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Registered number: 05054065
GATESTOCK HOLDINGS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 29 APRIL 2024
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GATESTOCK HOLDINGS LIMITED
REGISTERED NUMBER: 05054065
BALANCE SHEET
AS AT 29 APRIL 2024
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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GATESTOCK HOLDINGS LIMITED
REGISTERED NUMBER: 05054065
BALANCE SHEET (CONTINUED)
AS AT 29 APRIL 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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S P Tate
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The notes on pages 3 to 14 form part of these financial statements.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
Gatestock Holdings Limited is a private company limited by shares, registered in England and Wales, registered number 05054065.
The principal activity of the Company is that of plant and machinery hire and maintenance.
The Company's registered office and principal place of business is Enterprise Road, Raunds, Wellingborough, Northamptonshire, NN9 6JE.
The Company's functional and presentional currency is British Pound Sterling and the financial statements have been rounded to nearest to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis.
The Company has been profitable over the past 2 periods and has been cash generative over this period. However, the Company is ultimately reliant on trading from the group company Maypine Construction Limited.
The Company shows a net current assets position of £506,177 (2023: £37,647) of which £628,085 (2023: £264,109) is due from group companies, and £10,000 (2023: £nil) is payable to group companies. These balances are due on demand.
The Company has prepared financial projections which are updated on a regular basis, once further information becomes available, to ensure revenue and costs used by management are up to date and appropriate.
The Group's financial projection reflects the level of sales expected from the continued implementation of the Group's business strategy. The Directors believe that the Group's cost base cash requirements can continue to be managed, however, there are factors which create uncertainty. This includes significant pressure on the Group's cash requirement as a result of poor trading results in the Group. This is mainly due to the challenging year within the house building sector and as such there has been a downturn in revenues generated by the business. The Directors are continually pricing new tenders but the Group has failed to win any new work recently.
Furthermore, bad debts amounting to £420,855 have been released within the period, contributing to the loss for the Company, along with a further £169,668 from these customers remaining unprovided.
The overdraft facility is expensive and has had an impact on cashflow with potential concern over going concern for the Group, on top of new work being difficult to win. As at the year end, the overdraft position is £662,233 (2023: £nil), and the Group has CBILS loans amounting to £500,000 (2023: £700,000), of which £200,000 is due within 1 year (2023: £200,000). The maturity date of the loan is October 2026. The Group’s bankers are continuing to support the Group at this time, by not revoking the overdraft facility, despite the business performance, but has reduced the review period down from 12 months to 3 months.
In addition, the Company has sold a significant quantity of its tangible fixed assets during the period, and post period end throughout the period ended 29 April 2025 to support the cashflow requirements of the Group. Net book values totalling £500,794 (2025: £454,353 unaudited) have been sold, generating proceeds of £543,166 (2025: £460,437 unaudited). The Group has subsequently recognised profits on disposal of £42,372 in the 12 months to 29 April 2024 (2025: £6,084). However, continued reliance from the sale of cash generating assets is unsustainable.
Taken together, these conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company’s and the wider Group’s ability to continue as a going concern. Nevertheless, the Directors believe there is sufficient cash flow available for the Group to operate for at least 12 months from the date of approval these financial statements. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Leased assets: the Company as lessee
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Assets acquired for use in the business under a hire purchase agreement are capitalised. The interest on the agreement is charged to the statement of income and retained earning's over the life of the agreement, on a straight line basis. This accounting policy matches the costs with the straight line rental income.
This accounting policy departs from the FRS 102 which states that the interest should be allocated during the lease term so as to produce a constant periodic rate of charge on the outstanding obligation. This departure from FRS 102 is required in order to give a true and fair view of the companies income and expenditure deriving from assets on hire purchase. If the accounting policy followed FRS 102, an increase of interest of approximately £12,000 (2023 - £12,000) would have been charged to the Statement of Income and Retained Earnings for the period.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Stock and work in progress
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Stock are valued at the lower of costs and net realisable value after making due allowance for obsolete and slow-moving stocks.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
2.Accounting policies (continued)
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 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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The average monthly number of employees, including directors, during the period was 3 (2023 - 3).
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
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Charge for the period on owned assets
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Charge for the period on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
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Due after more than one year
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Amounts owed by group undertakings
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Cash and cash equivalents
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The obligations under hire purchase contracts are secured against the assets to which they relate.
There exists a Legal Charge, dated 30 June 2006, including Fixed Charges and Floating Charges, given by Gatestock Holdings Limited to National Westminster Bank Plc.
There exists a Debenture, dated 29 June 2006, including Fixed Charges and Floating Charges, given by Gatestock Holdings Limited to National Westminster Bank Plc.
There exists charges between Gatestock Holdings Limited, other group companies, and National Westminster Bank Plc which contain fixed and floating charges over the assets of the Company for the benefit of National Westminster Bank Plc.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The obligation under hire purchase contracts are secured against the assets to which they relate.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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Allotted, called up and fully paid
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10,000 (2023 - 10,000) Ordinary shares of £1.00 each
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100 (2023 - 100) A Participating preference shares of £1.00 each
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100 (2023 - 100) B Participating preference shares of £1.00 each
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Ordinary shares
The ordinary shares carry full voting rights and dividends as approved by Directors.
Participating preference shares
The participating preference shares of the Company rank before the ordinary shares as regards payments of dividends and return of capital, but carry no voting rights unless the dividends are in arrears. These are redeemable at the discretion of the Directors.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
Capital redemption reserve
This reserve represents the nominal value of own shares repurchased for cancellation.
Profit and loss account
The profit and loss account reserve represents all retained profits and losses after dividends.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £33,750 (2023 - £50,000). Contributions totalling £Nil (2023 - £36,250) were payable to the fund at the balance sheet date and are included in creditors.
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Related party transactions
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The Company has taken advantage of the exemption in Financial Reporting Standard 102 from disclosing transactions with group companies since consolidated financial statements are prepared by the ultimate parent company.
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Post balance sheet events
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The Company has sold a significant quantity of its tangible fixed assets during the period, and post period end throughout the period ended 29 April 2025 to support the cashflow requirements of the Group. Net book values totalling £500,794 (2025: £454,353 unaudited) have been sold, generating proceeds of £543,166 (2025: £460,437 unaudited). The Company has subsequently recognised profits on disposal of £42,372 in the 12 months to 29 April 2024 (2025: £6,084).
Gatestock East Midlands Limited, a company incorporated in England and Wales with a registered office of Enterprise Road, Raunds, Wellingborough, NN9 6JE, is the ultimate parnet undertaking for which group financial statements are prepared.
The control changed as of 18 September 2024 to being owned by Gatestock Capital Group Limited, a company incorporated in England & Wales, with a registered office of Enterprise Road, Raunds, Wellingborough, NN9 6JE.
In the opinion of the Directors the ultimate controlling party at the period end was S Tate, by virtue of his controlling interest in the ordinary shares in Gatestock East Midlands Limited.
As of 18 September 2024, in the opinion of the Directors, there is no ultimate controlling part of the ultimate parent company Gatestock Capital Group Limited.
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GATESTOCK HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 APRIL 2024
The auditor's report on the financial statements for the period ended 29 April 2024 was unqualified.
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In their report, the auditor emphasised the following matter without qualifying their report:
Material uncertainty related to going concern: We draw attention to Note 2.2 in the financial statements, which indicates that the Company’s ability to continue as a going concern is dependent on securing sufficient financing and achieving future cash flows. These conditions, along with other matters set forth in Note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.
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The audit report was signed on 22 September 2025 by Martin Herron BA (Hons) ACA (Senior Statutory Auditor) on behalf of MHA.
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