Company Registration No. 03014472 (England and Wales)
GLOBAL INTERNATIONAL TRADING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
GLOBAL INTERNATIONAL TRADING LIMITED
COMPANY INFORMATION
Directors
Mr J Albertini
Mr M Van Dongen
Company number
03014472
Registered office
3 Williamsport Way
New Lion Barn Industrial Estate
Needham Market
Ipswich
IP6 8RW
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Business address
3 Williamsport Way
New Lion Barn Industrial Estate
Needham Market
Ipswich
IP6 8RW
GLOBAL INTERNATIONAL TRADING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 28
GLOBAL INTERNATIONAL TRADING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The year to 31st December 2021 started with the end of the Brexit transition period and a continuation of government lockdowns whilst the country continued to manage the impact of the Covid-19 on society. As with 2020, the Covid-19 pandemic created significant challenges both internally and for stakeholders. In particular, the business saw increased costs and lead-times for transporting raw materials into the UK. However, from May 2021 the business and stakeholders started to operate und
The Company continues to focus on increasing manufacturing output, expanding the product portfolio and improving efficiencies throughout the business.
PRINCIPAL RISKS AND UNCERTAINTIES FACING THE BUSINESS
Management continually monitors the key risks facing the Company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the Company are as follows:
-
Global Inflation– The Company acknowledges the risk posed by inflation on its customers’ appetite to purchase new window blinds and also suppliers ability to maintain prices.
-
Economic downturn – The Company acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of potential financial difficulties. Sales trends and payments are constantly reviewed to enable early action to be taken in the event of increased risk.
-
Competitor pressure - The market in which the Company operates is considered to be relatively competitive, and therefore competitor pressure could result in losing sales to key competitors. The company manages this risk by providing quality products and maintaining strong relationships with its key customers.
-
Reliance on key suppliers – The Company’s purchasing activities could expose it to over reliance on certain suppliers and inflationary pricing pressure. The Company manages this risk by ensuring there is enough breadth in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if necessary.
-
Loss of key personnel – This would present significant operational difficulties for the Company. Management seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised.
-
Exchange Rate Movements - The Company acquires a significant level of its stock from overseas suppliers in foreign currency. Movements in the exchange rates between currencies has the potential to impact the costs of the business.
-
Financial risk management - The company adopts the principal policy of financing its working capital through retained earnings and through confidential invoice finance at the prevailing market interest rates. The company is exposed to the usual credit and cash flow risk of selling on credit and manages this through strict credit control procedures. By adhering to stringent credit limits, established for each customer, based on a combination of payment history and by utilising the UK's largest credit insurance agency, this risk is minimised.
-
Currency risk - With regard to the turnover, the company has a fairly limited exposure to foreign exchange risk, as only 10% is derived from non-sterling accounts. The exposure is certainly more evident with regard to the stock purchases, where a considerable proportion are transacted in US dollars. Payments are handled through a combination of spot and forward currency deals.
Development and financial performance during the year
As reported in the profit and loss account, Turnover increased by 2.2% to £15.9M in the current period. The gross margin decreased 3% to 23% as the cost of shipping impacted margins. The pre-tax result shows a profit of £7K against last year's profit of £114K
.
GLOBAL INTERNATIONAL TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Key performance indicators
Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below:
Turnover:
The Company is looking to continually grow its revenue year on year
Gross Margin:
The Company closely monitors the gross margin % as an indicator to ensure cost are
controlled on its key products
Stock Turnover:
The Company will monitor its stock turn to ensure stock on hand is always at the correct level
Financial position at the reporting date
The statement of financial position shows that the Company’s net assets at the year-end have stayed the same (£2.3M). No dividend has been declared. The stock holding has decreased as the Company focused on managing its inventory to improve efficiencies and forecasting abilities.
The company had cash outflows from operating activities of £249K but received a bank loan for £500k to remain cash neutral.
