REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30th June 2022 |
for |
Galostar Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30th June 2022 |
for |
Galostar Limited |
Galostar Limited (Registered number: 02964624) |
Contents of the Financial Statements |
for the Year Ended 30th June 2022 |
Page |
Company information | 1 |
Strategic report | 2 |
Report of the directors | 4 |
Report of the independent auditors | 6 |
Income statement | 10 |
Statement of financial position | 11 |
Statement of changes in equity | 13 |
Statement of cash flows | 14 |
Notes to the statement of cash flows | 15 |
Notes to the financial statements | 16 |
Galostar Limited |
Company Information |
for the Year Ended 30th June 2022 |
Directors: |
Registered office: |
Registered number: |
Senior statutory auditor: |
Auditors: |
Statutory Auditors |
Abacus House |
14-18 Forest Road |
Loughton |
Essex |
IG10 1DX |
Galostar Limited (Registered number: 02964624) |
Strategic Report |
for the Year Ended 30th June 2022 |
The directors present their strategic report for the year ended 30th June 2022. |
Since being formed in November 1994 Galostar Limited has grown into an established leading brick, blockwork and masonry contractor offering a multi-disciplined package to all major main contractors across the United Kingdom. |
Galostar Limited has been part of many prestigious developments, including such projects as Victoria Street in Stratford, East London - a development of houses, flats, sheltered housing and offices, moving on to major roles in some of the UK's leading developments such as the Olympic Stadium and more recently on the Crossrail Projects in Central London with shopping malls, health centres and school academies further afield in the Home Counties and Scotland. |
Galostar Limited continues to grow, proud of its achievements and enthusiastic about its future continuing to operate in all sectors of the construction industry. |
Review of business |
2022 was a good year for the business with increased sales over 2021. Our service portfolio continue to grow as we increase our regional presence and focus on customer satisfaction. At the year end the company had a strong order book to carry over into the next financial year. The directors believe that the company is well positioned for the future. |
The company's key financial performance indicators during the year were as follows: |
2022 | 2021 |
Turnover (£) | 21,642,370 | 12,794,891 |
Turnover growth (%) | 69.1 | -23.8 |
Gross profit margin (%) | 10.4 | 28.4 |
Profit before tax | 2,567,593 | 1,069,318 |
Galostar Limited (Registered number: 02964624) |
Strategic Report |
for the Year Ended 30th June 2022 |
Principal risks and uncertainties |
The principal risks faced by the company are business and regulatory risks. |
The company seeks to manage business risks by diversification of customer and supplier base, by maintaining close working relationships with a range construction companies, and a strong focus on customer service to differentiate themselves from price driven competition. |
The company's operations are relatively highly operationally geared, and expose it to financial risks of customer default outside of its control, and fluctuation in customer demand, either up or down. |
The company mitigates this risk by its operation of a robust credit control system, with all customers credit checked, credit limits strictly applied. |
At the same time, long term relationships with customers are sought and developed, to ensure that at all times fixed costs are covered, minimizing financial risks.. |
As the cost base is relatively fixed in the short term, unexpected reduction in sales can rerode gross margins and profitability. Conversely, upturn in sales can significantly increase profitability. |
On behalf of the board: |
Galostar Limited (Registered number: 02964624) |
Report of the Directors |
for the Year Ended 30th June 2022 |
The directors present their report with the financial statements of the company for the year ended 30th June 2022. |
Principal activity |
The principal activity of the company in the year under review was that of specialist brickwork contractors to the construction industry. |
Dividends |
No interim dividend was paid during the year. The directors recommend a final dividend of £ |
The total distribution of dividends for the year ended 30th June 2022 will be £ |
Directors |
The directors shown below have held office during the whole of the period from 1st July 2021 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). 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. |
Galostar Limited (Registered number: 02964624) |
Report of the Directors |
for the Year Ended 30th June 2022 |
Auditors |
The auditors, Cooper Paul, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Galostar Limited |
Opinion |
We have audited the financial statements of Galostar Limited (the 'company') for the year ended 30th June 2022 which comprise the Income statement, Other comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows and Notes to the statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30th June 2022 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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. |
Report of the Independent Auditors to the Members of |
Galostar Limited |
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. |
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. |
Report of the Independent Auditors to the Members of |
Galostar Limited |
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: |
fraud and non-compliance with laws and regulations, was as follows: |
-our engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the production, distribution and manufacturer of marine instrumentation systems. |
-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including such as the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: |
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; |
To address the risk of fraud through management bias and override of controls, we: |
-performed analytical procedures to identify any unusual or unexpected relationships; |
-tested journal entries to identify unusual transactions; |
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; |
-investigated the rationale behind significant or unusual transactions; |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation; |
