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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2021 |
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Gazco Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2021 |
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for |
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Gazco Limited |
Gazco Limited (Registered number: 02228426) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Statement of Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Notes to the Financial Statements | 12 |
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Gazco Limited |
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Company Information |
for the Year Ended 31 December 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
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BANKERS: |
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London branch |
75 King William Street |
London |
EC4N 7DT |
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SOLICITORS: |
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Exeter |
Gazco Limited (Registered number: 02228426) |
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Strategic Report |
for the Year Ended 31 December 2021 |
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The directors present the Strategic Report, their Directors' Report and Financial Statements for the year ended 31 December 2021. |
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PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal business activities of the company are the design, manufacture and distribution of decorative fuel-effect gas and electric fires and stoves. During the year, the company has continued to invest in further product research and development and several new products will be launched in 2022, in both domestic and export markets. The company has also invested during the year in upgrading its manufacturing facilities. |
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Sales for the year rose by 25.67 % on the corresponding year ended 31 December 2020. The directors consider this an encouraging performance and note that the investments made in research and development have predominantly driven this growth. |
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SUBSEQUENT EVENTS AND FUTURE DEVELOPMENTS |
The directors envisage that the next year will be one of further controlled expansion, in both domestic and export markets. The directors also believe that the economic circumstances over the next financial year may lead to modest growth in the domestic market and there will be a continuing emphasis on export-led growth. |
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The company has also engaged with the signing of a 15 year agreement for lease for new premises at the Skypark development in Exeter. This will have the aim of consolidating all existing premises into one new location with a footprint of nearly 200,000 sq. ft. and is planned to be completed in 2022. |
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KEY FINANCIAL PERFORMANCE INDICATORS |
The directors use a number of KPIs in measuring the performance of the business, examples being the growth in turnover year on year, the profit before tax as a percentage of turnover and the return on capital employed. |
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The values of the KPI's for the last 3 years were as follows:- |
2021 | 2020 | 2019 |
Turnover growth | 25.67% | 1.4% | 5.9% |
Profit before tax as a % of turnover | 17.74% | 17.5% | 15.0% |
Return on Capital Employed | 30.9% | 27.6% | 29.8% |
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NON-FINANCIAL KEY FINANCIAL PERFORMANCE INDICATORS |
The group had no health and safety incidents reportable to the Health and Safety Executive, under the RIDDOR regulations in the year (Year ended 31 December 2020: Two; Year Ended 31 December 2021: Two). Details of the criteria are given here - http://www.hse.gov.uk/riddor/reportable-incidents.htm |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The key business risks affecting the company are considered to be:- |
- fire (or other similar sudden unforeseen events) leading to a reduction in production capacity and product availability; |
- the impact of significant exchange rate fluctuations on export sales and component purchases, |
- overall market and economic conditions and |
- the volatility of commodity-based raw material prices. |
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The company mitigates these risks in a number of ways, including use of disaster recovery plans covering potential disruptions to its business, the maintenance of strategic stocks of key components, the specific identification of alternate suppliers and the use of relevant financial instruments. |
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FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company's operations expose it to a variety of financial risks that include the effects of credit risk and exchange rate risk. |
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The company monitors and takes action in each of these areas as follows: |
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Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. In addition, credit checks are made annually on those customers who are deemed to be a significant credit risk to the company. The Group also monitors all court judgements made against its customers and makes appropriate adjustments in the light of this information. |
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Exchange rate risk |
The company monitors its exposures in the foreign currencies in which it regularly transacts. In order to protect against excessive fluctuations, the company will take out financial instruments to restrict these risks where considered appropriate by the Board. |
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Gazco Limited (Registered number: 02228426) |
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Strategic Report |
for the Year Ended 31 December 2021 |
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Foreign exchange transactions |
There were no transactions outstanding at the end of the financial year. |
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ON BEHALF OF THE BOARD: |
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Director |
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29 June 2022 |
