Company Registration No. 5739246 (England and Wales)
GROUP FIRST GLOBAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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
Directors' responsibilities statement
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 - 35
GROUP FIRST GLOBAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2020
- 1 -
The directors present the strategic report for the year ended 30 June 2020.
Fair review of the business
Group First Global Limited and its directors believe the year ended 30 June 2020 has been a challenging yet successful year in whole.
A head office contribution from the business divisions within and outside of the group has funded the head office costs whilst maintaining profitable divisions for most of the twelve-month period.
Despite the impact of the coronavirus pandemic, except for off-airport carparking explained below, the shared service office centres, residential property portfolio and equestrian centre were largely unaffected. The shared service office centres have 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.
Store First
During the year, four subsidiaries of Group First Global Limited that were placed into liquidation on 30 April 2019, Store First Limited, Store First St Helens Limited, Store First Blackburn Limited, and SFM Services Limited sold their investment property, trade, and assets. The Official Receiver as the liquidator continues to act as the liquidator of those four companies and as at the 30 June 2020 is yet to disburse any funds available to the company’s creditors.
Park First
Throughout the financial year, Smith and Williamson LLP continued to act as administrators for four subsidiary companies, Park First Freeholds Limited, Help Me Park Gatwick Limited, Park First Glasgow Rentals Limited, and Park First Gatwick Rentals Limited. The administrators have continued to pursue the first statutory objective of these administrations, namely, to rescue the four companies as going concerns by the development and launch of company voluntary arrangement (“CVAs”) with its creditors.
Since the year end, the group of companies has secured a conditional resolution of proceedings with the Financial Conduct Authority that is referred to in further detail in the post balance sheet events disclosure note detailed in the financial statements.
COVID-19
The coronavirus pandemic had a significant impact on the travel and leisure industry. The companies in administration operate off-airport car parking facilities and because of the pandemic experienced further insolvency issues with minimal profitability in operating the car parks which ultimately will result in less funds being available to the company’s creditors in the CVA’s.
Future developments
The group has put in place further infrastructure to grow the business during future years.
The current focus within the group is to deal with the restructure through administrators and so growth in the short-term is not likely to be as strong as hoped.
Mr T S Whittaker
Director
4 November 2021
GROUP FIRST GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2020
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2020.
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.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £772,441. The directors do not recommend payment of a further dividend.
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
Auditor
In accordance with the company's articles, a resolution proposing that Lopian Gross Barnett & Co be reappointed as auditor of the group will be put at a General Meeting.
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
4 November 2021
GROUP FIRST GLOBAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2020
- 3 -
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
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
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
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 2020 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 2020 and of the group's loss 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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
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
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: https://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
4 November 2021
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 2020
- 7 -
2020
2019
Notes
£
£
Turnover
3
7,188,759
42,773,491
Cost of sales
(3,411,758)
(8,367,148)
Gross profit
3,777,001
34,406,343
Administrative expenses
(17,341,265)
(22,332,704)
Other operating income
7,387,244
1,201,010
Operating (loss)/profit
4
(6,177,020)
13,274,649
Interest receivable and similar income
7
87,388
-
Interest payable and similar expenses
8
(268,517)
(518,732)
Other gains and losses
9
2,132
386,033
Fair value gains and losses on investment properties
14
(16,490,746)
263,924
(Loss)/profit before taxation
(22,846,763)
13,405,874
Tax on (loss)/profit
10
2,717,008
(2,010,943)
(Loss)/profit for the financial year
(20,129,755)
11,394,931
(Loss)/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 2020
- 8 -
2020
2019
£
£
(Loss)/profit for the year
(20,129,755)
11,394,931
Other comprehensive income
-
-
Total comprehensive income for the year
(20,129,755)
11,394,931
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 2020
30 June 2020
- 9 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
12
19,756,521
