Company Registration No. SC024552 (Scotland)
GILMOUR & DEAN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
GILMOUR & DEAN LIMITED
COMPANY INFORMATION
Directors
Gianmario Cillario
Giuseppe Cillario
Luciano Cillario
Gian Franco Cillario
Steven Thompson
Company number
SC024552
Registered office
Citypoint
3rd Floor
65 Haymarket Terrace
EDINBURGH
EH12 5HD
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
GILMOUR & DEAN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
GILMOUR & DEAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The period ended December 2021 proved to be another successful year in the continued progression of the business
Despite the ongoing presence of COVID and the impact of Brexit taking effect sales rose during the period to £27,443k, an increase of 25.47% from the previous year's £21,872k. Proven security of supply along with our ability to demonstrate an agile and flexible approach to operations has allowed us to service our existing customers and onboard new business.
In terms of revenue, we enjoyed strong growth across all of our print technologies which was particularly pleasing. All of our technologies performed above expectations in particular digital which continues to grow from strength to strength. The expectation and demand from our customers across all three print technologies is strong and we believe we are well positioned to support the market requirements going forward. Future investment plans are in place to support this and are balanced across all three technologies.
Gross profit and net profit before tax are at very acceptable levels reinforcing the confidence in the business and being the driver for further significant group investment. Both local management and the Eurostampa Group Board are satisfied with the financial performance for the period. This is despite seeing a continuation of costs to support our Covid safety protocols as well as as increases in cost across a number of our key input raw materials. It is anticipated that we will see further raw material increases throughout 2022.
Principal risks and uncertainties
With respect to COVID-19 and the associated risks and impacts the company continued to monitor this and review plans accordingly. The low level of workplace transmissions is evidence of our robust COVID Management Plan and this has allowed us to operate with minimal disruption across the business.
2021 was an encouraging year for the Scotch Whisky Industry with exports up 19% by value and 21% by volume. This is consistent with our performance in terms of sales and growth.
Despite the challenges recently raised by COVID-19 as well as US tariffs the Scotch Whisky the figures released by the SWA demonstrate the industry is recovering in line with expectations although in some areas exports are still below pre-pandemic levels but it is anticipated that by the end of 2022 this will be redressed.
Not unique to our customers sector or our particular industry we expect to see some challenges linked to rising energy costs, inflationary pressures, supply chain disruptions and increasing wages however we have anticipated these and have robust plans in place to mitigate these risks.
Development and performance
The business continues to build a strong platform for growth and profitability in future years with continued investment at the centre of the company strategy. As well as delivering financial results in excess of budget the business also demonstrated strong performance across all other operational KPIs with some excellent performance particularly in the areas of quality and safety.
As a company we have continued to focus heavily on recruitment and selection across all key areas of the business as well increasing our apprentice pool which has played a pivotal role in developing and retaining the right skills across the business. One of the key recruitments this year has been an additional accountant that has helped to bolster the finance team. This has allowed us to monitor and tightly control both our key areas of costs for the business as well helping us identify areas of opportunities to improve our competitiveness.
During the year we have taken advantage of the previous investment in equipment and recruitment to continue our focus on productivity and quality for the 3
rd
consecutive year exceeding the targets set in both areas.
GILMOUR & DEAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Key performance indicators
The group recognises the importance of key financial performance indicators and management monitors these on a monthly basis. The main KPIs of the business are turnover and profitability, both of which have been discussed above and are set out on page 9. Balance sheet position remains strong at £8.4m (2020 - £5.4m) as set out on page 10.
Steven Thompson
Director
29 September 2022
GILMOUR & DEAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company is the printing of high quality labels.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Gianmario Cillario
Giuseppe Cillario
Luciano Cillario
Gian Franco Cillario
Steven Thompson
Auditor
The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the strategic report, directors' 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 company and the profit or loss of the company 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 departure 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 company’s
auditor
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 company’s
auditor
is aware of that information.
