REGISTERED NUMBER:
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GREY TECHNOLOGY LIMITED |
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Strategic Report, Report of the Director and |
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Financial Statements |
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for the Year Ended 30 November 2020 |
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REGISTERED NUMBER:
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GREY TECHNOLOGY LIMITED |
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Strategic Report, Report of the Director and |
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Financial Statements |
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for the Year Ended 30 November 2020 |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Contents of the Financial Statements |
for the year ended 30 November 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 | to | 3 |
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Report of the Director | 4 | to | 6 |
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Report of the Independent Auditors | 7 | to | 9 |
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Income Statement | 10 |
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Other Comprehensive Income | 11 |
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Statement of Financial Position | 12 |
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Statement of Changes in Equity | 13 |
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Notes to the Financial Statements | 14 | to | 24 |
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GREY TECHNOLOGY LIMITED |
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Company Information |
for the year ended 30 November 2020 |
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DIRECTOR: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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5 - 6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Strategic Report |
for the year ended 30 November 2020 |
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The director presents his strategic report for the year ended 30 November 2020. |
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REVIEW OF BUSINESS |
Our review takes into account the size and nature of the business and the risks and uncertainties we face. |
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KEY PERFORMANCE INDICATORS |
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The director regularly monitors the trading climate in terms of the product performance, customer satisfaction and financial performance of the business. |
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DEVELOPMENT AND PERFORMANCE |
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The restructure commenced in September of 2018 has been extremely successful. The replacement of management roles with a central data system has yielded, among other things: |
- | A 491% increase in profit |
- | Enhanced product performance, durability and reliability |
- | Substantially lower running costs |
- | Optimisation of marketing expenditure |
- | A much larger cash reserve and balance sheet |
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As a result, the business has recovered from its worst ever trading result in 2018 to easily its best ever in 2020, the net profit of £14.8m being 17% of turnover. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company's decision to trade as normal through the pandemic was very popular with our customers and certainly contributed to 2020's outstanding trading success. However, as things are returning to normal the demand for home-shopping has reduced. Though trade is still strong in 2021, which will return our second-best financial results in the company's 20 year history, the company faces fresh challenges. |
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The optimisation of our marketing, whilst delivering strong short-term profit has reduced awareness of the Gtech brand. In addition, Gtech is predominantly Bristish rather than global brand. The business will therefore take steps to address these challenges in the coming months. |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Strategic Report |
for the year ended 30 November 2020 |
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SECTION 172 STATEMENT |
The director has taken into account the likely consequences of long-term decisions; relationships with stakeholders; the importance of engaging with our employees; the impact of our operations on the community within which they operate; and attribute importance to behaving as a responsible business. |
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The director considers, that he has acted in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 30 November 2020. The director aims to be a responsible employer in his approach the to pay and benefits the employees receive. The health, safety and wellbeing of our employees is one of our primary considerations in the way we do business. The director's, intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours. |
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ON BEHALF OF THE BOARD: |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Report of the Director |
for the year ended 30 November 2020 |
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The director presents his report with the financial statements of the company for the year ended 30 November 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the design, development and supply of domestic electrical products |
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DIVIDENDS |
No dividends will be distributed for the year ended 30 November 2020. |
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DIRECTOR |
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FINANCIAL INSTRUMENTS - FINANCIAL RISK MANAGEMENT |
Cash flow |
The company continues to be self-funded. The trading model and contract negotiations are expected to facilitate growth without the need for external financing. Cash flow is closely monitored and sufficient funds are available for all current and forecast activities. |
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Credit management |
The company undertakes extensive credit checks prior to offering a credit account and has become more selective with retail partners. Stringent debt chasing policies ensure debtors are managed efficiently and the marketing strategy reduces Gtech's reliance on the retail environment. |
