ACCOUNTS - Final Accounts preparation

ACCOUNTS - Final Accounts preparation

GBM DIGITAL TECHNOLOGIES GROUP LIMITED - Company Information

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Registered number:  12470566














GBM DIGITAL TECHNOLOGIES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
Alan Betts 
Christopher Costello 




Registered number
12470566



Registered office
The Plaza
100 Old Hall Street

Liverpool

Merseyside

L3 9QJ




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditor

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ




 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

CONTENTS



Page
Group strategic report
1
Directors' report
2 - 4
Independent auditors' report
5 - 8
Consolidated profit and loss account
9
Consolidated balance sheet
10 - 11
Company balance sheet
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated Statement of cash flows
15 - 16
Consolidated analysis of net debt
17
Notes to the financial statements
18 - 35

 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction
 
The Directors present their Strategic Report for the Group for the year ended 31 December 2021.

Business review
 
The directors believe that the group has achieved a satisfactory result for the year under review in the light of prevailing trading conditions.
The directors plan to continue to develop the existing activities of the group.

Principal risks and uncertainties
 
The group's operations expose it to a variety of financial risks that include the effect of credit risk and liquidity risk.  The group has in place policies that seek to limit the adverse effects on the financial performance of the group by monitoring levels of liquidity and the related finance costs.  The policies set by the board of directors are implemented by the group's finance departments.
Credit risk
The group has implemented policies that require appropriate credit assessments on potential customers before sales are made.  The amount of exposure to any individual counterparty is subject to review by the group's finance department.
Liquidity risk
The group actively maintains a mixture of cash deposits and bank loans that are designed to ensure the group has sufficient available funds for operations and planned expansions.

Financial key performance indicators
 
Given the straightforward nature of the business, the group's directors are of the opinion that anaylsis using Key Performance Indicators is not necessary for an understanding of the development, performance or position of the business.

Directors' statement of compliance with duty to promote the success of the Group
 
The Directors are aware of their duty under s.172 of the Companies Act 2006 to act in the way they would consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole and, in doing so, to have regard, amongst other matters, to:-
•   the likely consequences of its decisions in both the short and long-term
•   the interests of the Group's employees
•   the need to maintain and develop the Group's business relationships with suppliers, customers and others
•   the impact of the Group’s operations on the community and the environment
•   the importance of the Group maintaining a reputation for high standards of business conduct
•   the need to act fairly as between members of the group.


This report was approved by the board on 28 September 2022 and signed on its behalf.



A Betts
Director

Page 1
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £2,010,909 (2020 - 1,777,280).

The directors recommended and paid dividends of £979,839 during the year.  
The directors do not recommend any further dividends for the year.

Directors

The directors who served during the year were:

Alan Betts 
Christopher Costello 

Future developments

The directors are satisfied with the result for the year and are positive for the future, based on the ongoing improvement initiatives within the business.

Page 2
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Research and development activities

The group continues to utilise its technical and materials expertise to remain at the forefront of innovative technology and produce specialist products and services to maximise the performance and capabilities of its customers.

Engagement with suppliers, customers and others

The Directors seek to engage with customers and suppliers on a professional and courteous basis. With the aim to quickly resolve issues and to be transparent and fair in our dealings at all times. The Group aims to pay our suppliers in accordance with agreed payment terms and work with our customers to ensure a good customer experience.

Greenhouse gas emissions, energy consumption and energy efficiency action

Energy and Emissions Reporting

This section includes our mandatory reporting of energy and greenhouse gas emissions for the year ended 31 December 2021, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.
Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)' issued by DEFRA, using DEFRA's 2022 conversion factors.  In some cases consumption has been extrapolated from available data or direct comparison made to a comparable period.
We report using a financial control approach to define our organisational boundary.  We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.
During the reporting period, the following energy efficiency actions have been taken:
•  Electric vehicle charge points have been installed
•  Hybrid vehicles have been provided for staff and managers
•  Electric vans will be introduced to the fleet 
•  Workshop/office lights have been replaced with LED lighting
•  Sleep mode has been utilised to reduce computer energy expenditure
•  Staff have been reducing energy consumption through actions such as switching off lights at the end of
 the day and minimising printing