22,788,719
Other intangible assets
12
21,295
92,698
Total intangible assets
19,777,816
22,881,417
Tangible assets
13
804,375
8,436,385
Investment properties
14
32,281,066
42,602,292
52,863,257
73,920,094
Current assets
Debtors
18
23,965,128
21,853,566
Cash at bank and in hand
27,655,482
39,524,169
51,620,610
61,377,735
Creditors: amounts falling due within one year
19
(25,023,527)
(44,468,387)
Net current assets
26,597,083
16,909,348
Total assets less current liabilities
79,460,340
90,829,442
Creditors: amounts falling due after more than one year
20
(7,520,308)
(9,409,911)
Provisions for liabilities
Provisions
22
109,941,248
97,497,762
Deferred tax liability
23
2,818,624
3,839,413
(112,759,872)
(101,337,175)
Net liabilities
(40,819,840)
(19,917,644)
Capital and reserves
Called up share capital
24
1
1
Profit and loss reserves
(40,819,841)
(19,917,645)
Total equity
(40,819,840)
(19,917,644)
The financial statements were approved by the board of directors and authorised for issue on 4 November 2021 and are signed on its behalf by:
04 November 2021
Mr T S Whittaker
Director
GROUP FIRST GLOBAL LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2020
30 June 2020
- 10 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
12
10,486
79,425
Tangible assets
13
617,986
1,901,536
Investment properties
14
3,982,159
3,730,821
Investments
15
617
1,631,974
4,611,248
7,343,756
Current assets
Debtors
18
32,985,076
33,293,579
Cash at bank and in hand
3,338
2,393,012
32,988,414
35,686,591
Creditors: amounts falling due within one year
19
(7,004,422)
(6,566,427)
Net current assets
25,983,992
29,120,164
Total assets less current liabilities
30,595,240
36,463,920
Capital and reserves
Called up share capital
24
1
1
Profit and loss reserves
30,595,239
36,463,919
Total equity
30,595,240
36,463,920
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 £5,096,239 (2019 - £2,839,710 loss).
The financial statements were approved by the board of directors and authorised for issue on 4 November 2021 and are signed on its behalf by:
04 November 2021
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 2020
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 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)
Year ended 30 June 2020:
Loss and total comprehensive income for the year
-
(20,129,755)
(20,129,755)
Dividends
11
-
(772,441)
(772,441)
Balance at 30 June 2020
1
(40,819,841)
(40,819,840)
GROUP FIRST GLOBAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 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
Year ended 30 June 2020:
Loss and total comprehensive income for the year
-
(5,096,239)
(5,096,239)
Dividends
11
-
(772,441)
(772,441)
Balance at 30 June 2020
1
30,595,239
30,595,240
GROUP FIRST GLOBAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
- 13 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(11,394,019)
32,354,455
Interest paid
(268,517)
(518,732)
Income taxes paid
(1,012,620)
(600)
Net cash (outflow)/inflow from operating activities
(12,675,156)
31,835,123
Investing activities
Purchase of intangible assets
(4,362)
(13,958)
Proceeds on disposal of intangibles
34,885
(50,584)
Purchase of tangible fixed assets
(218,260)
(2,068,462)
Proceeds on disposal of tangible fixed assets
608,500
837,850
Purchase of investment property
-
(593,831)
Proceeds on disposal of investment property
98,260
-
Transfer of investment property
-
5,000,000
Gain on disposal of storage entities
-
786,100
Receipts arising from loans made
1,069,127
3,282,482
Interest received
87,388
-
Net cash generated from investing activities
1,675,538
7,179,597
Financing activities
Repayment of borrowings
(51,686)
39,988
Repayment of bank loans
(29,303)
-
Dividends paid to equity shareholders
(772,441)
-
Net cash (used in)/generated from financing activities
(853,430)
39,988
Net (decrease)/increase in cash and cash equivalents
(11,853,048)
39,054,708
Cash and cash equivalents at beginning of year
39,508,092
453,384
Cash and cash equivalents at end of year
27,655,044
39,508,092
Relating to:
Cash at bank and in hand
27,655,482
39,524,169
Bank overdrafts included in creditors payable within one year
(438)
(16,077)
GROUP FIRST GLOBAL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020
- 14 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(3,520,721)
(1,192,165)
Interest paid
(50,000)
(17,620)
Income taxes refunded/(paid)
200
(200)
Net cash outflow from operating activities
(3,570,521)
(1,209,985)
Investing activities
Purchase of intangible assets
(4,361)
(10,205)
Proceeds on disposal of intangibles
34,885
Purchase of tangible fixed assets
(133,939)
(182,922)
Proceeds on disposal of tangible fixed assets
608,500
8,458
Purchase of investment property
(272,219)
Proceeds on disposal of investment property
98,260
Other investing movements
-
3,283,118
Receipts arising from loans made
1,069,943
-
Interest received
280,000
560,000
Net cash generated from investing activities
1,953,288
3,386,230
Financing activities
Dividends paid to equity shareholders
(772,441)
-
Net cash used in financing activities
(772,441)
-
Net (decrease)/increase in cash and cash equivalents
(2,389,674)
2,176,245
Cash and cash equivalents at beginning of year
2,393,012
216,767
Cash and cash equivalents at end of year
3,338
2,393,012
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
- 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, t
he 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.