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Price risk / foreign exchange risk |
The company is exposed to price risk and foreign exchange risk on its raw material and product supplies, which are principally denominated in US dollars. |
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GOING CONCERN |
The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements. |
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STREAMLINED ENERGY AND CARBON REPORTING |
The company fulfils its statutory requirements for Streamlined Energy and Carbon Reporting, which includes disclosure of the company's carbon emissions. Under the Companies Act 2006 / SECR Regulations, 'Large' companies are required to report their annual emissions within the Director's Report. |
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The company's SECR statement covers the year to November 2020 and has been prepared in line with the requirements of the SECR regulations and the relevant areas of the Greenhouse Gas ('GHG') Protocol Corporate Accounting and Reporting Standard. |
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Scope of reporting |
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The scope of this SECR includes all activities and sites controlled by Grey Technology Limited. All sites and activities are situated and carried out in the United Kingdom. |
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Emissions are broken down into three categories by the GHG Protocol, as follows: |
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Scope 1 - All Direct Emissions from the activities of an organisation or under their control. Including fuel combustion on site such as gas boilers, fleet vehicles and air-conditioning leaks; |
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Scope 2 - Indirect Emissions from electricity purchased and used by the organisation. Emissions are created during the production of the energy and eventually used by the organisation; and |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Report of the Director |
for the year ended 30 November 2020 |
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Scope 3 - All Other Indirect Emissions from activities of the organisation, occurring from sources that they do not own or control. These are usually the greatest share of the carbon footprint, covering emissions associated with business travel, procurement, waste and water. |
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As this is the company's first year of SECR, the comparative data for 2019 has not been recorded and does not need to be reported. |
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Methodology |
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A 'Dual Reporting' methodology has been used to indicate emissions using UK electricity grid average emission factors (the 'Location Based' method) and also using average fuel consumption factor to estimate usage where actual usage data was unavailable. |
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Energy data has been collected from the following sources: |
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Activity | Source of data |
Electricity consumption | Total kilowatt hours used from suppliers' electricity bill and annual statements. |
Gas consumption | N/A |
Company owned commercial
vehicles |
Total litres purchased from fuel cards. |
Company car fleet fuel
consumption |
Total litres purchased from fuel cards. |
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Energy usage and emissions report |
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Total Energy consumption | 350985 kWh |
Emissions from combustion of gas (Scope 1) | N/A |
Emissions from combustion of fuel for the purposes of transport (Scope 1) | 2 tCO2e |
Emissions from purchased electricity (Scope 2) | 75 tCO2e |
Emissions from business travel in rental cars or employee-owned vehicles where
company is responsible for purchasing the fuel (Scope 3) |
3tCO2e |
Total gross emissions | 80 tCO2e |
Emissions per £1m turnover | 1tCO2e per £1m turnover |
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DISCLOSURE IN THE STRATEGIC REPORT |
Certain disclosures required by the Companies Act regarding the company's research and development activity, and an indication of the likely future developments in the business, have been covered in the context of the Strategic Report. |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Report of the Director |
for the year ended 30 November 2020 |
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STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
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Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable 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. |
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The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Haines Watts Birmingham LLP, are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Grey Technology Limited |
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Opinion |
We have audited the financial statements of Grey Technology Limited (the 'company') for the year ended 30 November 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 November 2020 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed on accounting policies note. |
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Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
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Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Grey Technology Limited |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
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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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page six, the director is 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 director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Grey Technology Limited |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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5 - 6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Income Statement |
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for the year ended 30 November 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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16,838,029 | 2,525,355 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Impairment of group debt | 6 |
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16,968,631 | 2,799,814 |