The table below includes total energy consumption (reports as kWh) and greenhouse gas emissions for the sources required by the regulations, along with our intensity ratio.  
            2021    2020
Total Energy Consumption - Used for Emissions Calculation (kWh)       312,512 292,685
Oil & Gas Combustion Emissions,  Scope 1 (tCO2e)   16.91    12.41
Purchased Electricity Emissions,  Scope 2 (tCO2e)   27.48    13.23
Vehicle Fuel Combustion Emissions,  Scope 1 (tCO2e)   22.03    49.15
Total Gross Reported Emissions (tCO2e)     66.42    74.79
Turnover (£m)         147.65  130.10
Intensity Ratio : Turnover (tCO2e / £m)      0.450    0.575

Page 3
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Matters covered in the Group Strategic Report

A business review, principal risks and uncertainties and financial key performance indicators are disclosed in the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 September 2022 and signed on its behalf.
 




A Betts
Director

Page 4
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

Opinion


We have audited the financial statements of GBM Digital Technologies Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021, which comprise the Group Profit and loss account, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, 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's affairs as at 31 December 2021 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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 directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or
Page 5
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GBM DIGITAL TECHNOLOGIES GROUP LIMITED (CONTINUED)


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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


∙adequate accounting records have not been kept 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 Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 6
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GBM DIGITAL TECHNOLOGIES GROUP LIMITED (CONTINUED)


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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: 
• to identify and assess the risks of material misstatement of the financial statements due to fraud; 
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due
 to fraud, through designing and implementing appropriate responses; and 
• to respond appropriately to fraud or suspected fraud identified during the audit. 
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. 
Our approach was as follows: 
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR). 
We understood how the Group is complying with those frameworks by making enquiries of management.
 
Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: 
• Enquiries of management; and
• Journal entry testing, with a focus on journals indicating large or unusual transactions based on our 
          understanding of the business.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. 
We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. 
Where the risk was considered to be higher, including areas impacting key performance indicators or
Page 7
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GBM DIGITAL TECHNOLOGIES GROUP LIMITED (CONTINUED)


management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.


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 Auditors' report.


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 an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.




A J McCall (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditor
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

28 September 2022
Page 8
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 4 
147,645,514
130,101,626

Cost of sales
  
(143,653,399)
(126,871,163)

Gross profit
  
3,992,115
3,230,463

Administrative expenses
  
(1,483,815)
(1,233,961)

Other operating income
 5 
-
53,288

Operating profit
  
2,508,300
2,049,790

Interest receivable and similar income
 9 
158
1,645

Interest payable and similar expenses
 10 
(7,742)
(7,968)

Profit before tax
  
2,500,716
2,043,467

Tax on profit
 12 
(489,807)
(266,187)

Profit for the financial year
  
2,010,909
1,777,280

Profit for the year attributable to:
  

Owners of the parent
  
2,010,909
1,777,280

  
2,010,909
1,777,280

The Company has not traded during the year. During this period, the Company received no income and incurred no expenditure other than exempted payments under the provisions of section 1169 (3)(b) of the Companies Act 2006.

Page 9
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
REGISTERED NUMBER: 12470566

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 13 
445,379
(1,126,757)

Tangible assets
 14 
636,081
609,125

  
1,081,460
(517,632)

Current assets
  

Stocks
 16 
1,873,429
1,561,882

Debtors: amounts falling due within one year
 17 
10,612,312
12,865,523

Cash at bank and in hand
 18 
1,749,084
3,947,432

  
14,234,825
18,374,837

Creditors: amounts falling due within one year
 19 
(12,026,292)
(15,386,742)

Net current assets
  
 
 
2,208,533
 
 
2,988,095

Total assets less current liabilities
  
3,289,993
2,470,463

Creditors: amounts falling due after more than one year
 20 
(201,069)
(417,917)

Provisions for liabilities
  

Deferred taxation
 23 
-
(800)

  
 
 
-
 
 
(800)

Net assets excluding pension asset
  
3,088,924
2,051,746

Net assets
  
3,088,924
2,051,746


Capital and reserves
  

Called up share capital 
 24 
661
661

Share premium account
 25 
1,227,003
1,220,895

Profit and loss account
 25 
1,861,260
830,190

Equity attributable to owners of the parent Company
  
3,088,924
2,051,746

  
3,088,924
2,051,746


Page 10
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
REGISTERED NUMBER: 12470566
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 September 2022.




A Betts
Director

The notes on pages 18 to 35 form part of these financial statements.