Mr J Albertini
Mr M Van Dongen
Director
Director
29 September 2022
29 September 2022
GLOBAL INTERNATIONAL TRADING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activities of the company continued to be those of the manufacture, installation and distribution of window blinds & window blind components.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J Albertini
Mr M Van Dongen
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Treasury operations and financial instruments
The Company operates a centralised treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the Company’s activities. The Company’s principal financial instruments include invoice and stock financing, the main purpose of which is to raise finance for the Company’s operations. In addition, the Company has various other financial assets and liabilities such as trade receivables and trade payables arising directly from its operations.
Future developments
In light of the global market pressures, the directors consider that the forthcoming financial year will be a unique year of challenging trading conditions, but one the business is well placed to deal with through a balance customer base and supply chain. The aim is to continue to increase turnover and margins. Overall, the directors believe that the Company is well placed in terms of strategic and market position to maximise its ability to generate sales and satisfy customer demand, in spite of the difficult conditions facing the business.
Auditor
The auditor, Ensors Accountants LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
Mr J Albertini
Mr M Van Dongen
Director
Director
29 September 2022
29 September 2022
GLOBAL INTERNATIONAL TRADING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
GLOBAL INTERNATIONAL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GLOBAL INTERNATIONAL TRADING LIMITED
- 5 -
Opinion
We have audited the financial statements of Global International Trading Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GLOBAL INTERNATIONAL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL INTERNATIONAL TRADING LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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 directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor'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
.
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
-
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
-
enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any actual, suspected or alleged instances of fraud;
-
discussed matters about non-compliance with laws and regulations and how fraud might occur, including assessment of how and where the financial statements may be susceptible to fraud.
GLOBAL INTERNATIONAL TRADING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GLOBAL INTERNATIONAL TRADING LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements (continued)
Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. Through discussion with management, and from our own knowledge of and experience of the sector in which the company operates, we identified the following areas where we consider there is a higher risk of fraud: transactions and balances with related parties, revenue recognition, and management override of systems and control.
We performed audit procedures to address the risks noted above, which included the following:
-
Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims
-
Testing journal entries and other adjustments for appropriateness, and evaluating business rationale of significant transactions
-
Review of related party transactions ensuring they have an appropriate business rationale
-
Testing a sample of sales orders to ensure that income is correctly recognised in the financial statements on the date the goods are despatched
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 we would become aware of non-compliance.
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.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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.
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.
Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
30 September 2022
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
GLOBAL INTERNATIONAL TRADING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
15,920,869
15,575,916
Cost of sales
(12,258,795)
(11,433,655)
Gross profit
3,662,074
4,142,261
Distribution costs
(980,394)
(1,096,877)
Administrative expenses
(2,631,037)
(2,846,579)
Operating profit
4
50,643
198,805
Interest receivable and similar income
7
19,887
Interest payable and similar expenses
8
(63,285)
(84,809)
Profit before taxation
7,245
113,996
Tax on profit
9
(12,488)
(22,780)
(Loss)/profit for the financial year
(5,243)
91,216
The income statement has been prepared on the basis that all operations are continuing operations.
