Company Registration No. 5739246 (England and Wales)
GROUP FIRST GLOBAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
GROUP FIRST GLOBAL LIMITED
COMPANY INFORMATION
Directors
Mr T S Whittaker
Mr J Slater
Company number
5739246
Registered office
Group First House
12a Mead Way
Burnley
BB12 7NG
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Group First House
12a Mead Way
Burnley
BB12 7NG
GROUP FIRST GLOBAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 34
GROUP FIRST GLOBAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2019
- 1 -
The directors present the strategic report for the year ended 30 June 2019.
Fair review of the business
Group First Global Limited and its directors believe the year ended 30 June 2019 has been a challenging but successful year.
A head office contribution from the business divisions within and outside of the group has funded the head office costs whilst maintaining profitable divisions.
The shared service office centres has maintained high occupancy throughout the year. The portfolio of 60 residential properties have been let out with short periods of void primarily due to constant monitoring of market rate rent and reinvestment where capital appraisal suggests is needed. The equestrian centre was rented out throughout the year and no issues noted.
Throughout the financial year, Group First Global Limited and its directors supported five of its subsidiary companies, Store First Limited, Harley Scott Commercial Limited (formerly Store First Midlands Limited), Store First St Helens Limited, Store First Blackburn Limited and SFM Services Limited, defending petitions issued by the Secretary of State to wind those companies up. On 30 April 2019 the court made an order to wind-up four companies by consent between those four companies and the Secretary of State. The companies wound-up in court were Store First Limited, Store First Blackburn Limited, Store First St Helens Limited and SFM Services Limited. The petition to wind up Store First Midlands was dismissed, also by consent by the parties.
The off-airport carparking division was restructured as explained in the accounting policies and continued to trade profitably throughout the year. Since the year end Smith and Williamson LLP have been appointed as administrators to Park First Freeholds Limited, Help Me Park Gatwick Limited, Park First Glasgow Rentals Limited and Park First Gatwick Rentals Limited due to the liabilities brought about from the restructuring exercise. The administrators’ proposals explain that the administrators are pursuing the first statutory objective of these administrations, namely to rescue the four companies as going concerns. The administrators aim to achieve this by developing and putting forward company voluntary arrangements (“CVAs”) for the companies. If the administrators are unable to successfully conclude the CVAs, there are a range of other options available to them.
COVID-19 has had a big impact on the globe. In particular it has had a negative impact on the airline industry and this has had a knock on effect on the Park First entities offering their off-airport carparking services and the ability to generate income for the life-time lease investors.
Mr T S Whittaker
Director
1 July 2020
GROUP FIRST GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2019
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2019.
Principal activities
The principal activity of the company continued to be that of holding company alongside management and rental of investment property.
The principal activity of the group was that of holding investment property. The group also funds, develops and manages property.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr T S Whittaker
Mr J Slater
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Future developments
The group has put in place further infrastructure to grow the business during future years.
The current focus for the directors is that of maintaining the group's portfolio of sites.
Auditor
Lopian Gross Barnett & Co were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GROUP FIRST GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr T S Whittaker
Director
1 July 2020
GROUP FIRST GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GROUP FIRST GLOBAL LIMITED
- 4 -
Opinion
We have audited the
financial statements of Group First Global Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2019 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2019 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the
group's or the parent
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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.
GROUP FIRST GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GROUP FIRST GLOBAL LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the
group's and the parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
group or the parent
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
GROUP FIRST GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GROUP FIRST GLOBAL LIMITED
- 6 -
This report is made solely to the
parent
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
parent
company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
parent
company and the
parent
company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Brodie ACA (Senior Statutory Auditor)
for and on behalf of Lopian Gross Barnett & Co
1 July 2020
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
GROUP FIRST GLOBAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
2019
2018
Notes
£
£
Turnover
3
42,773,491
15,461,007
Cost of sales
(8,367,148)
(12,870,833)
Gross profit
34,406,343
2,590,174
Administrative expenses
(22,332,704)
(13,801,104)
Other operating income
1,201,010
1,696,575
Operating profit/(loss)
4
13,274,649
(9,514,355)
Interest payable and similar expenses
7
(518,732)
(17,579)
Other gains and losses
8
386,033
265,122
Fair value gains and losses on investment properties
14
263,924
12,650,508
Profit before taxation
13,405,874
3,383,696
Tax on profit
9
(2,010,943)
(2,058,402)
Profit for the financial year
11,394,931
1,325,294
Profit for the financial year is all attributable to the owner of the parent company.