Consolidation of entities in administration
There are four subsidiaries that are in administration:
Park First Freeholds Limited – In Administration (11033422);
Help Me Park Gatwick Limited – In Administration (09654985);
Park First Gatwick Rentals Limited – In Administration (10994206);
Park First Glasgow Rentals Limited – In Administration (10994132);
The directors considered whether these entities would need to be included within the consolidated accounts. The directors concluded that, although the entities were in administration, at the year end the administrators were preparing a CVA. The directors reasonably believe at the year end that the CVA was very likely to go through. The implication of this was that the entities would then come out of administration.
For this reason, the directors do not believe long term restrictions exist on the ability for the Group to control these subsidiaries and therefore these entities should be included in the consolidated accounts.
As the administrators are responsible for these entities books and records, the directors took the brought forward balance sheet, adjusted for the movements as per the administrators records to produce a set of records that appropriately reflected the correct closing position for these entities.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
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.
As explained in the FCA provisions note, the FCA provisions have, since the year end, restructured as part of CVA. As part of the CVA they are fully funded and do not lead to a material uncertainty relating to Going Concern for 12 months from the date of approval of the accounts.
1.4
Turnover
Turnover relates to rental income collected on investment property and recharge of expenditure to connected companies outside the group.
Turnover relat
ing to
rental income
is recognised
net of VAT for the period.
Turnover from the prior year contains revenue from the sale of car parking spaces. Recognition occurred
when the significant risks and rewards of ownership of the good
s
passed to the buyer
and was net of VAT.
Revenue is recognised where
the amount 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; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 17 -
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
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
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.
1.11
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.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 18 -
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.
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.
1.12
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 2020
1
Accounting policies
(Continued)
- 19 -
1.13
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
As disclosed in previous years, in 2017 the FCA reviewed the activities of the group entities airport car parking investment schemes and took the view that these were collective investment schemes.
Only FCA authorised firms and individuals can operate or promote these schemes.
As a result of discussions with the FCA, the group agreed to stop operating and promoting the original schemes. As part of corrective action agreed with the FCA, the group offered all investors in the schemes the choice of:
-
getting their initial investment back (a ‘Buy Back’)
-
moving into a new Lifetime Leaseback scheme whereby the investor would be entitled to a 2% coupon on the original investment value for 175 years
As 30 June 2020 the Lifetime Lease provision stood at £68.6m and the Buyback, £38.7m.
1.14
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
.
1.15
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 20 -
1.16
The off-airport carparking division was restructured in the prior year, this restructure resulted in Smith and Williamson LLP being appointed as administrators to Park First Freeholds Limited, Help Me Park Gatwick Limited, Park First Glasgow Rentals Limited and Park First Gatwick Rentals Limited.
Throughout this current year the administrators carried out their statutory duties to rescue the companies as going concern by developing company voluntary arrangements (CVA) to put forward to the company’s creditors. The CVA’s were launched post year end on the 21 September 2021 to the creditors and the majority voted in favour of on the 14 October 2021.
The purpose of the CVA’s is to restructure the liabilities of Park First Freeholds Limited, Help Me Park Gatwick Limited, Park First Glasgow Rentals Limited and Park First Gatwick Rentals Limited.
These liabilities primarily relate to the FCA provisions.
The restructured liabilities will be funded by money that the Group will introduce into the entities that are in administration. The amount has been agreed with the FCA and at the time of the approval of the accounts the Group were substantially progressed in their efforts to raise the agreed funds.