Gazco Limited (Registered number: 02228426) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2021 will be £3,575,600. |
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RESEARCH AND DEVELOPMENT |
The company continues to invest in product innovation. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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Other changes in directors holding office are as follows: |
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MATTERS COVERED IN THE STRATEGIC REPORT |
Disclosures with regards to principal activity, review of the business, future developments, principal risks and uncertainties and financial and other key performance indicators are included within the strategic report. |
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EMPLOYEES |
Applications for employment from disabled persons are always fully considered, bearing in mind the respective aptitude and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who is fortunate enough not to suffer from a disability. |
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Employees are kept informed and consulted on matters of importance to them, including those factors affecting the performance and future of the business, by regular meetings. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | 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. |
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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. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Gazco Limited (Registered number: 02228426) |
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Report of the Directors |
for the Year Ended 31 December 2021 |
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AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Gazco Limited |
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Opinion |
We have audited the financial statements of Gazco Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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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. |
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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 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. |
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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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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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. |
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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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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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, 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Gazco Limited |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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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. |
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management; and from our commercial knowledge and experience of the sector |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit |
- use of Audit Data Analytics to review the client data for unusual trends/anomalies |
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We assessed the susceptibility of the company's financial statements to misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- understanding the design of the company's remuneration policies. |
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To address the risk of fraud, including any impact of revenue recognition, through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 4 were indicative of potential bias; and |
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosure to underlying supporting documentation; |
- reviewing correspondence with HMRC and relevant regulators. |
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There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
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Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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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 |
Gazco Limited |
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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. |
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for and on behalf of
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Chartered Accountants & |
Statutory Auditors |
Sterling House |
1 Sheepscar Court |
Meanwood Road |
Leeds |
West Yorkshire |
LS7 2BB |
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Gazco Limited (Registered number: 02228426) |
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Statement of Comprehensive Income |
for the Year Ended 31 December 2021 |
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31/12/21 | 31/12/20 |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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5,596,702 | 5,069,888 |
6,641,830 | 4,654,228 |
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Other operating income |
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OPERATING PROFIT |
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Interest receivable and similar income | 6 |
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PROFIT BEFORE TAXATION | 7 |
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Tax on profit | 8 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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Gazco Limited (Registered number: 02228426) |
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Balance Sheet |
31 December 2021 |
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31/12/21 | 31/12/20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 15 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 16 |
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Retained earnings | 17 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Gazco Limited (Registered number: 02228426) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2020 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2021 |
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Gazco Limited (Registered number: 02228426) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Gazco Limited is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis. The Director has reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Director has tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Director has concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The Company's parent undertaking, NIBE Industrier AB, whose address is Järnvägsgatan 40, 285 37 Markaryd, Sverige, a company registered in Sweden, includes the Company in its consolidated financial statements. The consolidated Financial Statements of NIBE Industrier AB are prepared in accordance with International Financial Reporting Standards as adopted by the EU, are available to the public and may be obtained from the website http://www.nibe.com under the section "Investor Relations". |
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In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures: |
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- Cash Flow Statement and related notes; and |
- Key Management Personnel compensation. |
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Judgements made by the directors, in the application of these accounting policies that have significant effect on the Financial Statements and estimates with a significant risk of material adjustment in the next year are discussed in note 20. |
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Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty. 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 upon despatch of goods from the company's premises. |
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Tangible fixed assets |
The cost of tangible fixed assets is their purchase cost, together with any incidental expenses of acquisition. The company assesses at each reporting date whether the tangible assets are impaired. Depreciation is charged to the profit and loss account and calculated so as to write off the cost of fixed assets, on a straight-line basis, over the useful economic lives of the assets concerned. The principal annual rates used for this purposes are: |
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Plant, fixtures, fittings and equipment | 15% |
Computer equipment | 33% (included with Plant, fixtures, fittings and equipment) |
Motor vehicles | 25% (included with Plant, fixtures, fittings and equipment) |
Production tooling and stove patterns | 15% to 25% (included within Plant, fixtures, fittings and |
equipment) |
Gazco Limited (Registered number: 02228426) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Stocks are valued at the lower of cost, on a first in, first out basis, and net realisable value after making due allowance for any obsolete and slow moving items. Cost of stocks comprises the purchase price of stocks and all other directly attributable costs. |
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Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of |
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Foreign currencies |
The presentation currency of these Financial Statements is Sterling. |
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Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency as the foreign exchange rate ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account, except for differences arising on the retranslation of qualifying cash flow hedges and items which are fair valued with changes taken to other comprehensive income, which are recognised in other comprehensive income. |
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Employee benefits |
The company is one of the employers in a group personal pension scheme with an external provider. This is a defined contribution scheme, which is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the years during which services are rendered by employees. |
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Distribution costs and administrative expenses |
Distribution costs and administrative expenses are stated net of any recharges made by the company for such costs. |
Gazco Limited (Registered number: 02228426) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
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3. | ACCOUNTING POLICIES - continued |
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Research | and development expenditure |
Expenditure on research and development activities is recognised in the profit and loss account as an expense as incurred. |
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Expenditure on tangible assets purchased as part of development activities, such as cast iron and production tooling, is capitalised (if the foreseeable life is sufficient to justify capitalisation) over four years to seven years, depending on the type of tooling purchased. |
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Operating leases |
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense. |
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Finance leases |
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each year during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
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Computer software |
Computer software is expensed in the year in which the expenditure is incurred, unless its economic life is greater than three years in which case it is capitalised and included in intangible assets. |
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Provisions |
A provision is recognised in the balance sheet when the Company has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
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Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the company treats the guarantee contract as a contingent liability until such time as it becomes probable that the company will be required to make a payment under the guarantee. |
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Provision is made for the expected cost of maintenance under warranties in respect of products delivered and invoiced. |
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Interest receivable and interest payable |
Interest Receivable and Interest Payable are accounted for on an accruals basis. |
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Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
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Debtors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. At the end of each reporting year the financial assets are assessed for evidence of impairment. If an asset is impaired, the impairment loss is recognised in the profit and loss. |