GROUP FIRST GLOBAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2019
- 8 -
2019
2018
£
£
Profit for the year
11,394,931
1,325,294
Other comprehensive income
-
-
Total comprehensive income for the year
11,394,931
1,325,294
Total comprehensive income for the year is all attributable to the owners of the parent company.
GROUP FIRST GLOBAL LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2019
30 June 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Goodwill
12
22,788,719
27,289,694
Other intangible assets
12
92,698
97,182
Total intangible assets
22,881,417
27,386,876
Tangible assets
13
8,436,385
9,401,960
Investment properties
14
42,602,292
45,459,663
73,920,094
82,248,499
Current assets
Stocks
18
-
11,314,465
Debtors
19
21,853,566
22,620,137
Investments
20
-
3,874,056
Cash at bank and in hand
39,531,282
465,963
61,384,848
38,274,621
Creditors: amounts falling due within one year
21
(44,475,500)
(31,215,405)
Net current assets
16,909,348
7,059,216
Total assets less current liabilities
90,829,442
89,307,715
Creditors: amounts falling due after more than one year
22
(9,409,911)
(9,409,911)
Provisions for liabilities
24
(101,337,175)
(111,210,379)
Net liabilities
(19,917,644)
(31,312,575)
Capital and reserves
Called up share capital
27
1
1
Profit and loss reserves
(19,917,645)
(31,312,576)
Total equity
(19,917,644)
(31,312,575)
The financial statements were approved by the board of directors and authorised for issue on 1 July 2020 and are signed on its behalf by:
01 July 2020
Mr T S Whittaker
Director
GROUP FIRST GLOBAL LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2019
30 June 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
12
79,425
69,220
Tangible assets
13
1,901,536
2,233,510
Investment properties
14
3,730,821
3,458,602
Investments
15
1,631,974
1,631,974
7,343,756
7,393,306
Current assets
Debtors
19
33,293,579
34,197,291
Investments
20
-
3,874,056
Cash at bank and in hand
2,393,012
216,767
35,686,591
38,288,114
Creditors: amounts falling due within one year
21
(6,566,427)
(6,377,789)
Net current assets
29,120,164
31,910,325
Total assets less current liabilities
36,463,920
39,303,631
Capital and reserves
Called up share capital
27
1
1
Profit and loss reserves
36,463,919
39,303,630
Total equity
36,463,920
39,303,631
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s loss for the year was £2,839,710 (2018 - £1,092,769 loss).
The financial statements were approved by the board of directors and authorised for issue on 1 July 2020 and are signed on its behalf by:
01 July 2020
Mr T S Whittaker
Director
Company Registration No. 05739246
GROUP FIRST GLOBAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2017
1
(32,387,870)
(32,387,869)
Year ended 30 June 2018:
Profit and total comprehensive income for the year
-
1,325,294
1,325,294
Dividends
10
-
(250,000)
(250,000)
Balance at 30 June 2018
1
(31,312,576)
(31,312,575)
Year ended 30 June 2019:
Profit and total comprehensive income for the year
-
11,394,931
11,394,931
Balance at 30 June 2019
1
(19,917,645)
(19,917,644)
GROUP FIRST GLOBAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2019
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2017
1
40,646,399
40,646,400
Year ended 30 June 2018:
Loss and total comprehensive income for the year
-
(1,092,769)
(1,092,769)
Dividends
10
-
(250,000)
(250,000)
Balance at 30 June 2018
1
39,303,630
39,303,631
Year ended 30 June 2019:
Loss and total comprehensive income for the year
-
(2,839,711)
(2,839,711)
Balance at 30 June 2019
1
36,463,919
36,463,920
GROUP FIRST GLOBAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
- 13 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
32,354,458
228,260
Interest paid
(518,732)
(17,579)
Income taxes (paid)/refunded
(600)
75,811
Net cash inflow from operating activities
31,835,126
286,492
Investing activities
Purchase of intangible assets
(13,955)
(18,582)
Proceeds on disposal of intangibles
(50,584)
71,721
Purchase of tangible fixed assets
(2,068,462)
(1,102,412)
Proceeds on disposal of tangible fixed assets
837,850
1,222,945
Purchase of investment property
(593,831)
(1,181,521)
Transfer of investment property
5,000,000
-
Introduction of investment property
-
(10,760,624)
Gain on disposal of storage entities
786,098
-
Other investing movements
-
132,057
Proceeds from other investments and loans
3,283,118
856,917
Net cash generated from/(used in) investing activities
7,180,234
(10,779,499)
Financing activities
Drawdown of borrowings
39,348
11,700
Repayment of bank loans
-
7,549,611
Dividends paid to equity shareholders
-
(250,000)
Net cash generated from financing activities
39,348