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Interest receivable and similar income | 7 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 8 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Other Comprehensive Income |
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for the year ended 30 November 2020 |
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2020 | 2019 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Statement of Financial Position |
30 November 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investments | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 16 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Retained earnings | 18 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the director and authorised for issue on
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Statement of Changes in Equity |
for the year ended 30 November 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 December 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 November 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 November 2020 |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Notes to the Financial Statements |
for the year ended 30 November 2020 |
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1. | STATUTORY INFORMATION |
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Grey Technology Limited 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 |
The director continues to adopt the going concern basis in preparing the financial statements as his belief is that company has adequate resources and support to continue in operational existence for the foreseeable future. In making this assessment the director considers a period of at least 12 months from the date of approval of these financial statements. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
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Preparation of consolidated financial statements |
The financial statements contain information about Grey Technology Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Grey Technology Holding Limited, United Kingdom. |
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Significant judgements and estimates |
The preparation of financial statements requires the use of certain accounting estimates. It also requires the Director to exercise judgement in applying the company's accounting policies. The areas requiring a higher degree of judgement, or complexity, and areas where assumptions or estimates are most significant to the financial statements, are disclosed below: |
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Depreciation of tangible fixed assets |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. |
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Warranty provisions |
A provision is incorporated into the financial statements to reflect an estimate of future costs to be incurred as a consequence of warranties provided to customers on invoiced sales. Warranties are provided to customers for a period of 2 years. The estimated requirement for provision is calculated using an average of returns for individual product lines from the current and previous financial years. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
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Improvements to property | - |
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Tooling | - |
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Fixtures, fittings and equipment | - |
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Motor vehicles | - |
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Computer equipment | - |
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Government grants |
Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
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Grants are recognised using the accrual model. |
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Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Financial instruments |
Financial assets and financial liabilities are categorised under FRS 102 as either basic financial instruments or other financial instruments. |
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The company deals principally in basic financial instruments, which are accounted for in accordance with section 11 of FRS102. |
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Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
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The company has the ability to deal in other more complex financial instruments such as derivative forward contracts for the hedging of foreign currency. Where material, these will be accounted for under section 12 of FRS102, initially measured at fair value at the date on which the derivative contract is entered into and subsequently measured at fair value through profit and loss. |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
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2. | ACCOUNTING POLICIES - continued |
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 statement of financial position 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 statement of financial position 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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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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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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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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12.7% of the turnover of the company is attributable to geographical markets outside the UK (2019 7.6%). |
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4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Director & Management | 3 | 3 |
Research & Development | 24 | 29 |
Selling & Distribution | 153 | 149 |
Finance & Administration | 14 | 17 |
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2020 | 2019 |
£ | £ |
Director's remuneration |
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Director's pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
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Pension contributions to money purchase schemes |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2020 | 2019 |
£ | £ |
Depreciation - owned assets |
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Loss on disposal of fixed assets |
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Auditors' remuneration |