Page 11
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
REGISTERED NUMBER: 12470566

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Investments
 15 
4,723,800
2,221,557

  
4,723,800
2,221,557

  

Creditors: amounts falling due within one year
 19 
(1,172,497)
(228,334)

Net current liabilities
  
 
 
(1,172,497)
 
 
(228,334)

Total assets less current liabilities
  
3,551,303
1,993,223

  

Creditors: amounts falling due after more than one year
 20 
(2,329,747)
(771,667)

  

Net assets excluding pension asset
  
1,221,556
1,221,556

Net assets
  
1,221,556
1,221,556


Capital and reserves
  

Called up share capital 
 24 
661
661

Share premium account
 25 
1,220,895
1,220,895

Profit for the year
  
979,839
947,090

Other changes in the profit and loss account
  
(979,839)
(947,090)

  
 
 
1,221,556
 
 
1,221,556


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 September 2022.




A Betts
Director

The notes on pages 18 to 35 form part of these financial statements.

Page 12
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 January 2021
661
1,220,895
830,190
2,051,746
2,051,746



Profit for the year
-
-
2,010,909
2,010,909
2,010,909

Dividends: Equity capital
-
-
(979,839)
(979,839)
(979,839)

Shares issued during the year
-
6,108
-
6,108
6,108


At 31 December 2021
661
1,227,003
1,861,260
3,088,924
3,088,924


The notes on pages 18 to 35 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020


Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£



Profit for the period
-
-
1,777,280
1,777,280
1,777,280

Dividends: Equity capital
-
-
(947,090)
(947,090)
(947,090)

Shares issued during the period
661
1,220,895
-
1,221,556
1,221,556


At 31 December 2020
661
1,220,895
830,190
2,051,746
2,051,746


The notes on pages 18 to 35 form part of these financial statements.

Page 13
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2021
661
1,220,895
-
1,221,556



Profit for the year
-
-
979,839
979,839

Dividends: Equity capital
-
-
(979,839)
(979,839)


At 31 December 2021
661
1,220,895
-
1,221,556


The notes on pages 18 to 35 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£



Profit for the period
-
-
947,090
947,090

Dividends: Equity capital
-
-
(947,090)
(947,090)

Shares issued during the period
661
1,220,895
-
1,221,556


At 31 December 2020
661
1,220,895
-
1,221,556


The notes on pages 18 to 35 form part of these financial statements.

Page 14
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
£
£

Cash flows from operating activities

Profit for the financial year
2,010,909
1,777,280

Adjustments for:

Amortisation of intangible assets
35,971
(124,840)

Depreciation of tangible assets
72,200
87,896

Loss on disposal of tangible assets
(5,417)
2,536

Government grants
-
(53,288)

Interest paid
7,745
7,967

Interest received
(158)
(1,645)

Taxation charge
489,807
266,187

(Increase) in stocks
(296,747)
(75,887)

Decrease/(increase) in debtors
1,746,391
(444,558)

(Decrease)/increase in creditors
(4,823,550)
3,205,342

Corporation tax (paid)/received
(249,626)
272,894

Net cash generated from operating activities

(1,012,475)
4,919,884


Cash flows from investing activities

Purchase of tangible fixed assets
(192,650)
(400)

Sale of tangible fixed assets
86,508
53,284

Government grants received
-
53,288

Interest received
158
1,645

HP interest paid
(7,712)
(7,530)

Net cash from investing activities

(113,696)
100,287
Page 15
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


2021
2020

£
£



Cash flows from financing activities

Repayment of/new finance leases
(125,464)
(125,211)

Dividends paid
(979,839)
(947,090)

Interest paid
(30)
(438)

Net cash used in financing activities
(1,105,333)
(1,072,739)

Net (decrease)/increase in cash and cash equivalents
(2,231,504)
3,947,432

Cash and cash equivalents at beginning of year
3,947,432
-

Cash and cash equivalents at the end of year
1,715,928
3,947,432


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,749,084
3,947,432

Bank overdrafts
(33,156)
-

1,715,928
3,947,432


The notes on pages 18 to 35 form part of these financial statements.

Page 16
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021




At 1 January 2021
Cash flows
At 31 December 2021
£

£

£

Cash at bank and in hand

3,947,432

(2,198,348)

1,749,084

Bank overdrafts

-

(33,156)

(33,156)

Debt due within 1 year

(426,221)

(288,064)

(714,285)

Finance leases

(116,237)

(341)

(116,578)


3,404,974
(2,519,909)
885,065

The notes on pages 18 to 35 form part of these financial statements.

