director
23 August 2025
GFW LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -

The director presents his annual report and financial statements for the year ended 30 November 2024.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £4,564,178. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr A S Ponsonby
(Resigned 29 October 2024)
Mr J S Ponsonby
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

The director is 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. He is 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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

GFW LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
On behalf of the board
Mr J S Ponsonby
Director
23 August 2025
GFW LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GFW LIMITED
- 4 -
Opinion

We have audited the financial statements of GFW Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

GFW LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GFW LIMITED
- 5 -
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 director's report.

 

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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

GFW LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GFW LIMITED
- 6 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

GFW LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GFW LIMITED
- 7 -

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

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

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.

Christopher Johnson FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
23 August 2025
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
GFW LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
21,132,038
19,464,733
Cost of sales
(15,845,007)
(14,298,502)
Gross profit
5,287,031
5,166,231
Administrative expenses
(2,825,556)
(2,586,353)
Operating profit
6
2,461,475
2,579,878
Interest payable and similar expenses
7
(98,177)
(99,541)
Exceptional item
8
(2,471,827)
-
0
(Loss)/profit before taxation
(108,529)
2,480,337
Tax on (loss)/profit
9
(630,962)
(570,740)
(Loss)/profit for the financial year
(739,491)
1,909,597
Other comprehensive income
Cash flow hedges gain arising in the year
5,758
54,444
Total comprehensive income for the year
(733,733)
1,964,041

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GFW LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
275,895
255,854
Investments
12
-
0
4,051,505
275,895
4,307,359
Current assets
Stocks
13
4,695,652
3,126,499
Debtors
14
5,432,990
4,431,118
Cash at bank and in hand
24,910
653,862
10,153,552
8,211,479
Creditors: amounts falling due within one year
15
(8,608,894)
(4,812,927)
Net current assets
1,544,658
3,398,552
Total assets less current liabilities
1,820,553
7,705,911
Creditors: amounts falling due after more than one year
16
-
0
(596,009)
Provisions for liabilities
Deferred tax liability
18
55,995
47,433
(55,995)
(47,433)
Net assets
1,764,558
7,062,469
Capital and reserves
Called up share capital
20
1,000
1,000
Hedging reserve
21
(6,356)
(12,114)
Profit and loss reserves
1,769,914
7,073,583
Total equity
1,764,558
7,062,469

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 August 2025 and are signed on its behalf by:
Mr J S Ponsonby
Director
Company registration number 06895104 (England and Wales)
GFW LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 10 -
Share capital
Hedging reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2022
1,000
(66,558)
5,932,367
5,866,809
Year ended 30 November 2023:
Profit
-
-
1,909,597
1,909,597
Other comprehensive income:
Cash flow hedges losses
-
54,444
-
54,444
Total comprehensive income
-
54,444
1,909,597
1,964,041
Dividends
10
-
-
(768,381)
(768,381)
Balance at 30 November 2023
1,000
(12,114)
7,073,583
7,062,469
Year ended 30 November 2024:
Loss
-
-
(739,491)
(739,491)
Other comprehensive income:
Cash flow hedges gains
-
5,758
-
5,758
Total comprehensive income
-
5,758
(739,491)
(733,733)
Dividends
10
-
-
(4,564,178)
(4,564,178)
Balance at 30 November 2024
1,000
(6,356)
1,769,914
1,764,558
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
1
Accounting policies
Company information

GFW Limited is a private company limited by shares incorporated in England and Wales. The registered office is Waterside Business Park, Johnson Road, Eccleshill, Darwen, England, BB3 3RT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of GFW Holdings Limited. These consolidated financial statements are available from its registered office, Waterside Business Park, Johnson Road, Darwen, Lancashire, BB3 3RT.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

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

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The main areas of judgement that have a risk of causing material adjustment to the carrying amounts of assets and liabilities are in relation to:

 

Impairment of non-financial assets

 

Where there are indications of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell. The fair value is based on the knowledge of the management.

 

Stock impairment

 

Where there are indications of impairment of stock items, the company makes a provision against the value of the stock item based on the knowledge of the management.

 

Debtor impairment

 

The recoverability of debtors at each reporting date is assessed and management recognise provisions for any amounts deemed irrecoverable. Judgment is made to evaluate factors such as the age of receivables, the financial condition of debtors, historical recovery rates, and any specific indicators of credit risk. Management applies a prudent approach, considering both quantitative data and qualitative insights.

 

Fixed asset depreciation

 

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The estimated useful life of a fixed asset is based upon historic experience and the knowledge of management.

 

Critical areas of judgement

 

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the Company as lessee.

 

The company makes tax provisions based on reasonable judgements. The amount of such provision is based on various factors, such as experience with previous tax audits and interpretations of tax regulations.

 

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK Sales
20,971,559
19,376,840
European sales
160,479
87,893
21,132,038
19,464,733
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
3
Turnover and other revenue
(Continued)
- 17 -

All income was generated through the primary operational activity of the business.

4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration and management
28
24
Operation
24
24
Total
52
48

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,731,750
1,399,665
Social security costs
170,507
131,532
Pension costs
68,136
65,181
1,970,393
1,596,378
5
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
28,438
31,356
Company pension contributions to defined contribution schemes
2,954
4,965
31,392
36,321
6
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(206,532)
(48,630)
Fees payable to the company's auditor for the audit of the company's financial statements
14,193
13,780
Depreciation of owned tangible fixed assets
114,664
119,888
Profit on disposal of tangible fixed assets
-
0
(6,256)
Operating lease rentals - plant and machinery
7,140
7,140
Operating lease rentals - other
19,577
10,116
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 18 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
75,036
63,741
Interest on invoice finance arrangements
23,141
24,312
Other interest
-
0
11,488
98,177
99,541
8
Exceptional Item
2024
2023
£
£
Waiver of intercompany loan
(2,471,827)
-

In October 2024 as part of a group demerger, the company waived an intercompany loan with Jay P Properties Limited. In addition, a dividend in specie arose of £1,579,678. These transactions are one off non recurring events and are not linked to the ongoing performance of the companies underlying trading activities.