GLOBAL INTERNATIONAL TRADING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
10
184,271
239,552
Tangible assets
11
1,268,396
1,259,083
Investments
3,939
1,080
1,456,606
1,499,715
Current assets
Stocks
13
3,001,493
4,026,145
Debtors
14
3,120,195
2,544,133
Cash at bank and in hand
269,726
257,717
6,391,414
6,827,995
Creditors: amounts falling due within one year
15
(5,034,745)
(5,352,418)
Net current assets
1,356,669
1,475,577
Total assets less current liabilities
2,813,275
2,975,292
Creditors: amounts falling due after more than one year
16
(400,030)
(550,251)
Provisions for liabilities
Deferred tax liability
19
76,126
82,679
(76,126)
(82,679)
Net assets
2,337,119
2,342,362
Capital and reserves
Called up share capital
21
5,000
5,000
Profit and loss reserves
2,332,119
2,337,362
Total equity
2,337,119
2,342,362
The financial statements were approved by the board of directors and authorised for issue on 29 September 2022 and are signed on its behalf by:
Mr J Albertini
Mr M Van Dongen
Director
Director
Company Registration No. 03014472
GLOBAL INTERNATIONAL TRADING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
5,000
2,246,146
2,251,146
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
91,216
91,216
Balance at 31 December 2020
5,000
2,337,362
2,342,362
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(5,243)
(5,243)
Balance at 31 December 2021
5,000
2,332,119
2,337,119
GLOBAL INTERNATIONAL TRADING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(185,583)
813,915
Interest paid
(63,285)
(84,809)
Net cash (outflow)/inflow from operating activities
(248,868)
729,106
Investing activities
Purchase of intangible assets
(276,406)
Purchase of tangible fixed assets
(63,880)
(24,234)
Purchase of subsidiaries
(2,859)
(1,080)
Interest received
19,887
Net cash used in investing activities
(46,852)
(301,720)
Financing activities
Proceeds of new bank loans
500,000
Repayment of bank loans
(84,059)
(140,095)
Payment of finance leases obligations
(108,212)
(100,525)
Net cash generated from/(used in) financing activities
307,729
(240,620)
Net increase in cash and cash equivalents
12,009
186,766
Cash and cash equivalents at beginning of year
257,717
70,951
Cash and cash equivalents at end of year
269,726
257,717
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Global International Trading Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
3 Williamsport Way, New Lion Barn Industrial Estate, Needham Market, Ipswich, IP6 8RW.
1.1
Accounting convention
These financial statements have been prepared under the historical cost convention and 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 a
mounts
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.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
Global International Trading Limited is a wholly owned subsidiary of Global Mergers & Acquisitions Limited and the results of Global International Trading Limited are included in the consolidated financial statements of Global mergers & Acquisitions Limited which are available from 3 Williamsport Way, New Lion Barn Industrial Estate, Needham Market, Ipswich, Suffolk, IP6 8RW.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, and is recognised at the invoice date.
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.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Intangible assets
are brand names
. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of
5
years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation 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:
Brand names
5 years straight line
1.6
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:
Land and buildings Freehold
2% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance
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
.
1.7
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.8
Impairment of fixed assets
At each reporting 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).
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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 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
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.
1.9
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.
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.
1.10
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.
1.11
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 statement of financial position 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.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans
and
loans from
fellow group companies that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. Accounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
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
s
ubsequently 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 th
r
ough 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.
1.12
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.
1.13
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in
profit
or
loss
immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in
profit
or
loss
depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.14
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
income statement
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.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
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
income statement
, 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.
1.15
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit or loss.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 lease
s
asset are consumed.
1.18
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.19
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Stock provisioning
The company sells window covering solutions which is subject to changing consumer demands and fashions. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors, whether covered by insurance and historical experience.
Stock transport and duty costs
Stock includes transport and duty costs incurred to bring goods to their current location. This is estimated based stock purchase transactions in the accounting period.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Window covering solutions
15,920,869
15,575,916
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
14,867,271
14,274,625
Rest of world
1,053,598
1,301,291
15,920,869
15,575,916
2021
2020
£
£
Other significant revenue
Interest income
19,887
-
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
4
Operating profit
2021
2020
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
(124,560)
61,778
Fees payable to the company's auditor for the audit of the company's financial statements
10,450
9,950
Depreciation of owned tangible fixed assets
80,782
85,747
Depreciation of tangible fixed assets held under finance leases
79,643
79,209
(Profit)/loss on disposal of tangible fixed assets
4,536
Amortisation of intangible assets
55,281
36,854
Operating lease charges
128,351
164,489
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production staff
145
134
Administration staff
26
25
Total
171
159
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
3,732,420
3,460,525
Social security costs
306,481
289,330
Pension costs
61,010
56,552
4,099,911
3,806,407
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
152,500
152,500
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest receivable from group companies
19,887
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
7
Interest receivable and similar income
(Continued)
- 20 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
19,887
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
39,597
60,280
Interest payable to group undertakings
1,968
39,597
62,248
Other finance costs:
Interest on finance leases and hire purchase contracts
23,688
20,985
Other interest
1,576
63,285
84,809
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
19,041
Deferred tax
Origination and reversal of timing differences
(6,553)
22,780
Total tax charge
12,488
22,780
In March 2021, the UK government announced a change in the main rate of Corporation Tax 19% to 25% with effect from 1 April 2023.