7,311,311
Net increase/(decrease) in cash and cash equivalents
39,054,708
(3,181,696)
Cash and cash equivalents at beginning of year
453,384
3,635,080
Cash and cash equivalents at end of year
39,508,092
453,384
Relating to:
Cash at bank and in hand
39,531,282
465,963
Bank overdrafts included in creditors payable within one year
(23,190)
(12,579)
GROUP FIRST GLOBAL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2019
- 14 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(1,192,165)
(3,526,798)
Interest paid
(17,620)
(10,770)
Income taxes paid
(200)
-
Net cash outflow from operating activities
(1,209,985)
(3,537,568)
Investing activities
Purchase of intangible assets
(10,205)
(15,094)
Purchase of tangible fixed assets
(182,922)
(815,207)
Proceeds on disposal of tangible fixed assets
8,458
1,049,507
Purchase of investment property
(272,219)
(979,645)
Other investing movements
-
134,889
Proceeds from other investments and loans
3,283,118
857,417
Interest received
560,000
560,000
Net cash generated from investing activities
3,386,230
791,867
Financing activities
Dividends paid to equity shareholders
-
(250,000)
Net cash used in financing activities
-
(250,000)
Net increase/(decrease) in cash and cash equivalents
2,176,245
(2,995,701)
Cash and cash equivalents at beginning of year
216,767
3,212,468
Cash and cash equivalents at end of year
2,393,012
216,767
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 15 -
1
Accounting policies
Company information
Group First Global Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
Group First House, 12a Mead Way, Burnley, BB12 7NG
The group consists of Group First Global Limited and all of its subsidiaries.
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.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
The consolidated financial statements incorporate those of Group First Global Limited and all of its subsidiaries (ie entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Group First Global Limited and its directors believe the group is a going concern based on its ability to pay its liabilities as they fall due.
The material uncertainty relating to going concern disclosed within the subsidiary entities that are in administration, is not believed to impact the going concern status of the group as a whole.
1.4
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.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 16 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
,
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.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is
10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
Goodwill is amortised on a straight line basis over ten years.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
Over 8 years straight line basis
Web Domain
Over 10 years straight line basis
No amortisation was charged to the web domain as the net residual value exceeds its cost.
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on buildings and improvements
Leasehold improvements
15% Straight line
Plant and equipment
At varying rates on cost
Fixtures and fittings
20% on cost and varying rates on cost
Computers
At varying rates on cost
Motor vehicles
25% on reducing balances
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 17 -
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 recognised in the profit and loss account.
1.8
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the
reporting end date. The surplus or deficit on revaluation is recognised in
profit or loss
.
1.9
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
all costs
incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash at bank and in hand
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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
m
ethod 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.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 18 -
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 group after deducting all of its 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. Amounts 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.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 19 -
1.14
Provisions
Provisions are recognised when the
group
has a legal or constructive present obligation as a result of a past event, it is probable that the
group
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
FCA provision
Within the group, entities that operate off-airport parking at London Gatwick Airport and Glasgow International Airport have been in discussions with the FCA about the off-airport parking property investment schemes.