We note that at the year end, the liabilities had not yet been restructured and the CVA was in its infancy and therefore it is appropriate to provide for the full liability amounts at the year end.
The directors also believe that, as the liabilities have been restructured and funding for this at an advanced level, these liabilities do not impact the Groups ability to continue as a Going Concern for 12 months past the date of approval for the accounts.
The group and its controlling parties will be introducing funds by way of debt and realising assets, in addition to the funds raised from the sale of London Luton Airport Car Park’ in order to fund the CVA
.
The Group entities included within the CVA were categorised as follows:
Entities in Administration
Park First Freeholds Limited – In Administration (11033422);
Help Me Park Gatwick Limited – In Administration (09654985);
Park First Gatwick Rentals Limited – In Administration (10994206);
Park First Glasgow Rentals Limited – In Administration (10994132);
These are the Group Company entities that have the FCA provisions that are ultimately owed to the investors.
Entities not in Administration but party to the terms of the CVA
Group First Global Limited (05739246);
Park First Limited (07158270);
Harley Scott Residential Limited (05760390);
Park First Skyport Limited (09560196);
Cophall Parking Gatwick Limited (05648696);
Park First Management Limited (08051785);
Help-Me-Park.Com Limited (05563009); and
London Luton Airport Parking Limited (10186044).
The companies above have ultimately been part of the airport car parking schemes and therefore these have been included in the CVA. The only impact on these entities is to restructure their liabilities owed to group or connected companies.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
1
Accounting policies
(Continued)
- 21 -
1.17
The directors have considered the impact of Brexit on the company and have concluded that there are no impacts as a result of Brexit which require disclosure at the balance sheet date.
1.18
The directors have closely monitored the Government guidance in response to the Covid-19 Pandemic and conclude that there are no items resulting from the Covid-19 Pandemic which require disclosure at the balance sheet date.
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.
3
Turnover and other revenue
2020
2019
£
£
Turnover analysed by class of business
Sale of car parking spaces
-
32,600,000
Rental income
2,908,800
8,115,031
Other
4,279,959
2,058,460
7,188,759
42,773,491
2020
2019
£
£
Turnover analysed by geographical market
UK
7,188,759
42,773,491
2020
2019
£
£
Other significant revenue
Interest income
87,388
-
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 22 -
4
Operating (loss)/profit
2020
2019
£
£
Operating (loss)/profit for the year is stated after charging:
Exchange losses
826
3,482
Depreciation of owned tangible fixed assets
541,440
898,320
Loss on disposal of tangible fixed assets
432,549
12,993
Amortisation of intangible assets
3,073,078
2,887,440
Impairment of intangible assets
-
1,631,974
(Profit)/loss on disposal of intangible assets
-
50,584
Operating lease charges
74,451
1,060,536
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 £827 (2019 - £3,482).
5
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
87,500
201,288
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2020
2019
2020
2019
Number
Number
Number
Number
32
43
43
Their aggregate remuneration comprised:
Group
Company
2020
2019
2020
2019
£
£
£
£
Wages and salaries
1,135,705
1,899,832
901,341
1,339,336
Pension costs
-
-
8,187
1,135,705
1,899,832
901,341
1,347,523
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.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 23 -
7
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
5,434
-
Other interest income
81,954
-
Total income
87,388
-
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
5,434
-
8
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
50,000
17,620
Other interest on financial liabilities
192,195
501,112
242,195
518,732
Other finance costs:
Other interest
26,322
-
Total finance costs
268,517
518,732
9
Other gains and losses
2020
2019
£
£
Fair value gains/(losses) on financial instruments
Change in fair value of investments
-
(400,065)
Other gains/(losses)
Gain on elimination of storage entities
-
786,098
-
386,033
The gain on elimination of storage entities relates to the profit on disposal of £786,098 in relation to the disposal of the storage entities in 2019 following the High Court order to wind up these entities.
