Company Registration No. SC391440 (Scotland)
Gael Force Marine Technology Limited
Financial statements
for the year ended 31 December 2022
Pages for filing with the registrar
Gael Force Marine Technology Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 12
Gael Force Marine Technology Limited
Balance sheet
As at 31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
697,407
667,813
Tangible assets
4
10,502
20,406
707,909
688,219
Current assets
Stocks
5
962,470
1,009,210
Debtors
6
1,178,831
979,677
Cash at bank and in hand
57,178
233
2,198,479
1,989,120
Creditors: amounts falling due within one year
7
(1,669,032)
(1,785,418)
Net current assets
529,447
203,702
Total assets less current liabilities
1,237,356
891,921
Creditors: amounts falling due after more than one year
8
(44,343)
(88,101)
Net assets
1,193,013
803,820
Capital and reserves
Called up share capital
9
4
4
Profit and loss reserves
1,193,009
803,816
Total equity
1,193,013
803,820
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Gael Force Marine Technology Limited
Balance sheet (continued)
As at 31 December 2022
Page 2
The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
S Graham
Director
Company Registration No. SC391440
Gael Force Marine Technology Limited
Notes to the financial statements
For the year ended 31 December 2022
Page 3
1
Accounting policies
Company information
Gael Force Marine Technology Limited is a private company limited by shares incorporated in Scotland. The registered office is 136 Anderson Street, Inverness, IV3 8DH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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.
Gael Force Marine Technology Limited is a subsidiary of Gael Force Group Limited which itself is a wholly owned subsidiary of Gael Force Group Holdings Limited. The results of Gael Force Marine Technology Limited are included in the consolidated financial statements of Gael Force Group Holdings Limited which are publically available.
1.2
Going concern
The group prepares projections which demonstrate their ability to continue to meet all liabilities as they fall due. trueAt 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 the preparation of the financial statements.
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 4
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.
Revenue from the provision of construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Intangible fixed assets other than goodwill
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
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:
Development costs
5-10 years straight line basis
Design rights
5-10 years straight line basis
1.5
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 or valuation of assets less their residual values over their useful lives on the following bases:
Property improvements
33% straight line
Plant and equipment
15-25% reducing balance
Fixtures and fittings
33% reducing balance
Computers
25-35% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 5
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets 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).
1.7
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.
Cost is calculated using the weighted average method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 6
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies 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 payments 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.
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 7
1.11
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.
1.12
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 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 8
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 leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.17
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
11
17
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 9
3
Intangible fixed assets
Development costs
Design rights
Total
£
£
£
Cost
At 1 January 2022
1,126,334
15,000
1,141,334
Additions - internally developed
115,895
115,895
Transfers
(22,651)
(22,651)
At 31 December 2022
1,219,578
15,000
1,234,578
Amortisation and impairment
At 1 January 2022
458,521
15,000
473,521
Amortisation charged for the year
86,301
86,301
Transfers
(22,651)
(22,651)
At 31 December 2022
522,171
15,000
537,171
Carrying amount
At 31 December 2022
697,407
697,407
At 31 December 2021
667,813
667,813
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 10
4
Tangible fixed assets
Property improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
11,018
50,687
61,705
Additions
633
633
Transfers
228,023
228,023
At 31 December 2022
11,018
279,343
290,361
Depreciation and impairment
At 1 January 2022
3,030
38,269
41,299
Depreciation charged in the year
3,636
6,901
10,537
Transfers
228,023
228,023
At 31 December 2022
6,666
273,193
279,859
Carrying amount
At 31 December 2022
4,352
6,150
10,502
At 31 December 2021
7,988
12,418
20,406
5
Stocks
2022
2021
£
£
Stocks
962,470
1,009,210
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
31,234
28,618
Amounts owed by group undertakings
1,039,174
815,585
Other debtors
108,423
135,474
1,178,831
979,677
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 11
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank overdraft
262,070
Trade creditors
117,823
111,503
Amounts owed to group undertakings
1,348,633
1,343,283
Taxation and social security
8,929
8,609
Other creditors
193,647
59,953
1,669,032
1,785,418
The Royal Bank of Scotland holds a floating charge over the company's assets.
