Gablesea Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01259550 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2018

for

Gablesea Limited

Page

Group Strategic Report

1

Report of the Directors

2

Report of the Independent Auditors

4

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

The directors present their strategic report of the company and the group for the year ended 31 December 2018.

REVIEW OF BUSINESS

The principal strategic objective of the group is to maintain (and increase where possible) its market share, and to

therefore sustain its turnover at a consistent level, or indeed increase where possible through organic growth within the

business.

Hand in hand with the groups strategic objective is its key financial objective of constantly monitoring the prices in the

metal commodities market, adapting swiftly to significant changes in price, and reacting appropriately in order to

achieve a consistent gross profit percentage.

The group has met its financial objectives and this can be illustrated by the key performance indicator data set out

below:

31 December 2018

31 December 2017

Turnover

£17,262,360

£16,654,585

Gross profit percentage

27.1%

28.1%

The group does not have a specified development plan to achieve its strategic objective, and so will focus on continuing

to deliver good quality products to its customer accompanied by good service levels, in pursuance of maintaining its

market share.

In terms of monitoring its financial position, the company is also keenly aware of the relevance of at least maintaining its

net asset position year on year, due to its impact on credit ratings. Each and every year the group would achieve this

objective, although it has failed to do so this year but only through exceptional circumstances as described in Note 26 to

the financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is currently operating in an environment where there is a single principal risk and uncertainty. The metals

market has always been fluid and the price of metal can change both upwards and downwards for a variety of reasons.

This uncertainty requires the company to be adaptable to market conditions and to react quickly to price changes.

The group has recognised additional financial and operational risks which are directly related to Brexit, and has worked

very hard to formulate and implement appropriate responses to these risks, and therefore believes it is as prepared as it

can be, for whatever form Brexit may yet take.

ON BEHALF OF THE BOARD:

J M Winn - Director

26 September 2019

The directors present their report with the financial statements of the company and the group for the year ended

31 December 2018.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2018.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

J M Winn

G P Wilson

P Snowden

J H Chrimes

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic

report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and

Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 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 directors are 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 each director 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, Frank W Dobby & Co Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

J M Winn - Director

26 September 2019

Opinion

We have audited the financial statements of Gablesea Limited (the 'parent company') and its subsidiaries (the 'group') for

the year ended 31 December 2018 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 31 December 2018 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, 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 there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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.

In preparing the financial statements, the directors are 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 directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

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.

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.

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.

Carole Jane Barrick F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Frank W Dobby & Co Limited

Statutory Auditor

55 Fountain Street

Morley

Leeds

West Yorkshire

LS27 0AA

26 September 2019

TURNOVER

17,262,360

16,654,585

Cost of sales

12,537,939

11,982,764

GROSS PROFIT

4,724,421

4,671,821

Distribution costs

2,345,421

2,332,284

Administrative expenses

1,901,612

1,963,956

4,247,033

4,296,240

477,388

375,581

Other operating income

106,000

106,000

OPERATING PROFIT

4

583,388

481,581

Settlement with H M Revenue and Customs

6

1,270,726

119,774

(687,338

)

361,807

Interest payable and similar expenses

7

3,884

4,822

(LOSS)/PROFIT BEFORE TAXATION

(691,222

)

356,985

Tax on (loss)/profit

8

123,914

105,158

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(815,136

)

251,827

(Loss)/profit attributable to:

Owners of the parent

(823,999

)

240,350

Non-controlling interests

8,863

11,477

(815,136

)

251,827

(LOSS)/PROFIT FOR THE YEAR

(815,136

)

251,827

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(815,136

)

251,827

Total comprehensive income attributable to:

Owners of the parent

(823,999

)

240,350

Non-controlling interests

8,863

11,477

(815,136

)

251,827

FIXED ASSETS

Intangible assets

10

38,877

50,495

Tangible assets

11

2,014,274

2,108,119

Investments

12

53,304

-

2,106,455

2,158,614

CURRENT ASSETS

Stocks

13

3,253,030

2,709,469

Debtors

14

4,098,846

4,365,613

Cash at bank and in hand

958,299

2,201,297

8,310,175

9,276,379

CREDITORS

Amounts falling due within one year

15

6,558,746

7,576,824

NET CURRENT ASSETS

1,751,429

1,699,555

TOTAL ASSETS LESS CURRENT LIABILITIES

3,857,884

3,858,169

CREDITORS

Amounts falling due after more than one year

16

(1,016,675

)

(17,312

)

PROVISIONS FOR LIABILITIES

21

(18,610

)

(147,572

)

NET ASSETS

2,822,599

3,693,285

CAPITAL AND RESERVES

Called up share capital

22

9,951

9,951

Retained earnings

23

2,742,594

3,566,593

SHAREHOLDERS' FUNDS

2,752,545

3,576,544

NON-CONTROLLING INTERESTS

70,054

116,741

TOTAL EQUITY

2,822,599

3,693,285

The financial statements were approved by the Board of Directors on 26 September 2019 and were signed on its behalf

by:

G P Wilson - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

1,812,808

1,894,415

Investments

12

92,186

22,161

1,904,994

1,916,576

CURRENT ASSETS

Stocks

13

2,237,705

1,834,039

Debtors

14

2,770,612

3,173,388

Cash at bank and in hand

626,688

1,203,433

5,635,005

6,210,860

CREDITORS

Amounts falling due within one year

15

4,899,784

5,648,876

NET CURRENT ASSETS

735,221

561,984

TOTAL ASSETS LESS CURRENT LIABILITIES

2,640,215

2,478,560

CREDITORS

Amounts falling due after more than one year

16

(994,626

)

(3,727

)

PROVISIONS FOR LIABILITIES

21

(4,299

)

(126,026

)

NET ASSETS

1,641,290

2,348,807

CAPITAL AND RESERVES

Called up share capital

22

9,951

9,951

Retained earnings

23

1,631,339

2,338,856

SHAREHOLDERS' FUNDS

1,641,290

2,348,807

Company's (loss)/profit for the financial year

(707,517

)

131,767

The financial statements were approved by the Board of Directors on 26 September 2019 and were signed on its behalf by:

G P Wilson - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 January 2017

9,951

3,326,243

3,336,194

105,264

3,441,458

Changes in equity

Total comprehensive income

-

240,350

240,350

11,477

251,827

Balance at 31 December 2017

9,951

3,566,593

3,576,544

116,741

3,693,285

Changes in equity

Dividends

-

-

-

(30,000

)

(30,000

)

Total comprehensive income

-

(823,999

)

(823,999

)

8,863

(815,136

)

9,951

2,742,594

2,752,545

95,604

2,848,149

Acquisition of non-controlling interest

-

-

-

(25,550

)

(25,550

)

Balance at 31 December 2018

9,951

2,742,594

2,752,545

70,054

2,822,599

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

9,951

2,207,089

2,217,040

Changes in equity

Total comprehensive income

-

131,767

131,767

Balance at 31 December 2017

9,951

2,338,856

2,348,807

Changes in equity

Total comprehensive income

-

(707,517

)

(707,517

)

Balance at 31 December 2018

9,951

1,631,339

1,641,290

Cash flows from operating activities

Cash generated from operations

1

149,216

1,365,039

Interest paid

(812

)

41

Interest element of hire purchase payments paid

(3,072

)

(4,863

)

Tax paid

(105,479

)

(63,710

)

Net cash from operating activities

39,853

1,296,507

Cash flows from investing activities

Purchase of tangible fixed assets

(40,748

)

(71,472

)

Purchase of fixed asset investments

(70,025

)

-

Sale of tangible fixed assets

-

48,000

Net cash from investing activities

(110,773

)

(23,472

)

Cash flows from financing activities

Loan repayments in year

(202,500

)

(90,000

)

Capital repayments in year

(53,664

)

(73,586

)

Amount introduced by directors

548,059

1,240,500

Amount withdrawn by directors

(1,433,973

)

(270,659

)

Dividends paid to minority interests

(30,000

)

-

Net cash from financing activities

(1,172,078

)

806,255

(Decrease)/increase in cash and cash equivalents

(1,242,998

)

2,079,290

Cash and cash equivalents at beginning of year

2

2,201,297

122,007

Cash and cash equivalents at end of year

2

958,299

2,201,297

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.18

31.12.17

£

£

(Loss)/profit before taxation

(691,222

)

356,985

Depreciation charges

171,893

190,558

Profit on disposal of fixed assets

-

(15,975

)

Finance costs

3,884

4,822

(515,445

)

536,390

Increase in stocks

(543,561

)

(262,334

)

Decrease in trade and other debtors

266,767

954,010

Increase in trade and other creditors

941,455

136,973

Cash generated from operations

149,216

1,365,039

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 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

958,299

2,201,297

Year ended 31 December 2017

31.12.17

1.1.17

£

£

Cash and cash equivalents

2,201,297

122,007

1.	STATUTORY INFORMATION

Gablesea Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address are as below:

Registered number:

01259550

Registered office:

Howley Park Industrial Estate

Howley Park Road East

Morley

Leeds

West Yorkshire

LS27 0BN

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Business combinations and investment in subsidiaries

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the

business combination is measured at the aggregate of the fair values of the assets given, liabilities incurred or

assumed.

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the

identified assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and

liabilities exceeds the cost of the business combination, the excess is recognised separately on the face of the

consolidated statement of position immediately below goodwill.

The consolidated financial statements incorporate the financial statements of the company and entities controlled

by the group. Control is achieved where the group has the power to govern the financial and operating policies of

an entity so as to obtain benefits from its activities.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Unlisted investments

Investments in unlisted investments are accounted for at cost less impairment in the group financial statements.

Significant judgements and estimates

The group has not applied any significant judgements or estimates which could have a significant effect on the

amounts recognised in its financial statements.

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 from the sale of goods is recognised when goods are delivered and legal title passes.

Goodwill

Goodwill on consolidation, being the amount paid in excess of the value of net assets in connection with the

acquisition of Service Metals (East Anglia) Limited is regarded as having a useful economic life of 10 years, this

being due to the company carrying out the exact same trading activity as it's parent company.

This was a change in accounting policy which has been implemented following transition to FRS 102 with effect

from 1 January 2015..