10
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
-
907,349
Adjustments in respect of prior periods
463,178
-
Total current tax
463,178
907,349
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
10
Taxation
2020
2019
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
(3,180,186)
1,103,594
Total tax (credit)/charge
(2,717,008)
2,010,943
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
(Loss)/profit before taxation
(22,846,763)
13,405,874
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(4,340,885)
2,547,116
Tax effect of expenses that are not deductible in determining taxable profit
2,860,111
-
Tax effect of income not taxable in determining taxable profit
(1,328,174)
-
Adjustments in respect of prior years
463,178
-
Group relief
(324,924)
(1,857,349)
Other movements
(46,314)
217,582
Deferred tax
-
1,103,594
Taxation (credit)/charge
(2,717,008)
2,010,943
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.
11
Dividends
2020
2019
Recognised as distributions to equity holders:
£
£
Final paid
772,441
-
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 25 -
12
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Development costs
Web Domain
Total
£
£
£
£
£
£
Cost
At 1 July 2019
30,321,882
30,118
10,575
7,238
79,425
30,449,238
Additions
-
-
-
-
4,362
4,362
Disposals
-
-
-
-
(34,885)
(34,885)
At 30 June 2020
30,321,882
30,118
10,575
7,238
48,902
30,418,715
Amortisation and impairment
At 1 July 2019
7,533,163
30,118
1,322
3,218
-
7,567,821
Amortisation charged for the year
3,032,198
-
-
2,464
38,416
3,073,078
At 30 June 2020
10,565,361
30,118
1,322
5,682
38,416
10,640,899
Carrying amount
At 30 June 2020
19,756,521
-
9,253
1,556
10,486
19,777,816
At 30 June 2019
22,788,719
-
9,253
4,020
79,425
22,881,417
Company
Web Domain
£
Cost
At 1 July 2019
79,425
Additions
4,362
Disposals
(34,885)
At 30 June 2020
48,902
Amortisation and impairment
At 1 July 2019
Amortisation charged for the year
38,416
At 30 June 2020
38,416
Carrying amount
At 30 June 2020
10,486
At 30 June 2019
79,425
More information on impairment
movements
in the
year is given in note .
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
12
Intangible fixed assets
(Continued)
- 26 -
Note that as the residual value of the Web Domain is expected to equal or exceed its historical cost, there has been no amortisation charge.
Goodwill has arisen on the introduction of Harley Scott Holdings into the group as a subsidiary.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 27 -
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 2019
1,019,571
6,321,667
98,251
576,260
44,959
3,460,395
11,521,103
Additions
-
70,800
1,490
11,207
9,675
125,088
218,260
Disposals
-
-
-
-
-
(1,492,358)
(1,492,358)
Transfers
(961,550)
(5,605,477)
(5,370)
(27,970)
-
-
(6,600,367)
At 30 June 2020
58,021
786,990
94,371
559,497
54,634
2,093,125
3,646,638
Depreciation and impairment
At 1 July 2019
212,959
696,860
83,229
446,637
33,130
1,611,903
3,084,718
Depreciation charged in the year
-
154,355
2,933
52,665
7,297
324,190
541,440
Eliminated in respect of disposals
-
-
-
-
-
(451,309)
(451,309)
Transfers
-
(332,586)
-
-
-
-
(332,586)
At 30 June 2020
212,959
518,629
86,162
499,302
40,427
1,484,784
2,842,263
Carrying amount
At 30 June 2020
(154,938)
268,361
8,209
60,195
14,207
608,341
804,375
At 30 June 2019
806,612
5,624,807
15,022
129,623
11,829
1,848,492
8,436,385
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 28 -
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 July 2019
548,291
3,411,682
3,959,973
Additions
11,207
122,732
133,939
Disposals
(1,492,358)
(1,492,358)
At 30 June 2020
559,498
2,042,056
2,601,554
Depreciation and impairment
At 1 July 2019
446,637
1,611,800
2,058,437
Depreciation charged in the year
52,665
323,775
376,440
Eliminated in respect of disposals
(451,309)
(451,309)
At 30 June 2020
499,302
1,484,266
1,983,568
Carrying amount
At 30 June 2020
60,196
557,790
617,986
At 30 June 2019
101,654
1,799,882
1,901,536
During the course of the year the directors decided to rent out the property within Equestrian First Ltd on a long term basis. Before this the company operated this property as an equestrian centre and held the property within freehold land and buildings. As a result of the change in the nature of the property, it was transferred to investment property on the date of this change, at cost, and subsequently remeasured at fair value at the balance sheet date.
