Registered number:
FOR THE YEAR ENDED 31 MARCH 2023
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G-TEKT EUROPE MANUFACTURING LIMITED
COMPANY INFORMATION
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G-TEKT EUROPE MANUFACTURING LIMITED
CONTENTS
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G-TEKT EUROPE MANUFACTURING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their annual report on the affairs of the company, along with the financial statements for the year ending 31 March 2023.
The principal activities of the company remain the stamping and sub-assembly of metal body parts for motor vehicles, and supply of associated tooling. The business model creates value in each stage of the product cycle from design, development and prototyping to mass production. Value is created by developing products to meet customer timing plans, low cost manufacturing to achieve target prices, responsiveness to design changes, delivery and quality assurance, supplier selection, sourcing of low cost tooling, capital investment in the latest technology. Effective production planning and management is key to consistent supply on a just- in- time basis to automotive manufacturers. Objectives are to secure new and replacement business from existing customers, and grow market share by winning new customers. Because car manufacturing is subject to fluctuations in demand, often at short notice, value is protected by being able to flex material, labour and variable costs in line with changing conditions. The business model also relies upon recruitment and retention of necessary staff skills in each functional area.
Difficult trading conditions caused by the world shortage of semiconductors continued into most of the year resulting in reduced vehicle build volumes and delayed introduction of new models with existing customers. However mass production began on new business and contributed to increased revenue.
Significant economic increases were evident in all areas of the business, with energy and manpower being the most substantial. Mitigation activities on energy reduction and automation to reduce labour costs were also a focus area during the year. In the 12 months ended 31 March 2023 revenue from contracts with customers increased to £115,341,000 compared with £104,585,000 for the prior year of which mass production sales (see note 4) were £97,702,000 (2022: £79,822,000). This improvement in mass production revenue was due to increased customer demand, however tooling and trial part sales decreased to £11,294,000 (2022: £24,763,000). Additionally, the company received compensation for early termination of contracts of £6,345,000 (2022: £10,585,000). Pre-tax profit of £11,028,000 for the year, compared to £25,526,000 in the prior year. Average manpower was 584 compared to 596 in the prior year. In the year capital investment was £3,248,000 (2022: £1,337,000), mainly on production cells for new customer programs and £1,900,000 investment in photovoltaic solar panels installation to reduce the companies carbon footprint. During the year the share investment in G-TEKT Slovakia s.r.o. was unchanged, the paid-up figure remaining at €5,560,000 (£4,952,000). The return on investment is derived from the profitable supply of parts to automotive customers based in Europe, with production at G-TEKT Slovakia having commenced in 2019. The bank balance increased by £1,779,000 in the year to £38,566,000 (2022: £7,407,000 increase) due to profitability. The year-end stock value was £7,228,000, £1,768,000 higher than prior year due to new customer programs starting up.
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G-TEKT EUROPE MANUFACTURING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
A review of non-financial key performance indicators (“KPIs”) (such as percent on-time delivery and parts per million defect rates) shows that customer quality and delivery targets were met, with G-TEKT once again achieving “best class” status. Equipment uptime and product quality is continually monitored at every stage of the manufacturing process. Also, customer expectations for annual cost reduction targets were met. Financial KPIs are the financial results outlined in the business review on page 3, which exceeded budget expectations. No major quality concerns occurred in the year. There were no reportable health and safety incidents in the year. The policy of on time supplier payments continued in the year. As in previous years the company is reporting under FRS101 Reduced Disclosure Framework and has taken advantage of the disclosure exemptions allowed under this standard. Future developments and going concern Sales in 2023/24 continue to be affected by the world shortage of semiconductors, resulting in the reduced volume of cars that can be built. See further considerations in the Directors’ Report. In determining the appropriate basis for the preparation of the accounts, the directors have considered whether the company can continue to operate as a going concern for the 12 months following these financial statements. The directors are strongly of the view that the business will continue as a going concern. Directors` Duties and section 172 The directors of UK companies must act in accordance with a set of general duties, as detailed in section 172 of the Companies Act 2006, and must act in a way to promote the success of the company for the benefit of its stakeholders. In doing so they should have regard to the following. - The likely consequences of decisions in the long term - The interests of the employees - The need to foster business relationships with suppliers, customers and others - The impact of operations on the community and environment - The desirability of having a reputation for high standards of business conduct - The need to satisfy the interests of the shareholders The following paragraphs outline some of the ways in which directors` fulfil their duties towards section 172: Customer satisfaction The company is committed to quality assurance to achieve zero defects and exceed customer expectations and is certified to the TS16949 automotive quality standard. The aim of the standard is to drive continuous improvement in the company`s operating system and process quality to increase customer satisfaction, identify problems and risks in the production process and supply chain, eliminate their causes and take corrective and preventive measures. Employee interests Employees are fundamental to success of the business, and the company is fair and reasonable in its approach to pay, benefits, and conditions of employment. Staff training, development and performance improvement is actively promoted, with health and safety a key area for investment. Employee welfare surveys are issued regularly and follow up support given as necessary. To protect earnings a banked hours` system is operated to manage conditions of extreme demand fluctuation, so that staff can bank overtime hours worked in busy periods and draw upon them to supplement pay during layoff periods of low demand. Engaging with the shareholder An ongoing dialogue is maintained with the management of G-TEKT Corporation to ensure strategy and planning are aligned with their objectives, and monthly performance and operations are reported and reviewed.
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G-TEKT EUROPE MANUFACTURING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Community and environment
Accreditation to the ISA 14001 environmental standard is maintained each year. Regarding community involvement, opportunities are continually sought to interact positively with the wider community, and enhance the company`s reputation as a socially responsible organisation and large employer. Interaction with local schools takes place each year to provide work experience placements for pupils. The business was awarded with an Energy Management award from the confederation of British Metal Forming, recognising our significant activities in energy reduction and actions toward net zero target. Long term impact of decisions In making capital investment and manpower decisions the directors consider how they fit in with the annual operating plan and the three year plan. Investment and capacity decisions are made well in advance of new product introduction, as with long lead times for capital and tooling it is necessary to plan and think strategically. The long- term viability of the business underpins decision making by the directors. Supplier relations Close working relationships are maintained with suppliers, with communication on matters including new projects, cost levels, quality and delivery issues, product development, business processes. Thereby aligning supplier expertise with the changing requirements and demand levels of the business, and enabling customer expectations to be met by the supply chain. Reputation for high standards of business conduct The business is run in an ethical manner from the top down, with a focus on compliance with all legislation and the expectation of high standards of personal behaviour and performance from employees. During the Covid pandemic the supply of medical equipment to the health service enhanced the company`s reputation as a socially responsible organisation.
The business, like all others, is exposed to potential risks which if not properly controlled could materially affect long term results. These are set out below.
Customer concentration The risk associated with having a high concentration of sales with a small number of customers remains, though ongoing efforts to widen the customer base have been successful in recent years. Business Interruption The risk of a contagious disease outbreak, disrupting economic activity, is evident. Such an event, and other `force majeure` incidents like wars, natural disasters and acts of terrorism are outside of the control of the company but would potentially be damaging to continued operations. A robust health and safety regime is followed to protect staff in the event of an epidemic, and business continuity procedures are in place to respond to disruptive events. Foreign currency risk Certain imports and exports are transacted in foreign currency with movements in exchange rates impacting on results. Where possible the company matches income and expenditure in the same currency. It also has commercial agreements in place to pass through to customers the effects of positive and negative exchange movements. For large capital equipment currency purchases the company can take out forward contracts to hedge the risk. Commodity prices The company`s main purchase is steel, and to a lesser extent aluminium. Higher and lower metal prices can affect profitability, but to mitigate this risk economic agreements are in place with the main customers to pass through the impact of commodities price changes into selling prices.
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G-TEKT EUROPE MANUFACTURING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Wage and overhead inflation
Annual wage and overhead inflation can reduce profitability as there is limited opportunity to pass it though to automotive customers in higher selling prices. The work force is non-unionised and the rise in the Retail Price Index has been relatively high recently. Inflation puts pressure on pay rates, with the need to pay competitive salaries to attract and retain staff. While the company actively manages its energy sourcing to ensure it pays the lowest possible prices, to mitigate increasing energy prices GTEM have installed 2x1mw Solar Arrays into its Gloucester facilities. For the P4 facility it is expected to achieve 50% energy reduction with 80% carbon offsetting, For the P1 Facility 25%. The investment significantly contributes to our net zero targets. Credit risk The risk of non-payment by customers is not considered significant. Credit risk is controlled by carrying out commercial credit checks, application of standard payment terms and credit control activity to chase up overdue debts. Overall the directors are confident that the risk of payment default is low. Inventory obsolescence risk 98% of finished product is made to order using a `pull` system to bring in material based on customer schedules. However, because of customer demand changes there is a risk of carrying material for which there is little or no future usage and which will need to be written down in value. Inventory is regularly reviewed and the value of obsolete or slow- moving stock is fully provided for in the year end accounts.