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
44,343
88,101
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Eunice McAdam
Statutory Auditors:
Saffery LLP
Gael Force Marine Technology Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 12
11
Financial commitments, guarantees and contingent liabilities
There is a cross corporate guarantee in place between Gael Force Marine Technology Limited and other group companies.
Local Enterprise government grants are subject to terms and conditions, any breach of which, may result in the grants having to be repaid in part or in full.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
22,954
13,271
13
Related party transactions
The company has taken advantage of the section 33.1A exemption available in FRS102 from the requirement to disclose related party transactions with wholly owned group companies.
14
Parent company
The immediate parent company and the smallest group which the company is consolidated into is Gael Force Group Limited.
The ultimate parent company is Gael Force Group Holdings Limited and the registered office is 136 Anderson Street, Inverness, IV3 8DH.
2022-12-312022-01-01false28 September 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedRobert FosterStewart GrahamStephen OffordJames YoungCraig GrahamR FosterSC3914402022-01-012022-12-31SC3914402022-12-31SC3914402021-12-31SC391440core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31SC391440core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31SC391440core:DevelopmentCostsCapitalisedDevelopmentExpenditure2021-12-31SC391440core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-31SC391440core:LandBuildings2022-12-31SC391440core:OtherPropertyPlantEquipment2022-12-31SC391440core:LandBuildings2021-12-31SC391440core:OtherPropertyPlantEquipment2021-12-31SC391440core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC391440core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-31SC391440core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC391440core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-31SC391440core:CurrentFinancialInstruments2022-12-31SC391440core:CurrentFinancialInstruments2021-12-31SC391440core:ShareCapital2022-12-31SC391440core:ShareCapital2021-12-31SC391440core:RetainedEarningsAccumulatedLosses2022-12-31SC391440core:RetainedEarningsAccumulatedLosses2021-12-31SC391440bus:Director12022-01-012022-12-31SC391440core:IntangibleAssetsOtherThanGoodwill2022-01-012022-12-31SC391440core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-01-012022-12-31SC391440core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-01-012022-12-31SC391440core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-31SC391440core:PlantMachinery2022-01-012022-12-31SC391440core:FurnitureFittings2022-01-012022-12-31SC391440core:ComputerEquipment2022-01-012022-12-31SC3914402021-01-012021-12-31SC391440core:DevelopmentCostsCapitalisedDevelopmentExpenditure2021-12-31SC391440core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2021-12-31SC3914402021-12-31SC391440core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:InternallyGeneratedIntangibleAssets2022-01-012022-12-31SC391440core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:InternallyGeneratedIntangibleAssets2022-01-012022-12-31SC391440core:InternallyGeneratedIntangibleAssets2022-01-012022-12-31SC391440core:LandBuildings2021-12-31SC391440core:OtherPropertyPlantEquipment2021-12-31SC391440core:LandBuildings2022-01-012022-12-31SC391440core:OtherPropertyPlantEquipment2022-01-012022-12-31SC391440core:WithinOneYear2022-12-31SC391440core:WithinOneYear2021-12-31SC391440core:Non-currentFinancialInstruments2022-12-31SC391440core:Non-currentFinancialInstruments2021-12-31SC391440bus:PrivateLimitedCompanyLtd2022-01-012022-12-31SC391440bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-31SC391440bus:FRS1022022-01-012022-12-31SC391440bus:Audited2022-01-012022-12-31SC391440bus:Director22022-01-012022-12-31SC391440bus:Director32022-01-012022-12-31SC391440bus:Director42022-01-012022-12-31SC391440bus:Director52022-01-012022-12-31SC391440bus:CompanySecretary12022-01-012022-12-31SC391440bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP