REGISTERED NUMBER: 06636445 (England and Wales) |
B & R GALLAGHER (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
REGISTERED NUMBER: 06636445 (England and Wales) |
B & R GALLAGHER (HOLDINGS) LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 | to | 7 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 25 |
B & R GALLAGHER (HOLDINGS) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
BANKERS: | HSBC Bank Plc |
33 Park Row |
Leeds |
West Yorkshire |
LS1 1LD |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The director presents his strategic report of the company and the group for the year ended 31st October 2023. |
REVIEW OF BUSINESS |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. |
The review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
Through organic growth and work starting on new sites the financial performance of the group has improved during the year to October 2023. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. |
The key business risks and uncertainties effecting the group are considered to include |
- the overall uncertain construction sector driven by "cost of living crisis" and interest rates; |
- other input costs covering both payroll and overheads |
The management team has a close working relationship with key suppliers and workforce and this contributes to a reliable supply of materials and labour. |
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 and the stability to take advantage of opportunities should they arise. For this reason, it continues to adopt the going concern basis in preparing the financial statements. |
FUTURE OUTLOOK |
The company starts the next financial year with a strong financial base, net assets of £4.6m. |
2023 has seen a stabilisation of market conditions and the company has experienced consistency in sales which is expected to continue into future years. Work has started on new sites and new phases have been started on existing sites. The company regularly reviews resource requirements in accordance with expected demand. |
KEY PERFORMANCE INDICATORS |
The directors consider revenue, gross profit margin and EBITDA margins to be the core KPIs for the As we group. As we can see below revenue, gross profit margin and EBITDA have all increased in the year which is reflective of the company's strong performance in the year. |
2023 | 2022 |
Revenue | £11.34m | £11.6m |
Gross profit margin | 29.30% | 26.67% |
EBITDA | £2.20m | £2.18m |
ON BEHALF OF THE BOARD: |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 31st October 2023. |
DIVIDENDS |
An interim dividend of £17,500 per share was paid on 31st May 2023. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31st October 2023 will be £ 70,000 . |
DIRECTOR |
The directors during the year under review were: |
B Gallagher |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
B & R GALLAGHER (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of B & R Gallagher (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st October 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
B & R GALLAGHER (HOLDINGS) LIMITED |
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 identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
B & R GALLAGHER (HOLDINGS) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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: |
Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to cyber security and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). |
We assessed the susceptibility of the groups financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially deferred income, accruals, prepayments, accrued income and depreciation. |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships. |
- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business. |
- Investigated the rationale behind significant or unusual transactions. |
- Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to deferred income, accruals, prepayments, accrued income and depreciation. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to: |
- Agreeing financial statements disclosures to underlying supporting documentation. |
- Discussions with management of known or suspected instances of non-compliance with laws and regulations. |
At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
B & R GALLAGHER (HOLDINGS) LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 11,342,351 | 11,575,270 |
Cost of sales | 8,018,745 | 8,489,076 |
GROSS PROFIT | 3,323,606 | 3,086,194 |
Administrative expenses | 944,826 | 1,250,215 |
2,378,780 | 1,835,979 |
Other operating income | 7,920 | 30,634 |