This report was approved by the board on 8 August 2023 and signed on its behalf.
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G-TEKT EUROPE MANUFACTURING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The profit for the year, after taxation, amounted to £8,744 thousand (2022 - £20,188 thousand).
The directors who served during the year were:
It is expected that supply chain difficulties with semiconductor supply will not ease until the first half of 2023. However all customers indicate that there will be a full production recovery once supply becomes available, with a high level of demand to address the backlog of orders for new cars.
GTEM continue to leverage its strong sustainability position and as such have engaged with business relationships with two new automotive OEM’s within the UK and Europe with anticipated business start up in early 2023.
Product and process research and development continued in the year on a number of customer projects, and has served to improve existing products and processes within the business, without generating a specific identifiable asset. R&D activities focus on green energy and battery related products. Expenditure on research and development in the year is shown in note 6 to the financial statements.
Employees are recruited and promoted on an equal opportunity basis, without regard for gender, partnership status, race, creed or disability. Development and training of employees, together with an active program for multi-skilled apprentices, are seen as key to success. Regular communication briefings are circulated to all staff, to help create a common awareness of the business condition and performance and to notify staff of significant events and changes to working practices.
As referenced in the Strategic Report the directors continued to foster good ongoing relationships with suppliers, customers and others. Business decisions regarding recruitment, personnel policy, investment and production planning were guided by the best interests of stakeholders.
In respect of those liabilities for which directors may need to be indemnified, the company maintained a Directors` and Officers` Liability insurance policy throughout the financial year.
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G-TEKT EUROPE MANUFACTURING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
In the year 1,886 tonnes of carbon dioxide emissions resulted from the company`s activities through the consumption of electricity, gas, vehicle fuel and overseas flights. (2022: 2,357 tonnes). A total of 9,588,765 kilowatt hours of energy was used (2022: 11,183,011). This information was derived from the usage figures on energy supplier invoices, converted into kilowatt hours as necessary and into carbon dioxide emissions using conversion factors. The ratio of annual carbon dioxide tonnes produced (1,886 tonnes) to annual sales of mass production products (£97.7m) is used by the company to index energy usage with the level of business activity. In the year this ratio improved significantly to 19.3 (2022: 30.5), being the number of tonnes of CO2 produced per million of mass production sales, with the aim of continuing to make year on year reductions to achieve the company’s goal of net zero carbon emissions.
Year ending 31st March 2023 Year ending 31st March 2022 Tonnes of CO2 emissions 1,886 2,357 Kilowatt hours of energy used 9,588,765 11,183,011 Mass production sales (£million) 97.7 77.3 Usage index 19.3 30.5 Methodologies used in calculation of disclosures The Company reports on all of the Greenhouse Gas (GHG) emission sources as required under the Streamlined Energy and Carbon Reporting (SECR) legislation. The methodology used to calculate our GHG emissions and energy use is the GHG Protocol Corporate Accounting and Reporting Standard (revised edition), using the operational control approach on reporting boundaries, i.e. where the Company operates the facility or asset. Data has been calculated using BEIS 2019 emission factors for all relevant carbon streams. All emissions and energy usage are UK based. An energy management committee is in place, meeting regularly to drive though energy efficiency initiatives. In the year the following actions were taken to improve efficiency: - Ongoing evaluation of factory lighting at all sites and replacement with LED lighting. - Reduction in the use of compressed air throughout all plants, resulting from improvements and upgrades to equipment and the monthly audit of compressed air leaks with follow up action to repair leaks. - Tracking of energy consumed outside of normal working hours, with a robust power down cycle and employee communication to mandate that machines and equipment in all areas of the business are not left switched on at end of shift. - Installation of more car charging points and replacement of petrol and diesel fleet cars with electric and hybrid models. - Expansion of PV solar panels installation to further reduce our carbon footprint.