Page 17
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

GBM Digital Technologies Group Limited is a private limited company, limited by shares, incorporated in England and Wales.  Its registered office is The Plaza, 100 Old Hal Street, Liverpool, L3 9QJ.  The company number is 12470566.
These financial statements present the result of the group for the period ended 31 December 2020.  The parent company has three subsidiaries, GBM Digital Technologies Holdings Limited, GBM Digital Technologies Limited and Kingsfield Computer Products Limited.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The presentation currency of these financial statements is pound sterling; the financial statements are rounded to the nearest pound.

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 19 February 2020.

Page 18
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 19
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated profit and loss account in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 20
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated profit and loss account over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 21
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, by the best estimated rates as specified below.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
straight line
Short-term leasehold property
-
2%
straight line
Plant and machinery
-
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
20%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 22
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.17

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.20

Financial instruments

The Group 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 ordinary shares.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have made judgements regarding the depreciation of fixed assets, the carrying value of stock and the provision for bad and doubtful debts.

Page 23
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

4.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Computer equipment supplies and services
147,645,514
130,101,626

147,645,514
130,101,626


All turnover arose within the United Kingdom.


5.


Other operating income

2021
2020
£
£

Government grants
-
53,288

-
53,288



6.


Auditors' remuneration

2021
2020
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
30,100
14,300


Fees payable to the Group's auditor and its associates in respect of:


All other services
22,985
31,125

22,985
31,125

Page 24
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Company
2021
2021
£
£


Wages and salaries
1,896,587
9,127

Social security costs
167,630
-

Cost of defined contribution scheme
53,610
-

2,117,827
9,127


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2021
        2020
        2021
        2020
            No.
            No.
            No.
            No.









Administration
14
12
2
2



Sales and marketing
27
22
-
-



Engineering
36
30
-
-

77
64
2
2


8.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
23,527
79,598

Group contributions to defined contribution pension schemes
28,416
27,500

51,943
107,098


During the year retirement benefits were accruing to 2 directors (2020 - 2) in respect of defined contribution pension schemes.

Page 25
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

9.


Interest receivable

2021
2020
£
£


Other interest receivable
158
1,645

158
1,645


10.


Interest payable and similar expenses

2021
2020
£
£


Bank interest payable
30
438

Finance leases and hire purchase contracts
7,712
7,530

7,742
7,968


11.


Dividends

2021
2020
£
£


Dividends
979,839
947,090

979,839
947,090

Page 26
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

12.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
511,769
383,841

Adjustments in respect of previous periods
-
(109,154)

511,769
274,687


Deferred tax


Origination and reversal of timing differences
(21,962)
(8,500)


Taxation on profit on ordinary activities
489,807
266,187

Factors affecting tax charge for the year/period

The tax assessed for the year/period is the same as (2020 - the same as) the standard rate of corporation tax in the UK of 19% (2020 - 19%) as set out below:

2021
2020
£
£


Profit on ordinary activities before tax
2,500,716
2,043,467


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
475,136
388,259

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
30,671
32,597

Adjustments to tax charge in respect of prior periods
-
(109,154)

Effect of a change in tax rate leading to an increase (decrease) in taxation
(16,000)
(45,515)

Total tax charge for the year/period
489,807
266,187


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 27
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

13.


Intangible assets

Group and Company





Website
Goodwill
Total

£
£
£



Cost


At 1 January 2021
38,410
(1,171,208)
(1,132,798)


Additions
-
1,608,107
1,608,107



At 31 December 2021

38,410
436,899
475,309



Amortisation


At 1 January 2021
7,042
(13,083)
(6,041)


Charge for the year on owned assets
3,841
32,130
35,971



At 31 December 2021

10,883
19,047
29,930



Net book value



At 31 December 2021
27,527
417,852
445,379



At 31 December 2020
31,368
(1,158,125)
(1,126,757)



Page 28
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

14.