OPERATING PROFIT | 4 | 2,386,700 | 1,866,613 |
Interest receivable and similar income | 5 | 37,935 | 601 |
2,424,635 | 1,867,214 |
Interest payable and similar expenses | 6 | 24,339 | 24,331 |
PROFIT BEFORE TAXATION | 2,400,296 | 1,842,883 |
Tax on profit | 7 | 528,756 | 522,883 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,871,540 | 1,320,000 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,871,540 | 1,320,000 |
OTHER COMPREHENSIVE INCOME |
Revaluation gain | - | 1,778,455 |
Deferred tax on revaluation | 8,893 | (444,614 | ) |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
8,893 |
1,333,841 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,880,433 | 2,653,841 |
Total comprehensive income attributable to: |
Owners of the parent | 1,880,433 | 2,653,841 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONSOLIDATED BALANCE SHEET |
31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 3,839,719 | 5,215,913 |
Investments | 11 | - | - |
Investment property | 12 | - | 1,090,000 |
3,839,719 | 6,305,913 |
CURRENT ASSETS |
Debtors | 13 | 2,351,131 | 2,642,644 |
Cash at bank | 2,231,579 | 2,694,266 |
4,582,710 | 5,336,910 |
CREDITORS |
Amounts falling due within one year | 14 | 2,674,495 | 2,646,005 |
NET CURRENT ASSETS | 1,908,215 | 2,690,905 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 5,747,934 | 8,996,818 |
CREDITORS |
Amounts falling due after more than one year | 15 | (262,807 | ) | (270,358 | ) |
PROVISIONS FOR LIABILITIES | 18 | (831,997 | ) | (883,859 | ) |
NET ASSETS | 4,653,130 | 7,842,601 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 4 |
Revaluation reserve | 20 | 1,307,165 | 1,333,841 |
Retained earnings | 20 | 3,345,865 | 6,508,756 |
SHAREHOLDERS' FUNDS | 4,653,130 | 7,842,601 |
The financial statements were approved by the director and authorised for issue on 6th March 2024 and were signed by: |
B L Gallagher - Director |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
COMPANY BALANCE SHEET |
31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,358,406 | 1,504,811 |
The financial statements were approved by the director and authorised for issue on |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st November 2021 | 4 | 5,248,756 | - | 5,248,760 |
Changes in equity |
Dividends | - | (60,000 | ) | - | (60,000 | ) |
Total comprehensive income | - | 1,320,000 | 1,333,841 | 2,653,841 |
Balance at 31st October 2022 | 4 | 6,508,756 | 1,333,841 | 7,842,601 |
Changes in equity |
Issue of share capital | 96 | - | - | 96 |
Dividends | - | (70,000 | ) | - | (70,000 | ) |
Total comprehensive income | - | 1,907,109 | (26,676 | ) | 1,880,433 |
Contributions | - | (5,000,000 | ) | - | (5,000,000 | ) |
Balance at 31st October 2023 | 100 | 3,345,865 | 1,307,165 | 4,653,130 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st November 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31st October 2022 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Contributions | - | (5,000,000 | ) | - | (5,000,000 | ) |
Balance at 31st October 2023 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,424,092 | 1,827,694 |
Interest paid | - | (124 | ) |
Interest element of hire purchase payments paid | (24,339 | ) | (24,207 | ) |
Tax paid | (510,077 | ) | (145,612 | ) |
Net cash from operating activities | 1,889,676 | 1,657,751 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (99,095 | ) | (130,768 | ) |
Sale of tangible fixed assets | 2,051,088 | 41,088 |
Sale of investment property | 1,079,665 | - |
Interest received | 37,935 | 601 |
Net cash from investing activities | 3,069,593 | (89,079 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (44,041 | ) |
Capital repayments in year | (352,052 | ) | (313,842 | ) |
Amount withdrawn by directors | - | (112,000 | ) |
Share issue | 96 | - |
Contributions | (5,000,000 | ) | - |
Equity dividends paid | (70,000 | ) | (60,000 | ) |
Net cash from financing activities | (5,421,956 | ) | (529,883 | ) |
(Decrease)/increase in cash and cash equivalents | (462,687 | ) | 1,038,789 |
Cash and cash equivalents at beginning of year | 2 | 2,694,266 | 1,655,477 |
Cash and cash equivalents at end of year | 2 | 2,231,579 | 2,694,266 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,400,296 | 1,842,883 |
Depreciation charges | 492,019 | 441,594 |
Profit on disposal of fixed assets | (681,512 | ) | (38,612 | ) |
Gain on revaluation of fixed assets | - | (88,218 | ) |
Finance costs | 24,339 | 24,331 |
Finance income | (37,935 | ) | (601 | ) |
2,197,207 | 2,181,377 |
Decrease/(increase) in trade and other debtors | 291,513 | (605,649 | ) |