GILMOUR & DEAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
On behalf of the board
Steven Thompson
Director
29 September 2022
GILMOUR & DEAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GILMOUR & DEAN LIMITED
- 5 -
Opinion
We have audited the financial statements of Gilmour & Dean Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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.
GILMOUR & DEAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GILMOUR & DEAN LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the 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
in relation to which
the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
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 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 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
.
GILMOUR & DEAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GILMOUR & DEAN LIMITED
- 7 -
Extent to which the audit is considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns and board meeting minutes.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk.
The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:
-
Reviewing minutes of meetings of those charged with governance;
-
Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;
-
Performing audit work procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at:
https://
www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors
-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx
. This description forms part of our auditor’s report.
GILMOUR & DEAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GILMOUR & DEAN LIMITED
- 8 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
29 September 2022
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
GILMOUR & DEAN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
Turnover
3
27,443,811
21,872,447
Cost of sales
(19,694,261)
(17,274,208)
Gross profit
7,749,550
4,598,239
Administrative expenses
(3,714,650)
(3,254,406)
Other operating income
78,281
217,533
Operating profit
4
4,113,181
1,561,366
Interest payable and similar expenses
7
(151,653)
(222,292)
Profit before taxation
3,961,528
1,339,074
Tax on profit
8
(964,467)
(343,702)
Profit for the financial year
2,997,061
995,372
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GILMOUR & DEAN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
9
7,426,576
8,697,298
Current assets
Stocks
10
3,241,178
3,168,843
Debtors
11
6,203,440
5,410,174
Cash at bank and in hand
3,893,768
1,478,157
13,338,386
10,057,174
Creditors: amounts falling due within one year
12
(7,920,395)
(6,986,094)
Net current assets
5,417,991
3,071,080
Total assets less current liabilities
12,844,567
11,768,378
Creditors: amounts falling due after more than one year
13
(3,332,423)
(5,382,270)
Provisions for liabilities
Deferred tax liability
16
908,938
762,959
(908,938)
(762,959)
Deferred Income
17
(166,992)
(183,996)
Net assets
8,436,214
5,439,153
Capital and reserves
Called up share capital
19
100,000
100,000
Profit and loss reserves
20
8,336,214
5,339,153
Total equity
8,436,214
5,439,153
The financial statements were approved by the board of directors and authorised for issue on 29 September 2022 and are signed on its behalf by:
Steven Thompson
Director
Company Registration No. SC024552
GILMOUR & DEAN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
100,000
4,343,781
4,443,781
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
995,372
995,372
Balance at 31 December 2020
100,000
5,339,153
5,439,153
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
2,997,061
2,997,061
Balance at 31 December 2021
100,000
8,336,214
8,436,214
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Gilmour & Dean Limited is a limited company domiciled and incorporated in
Scotland
.
The registered office is
Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Unicorn Graphics Limited.
These consolidated financial statements are available from its registered office,
Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The directors have assessed the Company's cash flow forecast and existing funding facilities in making the going concern assessment.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Other income, including insurance receipts, are recognised when it is virtually certain the income will be received.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
4 to 12 years
Motor vehicles
4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to the profit and loss account.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
the profit and loss account.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) prior years. A reversal of an impairment loss is recognised immediately in
the profit and loss account.
1.6
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
stocks
to their present location and condition.
Work in progress is valued at the lower of cost and net realisable value, and includes direct expenditure and an appropriate proportion of fixed and variable overheads.
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
the
profit
and
loss
account
. Reversals of impairment losses are also recognised in
the
profit
and
loss
account
.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's
balance sheet
when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method
.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans
and
loans from
fellow group companies
are
initially recognised at transaction price
.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
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
company’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 when the
company
has 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.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants are recognised in accordance with the accruals model.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Stock valuation (2021: £3,241,178 ((2020: £3,168,843))
The cost of stock is determined by deducting margins earned from selling prices which the directors believe is a fair approximation of cost. Judgement is applied to elements of excess stock, and whether these items retain value. Excess stock older than one year is fully written off, whilst excess stock less than one year old is written down by 75%.