The deferred tax liability has not been adjusted to reflect this change
.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 21 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
7,245
113,996
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,377
21,659
Tax effect of expenses that are not deductible in determining taxable profit
1,729
78
Adjustments in respect of prior years
6,082
(2,417)
Depreciation on assets not qualifying for tax allowances
3,300
3,460
Taxation charge for the year
12,488
22,780
10
Intangible fixed assets
Goodwill
Brand names
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
21,300
276,406
297,706
Amortisation and impairment
At 1 January 2021
21,300
36,854
58,154
Amortisation charged for the year
55,281
55,281
At 31 December 2021
21,300
92,135
113,435
Carrying amount
At 31 December 2021
184,271
184,271
At 31 December 2020
239,552
239,552
The carrying amount of brand name intangible assets disclosed above relates to a single brand name. The amortisation period remaining in respect of this intangible asset is 3.33 years.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
1,093,597
1,297,066
314,396
16,995
2,722,054
Additions
6,412
153,987
9,339
169,738
At 31 December 2021
1,100,009
1,451,053
323,735
16,995
2,891,792
Depreciation and impairment
At 1 January 2021
275,068
936,939
245,122
5,842
1,462,971
Depreciation charged in the year
18,294
120,622
18,721
2,788
160,425
At 31 December 2021
293,362
1,057,561
263,843
8,630
1,623,396
Carrying amount
At 31 December 2021
806,647
393,492
59,892
8,365
1,268,396
At 31 December 2020
818,529
360,127
69,274
11,153
1,259,083
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and machinery
239,954
226,471
Motor vehicles
8,365
11,153
248,319
237,624
12
Subsidiaries
These financial statements are separate company financial statements for Global International Trading Limited.
Details of the company's subsidiaries at 31 December 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Novo Europe BV
Netherlands
Ordinary
100.00
-
Zon-comfort BV
Netherlands
Ordinary
0
100.00
Pro Chem
Netherlands
Ordinary
0
100.00
The investments in subsidiaries are all stated at cost.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
13
Stocks
2021
2020
£
£
Finished goods and goods for resale
3,001,493
4,026,145
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,732,124
1,600,512
Amounts owed by group undertakings
452,994
355,233
Other debtors
935,077
588,388
3,120,195
2,544,133
15
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans
17
499,928
39,789
Obligations under finance leases
18
97,367
95,680
Trade creditors
1,317,388
1,604,837
Amounts owed to group undertakings
153,735
255,822
Corporation tax
19,041
Other taxation and social security
466,472
612,879
Other creditors
2,480,814
2,743,411
5,034,745
5,352,418
Included within Other Creditors are borrowings in respect of an invoice financing and stock drawdown facility. These totalled £1,971,674 at 31 December 2020 (2020: £2,268,750).
These borrowings are secured by a fixed and floating charge over the present and future assets of the Company.
16
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
17
286,582
330,780
Obligations under finance leases
18
113,448
117,489
Other creditors
101,982
400,030
550,251
Bank loans
and overdrafts
are secured by a fixed and floating charge over the assets of the company
.
Obligations under finance leases are secured on the fixed assets to which they relate.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
16
Creditors: amounts falling due after more than one year
(Continued)
- 24 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
110,876
162,084
17
Loans and overdrafts
2021
2020
£
£
Bank loans
786,510
370,569
Payable within one year
499,928
39,789
Payable after one year
286,582
330,780
The loan is secured by a legal charge over the freehold property of the Company.
The Company obtained a bank loans totalling £950,000 during 2017 which are repayable in instalments over 12 years. The loan attracts interest at 2% over the base rate which is 0.5% at the year end.
A further loan of £500,000 has been drawn down in the year. This is being repaid over a period of 12 months.