Given the FCA’s interest in the matter and the long-term commitment by the entities and directors, the entities have voluntarily agreed with the FCA to restructure the investments so that they are not at risk of operating collective investment schemes.
As a result of those discussions with the FCA, these entities have agreed to stop operating and promoting the original schemes, now offering the choice of:
• getting their initial investment back (for original investors)
• moving into a new Lifetime Leaseback scheme (for original and new investors)
It was concluded that it is appropriate for a provision to be put in place the cover the cost of these transactions.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.16
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
d
asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 20 -
3
Turnover and other revenue
2019
2018
£
£
Turnover analysed by class of business
Sale of car parking spaces
32,600,000
5,656,747
Rental income
8,115,031
7,820,509
Other
2,058,460
1,983,751
42,773,491
15,461,007
2019
2018
£
£
Turnover analysed by geographical market
UK
42,773,491
15,461,007
4
Operating profit/(loss)
2019
2018
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses
3,482
18,929
Depreciation of owned tangible fixed assets
898,320
761,502
Loss/(profit) on disposal of tangible fixed assets
12,993
(343,863)
Amortisation of intangible assets
2,887,440
3,033,348
Impairment of intangible assets
1,631,974
-
Loss on disposal of intangible assets
50,584
-
Operating lease charges
1,060,536
794,434
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £3,482 (2018 - £18,929).
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
87,500
148,611
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2019
2018
2019
2018
Number
Number
Number
Number
43
-
43
-
Their aggregate remuneration comprised:
Group
Company
2019
2018
2019
2018
£
£
£
£
Wages and salaries
1,886,911
1,489,269
1,339,336
1,008,293
Social security costs
4,734
16,877
-
-
Pension costs
8,187
-
8,187
-
1,899,832
1,506,146
1,347,523
1,008,293
Group First Global Limited employees were in prior year that of recharges from a shared service company, within the current year the employment contracts are between the employee and Group First Global Limited.
7
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
518,732
10,794
Other interest on financial liabilities
-
6,785
518,732
17,579
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 22 -
8
Other gains and losses
2019
2018
£
£
Fair value gains/(losses) on financial instruments
Change in fair value of investments
(400,065)
265,122
Other gains/(losses)
Gain on elimination of storage entities
786,098
-
386,033
265,122
On 30 April 2019 the High Court made an order to wind-up four storage companies in the group, Store First Ltd, SFM Services Ltd, Store First St Helens Ltd and Store First Blackburn Ltd.
Following this the Official Receiver was appointed as liquidator and took responsibility for dealing with the assets and liabilities of the four companies. This appointment of the Official Receiver gave rise to the storage entities being disposed from the group as the parent company, Group First Global Ltd, no longer has control over these entities. The disposal was conducted at nil consideration and the resulting gain on disposal of £786,098 is made up as follows:
-
Store First Ltd - Net assets of £12,411,061,
-
SFM Services Ltd - Net liabilities of £9,118,454,
-
Store First St Helens Ltd - Net liabilities of £2,228,806, and
-
Store First Blackburn Ltd - Net liabilities of £277,703.
The resulting profit on disposal of £786,098 is reported in the Group Profit and Loss Account.
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
907,349
-
Adjustments in respect of prior periods
-
(191,832)
Total current tax
907,349
(191,832)
Deferred tax
Origination and reversal of timing differences
1,103,594
2,250,234
Total tax charge
2,010,943
2,058,402
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
9
Taxation
(Continued)
- 23 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
13,405,874
3,383,696
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
2,547,116
642,902
Adjustments in respect of prior years
-
(191,832)
Group relief
(1,857,349)
(642,902)
Other movements
217,582
-
Deferred tax
1,103,594
2,250,234
Taxation charge
2,010,943
2,058,402
The tax charge relates to movements in deferred tax in the year.
There are no corporation tax charges across the group due to the utilisation of group relief.
10
Dividends
2019
2018
£
£
Interim paid
-
250,000
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2019
2018
Notes
£
£
In respect of:
Goodwill
12
1,631,974
-
Recognised in:
Administrative expenses
1,631,974
-
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
11
Impairments
(Continued)
- 24 -
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
Impairment of £1,631,974 on goodwill relates to impairing the goodwill arising on acquisition Cophall Parking Gatwick. Significant changes in legal and financial conditions have occurred since acquisuition which are considered to have an adverse effect on the entity.