Finished goods stock which is older than one year is written off with the loss recognised in the profit and loss account. Items may be excluded from write off if the directors believe that there is reasonable certainty that the item will be sold.
Useful lives of tangible assets (2021: £7,426,576 (2020: £8,697,298))
The estimated useful lives of assets are outlined in note 1.4, and are based on historical experience and the periods over which management believe that future economic benefits will be derived.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sale of goods
27,443,811
21,872,447
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
23,613,979
19,259,692
EU
3,820,168
2,550,055
USA
9,664
62,700
27,443,811
21,872,447
2021
2020
£
£
Other significant revenue
Grants received
58,958
183,283
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Turnover and other revenue
(Continued)
- 18 -
Grants received above includes £41,955 (2020: £166,000) received under the Government's Job Retention Scheme.
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(44,992)
124,215
Government grants
(58,958)
(183,283)
Fees payable to the company's auditor for the audit of the company's financial statements
21,425
13,800
Depreciation of owned tangible fixed assets
1,326,021
1,304,749
Depreciation of tangible fixed assets held under finance leases
209,101
202,916
Loss/(profit) on disposal of tangible fixed assets
13,146
(30,141)
Impairment of stocks recognised or reversed
(428,159)
779,703
Operating lease charges
205,902
175,175
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Direct factory staff
140
135
Other administrative staff
38
34
178
169
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
6,111,968
5,291,077
Social security costs
565,231
463,624
Pension costs
140,935
137,468
6,818,134
5,892,169
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
224,730
208,938
Company pension contributions to defined contribution schemes
6,677
6,381
231,407
215,319
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
227,069
208,938
Company pension contributions to defined contribution schemes
6,677
6,381
There is one director remunerated through this company, whilst the others are remunerated through the wider Eurostampa group.
7
Interest payable and similar expenses
2021
2020
£
£
Interest on bank overdrafts and loans
146,781
215,542
Interest on finance leases and hire purchase contracts
4,872
6,750
151,653
222,292
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
831,948
276,748
Adjustments in respect of prior periods
(13,460)
Total current tax
818,488
276,748
Deferred tax
Origination and reversal of timing differences
(101,624)
(12,076)
Changes in tax rates
242,535
81,582
Adjustment in respect of prior periods
5,068
(2,552)
Total deferred tax
145,979
66,954
Total tax charge
964,467
343,702
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Taxation
(Continued)
- 20 -
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:
2021
2020
£
£
Profit before taxation
3,961,528
1,339,074
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
752,690
254,424
Tax effect of expenses that are not deductible in determining taxable profit
7,486
7,389
Adjustments in respect of prior years
(13,460)
Deferred tax adjustments in respect of prior years
5,068
(2,552)
Adjustment to deferred tax in respect of changes to tax rates
218,145
81,583
Fixed asset differences
(5,462)
2,858
Taxation charge for the year
964,467
343,702
9
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 January 2021
16,494,027
26,498
16,520,525
Additions
276,022
33,768
309,790
Disposals
(651,987)
(651,987)
At 31 December 2021
16,118,062
60,266
16,178,328
Depreciation and impairment
At 1 January 2021
7,813,521
9,706
7,823,227
Depreciation charged in the year
1,526,743
8,379
1,535,122
Eliminated in respect of disposals
(606,597)
(606,597)
At 31 December 2021
8,733,667
18,085
8,751,752
Carrying amount
At 31 December 2021
7,384,395
42,181
7,426,576
At 31 December 2020
8,680,506
16,792
8,697,298
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and machinery
1,446,383
1,655,383
10
Stocks
2021
2020
£
£
Raw materials and consumables
1,366,657
1,122,714
Work in progress
331,390
131,193
Finished goods and goods for resale
1,543,131
1,914,936
3,241,178
3,168,843
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,058,674
1,387,211
Amounts owed by group undertakings
3,400,789
3,520,847
Other debtors
4,273
3,538
Prepayments and accrued income
739,704
498,578
6,203,440
5,410,174
The directors of Gilmour & Dean Limited have confirmed that they will not seek repayment of the amount due from group companies for at least twelve months from the date of signing the financial statements.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
12
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans
14
1,830,420
1,319,477
Obligations under finance leases
15
342,126
331,425
Other borrowings
14
353,296
532,631
Trade creditors
3,426,623
2,642,512
Corporation tax
390,395
276,748
Other taxation and social security
827,084
1,134,555
Other creditors
2,938
3,773
Accruals and deferred income
747,513
744,973
7,920,395
6,986,094
Obligations under hire purchase contracts are secured on the assets to which they relate.