9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
622,573
581,115
Adjustments in respect of prior periods
(173)
(4,010)
Total current tax
622,400
577,105
Deferred tax
Origination and reversal of timing differences
8,562
(5,351)
Adjustment in respect of prior periods
-
0
(1,014)
Total deferred tax
8,562
(6,365)
Total tax charge
630,962
570,740
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(108,529)
2,480,337
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
(27,132)
570,726
Tax effect of expenses that are not deductible in determining taxable profit
653,934
4,860
Adjustments in respect of prior years
(173)
(4,010)
Group relief
(1,125)
(1,406)
Deferred tax adjustments in respect of prior years
-
0
(1,014)
Fixed asset timing differences
5,458
2,068
Remeasurement of deferred tax for changes in tax rates
-
0
(484)
Taxation charge for the year
630,962
570,740
10
Dividends
2024
2023
£
£
Final paid
2,000,000
-
0
Interim paid
2,564,178
768,381
4,564,178
768,381
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 December 2023
205,625
101,933
159,321
575,409
9,650
1,051,938
Additions
27,772
3,250
28,025
75,658
-
0
134,705
At 30 November 2024
233,397
105,183
187,346
651,067
9,650
1,186,643
Depreciation and impairment
At 1 December 2023
126,754
98,749
116,932
445,039
8,610
796,084
Depreciation charged in the year
21,831
962
20,687
71,184
-
0
114,664
At 30 November 2024
148,585
99,711
137,619
516,223
8,610
910,748
Carrying amount
At 30 November 2024
84,812
5,472
49,727
134,844
1,040
275,895
At 30 November 2023
78,871
3,184
42,389
130,370
1,040
255,854
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
-
0
4,051,505
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023
4,051,505
Disposals
(4,051,505)
At 30 November 2024
-
Carrying amount
At 30 November 2024
-
At 30 November 2023
4,051,505

As part of a group demerger, GFW Limited disposed of Jay P Properties Limited in October 2024.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
13
Stocks
2024
2023
£
£
Goods for resale
4,695,652
3,126,499
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,217,416
2,793,036
Amounts owed by group undertakings
47,371
-
0
Other debtors
623,341
1,283,734
Prepayments and accrued income
544,862
354,348
5,432,990
4,431,118

Amounts owed by group undertakings are interest free and repayable on demand

15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
2,789,295
264,825
Trade creditors
710,083
440,384
Amounts owed to group undertakings
-
0
1,026,534
Corporation tax
359,572
373,114
Other taxation and social security
983,337
724,476
Dividends payable
1,039,573
-
0
Other creditors
2,015,864
1,260,686
Accruals and deferred income
711,170
722,908
8,608,894
4,812,927

Amounts owed to group undertakings are interest free and repayable on demand.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
-
0
596,009
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 22 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,875,545
860,834
Bank overdrafts
913,750
-
0
2,789,295
860,834
Payable within one year
2,789,295
264,825
Payable after one year
-
0
596,009

In the course of the year, the company engaged in early repayments on the bank loan outstanding at the previous year end, with £250,000 on 26th January 2024, £300,000 on 19th June 2024 and a final payment of £173,587 on 30th September 2024, enabling settlement of the loan.

 

At the end of the current period all outstanding bank loans relate to trade loans, which interest is charged at 6.75%. The loans are secured against the stock that the loans financed. All will be settled within 12 months of the period end.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
55,995
52,433
Short term timing differences
-
(5,000)
55,995
47,433
2024
Movements in the year:
£
Liability at 1 December 2023
47,433
Charge to profit or loss
8,562
Liability at 30 November 2024
55,995

The deferred tax liability set out above is expected to reverse over an unknown time period and relates to accelerated capital allowances that are expected to mature within the course of the assets life.

GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 23 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,136
65,181

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totaling £655 (2023: £903 payable) were repayable to the fund at the balance sheet date.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
550
550
550
550
B Ordinary shares of £1 each
100
100
100
100
C Ordinary shares of £1 each
250
250
250
250
D Ordinary shares of £1 each
100
100
100
100
1,000
1,000
1,000
1,000
21
Hedging reserve

Other reserves represents the closing fair value of derivative financial instruments measured at fair value through other comprehensive income.

22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
500,137
20,137
Between two and five years
159,500
38,677
659,637
58,814
GFW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
23
Directors' transactions

The maximum balance owed by the directors during the year was £1,562,389.

 

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan 1
-
230,549
212,749
-
(443,298)
-
Loan 2
2.00
748,988
491,048
18,906
(869,946)
388,996
979,537
703,797
18,906
(1,313,244)
388,996
24
Ultimate controlling party

The company is controlled by its parent company GFW Holdings Ltd. The financial statements of GFW Holdings Ltd can be obtained from the Registered Office - Waterside Business Park Johnson Road, Eccleshill, Darwen, Lancashire, United Kingdom, BB3 3RT.

 

GFW Holdings Ltd controls 100% of the company's issued share capital and is the direct parent company.

 

The parent of the smallest group for which consolidated financial statements are drawn up of which the company is a member is GFW Holdings Limited.

 

The ultimate controlling party of the company is Mr J S Ponsonby.

 

 

25
Related party transactions
Transactions with related parties

Included within other debtors is an amount of £56,755 (2023: £56,555) owed by Glenfield Furniture Solutions Limited, a company with common directors and shareholders.

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