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G-TEKT EUROPE MANUFACTURING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
There have been no significant events affecting the Company since the year end.
The auditors, Haslers, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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G-TEKT EUROPE MANUFACTURING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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 to 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.
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G-TEKT EUROPE MANUFACTURING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G-TEKT EUROPE MANUFACTURING LIMITED
We have audited the financial statements of G-TEKT Europe Manufacturing Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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G-TEKT EUROPE MANUFACTURING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G-TEKT EUROPE MANUFACTURING LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report 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.
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 Directors' Report.
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G-TEKT EUROPE MANUFACTURING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G-TEKT EUROPE MANUFACTURING LIMITED (CONTINUED)
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 Auditors' 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:
Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, and Employment and Health & Safety legislation. We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations. We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below: The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates. Procedures performed to address these were as follows: • Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud, including known or suspected instances of non-compliance with laws and regulations, and fraud; • Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; • Challenging assumptions and judgements made by management in its significant accounting estimates; and • Identifying and testing journal entries, in particular any unusual journal entries posted around the year-end and journal entries posted by infrequent system users
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G-TEKT EUROPE MANUFACTURING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF G-TEKT EUROPE MANUFACTURING LIMITED (CONTINUED)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Old Station Road
Essex
IG10 4PL
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G-TEKT EUROPE MANUFACTURING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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G-TEKT EUROPE MANUFACTURING LIMITED
REGISTERED NUMBER: 03249892
BALANCE SHEET
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 35 form part of these financial statements.
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G-TEKT EUROPE MANUFACTURING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
G-TEKT Europe Manufacturing Limited is a private company, limited by shares and incorporated in England and Wales, United Kingdom, with a registration number 03249892. The address of the registered office is Gloucester Business Park, Golf Club Lane, Brockworth, Gloucester, Gloucestershire, GL3 4AJ. The company's principal activity is that of manufacture of bodies for motor vehicles.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
The financial statements have been prepared on the going concern basis which the Directors have deemed as appropriate based on the following.
The Directors have prepared a budget forecast for the following financial year, showing projected income and costs which predict a profit will be generated. They have applied prudent assumptions in this forecast. This has given the Directors confidence the company can continue to be deemed a going concern. The entity also has positive reserves brought forward of £102,039,000 as of 31 March 2023 which further support the Directors opinion that it is a going concern because it has the funds to pay short term debt as it falls due.
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
No depreciation is provided on freehold land.
Depreciation methods, useful lives and residual values are reviewed at each balance sheet date.
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Impairment of financial assets
Financial liabilities
Fair value through profit or loss
At amortised cost
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Due to the inherent subjectivity involved in making such judgements, estimates and outcomes may differ. 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 if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. The director does not believe that there have been judgements (apart from those involving estimates) made in the process of applying the accounting policies that have had a significant effect on amounts recognised in the financial statements.
Analysis of turnover by country of destination:
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 26
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 27
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 28
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
13.Taxation (continued)
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
13.Taxation (continued)
During March 2021 the UK chancellor announced an expected change to the UK’s main corporation tax rates from 19% to 25% which was subsequently enacted into the Finance Act in June 2021. The main rate will increase to 25% from 1 April 2023 and will impact the corporation tax provision of the Company from that date. The deferred tax provision has been adjusted in these financial statements in recognition of this change.
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
14.Tangible fixed assets (continued)
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Page 33
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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G-TEKT EUROPE MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Capital expenditure sanctioned by the Directors as at 31 March 2023 but not provided for within these accounts was nil (2022: £325,000).
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company and amounted to £296,000 (2022: £366,000). A second defined benefit scheme is operated to meet auto enrolment obligations and contributions to this scheme for the year were £127,000 (2022: £179,000).
The immediate and ultimate parent company is G-TEKT Corporation, a company incorporated in Japan and listed on the Japanese Stock Exchange. A copy of the group accounts can be obtained from that companies registered office at G-TEKT Corporation, Omiya JP Building 18F, 1-11-20, Sakuragi-cho, Omiya-ku, Saitama-city, Saitamap-Pref.0330-8854 Japan.
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