14
Investment property
Group
Company
2020
2020
£
£
Fair value
At 1 July 2019
42,602,291
3,730,820
Disposals
(98,260)
(98,260)
Transfers
6,267,781
-
Net gains or losses through fair value adjustments
(16,490,746)
349,599
At 30 June 2020
32,281,066
3,982,159
Investment property comprises airport car parking sites, business centres 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 who based their valuation on an informal valuation provided by independent property advisors, who are not connected with the company.
Please see note 13 for detail on the transfers.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 29 -
15
Fixed asset investments
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Investments in subsidiaries
16
-
-
617
1,631,974
16
Subsidiaries
Details of the company's subsidiaries at 30 June 2020 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
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
Harley Scott Residential 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
Harley Scott Commercial Ltd
UK
Ordinary
100.00
The registered office for all the UK subsidiaries that are not in adminstration is Group First House, Mead Way, Padiham, Lancs, BB12 7NG.
The registered office for all the UK subsidiaries in administration is 25 Moorgate, London, EC2R 6AY.
17
Financial instruments
There are no financial instruments held at fair value.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 30 -
18
Debtors
Group
Company
2020
2019
2020
2019
Amounts falling due within one year:
£
£
£
£
Trade debtors
675,230
1,754,793
2
190,296
Corporation tax recoverable
-
28,049
200
Amounts owed by group undertakings
1,057,518
1,057,518
23,248,324
26,118,078
Other debtors
18,316,798
18,609,720
9,257,330
6,929,760
Prepayments and accrued income
552,596
190,626
479,420
55,245
20,602,142
21,640,706
32,985,076
33,293,579
Deferred tax asset (note 23)
464,928
-
21,067,070
21,640,706
32,985,076
33,293,579
Amounts falling due after more than one year:
Deferred tax asset (note 23)
2,898,058
212,860
Total debtors
23,965,128
21,853,566
32,985,076
33,293,579
The outstanding balance owed by group undertakings relate to amounts owed by Store First entities. These entities are not consolidated as they are in liquidation; therefore, they are not eliminated on consolidation.
These amounts owed by Store First entities are expected to be recovered.
19
Creditors: amounts falling due within one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
21
438
16,077
Other borrowings
21
-
51,688
Trade creditors
8,679,097
9,386,360
830,337
694,740
Amounts owed to group undertakings
1,655,696
1,655,696
2,991,576
3,773,392
Corporation tax payable
1,320,786
907,548
Other taxation and social security
487,748
6,923,765
-
-
Other creditors
11,737,834
23,747,406
3,045,474
1,914,793
Accruals and deferred income
1,141,928
1,779,847
137,035
183,502
25,023,527
44,468,387
7,004,422
6,566,427
The outstanding balance owed to group undertakings relate to amounts owed to Store First entities. These entities are not consolidated as they are in liquidation; therefore, they are not eliminated on consolidation.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 31 -
20
Creditors: amounts falling due after more than one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
21
7,520,308
7,549,611
Other creditors
-
1,860,300
7,520,308
9,409,911
-
-
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
2,386,215
2,267,710
-
-
21
Loans and overdrafts
Group
Company
2020
2019
2020
2019
£
£
£
£
Bank loans
7,520,308
7,549,611
Bank overdrafts
438
16,077
Other loans
-
51,688
7,520,746
7,617,376
-
-
Payable within one year
438
67,765
Payable after one year
7,520,308
7,549,611
The bank loans relate to interest only loans. These are secured, through fixed and floating charges, over properties and assets within the group.
22
Provisions for liabilities
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Buybacks and lifetime leaseback
107,252,605
97,497,762
-
-
Other provision for buybacks and lifetime leaseback
2,688,643
-
-
-
109,941,248
97,497,762
-
-
Deferred tax liabilities
23
2,818,624
3,839,413
112,759,872
101,337,175
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
22
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions apart from deferred tax liabilities:
Total
Group
£
£
£
At 1 July 2019
97,497,762
-
97,497,762
Provisions utilised in the year
9,754,843
2,688,643
12,443,486
At 30 June 2020
107,252,605
2,688,643
109,941,248
The provision of £107,252,605 relate to Lifetime Leaseback and Buybacks referred to in note 1.13.