18
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
97,367
95,680
In two to five years
113,448
117,489
210,815
213,169
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
77,154
83,764
Short term timing differences
(13,260)
(13,317)
Capital gains
12,232
12,232
76,126
82,679
2021
Movements in the year:
£
Liability at 1 January 2021
82,679
Credit to profit or loss
(6,553)
Liability at 31 December 2021
76,126
The deferred tax liability set out above mainly relates to accelerated capital allowances that are expected to reverse over the period that the underlying fixed assets are depreciated.
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,010
56,552
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.
21
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
22
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its assets. Leases are negotiated for an average term of 3.5 years.
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:
2021
2020
£
£
Within one year
110,772
84,899
Between two and five years
47,673
96,748
158,445
181,647
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2021
2020
£
£
Acquisition of tangible fixed assets
-
78,880
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is as follows.
2021
2020
£
£
Aggregate compensation
152,500
152,500
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2021
2020
2021
2020
£
£
£
£
Entities over which the entity has control, joint control or significant influence
550,372
40,619
423
20,531
Other related parties
440,863
255,981
11,136
152,317
991,235
296,600
11,559
172,848
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
24
Related party transactions
(Continued)
- 27 -
Management fees
2021
2020
£
£
Entities with control, joint control or significant influence over the company
-
111,002
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts owed to related parties
£
£
Entities with control, joint control or significant influence over the company
153,735
1,924
Entities over which the entity has control, joint control or significant influence
423
-
Other related parties
11,136
255,822
165,294
257,746
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts owed by related parties
£
£
Entities over which the entity has control, joint control or significant influence
753,729
394,781
Other related parties
1,477,635
784,028
2,231,364
1,178,809
The other related parties balance relates to a company under the control of the parent of Global International Trading Limited and a Global International Trading Limited director.
The Company has borrowing secured with a cross guarantee in place with its parent, Global Mergers & Acquisitions Ltd, and Global Blinds & Shutters Ltd, a fellow Group company.
25
Ultimate controlling party
At the year end the immediate and ultimate parent company is Global Mergers & Acquisitions Limited, a company registered in England and Wales. The registered office of Global Mergers & Acquisitions Ltd is 3 Williamsport Way, New Lion Barn Industrial Estate, Needham Market, Ipswich, Suffolk, IP6 8RW.
The ultimate controlling parties are considered to be the directors by virtue of their shareholdings in the group.
Global Mergers & Acquisitions Limited prepares group accounts, which include Global International Trading Limited.
This is the smallest and largest group for which consolidated accounts are prepared. These accounts can be obtained from the Registered Office address noted above.
GLOBAL INTERNATIONAL TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 28 -
26
Cash (absorbed by)/generated from operations
2021
2020
£
£
(Loss)/profit for the year after tax
(5,243)
91,216
Adjustments for:
Taxation charged
12,488
22,780
Finance costs
63,285
84,809
Investment income
(19,887)
(Gain)/loss on disposal of tangible fixed assets
4,536
Amortisation and impairment of intangible assets
55,281
36,854
Depreciation and impairment of tangible fixed assets
160,425
164,956
Movements in working capital:
Decrease/(increase) in stocks
1,024,652
(608,421)
Increase in debtors
(576,062)
(218,867)
(Decrease)/increase in creditors
(900,522)
1,236,052
Cash (absorbed by)/generated from operations
(185,583)
813,915
27
Analysis of changes in net debt
1 January 2021
Cash flows
New finance leases
31 December 2021
£
£
£
£
Cash at bank and in hand
257,717
12,009
-
269,726