-reading the minutes of meetings of those charged with governance; |
-enquiring of management as to actual and potential litigation and claims; |
-reviewing correspondence with HMRC and the company's legal advisors; |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
Report of the Independent Auditors to the Members of |
Galostar Limited |
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. |
Other matters which we are required to address |
We draw your attention to the fact that the comparative figures are unaudited. We were not engaged to audit, review, or apply any procedures to the 2021 financial statements of the company other than with respect to the opening balances brought forward into 2022 and, accordingly, we do not express an opinion or any other form of assurance on the 2021 financial statements taken as a whole. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Abacus House |
14-18 Forest Road |
Loughton |
Essex |
IG10 1DX |
Galostar Limited (Registered number: 02964624) |
Income Statement |
for the Year Ended 30th June 2022 |
2022 | 2021 |
Notes | £ | £ |
Turnover |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) |
2,563,207 | 932,333 |
Other operating income |
Operating profit | 5 |
Interest receivable and similar income |
Profit before taxation |
Tax on profit | 6 | ( |
) | ( |
) |
Profit for the financial year |
Galostar Limited (Registered number: 02964624) |
Statement of Financial Position |
30th June 2022 |
2022 | 2021 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 8 |
Current assets |
Debtors | 9 |
Cash at bank |
Creditors |
Amounts falling due within one year | 10 | ( |
) | ( |
) |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 11 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 12 |
Share premium | 13 |
Capital redemption reserve | 13 |
Retained earnings | 13 |
Shareholders' funds |
Galostar Limited (Registered number: 02964624) |
Statement of Financial Position - continued |
30th June 2022 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Galostar Limited (Registered number: 02964624) |
Statement of Changes in Equity |
for the Year Ended 30th June 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st July 2020 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30th June 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30th June 2022 |
Galostar Limited (Registered number: 02964624) |
Statement of Cash Flows |
for the Year Ended 30th June 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount withdrawn by directors | (4,000 | ) | (6,904 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,085,440 |
Cash and cash equivalents at end of year |
2 |
3,162,698 |
1,969,661 |
Galostar Limited (Registered number: 02964624) |
Notes to the Statement of Cash Flows |
for the Year Ended 30th June 2022 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Increase in deferred tax provision | 1,447 | 10,052 |
Increase/(decrease) in other provisions | (1,583,215 | ) | 1,030,346 |
Finance income | (285 | ) | (494 | ) |
1,012,617 | 2,134,255 |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts: |
Year ended 30th June 2022 |
30/6/22 | 1/7/21 |
£ | £ |
Cash and cash equivalents | 3,162,698 | 1,969,661 |
Year ended 30th June 2021 |
30/6/21 | 1/7/20 |
£ | £ |
Cash and cash equivalents | 1,969,661 | 2,085,440 |
3. | Analysis of changes in net funds |
At 1/7/21 | Cash flow | At 30/6/22 |
£ | £ | £ |
Net cash |
Cash at bank | 1,969,661 | 1,193,037 | 3,162,698 |
1,969,661 | 3,162,698 |
Total | 1,969,661 | 1,193,037 | 3,162,698 |
Galostar Limited (Registered number: 02964624) |
Notes to the Financial Statements |
for the Year Ended 30th June 2022 |
1. | Statutory information |
Galostar Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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. |
Galostar Limited (Registered number: 02964624) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
3. | Employees and directors |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Staff |
4. | Directors' emoluments |
2022 | 2021 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
£ | £ |
Emoluments etc |
5. | Operating profit |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
6. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
Galostar Limited (Registered number: 02964624) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
6. | Taxation - continued |
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: |
2022 | 2021 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Total tax charge | 518,121 | 196,248 |
7. | Dividends |
2022 | 2021 |
£ | £ |
Ordinary shares shares of 1 each |
Final |
8. | Tangible fixed assets |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1st July 2021 |
Additions |
At 30th June 2022 |
Depreciation |
At 1st July 2021 |
Charge for year |
At 30th June 2022 |
Net book value |
At 30th June 2022 |
At 30th June 2021 |
Galostar Limited (Registered number: 02964624) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
9. | Debtors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts recoverable on contract |
Other debtors |
VAT |
Prepayments and accrued income |
10. | Creditors: amounts falling due within one year |
2022 | 2021 |
£ | £ |
Payments on account |
Trade creditors |
Corporation tax |
PAYE/NI control | 58,098 | 43,318 |
Other creditors |
Directors' loan accounts | - | 4,000 |
Accruals and deferred income |
11. | Provisions for liabilities |
2022 | 2021 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other provisions | - | 1,583,215 |
Deferred |
tax |
£ |
Balance at 1st July 2021 |
Timing differences | 1,447 |
Balance at 30th June 2022 |
12. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary shares | 1 | 2,500 | 2,500 |
Galostar Limited (Registered number: 02964624) |
Notes to the Financial Statements - continued |
for the Year Ended 30th June 2022 |
13. | Reserves |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1st July 2021 | 1,172,215 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30th June 2022 | 3,217,687 |
14. | Related party disclosures |
Mr P R Barnard has an interest a shareholder in Galostar Developments Limited. The company has granted an interest free loan to Galostar Developments Limited which at the balance sheet date stood at £611,874 (2021: £611,874). |