Bank loans and overdrafts are secured by a bond and floating charge over the assets of the company and those of its immediate parent undertaking.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
13
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
14
2,782,423
4,490,145
Obligations under finance leases
15
550,000
892,125
3,332,423
5,382,270
Obligations under hire purchase contracts are secured on the assets to which they relate.
Bank loans and overdrafts are secured by a bond and floating charge over the assets of the company and those of its immediate parent undertaking.
Amounts included above which fall due after five years are as follows:
Payable by instalments
100,000
300,000
14
Loans and overdrafts
2021
2020
£
£
Bank loans
4,612,843
5,809,622
Loans from group undertakings
353,296
532,631
4,966,139
6,342,253
Payable within one year
2,183,716
1,852,108
Payable after one year
2,782,423
4,490,145
The long-term loans are secured by a bond and floating charge over the assets of the company and those of its immediate parent undertaking.
Bank loans are repayable over 5 to 10 years and are charged at a market rate of interest.
Loans from fellow group undertakings are charged at a market rate of interest.
15
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
365,550
359,790
In two to five years
564,385
992,129
929,935
1,351,919
Less: future finance charges
(37,809)
(128,369)
892,126
1,223,550
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
15
Finance lease obligations
(Continued)
- 24 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Fixed asset timing difference
911,785
765,883
Short term and other deductions
(2,847)
(2,924)
908,938
762,959
2021
Movements in the year:
£
Liability at 1 January 2021
762,959
Effect of change in tax rate - profit or loss
145,979
Liability at 31 December 2021
908,938
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
17
Government grants
2021
2020
£
£
Arising from government grants
166,992
183,996
166,992
183,996
18
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
140,935
137,468
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
Creditors totalling £5,000 (2020: £9,000) were payable to the fund at the year end and included in creditors.
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
19
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000
20
Profit and loss reserves
Profit and loss reserves represent accumulated comprehensive income.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
58,002
52,712
Between two and five years
77,028
19,903
135,030
72,615
GILMOUR & DEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2021
2020
2021
2020
£
£
£
£
Entities with control, joint control or significant influence over the company
43,597
146,822
652,167
1,229,355
In addition to the above, the company incurred fees of £31,547 (2020: £35,133) in relation to fees in respect of a guarantee from an entity with control over the company.
The following amounts were outstanding at the reporting end date:
Amounts owed to related parties
2021
2020
£
£
Entities with control, joint control or significant influence over the company
353,296
532,631
353,296
532,631
The company has taken advantage of the exemption within FRS 102 Section 33 paragraph 33.1A from the requirement to disclose transactions with other wholly owned companies in the same group.
23
Ultimate controlling party
The immediate parent undertaking is Unicorn Graphics Limited, a company registered in Scotland and of the same address as Gilmour & Dean Limited.
The ultimate parent undertaking at the balance sheet date was Eurostampa S.p.A,. a company registered in Italy.
Eurostampa S.p.A. is the largest group and Unicorn Graphics Limited is the smallest group for which group accounts are prepared. Copies of the group accounts can be obtained by writing to the registered office.
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