Borrowings excluding overdrafts
(370,569)
(415,941)
-
(786,510)
Obligations under finance leases
(213,169)
108,212
(105,858)
(210,815)
(326,021)
(295,720)
(105,858)
(727,599)
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.200
Mr J Albertini
Mr M Van Dongen
03014472
2021-01-01
2021-12-31
03014472
bus:Director1
2021-01-01
2021-12-31
03014472
bus:Director2
2021-01-01
2021-12-31
03014472
bus:RegisteredOffice
2021-01-01
2021-12-31
03014472
2021-12-31
03014472
2020-01-01
2020-12-31
03014472
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
03014472
core:RetainedEarningsAccumulatedLosses
2021-01-01
2021-12-31
03014472
core:OtherResidualIntangibleAssets
2021-12-31
03014472
core:OtherResidualIntangibleAssets
2020-12-31
03014472
core:Goodwill
2021-12-31
03014472
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2021-12-31
03014472
core:Goodwill
2020-12-31
03014472
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2020-12-31
03014472
2020-12-31
03014472
core:LandBuildings
core:OwnedOrFreeholdAssets
2021-12-31
03014472
core:PlantMachinery
2021-12-31
03014472
core:FurnitureFittings
2021-12-31
03014472
core:MotorVehicles
2021-12-31
03014472
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
03014472
core:PlantMachinery
2020-12-31
03014472
core:FurnitureFittings
2020-12-31
03014472
core:MotorVehicles
2020-12-31
03014472
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
03014472
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
03014472
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-12-31
03014472
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
03014472
core:CurrentFinancialInstruments
2021-12-31
03014472
core:CurrentFinancialInstruments
2020-12-31
03014472
core:Non-currentFinancialInstruments
2021-12-31
03014472
core:Non-currentFinancialInstruments
2020-12-31
03014472
core:ShareCapital
2021-12-31
03014472
core:ShareCapital
2020-12-31
03014472
core:RetainedEarningsAccumulatedLosses
2021-12-31
03014472
core:RetainedEarningsAccumulatedLosses
2020-12-31
03014472
core:ShareCapital
2019-12-31
03014472
core:RetainedEarningsAccumulatedLosses
2019-12-31
03014472
2019-12-31
03014472
1
2021-01-01
2021-12-31
03014472
1
2020-01-01
2020-12-31
03014472
2
2021-01-01
2021-12-31
03014472
2
2020-01-01
2020-12-31
03014472
2020-12-31
03014472
core:Goodwill
2021-01-01
2021-12-31
03014472
core:IntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
03014472
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
03014472
core:LandBuildings
core:OwnedOrFreeholdAssets
2021-01-01
2021-12-31
03014472
core:PlantMachinery
2021-01-01
2021-12-31
03014472
core:FurnitureFittings
2021-01-01
2021-12-31
03014472
core:MotorVehicles
2021-01-01
2021-12-31
03014472
core:PlantMachinery
2020-01-01
2020-12-31
03014472
core:UKTax
2021-01-01
2021-12-31
03014472
core:UKTax
2020-01-01
2020-12-31
03014472
core:Goodwill
2020-12-31
03014472
core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill
2020-12-31
03014472
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-12-31
03014472
core:PlantMachinery
2020-12-31
03014472
core:FurnitureFittings
2020-12-31
03014472
core:MotorVehicles
2020-12-31
03014472
core:Subsidiary1
2021-01-01
2021-12-31
03014472
core:Subsidiary2
2021-01-01
2021-12-31
03014472
core:Subsidiary3
2021-01-01
2021-12-31
03014472
core:Subsidiary1
1
2021-01-01
2021-12-31
03014472
core:Subsidiary2
2
2021-01-01
2021-12-31
03014472
core:Subsidiary3
3
2021-01-01
2021-12-31
03014472
core:Non-currentFinancialInstruments
1
2021-12-31
03014472
core:Non-currentFinancialInstruments
1
2020-12-31
03014472
core:WithinOneYear
2021-12-31
03014472
core:WithinOneYear
2020-12-31
03014472
core:BetweenTwoFiveYears
2021-12-31
03014472
core:BetweenTwoFiveYears
2020-12-31
03014472
core:AllSubsidiaries
core:SaleOrPurchaseGoods
2021-01-01
2021-12-31
03014472
core:AllSubsidiaries
core:SaleOrPurchasePropertyOrOtherAssets
2020-01-01
2020-12-31
03014472
core:OtherRelatedParties
core:SaleOrPurchaseGoods
2021-01-01
2021-12-31
03014472
core:OtherRelatedParties
core:SaleOrPurchaseGoods
2020-01-01
2020-12-31
03014472
core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity
2021-12-31
03014472
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
03014472
bus:FRS102
2021-01-01
2021-12-31
03014472
bus:Audited
2021-01-01
2021-12-31
03014472
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP