Company registration number 04266620 (England and Wales)
GERSTAECKER UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
GERSTAECKER UK LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
GERSTAECKER UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
356,662
419,210
Current assets
Stocks
300,026
368,229
Debtors
5
408,344
380,817
Cash at bank and in hand
86,988
174,209
795,358
923,255
Creditors: amounts falling due within one year
6
(1,587,445)
(1,551,839)
Net current liabilities
(792,087)
(628,584)
Net liabilities
(435,425)
(209,374)
Capital and reserves
Called up share capital
7
1,800,000
1,800,000
Profit and loss reserves
(2,235,425)
(2,009,374)
Total equity
(435,425)
(209,374)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 December 2022 and are signed on its behalf by:
Mr C A Geyer
Director
Company Registration No. 04266620
GERSTAECKER UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
1,800,000
(2,183,885)
(383,885)
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
174,511
174,511
Balance at 31 December 2020
1,800,000
(2,009,374)
(209,374)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(226,051)
(226,051)
Balance at 31 December 2021
1,800,000
(2,235,425)
(435,425)
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Gerstaecker UK Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Greatart Head Office, 41-49 Kingsland Road, London, E2 8AG.
1.1
Accounting convention
These financial statements have been prepared 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The 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.
1.2
Going concern
In drawing their conclusion on the appropriateness of the going concern assumption, the directors have been mindful of the company having net current liabilities of £750,276 (2020: £628,584), net liabilities of £393,614 (2020: £209,374) and that it generated losses for the financial year of £184,240 (2020: profit of £174,511).
true
Within the net current liabilities noted above are significant intercompany balances of £1,203,096 due to Johannes Gerstäcker Verlag GmbH which are repayable on demand. The directors do not currently anticipate that the relevant balances will be recalled within 12 months from the date that these accounts are signed as supporting confirmations have been obtained from the parent company, Johannes Gerstäcker Verlag GmbH.
The parent company, Johannes Gerstäcker Verlag GmbH, has confirmed its intention to provide sufficient financial support to the company in order to meet its liabilities for at least 12 months from the date of signing these financial statements.
Taking the above into consideration, the directors have a reasonable expectation that the company has adequate resources and support to continue in operational existence for the foreseeable future and therefore, they continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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
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.
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
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:
Leasehold improvements
Remaining term of lease
Fixtures, fittings and equipment
3-15 years straight line
Computer equipment and software
3-5 years straight line
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
.
1.5
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.6
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.
1.7
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
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.
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.
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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 creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
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.
1.12
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.13
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
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 valuation and obsolescence
Stocks are valued at the lower of cost and net realisable value. Cost is based on the purchase cost. Net realisable value, includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include the forecasted customer demand, competitive and economic environment as well as the ageing of stock. These variables are monitored by the directors and a provision is in place to mitigate the relevant risk.
Useful economic lives of non-current assets
The useful economic lives of non-current assets have been derived from the judgement of the directors, using their best estimate of the write-down period.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
16
18
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
124,688
555,873
680,561
Depreciation and impairment
At 1 January 2021
18,788
242,563
261,351
Depreciation charged in the year
10,391
52,157
62,548
At 31 December 2021
29,179
294,720
323,899
Carrying amount
At 31 December 2021
95,509
261,153
356,662
At 31 December 2020
105,900
313,310
419,210
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
82,737
54,331
Other debtors
71,779
57,069
154,516
111,400
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
253,828
269,417
Total debtors
408,344
380,817
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
97,521
63,384
Amounts owed to group undertakings
1,203,096
1,216,767
Taxation and social security
120,105
148,799
Other creditors
166,723
122,889
1,587,445
1,551,839
GERSTAECKER UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
7
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,800,000
1,800,000
1,800,000
1,800,000
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Senior Statutory Auditor:
Samantha Daniels
Statutory Auditor:
Shaw Gibbs (Audit) Limited
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
Total commitment
2,418,598
2,515,342
The parent company Johannes Gerstäcker Verlag Gmbh has provided a guarantee in respect of a lease.
The company successfully negotiated a new lease for the existing premises that commenced during the year.
10
Related party transactions
The company has taken advantage of the exemptions provided under section 33.1A - Related party disclosures not to disclose transactions with the related undertakings of Gerstäcker Management GmbH & Co. KG.
11
Parent company
The company is a wholly owned subsidiary of Johannes Gerstäcker Verlag GmbH, a company registered in Germany. The parent company's registered office is Wecostraße 4, D-53783 Eitorf, Germany.
The ultimate parent company during the period was Gerstäcker Management GmbH & Co. KG, a company registered in Germany. A copy of the group accounts can be obtained from Gerstäcker Management GmbH & Co. KG, at Wecostraße 4, D-53783 Eitorf, Germany.