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Creditors |
Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. |
Gazco Limited (Registered number: 02228426) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
4. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
31/12/21 | 31/12/20 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
Rest of the world | 600,799 | 1,679,603 |
Intragroup | 405,100 | 85,420 |
|
|
|
5. | EMPLOYEES AND DIRECTORS |
|
2021 | 2020 |
£ | £ |
Wages and salaries | 5,045,898 | 5,003,854 |
Social security costs | 388,400 | 335,676 |
Pension costs | 134,980 | 130,942 |
5,569,278 | 5,470,472 |
|
|
The average number of persons employed by the Group (including
directors) during the year was as follows: |
|
2021 | 2020 |
|
Distribution | 108 | 94 |
Administration | 70 | 68 |
178 | 162 |
|
|
|
The company operates a group personal pension plan under which it contributes to money purchase personal pension plans for individual employees. There were outstanding contributions of £23,875 at the year-end (2020: £20,108). |
Gazco Limited (Registered number: 02228426) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
Remuneration of directors |
2021 | 2020 |
£ | £ |
Paid directly by the company | - | 66,172 |
Paid by UK ultimate holding company - Stovax Heating Group Limited
and recharged to the company |
295,818 |
|
414,441 |
Recharged by fellow subsidiary | 54,518 | 22,534 |
350,336 | 503,147 |
Company contributions to pension scheme | 3,795 | 6,023 |
354,131 | 471,416 |
|
Number | Number |
Number of directors accruing benefits under money purchase group
personal pension |
1 |
|
1 |
|
2021 | 2020 |
£ | £ |
Highest paid director | 54,255 | 137,470 |
Company contributions paid to pension scheme | - | - |
137,470 | 118,718 |
|
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31/12/21 | 31/12/20 |
£ | £ |
Deposit account interest |
|
|
|
7. | PROFIT BEFORE TAXATION |
|
The profit is stated after charging: |
|
31/12/21 | 31/12/20 |
£ | £ |
Depreciation - owned assets |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
|
8. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/12/21 | 31/12/20 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
Gazco Limited (Registered number: 02228426) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
8. | TAXATION - continued |
|
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: |
|
31/12/21 | 31/12/20 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Permanent differences | 2,480 | 5,310 |
Impact of R&D credits | 11,295 | 9,522 |
Adjustments to tax charge in respect of previous periods - deferred tax | 70,160 | (43,192 | ) |
RDEC | (59,447 | ) | (50,116 | ) |
Rounding | 2,834 | 98 |
Total tax charge | 1,247,687 | 959,899 |
|
9. | DIVIDENDS |
31/12/21 | 31/12/20 |
£ | £ |
Ordinary shares shares of 1.00 each |
Final |
|
|
|
10. | TANGIBLE FIXED ASSETS |
Plant, |
fixtures, |
Assets | fittings |
under | and | Motor |
construction | equipment | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2021 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
Reclassification/transfer | ( |
) |
|
|
|
At 31 December 2021 |
|
|
|
|
DEPRECIATION |
At 1 January 2021 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) |
At 31 December 2021 |
|
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
|
At 31 December 2020 |
|
|
|
|
Gazco Limited (Registered number: 02228426) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
11. | STOCKS |
31/12/21 | 31/12/20 |
£ | £ |
Raw materials |
|
|
Finished goods |
|
|
|
|
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/21 | 31/12/20 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/12/21 | 31/12/20 |
£ | £ |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 243,038 | 1,027,554 |
Accruals and deferred income |
|
|
|
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31/12/21 | 31/12/20 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
15. | PROVISIONS FOR LIABILITIES |
31/12/21 | 31/12/20 |
£ | £ |
Deferred tax | 110,442 | - |
|
Other provisions |
Warranty provision | 510,746 | 293,923 |
Dilapidation provision | 706,351 | 496,408 |
|
|
|
Aggregate amounts | 1,327,539 | 790,331 |
Gazco Limited (Registered number: 02228426) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
15. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2021 | ( |
) |
|
Provided during year |
|
|
Balance at 31 December 2021 |
|
|
|
Warranty provision is made for the anticipated cost of customer warranties, which are expected to be incurred over the following two years. This is based on an analysis of the type of warranty claims received during the year and an estimate of the likely incidence of similar claims in the remaining warranty period for the appliances sold. A dilapidations provision is made at the amount for which the Company is contractually liable, arising since the inception of the current leases on the properties on 31 January 2013. |
|
16. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/12/21 | 31/12/20 |
value: | £ | £ |
|
Ordinary shares | 1.00 | 30,000 | 30,000 |
|
17. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2021 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 December 2021 |
|
|
18. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
19. | ULTIMATE CONTROLLING PARTY |
|
The immediate parent is Stovax Group Limited, a UK company. |
|
The ultimate parent undertaking party of this company is NIBE Industrier AB, whose address is Järnvägsgatan 40, 285 37 Markaryd, Sverige, a company registered in Sweden and listed on the Stockholm Stock Exchange, with reference SE0000390296. |
|
20. | ACCOUNTING ESTIMATES AND JUDGEMENTS |
|
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. These estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include provisions for warranties and dilapidations. |
Gazco Limited (Registered number: 02228426) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
|
21. | BANK GUARANTEES |
|
The company had the following guarantees. |
|
2021 | 2020 |
£ | £ |
Customs and excise guarantees | - | 75,000 |
|
The guarantee relates to the Company's VAT deferment account. Group banking facilities are covered by a cross guarantee between group companies, but there was no exposure at the year-end or the previous year end. |
|
The amounts outstanding at the end of the year were as follows: - |
2021 | 2020 |
£ | £ |
Customs and excise guarantees | - | 62,539 |
, |
|
The amount was paid in January 2021. |