12
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Development costs
Web Domain
Total
£
£
£
£
£
£
Cost
At 1 July 2018
30,321,882
30,118
10,575
3,488
69,220
30,435,283
Additions - separately acquired
-
-
-
3,750
10,205
13,955
At 30 June 2019
30,321,882
30,118
10,575
7,238
79,425
30,449,238
Amortisation and impairment
At 1 July 2018
3,032,188
15,059
-
1,160
-
3,048,407
Amortisation charged for the year
2,869,001
15,059
1,322
2,058
-
2,887,440
Impairment losses
1,631,974
-
-
-
-
1,631,974
At 30 June 2019
7,533,163
30,118
1,322
3,218
-
7,567,821
Carrying amount
At 30 June 2019
22,788,719
-
9,253
4,020
79,425
22,881,417
At 30 June 2018
27,289,694
15,059
10,575
2,328
69,220
27,386,876
Goodwill arose in the prior year as a result of the introduction of Harley Scott Holdings into the group as a subsidiary.
Company
Web Domain
£
Cost
At 1 July 2018
69,220
Additions - separately acquired
10,205
At 30 June 2019
79,425
Amortisation and impairment
At 1 July 2018 and 30 June 2019
-
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
12
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 30 June 2019
79,425
At 30 June 2018
69,220
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 26 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 July 2018
1,330,854
6,265,607
97,058
526,315
43,951
3,354,842
11,618,627
Additions
1,794,983
56,060
25,413
49,945
1,008
141,053
2,068,462
Disposals
-
-
(16,220)
-
-
(35,500)
(51,720)
Effect of disposal of Simonstone Business Park
(2,106,266)
-
(8,000)
-
-
-
(2,114,266)
At 30 June 2019
1,019,571
6,321,667
98,251
576,260
44,959
3,460,395
11,521,103
Depreciation and impairment
At 1 July 2018
109,488
426,528
77,856
341,387
23,754
1,237,654
2,216,667
Depreciation charged in the year
103,471
270,332
11,374
105,250
9,376
398,517
898,320
Eliminated in respect of disposals
-
-
(6,001)
-
-
(24,268)
(30,269)
At 30 June 2019
212,959
696,860
83,229
446,637
33,130
1,611,903
3,084,718
Carrying amount
At 30 June 2019
806,612
5,624,807
15,022
129,623
11,829
1,848,492
8,436,385
At 30 June 2018
1,221,366
5,839,079
19,202
184,928
20,197
2,117,188
9,401,960
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 27 -
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 July 2018
504,369
3,308,182
3,812,551
Additions
43,922
139,000
182,922
Disposals
-
(35,500)
(35,500)
At 30 June 2019
548,291
3,411,682
3,959,973
Depreciation and impairment
At 1 July 2018
341,387
1,237,654
1,579,041
Depreciation charged in the year
105,250
398,414
503,664
Eliminated in respect of disposals
-
(24,268)
(24,268)
At 30 June 2019
446,637
1,611,800
2,058,437
Carrying amount
At 30 June 2019
101,654
1,799,882
1,901,536
At 30 June 2018
162,982
2,070,528
2,233,510
14
Investment property
Group
Company
2019
2019
£
£
Fair value
At 1 July 2018
45,459,663
3,458,602
Additions through external acquisition
593,831
272,219
Elimination of storage investment property due to liquidation
(3,715,126)
-
Net gains or losses through fair value adjustments
263,924
-
At 30 June 2019
42,602,292
3,730,821
Investment property comprises airport car parking sites, self-storage units and other residential properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
15
Fixed asset investments
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Investments in subsidiaries
16
-
-
1,631,974
1,631,974
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 28 -