(Decrease)/increase in trade and other creditors | (64,628 | ) | 251,966 |
Cash generated from operations | 2,424,092 | 1,827,694 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 2,231,579 | 2,694,266 |
Year ended 31st October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 2,694,266 | 1,655,477 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1/11/22 | Cash flow | changes | At 31/10/23 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 2,694,266 | (462,687 | ) | 2,231,579 |
2,694,266 | (462,687 | ) | 2,231,579 |
Debt |
Finance leases | (532,481 | ) | 352,052 | - | (556,400 | ) |
(532,481 | ) | 352,052 | - | (556,400 | ) |
Total | 2,161,785 | (110,635 | ) | - | 1,675,179 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
1. | STATUTORY INFORMATION |
B & R Gallagher (Holdings) Limited is a company limited by shares incorporated in England and Wales. The address of the registered office is given in the company information on page 1 of these financial statements. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised based on accruals accounting. Recognition is based on completion of work. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Deprecation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Plant and machinery | -15% on cost |
Office equipment | -25% on cost |
Motor vehicles | -25% on cost |
Freehold property | -2% on cost |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 447,924 | 389,206 |
Social security costs | 45,821 | 36,276 |
Other pension costs | 30,141 | 104,539 |
523,886 | 530,021 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Employees | 13 | 12 |
Directors | 1 | 1 |
The average number of employees by undertakings that were proportionately consolidated during the year was 14 (2022 - 13 ) . |
2023 | 2022 |
£ | £ |
Director's remuneration | 9,192 | 9,192 |
Director's pension contributions to money purchase schemes | - | 40,000 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 20,428 | 5,509 |
Depreciation - owned assets | 273,832 | 176,697 |
Depreciation - assets on hire purchase contracts | 218,187 | 264,896 |
Profit on disposal of fixed assets | (681,512 | ) | (38,612 | ) |
Auditors' remuneration | 14,725 | 12,125 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
5. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 29,292 | 601 |
Interest received | 8,643 | - |
37,935 | 601 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | - | 124 |
Hire purchase | 24,339 | 24,207 |
24,339 | 24,331 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 571,725 | 510,077 |
Deferred tax | (42,969 | ) | 12,806 |
Tax on profit | 528,756 | 522,883 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,400,296 | 1,842,883 |
Profit multiplied by the standard rate of corporation tax in the UK of 22.518 % (2022 - 19 %) |
540,499 |
350,148 |
Effects of: |
Income not taxable for tax purposes | 41,832 | 346 |
Capital allowances in excess of depreciation | (52,541 | ) | - |
Adjustments to tax charge in respect of previous periods | - | 192,343 |
Enhanced deductions | (4,777 | ) | (20,831 | ) |
Revaluation of fixed asset | - | 329,788 |
Depreciation of non qualifying assets | - | 5,922 |
Change in tax rates | (4,266 | ) | 3,073 |
Movement through OCI | 8,009 | (337,906 | ) |
Total tax charge | 528,756 | 522,883 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation gain |
Deferred tax on revaluation | 8,893 | - | 8,893 |
8,893 | - | 8,893 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation gain | 1,778,455 | - | 1,778,455 |
Deferred tax on revaluation | (444,614 | ) | - | (444,614 | ) |
1,333,841 | - | 1,333,841 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Interim | 70,000 | 60,000 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1st November 2022 | 3,582,065 | 1,959,011 | 561,763 | 65,301 | 6,168,140 |
Additions | 230 | 341,795 | 129,911 | 3,130 | 475,066 |
Disposals | (1,429,570 | ) | - | - | - | (1,429,570 | ) |
At 31st October 2023 | 2,152,725 | 2,300,806 | 691,674 | 68,431 | 5,213,636 |
DEPRECIATION |
At 1st November 2022 | 85,320 | 652,855 | 194,845 | 19,207 | 952,227 |
Charge for year | 69,935 | 264,358 | 141,510 | 16,216 | 492,019 |
Eliminated on disposal | (70,329 | ) | - | - | - | (70,329 | ) |
At 31st October 2023 | 84,926 | 917,213 | 336,355 | 35,423 | 1,373,917 |
NET BOOK VALUE |
At 31st October 2023 | 2,067,799 | 1,383,593 | 355,319 | 33,008 | 3,839,719 |
At 31st October 2022 | 3,496,745 | 1,306,156 | 366,918 | 46,094 | 5,215,913 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 31st October 2023 is represented by: |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2022 | 1,778,455 | - | - | - | 1,778,455 |