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Foreign exchange differences | ( |
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Operating lease rental |
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Impairment of loans to subsidiary undertakings | ( |
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Non-audit fees |
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6. | EXCEPTIONAL ITEMS |
2020 | 2019 |
£ | £ |
Impairment of group debt |
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GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
Grey Trading (Shanghai) Co. Ltd |
The Company's Chinese subsidiary ceased to trade in the accounting period to 30 November 2019. The balance owing on the intercompany loan between the two entities was deemed irrecoverable and was provided for in full. The total provision of £665,955 was charged to exceptional items in the profit and loss account in 2018. In the accounting period to 30 November 2019, sums were received back from the Chinese subsidiary. The sum of £274,459 has been credited to exceptional items in the profit and loss account. In the accounting period to 30 November 2020, sums were received back from the Chinese subsidiary. The sum of £116,503 was credited to exceptional items in the profit and loss account. |
|
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Intercompany interest |
|
|
Bank interest |
|
|
Corporation tax interest |
|
|
|
|
|
8. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Underprovision in prior year | - | 300,963 |
Total current tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
8. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Patent Box deduction | (33,161 | ) | - |
Research & Development enhanced deduction | (639,486 | ) | (188,112 | ) |
Group relief | (111,474 | ) | - |
Underprovision in prior year | - | 300,963 |
Total tax charge | 2,429,381 | 669,962 |
|
At the date of the Director signing the Financial Statements, a claim for Research and Development was ongoing in respect of the period ended 30 November 2020. The taxation figures within the Financial Statements for the year ended 30 November 2020 include an estimate for the impact of the Research and Development claim, a sum of £639,486. The claim will be submitted in due course. |
|
9. | INTANGIBLE FIXED ASSETS |
Domains & |
licences |
£ |
COST |
At 1 December 2019 |
and 30 November 2020 |
|
AMORTISATION |
At 1 December 2019 |
and 30 November 2020 |
|
NET BOOK VALUE |
At 30 November 2020 |
|
At 30 November 2019 |
|
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
10. | TANGIBLE FIXED ASSETS |
Fixtures, |
Improvements | fittings |
to | and |
property | Tooling | equipment |
£ | £ | £ |
COST |
At 1 December 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
|
|
At 30 November 2020 |
|
|
|
DEPRECIATION |
At 1 December 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
|
|
At 30 November 2020 |
|
|
|
NET BOOK VALUE |
At 30 November 2020 |
|
|
|
At 30 November 2019 |
|
|
|
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) | ( |
) |
At 30 November 2020 |
|
|
|
DEPRECIATION |
At 1 December 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) | ( |
) |
At 30 November 2020 |
|
|
|
NET BOOK VALUE |
At 30 November 2020 |
|
|
|
At 30 November 2019 |
|
|
|
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2019 |
and 30 November 2020 |
|
NET BOOK VALUE |
At 30 November 2020 |
|
At 30 November 2019 |
|
|
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
|
|
Registered office: 2511 North Frazier Street Conroe, TX 77303, United States. |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2020 | 2019 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year |
|
( |
) |
|
Gtech USA Inc. was incorporated on 16 November 2012. The company commenced trading in 2013. The company ceased to trade in the period ended 30 November 2019. |
|
Grey Technology (Shanghai) Co. Ltd |
The company's Chinese subsidiary has ceased to trade in the year ending 30 November 2019 and full impairment of the investment has been made via provision against the intercompany debt (see note 6 - Exceptional items). |
|
12. | STOCKS |
2020 | 2019 |
£ | £ |
Finished goods |
|
|
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
13. | DEBTORS |
2020 | 2019 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Directors' current accounts | 1,271,662 | 71,488 |
Tax |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
|
|
|
Aggregate amounts |
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Wages | (16,136 | ) | (31,423 | ) |
VAT | 1,221,481 | 1,670,463 |
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
A debenture is held by Handelsbanken over the company assets and undertakings. |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
16. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Other provisions |
Warranty provision | 2,704,154 | 3,259,512 |
|
Deferred | Warranty |
tax | provision |
£ | £ |
Balance at 1 December 2019 | ( |
) |
|
Charge/(credit) to Income Statement during year |
|
( |
) |
Balance at 30 November 2020 | ( |
) |
|
|
A warranty provision is provided at the point the revenue is recognised on products sold under the company warranty terms. The provision is estimated based on an average return rate calculated by reference to the product and sales channel. |
|
17. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 10,000 | 10,000 |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 1 December 2019 |
|
Profit for the year |
|
At 30 November 2020 |
|
|
19. | ULTIMATE PARENT COMPANY |
|
The Immediate and Ultimate parent company is Grey Technology Holding Limited, a company registered and incorporated in England and Wales. |
|
Consolidated accounts for the year are available from Brindley Road, Warndon, Worcestershire, WR4 9FB. |
GREY TECHNOLOGY LIMITED (REGISTERED NUMBER: 04320113) |
|
Notes to the Financial Statements - continued |
for the year ended 30 November 2020 |
|
|
20. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 30 November 2020 and 30 November 2019: |
|
2020 | 2019 |
£ | £ |
|
Balance outstanding at start of year |
|
( |
) |
Amounts advanced |
|
|
Amounts repaid |
|
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
The overdrawn balance carried forward at the end of the year was cleared within 9 months of the year end. |
|
21. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
22. | ULTIMATE CONTROLLING PARTY |
|
The director remains the ultimate controlling party, by virtue of holding the controlling interest in the parent company. |