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GFM HOLDINGS LTD |
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Financial Statements |
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for the Year Ended 30 September 2020 |
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GFM HOLDINGS LTD |
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Financial Statements |
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for the Year Ended 30 September 2020 |
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GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Contents of the Financial Statements |
for the year ended 30 September 2020 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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GFM HOLDINGS LTD |
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Company Information |
for the year ended 30 September 2020 |
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Director: |
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Registered office: |
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Registered number: |
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Auditors: |
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New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
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Bankers: |
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25 High Street |
Colchester |
Essex |
CO1 1DG |
GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Balance Sheet |
30 September 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
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Investments | 5 |
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Investment property | 6 |
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Current assets |
Debtors | 7 |
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Cash at bank and in hand |
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Creditors |
Amounts falling due within one year | 8 |
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Net current assets |
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Total assets less current liabilities |
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Creditors |
Amounts falling due after more than one
year |
9 |
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Provisions for liabilities | 11 | ( |
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Net assets |
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Capital and reserves |
Called up share capital | 12 |
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Retained earnings | 13 |
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Shareholders' funds |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director and authorised for issue on
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GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements |
for the year ended 30 September 2020 |
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1. | Statutory information |
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GFM Holdings Ltd is a
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2. | Accounting policies |
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Basis of preparing the financial statements |
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Going Concern |
Following the emergence and spread of the coronavirus (COVID-19) and its financial effects on businesses worldwide, the director has examined the possible effects on the company through forecasting and scenario planning. |
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The company is part of a group which has a mixture of income streams with a combination of contractual and general sales. Some parts of the business have been impacted negatively by COVID-19 whilst others have seen an increase in business. There will be an impact to current year group profitability and cash flow however this impact is manageable. There is a degree of some uncertainty around future non contracted group sales pending rules on relaxation of lockdown. |
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The company and wider group has secured COVID-19 governmental support and will reduce costs in line with sales wherever possible. For these reasons the director believes there are sufficient funds available within the company and through group support for the business to operate as a going concern. |
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Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
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Depreciation |
The company's tangible assets are depreciated on a straight line basis over their useful economic lives. Management reviews the appropriateness of assets' useful economic lives at least annually and any changes could affect prospective depreciation rates and asset carrying values. |
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Bad debt provision |
There is estimation uncertainty in calculating bad debt provisions and a review of trade debtors is carried regularly. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable. |
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Tangible fixed assets |
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Freehold property | in accordance with the property |
Short leasehold | 20% on cost |
Plant and machinery | 33% on cost |
Fixtures and fittings | 25% on cost |
Motor vehicles | 25%-55% on cost |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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2. | Accounting policies - continued |
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Investment property |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. Subsequent to initial recognition: |
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- investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise; and |
- no depreciation is provided in respect of investment properties applying the fair value model. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Employee benefits trust |
Assets and liabilities held in the EBT are recognised to the extent that the company retains de facto control. |
GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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2. | Accounting policies - continued |
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Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
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Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
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Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
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Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
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3. | Employees and directors |
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The average number of employees during the year was
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4. | Tangible fixed assets |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
Cost |
At 1 October 2019 |
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Additions |
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At 30 September 2020 |
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Depreciation |
At 1 October 2019 |
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Charge for year |
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At 30 September 2020 |
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Net book value |
At 30 September 2020 |
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At 30 September 2019 |
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Plant and machinery with a carrying value of £25,376 (2019: £43,681) and motor vehicles with a carrying value of £63,250 (2019: £101,883) are held under hire purchase contracts. |
GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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5. | Fixed asset investments |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 October 2019 |
and 30 September 2020 |