Cost | 374,270 | 2,300,806 | 691,674 | 68,431 | 3,435,181 |
2,152,725 | 2,300,806 | 691,674 | 68,431 | 5,213,636 |
Included in the total net book value of tangible fixed assets was £902,530 (2022: £858,589) in respect of assets held under finance leases. |
Company |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1st November 2022 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 31st October 2023 |
DEPRECIATION |
At 1st November 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
Cost or valuation at 31st October 2023 is represented by: |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2023 | - | 184,910 | 18,630 | 2,527 | 206,067 |
Valuation in 2022 | 444,613 | 303,753 | 75,412 | 10,490 | 834,268 |
Valuation in 2021 | - | 172,694 | 43,260 | 40,646 | 256,600 |
Valuation in 2020 | - | 83,871 | 25,045 | 3,666 | 112,582 |
Valuation in 2019 | - | 93,855 | 24,741 | 3,157 | 121,753 |
Cost | 93,567 | 261,218 | 8,891 | 5,413 | 369,089 |
538,180 | 1,100,301 | 195,979 | 65,899 | 1,900,359 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st November 2022 |
and 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st November 2022 | 1,090,000 |
Disposals | (1,090,000 | ) |
At 31st October 2023 | - |
NET BOOK VALUE |
At 31st October 2023 | - |
At 31st October 2022 | 1,090,000 |
Company |
Total |
£ |
FAIR VALUE |
At 1st November 2022 |
Disposals | ( |
) |
At 31st October 2023 |
NET BOOK VALUE |
At 31st October 2023 |
At 31st October 2022 |
The investment properties were revalued on 31st October 2023 by the directors and in the opinion of the directors this valuation fairly represents the open market value. |
Fair value at 31st October 2023 is represented by: |
£ |
Valuation in 2022 | 1,301,797 |
Cost | 280,703 |
1,582,500 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 2,159,053 | 2,324,522 |
Amounts owed by group undertakings | - | - |
Other debtors | 24,333 | 30,417 |
VAT | 161,649 | 118,864 |
Prepayments and accrued income | 6,096 | 168,841 |
2,351,131 | 2,642,644 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 16) | 293,593 | 262,123 |
Trade creditors | 1,507,304 | 1,626,191 |
Corporation Tax | 571,725 | 510,077 |
Social security and other taxes | 31,804 | 27,546 |
VAT | - | - | 25,312 | - |
Accruals and deferred income | 270,069 | 220,068 |
2,674,495 | 2,646,005 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) | 262,807 | 270,358 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 293,593 | 262,123 |
Between one and five years | 262,807 | 270,358 |
556,400 | 532,481 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
16. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 121,176 | 4,283 |
Between one and five years | 486,494 | 339 |
In more than five years | 538,917 | - |
1,146,587 | 4,622 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 556,400 | 532,481 |
The secured debts above are secured by the assets that they relate to. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 831,997 | 883,859 | 621,747 | 677,158 |
Group |
Deferred |
tax |
£ |
Balance at 1st November 2022 | 883,859 |
Provided during year | (51,862 | ) |
Balance at 31st October 2023 | 831,997 |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1st November 2022 |
Provided during year | ( |
) |
Balance at 31st October 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 100 | 4 |
20. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st November 2022 | 6,508,756 | 1,333,841 | 7,842,597 |
Profit for the year | 1,871,540 | 1,871,540 |
Dividends | (70,000 | ) | (70,000 | ) |
Retained earnings transfer | 35,569 | (35,569 | ) | - |
Deferred tax | - | 8,893 | 8,893 |
Contributions | (5,000,000 | ) | - | (5,000,000 | ) |
At 31st October 2023 | 3,345,865 | 1,307,165 | 4,653,030 |
Company |
Revaluation |
reserve |
£ |
At 1st November 2022 |
Revaluation of fixed assets | 206,067 |
Retained earnings transfer | (154,842 | ) |
Deferred tax | (10,748 | ) |
At 31st October 2023 |
Retained earnings |
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments. |
Revaluation reserves |
The revaluation reserve represents the cumulate effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is B. Gallagher Trustee Limited. |
B & R GALLAGHER (HOLDINGS) LIMITED (REGISTERED NUMBER: 06636445) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST OCTOBER 2023 |
22. | PENSION SCHEME |
The group contributes to defined contribution pension schemes. The pension cost charged for the year represents contributions payable by the group to the schemes and amounted to £30,142 (2022 £25,107). |