16
Subsidiaries
Details of the company's subsidiaries at 30 June 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
B1 Workspace Ltd
UK
Ordinary
100.00
Business First Ltd
UK
Ordinary
100.00
Cophall Parking Gatwick Ltd
UK
Ordinary
100.00
Equestrian First Ltd
UK
Ordinary
100.00
Ground Rental Ltd
UK
Ordinary
100.00
Group First International Sbn Bhd
Malaysia
Ordinary
100.00
Harley Scott Holdings Ltd
UK
Ordinary
100.00
Help Me Park Gatwick Ltd
UK
Ordinary
100.00
Help-Me-Park.com Ltd
UK
Ordinary
100.00
London Luton Airport Parking Ltd
UK
Ordinary
100.00
Park First Freeholds Ltd
UK
Ordinary
100.00
Park First Gatwick Rentals Ltd
UK
Ordinary
100.00
Park First Glasgow Ltd
UK
Ordinary
100.00
Park First Glasgow Rentals Ltd
UK
Ordinary
100.00
Park First Ltd
UK
Ordinary
100.00
Park First Management Ltd
UK
Ordinary
100.00
Park First Singapore Branch
Singapore
Ordinary
100.00
Park First Skyport Ltd
UK
Ordinary
100.00
Residential First Ltd
UK
Ordinary
100.00
Select Escapes Ltd
UK
Ordinary
100.00
Simonstone Parking Ltd
UK
Ordinary
100.00
Store First Midlands Ltd
UK
Ordinary
100.00
The registered office for all the UK subsidiaries is Group First House, Mead Way, Padiham, Lancs, BB12 7NG.
17
Financial instruments
Group
Company
2019
2018
2019
2018
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
20,865,096
18,903,655
32,997,626
34,140,423
Instruments measured at fair value through profit or loss
-
3,874,056
-
3,874,056
Carrying amount of financial liabilities
Measured at amortised cost
46,054,098
40,226,839
6,566,427
6,377,789
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 29 -
18
Stocks
Group
Company
2019
2018
2019
2018
£
£
£
£
Raw materials and consumables
-
39,970
-
-
Finished goods and goods for resale
-
11,274,495
-
-
-
11,314,465
-
-
19
Debtors
Group
Company
2019
2018
2019
2018
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,754,791
5,441,855
190,296
-
Unpaid share capital
3
-
-
-
Corporation tax recoverable
28,049
27,250
200
-
Amounts owed by group undertakings
1,057,518
-
26,118,078
25,515,291
Other debtors
18,609,719
13,551,355
6,929,760
8,653,847
Prepayments and accrued income
190,626
3,430,012
55,245
28,153
21,640,706
22,450,472
33,293,579
34,197,291
Amounts falling due after more than one year:
Deferred tax asset (note 25)
212,860
169,665
-
-
Total debtors
21,853,566
22,620,137
33,293,579
34,197,291
The outstanding balance due from group undertakings relate to amounts due from Store First entities, which are no longer in the group.
20
Current asset investments
Group
Company
2019
2018
2019
2018
£
£
£
£
Unlisted investments
-
3,874,056
-
3,874,056
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 30 -
21
Creditors: amounts falling due within one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Bank loans and overdrafts
23
23,190
12,579
-
-
Other borrowings
23
51,688
11,700
-
-
Trade creditors
9,386,360
9,946,360
694,740
1,346,698
Amounts owed to group undertakings
1,655,696
-
3,773,392
1,770,317
Corporation tax payable
907,548
-
-
-
Other taxation and social security
6,923,765
398,477
-
-
Other creditors
23,747,406
19,545,773
1,914,793
3,033,772
Accruals and deferred income
1,779,847
1,300,516
183,502
227,002
44,475,500
31,215,405
6,566,427
6,377,789
The outstanding balance due to group undertakings relate to amounts due to Store First entities, which are no longer in the group.