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Net book value |
At 30 September 2020 |
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At 30 September 2019 |
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The company own a 100% holding in the following dormant companies. All the dormant companies registered in the United Kingdom. |
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Aggregate capital
and reserves |
GFM Service Ltd | £100 |
Off Peak Limited | £2 |
Brandboost Limited | £2 |
Callspill Limited | £2 |
Buy Off Peak Limited | £2 |
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6. | Investment property |
Total |
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Cost |
Additions |
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At 30 September 2020 |
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Net book value |
At 30 September 2020 |
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7. | Debtors: amounts falling due within one year |
2020 | 2019 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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8. | Creditors: amounts falling due within one year |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts |
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Hire purchase contracts (see note 10) |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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9. | Creditors: amounts falling due after more than one year |
2020 | 2019 |
£ | £ |
Bank loans |
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Hire purchase contracts (see note 10) |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loans | 323,047 | 43,312 |
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10. | Leasing agreements |
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Minimum lease payments fall due as follows: |
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Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
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Between one and five years |
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Non-cancellable |
operating leases |
2020 | 2019 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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11. | Provisions for liabilities |
2020 | 2019 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
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Deferred tax |
£ |
Balance at 1 October 2019 |
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Provided during year | ( |
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Balance at 30 September 2020 |
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GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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12. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
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Ordinary A | £1 | 5,000 | 5,000 |
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Ordinary B | £1 | 263 | 263 |
5,263 | 5,263 |
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13. | Reserves |
Retained |
earnings |
£ |
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At 1 October 2019 |
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Deficit for the year | ( |
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Dividends | ( |
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At 30 September 2020 |
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14. | Disclosure under Section 444(5B) of the Companies Act 2006 |
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The Auditors' Report was unqualified. |
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for and on behalf of
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The audit report in the full accounts makes reference to the accounting policy on going concern highlighting the uncertainty caused by COVID-19. |
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15. | Contingent liabilities |
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GFM Holdings Limited has provided an unlimited cross guarantee against the borrowings of Forwards and Upwards Limited, it's parent company. |
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16. | Director's advances, credits and guarantees |
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The following advances and credits to a director subsisted during the years ended 30 September 2020 and 30 September 2019: |
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2020 | 2019 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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Interest is charged on the loan account at a rate of 2.5%. |
GFM HOLDINGS LTD (REGISTERED NUMBER: 03526529) |
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Notes to the Financial Statements - continued |
for the year ended 30 September 2020 |
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17. | Related party disclosures |
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Included in other debtors at the year end is £586,814 (2019: £474,210) due from a company in which P Sakal is a director. During the year £160,000 (2019: £360,000) was donated to this entity. |
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During the year rent was paid to the director totalling £121,000 (2019: £121,000) in relation to the company's main trading premises. In addition to this a property owned by GFM Holdings Limited is used by the director's family, no rent is charged to these persons and it is not used for trade purposes. |
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Included within other creditors is £21,082 (2019: £21,082) owed to the director's family. |
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During the year the company bought a property at market rate from the director's family. |
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Total dividends of £300,000 (2019: £400,000) was paid to the parent company. |
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During the year the company was recharged costs from companies in the group totalling £2,626,341 (2019: £4,595,042) and recharged costs to group companies totalling £3,447,432 (2019: £3,878,004). |
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At the balance sheet date £4,477,519 (2019: £4,714,378) was owed from group companies, and £5,609,371 (2019: £5,124,671) was owed to group companies. |
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18. | Ultimate controlling party |
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The parent undertaking and the largest group to consolidate these financial statements is Forwards & Upwards Limited. Copies of the Forwards & Upwards Limited consolidated financial statements can be obtained at 42 Phoenix Court, Hawkins Road, Colchester, Essex, CO2 8JY. |
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The ultimate controlling party is Mr P Sakal. |
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19. | Employee benefit trust |
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The company operates an Employee Benefit Trust (EBT), which is a discretionary trust set up for the absolute benefit of all employees of the company (and its subsidiary undertakings). All distributions from the trust are at the absolute discretion of the trustees. The trustees are not related to the company or any of its officers or employees. Contributions to the trust are charged to the profit and loss account in the year in which they are approved by the company. |
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Balances and transactions relating to the EBT are consolidated and netted off into the company's financial statements: Debtors £100,000 (2019: £100,000), Cash at Bank £2,014 (2019: £2,014), and Creditors due within one year £102,014 (2019: £102,014) have been included in the balance sheet. |
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The trust is responsible for its own costs and liabilities and no indemnity has been given by the company in respect of these costs or liabilities. The trust made no contributions to beneficiaries during the year (2019: £nil). |