These provisions have been provided for in full and discounted to the present value where necessary.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company:
Liabilities
Liabilities
Assets
Assets
2020
2019
2020
2019
Group
£
£
£
£
Investment property
2,818,624
3,839,413
3,362,986
212,860
24
Share capital
Group and company
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 33 -
25
Events after the reporting date
The following events occurred after the reporting period end which require disclosure:
In Group First Global Ltd, investment property was sold after the reporting date totalling £2,000,000.
In Harley Scott Commercial Ltd, investment property was sold after the reporting date totalling £2,500,000.
In Harley Scott Holdings Ltd, investment property was sold after the reporting date totalling £3,525,000.
In Harley Scott Residential Ltd, investment property was sold after the reporting date totalling £882,500.
In Business First Ltd, investment property was sold after the reporting date totalling £2,250,000.
Business First Ltd re-mortgaged £2,000,000, after the reporting date, in relation to investment property held at the balance sheet date.
There were no further events after the reporting period end which require disclosure at the balance sheet date.
26
Related party transactions
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2020
2019
£
£
Group
Amounts due to connected companies
12,850,311
2,949,817
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2020
2019
Balance
Balance
£
£
Group
Amounts due from connected companies
20,854,007
8,481,520
27
Directors' transactions
Included within other debtors for the year ended 30 June 2020 is an amount of £17,307 (2019: £1,084,303) due from T Whittaker, a director of the company.
During the year there were advancements of £2,227,816 and repayments of £3,294,812.
The loan is repayable on demand with nil interest charged. The loan was repaid within 9 months following the reporting period end date.
28
Controlling party
The ultimate controlling party is T Whittaker.
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 34 -
29
Cash (absorbed by)/generated from group operations
2020
2019
£
£
(Loss)/profit for the year after tax
(20,129,755)
11,394,931
Adjustments for:
Taxation (credited)/charged
(2,717,008)
2,010,943
Finance costs
268,517
518,732
Investment income
(87,388)
-
Loss on disposal of tangible fixed assets
430,418
12,993
(Gain)/loss on disposal of intangible assets
-
50,584
Fair value loss/(gain) on investment properties
16,490,746
(263,924)
Amortisation and impairment of intangible assets
3,073,078
4,519,414
Depreciation and impairment of tangible fixed assets
541,440
898,320
Other gains and losses
-
(385,396)
Increase/(decrease) in provisions
12,443,486
(11,019,993)
Movements in working capital:
Decrease in stocks
-
11,314,465
(Increase)/decrease in debtors
(56,482)
1,001,438
(Decrease)/increase in creditors
(21,651,071)
12,301,948
Cash (absorbed by)/generated from operations
(11,394,019)
32,354,455
30
Cash absorbed by operations - company
2020
2019
£
£
Loss for the year after tax
(5,096,239)
(2,839,711)
Adjustments for:
Finance costs
50,000
17,620
Investment income
(280,000)
(560,000)
Loss on disposal of tangible fixed assets
432,549
2,774
Fair value gain on investment properties
(349,599)
Amortisation and impairment of intangible assets
38,416
-
Depreciation and impairment of tangible fixed assets
376,440
503,664
Other gains and losses
1,628,411
400,065
Movements in working capital:
(Increase)/decrease in debtors
(758,694)
1,094,785
Increase in creditors
437,995
188,638
Cash absorbed by operations
(3,520,721)
(1,192,165)
GROUP FIRST GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020
- 35 -
31
Analysis of changes in net funds - group
1 July 2019
Cash flows
30 June 2020
£
£
£
Cash at bank and in hand
39,524,169
(11,868,687)
27,655,482
Bank overdrafts
(16,077)
15,639
(438)
39,508,092
(11,853,048)
27,655,044
Borrowings excluding overdrafts
(7,601,299)
80,991
(7,520,308)
31,906,793
(11,772,057)
20,134,736
32
Analysis of changes in net funds - company
1 July 2019
Cash flows
30 June 2020
£
£
£
Cash at bank and in hand
2,393,012
(2,389,674)
3,338
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