22
Creditors: amounts falling due after more than one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Bank loans and overdrafts
23
7,549,611
7,549,611
-
-
Other creditors
1,860,300
1,860,300
-
-
9,409,911
9,409,911
-
-
23
Loans and overdrafts
Group
Company
2019
2018
2019
2018
£
£
£
£
Bank loans
7,549,611
7,549,611
-
-
Bank overdrafts
23,190
12,579
-
-
Loans from group undertakings
51,688
11,700
-
-
7,624,489
7,573,890
-
-
Payable within one year
74,878
24,279
-
-
Payable after one year
7,549,611
7,549,611
-
-
The bank loans are secured, through fixed and floating charges, over properties and assets within the group.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 31 -
24
Provisions for liabilities
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Buybacks and lifetime leaseback
97,497,762
108,517,755
-
-
Deferred tax liabilities
25
3,839,413
2,692,624
-
-
101,337,175
111,210,379
-
-
Movements on provisions apart from deferred tax liabilities:
Group
£
At 1 July 2018
106,876,402
Provisions utilised in the year
(9,378,640)
At 30 June 2019
97,497,762
The provision of £97,497,762 relate to Lifetime Leaseback and Buybacks referred to in note 1.14.
These provisions have been provided for in full and discounted to the present value where necessary.
As a result of the disposal of the Store First entities, arising due to the Official Receiver being appointed as liquidators, Store First Ltd's liability to its car parking investors for the Buybacks and Lifetime Leasebacks is no longer a liability to the Group.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 32 -
25
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company:
Liabilities
Liabilities
Assets
Assets
2019
2018
2019
2018
Group
£
£
£
£
Investment property
3,839,413
2,692,624
212,860
169,665
26
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,187
-
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
27
Share capital
Group and company
2019
2018
Ordinary share capital
£
£
Issued and fully paid
1 Ordinary shares of £1 each
1
1
28
Related party transactions
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2019
2018
£
£
Group
Amounts due to connected companies
2,949,817
5,250,317
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2019
2018
Balance
Balance
£
£
Group
Amounts due from connected companies
8,481,520
10,456,433
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 33 -
29
Directors' transactions
Included within other debtors for the year ended 30 June 2019 is an amount of £1,084,303 (2018: £893,429) due from T Whittaker, a director of the company.
During the year there were advancements of £816,406 and repayments of £625,532.
The loan is repayable on demand with nil interest charged.
30
Cash generated from group operations
2019
2018
£
£
Profit for the year after tax
11,394,931
1,325,294
Adjustments for:
Taxation charged
2,010,943
2,058,402
Finance costs
518,732
17,579
Loss/(gain) on disposal of tangible fixed assets
13,630
(343,863)
Loss on disposal of intangible assets
50,584
-
Fair value gain on investment properties
(263,924)
(12,650,508)
Amortisation and impairment of intangible assets
4,519,414
3,033,348
Depreciation and impairment of tangible fixed assets
898,320
761,502
Amounts written off investments
(386,033)
(265,122)
(Decrease)/increase in provisions
(11,019,993)
11,174,661
Movements in working capital:
Decrease/(increase) in stocks
11,314,465
(145,615)
Decrease in debtors
1,001,441
749,001
Increase/(decrease) in creditors
12,301,948
(5,486,818)
Cash generated from operations
32,354,458
227,861
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 34 -
31
Cash absorbed by operations - company
2019
2018
£
£
Loss for the year after tax
(2,839,711)
(1,092,769)
Adjustments for:
Finance costs
17,620
10,770
Investment income
(560,000)
(560,000)
Loss/(gain) on disposal of tangible fixed assets
2,774
(343,863)
Fair value (gain)/loss on investment properties
-
552,055
Depreciation and impairment of tangible fixed assets
503,664
513,802
Amounts written off investments
400,065
(265,122)
Movements in working capital:
Decrease/(increase) in debtors
1,094,785
(4,945,464)
Increase in creditors
188,638
2,603,793
Cash absorbed by operations
(1,192,165)
(3,526,798)
32
Analysis of changes in net funds/(debt) - group
1 July 2018
Cash flows
30 June 2019
£
£
£
Cash at bank and in hand
465,963
39,065,319
39,531,282
Bank overdrafts
(12,579)
(10,611)
(23,190)
453,384
39,054,708
39,508,092
Borrowings excluding overdrafts
(7,561,311)
(39,988)
(7,601,299)
(7,107,927)
39,014,720
31,906,793
33
Analysis of changes in net funds - company
1 July 2018
Cash flows
30 June 2019
£
£
£
Cash at bank and in hand
216,767
2,176,245
2,393,012
2019-06-30
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