Tangible fixed assets

Group






Leasehold property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 January 2021
612,366
142,018
375,806
1,130,190


Additions
-
162,688
150,476
313,164


Disposals
-
-
(232,338)
(232,338)



At 31 December 2021

612,366
304,706
293,944
1,211,016



Depreciation


At 1 January 2021
146,881
125,275
248,909
521,065


Charge for the year on owned assets
12,248
137,459
4,908
154,615


Charge for the year on financed assets
-
-
50,502
50,502


Disposals
-
-
(151,247)
(151,247)



At 31 December 2021

159,129
262,734
153,072
574,935



Net book value



At 31 December 2021
453,237
41,972
140,872
636,081



At 31 December 2020
465,484
16,743
126,898
609,125




The net book value of land and buildings may be further analysed as follows:


2021
2020
£
£

Long leasehold
225,047
232,269

Short leasehold
228,189
233,214

453,236
465,483


Page 29
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2021
2020
£
£



Motor vehicles
139,217
125,936

139,217
125,936


15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2021
2,221,557


Additions
2,502,243



At 31 December 2021
4,723,800





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

GBM Digital Technologies Holdings Limited
Ordinary
100%
GBM Digital Technologies Limited
Ordinary
100%
Kingsfield Computer Products Limited
Ordinary
100%

Page 30
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

GBM Digital Technologies Holdings Limited
613,388
-

GBM Digital Technologies Limited
5,345,867
2,115,911

Kingsfield Computer Products Limited
827,374
491,023


16.


Stocks

Group
Group
2021
2020
£
£

Finished goods and goods for resale
1,873,429
1,561,882

1,873,429
1,561,882



17.


Debtors



Group
Group
2021
2020
£
£


Trade debtors
10,175,266
12,748,135

Other debtors
223,069
4,345

Prepayments and accrued income
198,277
113,043

Tax recoverable
-
-

Deferred taxation
15,700
-

10,612,312
12,865,523


Page 31
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Cash and cash equivalents

Group
Group
2021
2020
£
£

Cash at bank and in hand
1,749,084
3,947,432

Less: bank overdrafts
(33,156)
-

1,715,928
3,947,432



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank overdrafts
33,156
-
-
-

Trade creditors
9,214,368
13,594,072
-
-

Amounts owed to group undertakings
-
-
640,000
-

Corporation tax
569,981
249,625
-
-

Other taxation and social security
131,907
213,498
-
-

Obligations under finance lease and hire purchase contracts
32,175
48,321
-
-

Other creditors
1,248,457
654,555
532,497
228,334

Accruals and deferred income
796,248
626,671
-
-

12,026,292
15,386,742
1,172,497
228,334


Obligations under hire purchase and finance lease agreements are secured on the assets concerned.


20.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Net obligations under finance leases and hire purchase contracts
84,402
67,917
-
-

Amounts owed to group undertakings
-
-
2,213,080
421,667

Other creditors
116,667
350,000
116,667
350,000

201,069
417,917
2,329,747
771,667


Obligations under hire purchase and finance lease agreements are secured on the assets concerned.

Page 32
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2021
2020
£
£

Within one year
33,630
52,190

Between 1-5 years
95,670
71,941

129,300
124,131


22.


Financial instruments

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
1,749,084
3,947,432
-
-

Financial assets that are debt instruments measured at amortised cost
10,398,335
12,752,480
-
-

12,147,419
16,699,912
-
-


Financial liabilities

Financial liabilities measured at amortised cost
(10,942,897)
(14,867,477)
(3,502,244)
(1,000,000)


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprise of trade and other debtors.
Financial liabilities meaured at amortised cost comprise of trade creditors, other creditors and accruals.

Page 33
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

23.


Deferred taxation


Group



2021


£






At beginning of year
(800)


Charged to profit or loss
16,500



At end of year
15,700

Group
Group
2021
2020
£
£

Accelerated capital allowances
15,700
(800)

15,700
(800)


24.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



41,208 (2020 - 41,208) Ordinary shares of £0.01 each
412
412
24,937 (2020 - 24,937) A Ordinary shares of £0.01 each
249
249

661

661



25.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses.


26.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £53,610 (2020: £55,698).
Contributions totalling £7,753 (2020: £5,954) were payable to the fund at the balance sheet date and are included in creditors.

Page 34
 
GBM DIGITAL TECHNOLOGIES GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

27.


Commitments under operating leases

At 31 December 2021 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2021
2020
£
£

Not later than 1 year
80,000
80,000

Later than 1 year and not later than 5 years
320,000
320,000

Later than 5 years
66,667
146,667

466,667
546,667

28.


Related party transactions

Included within debtors/(creditors) are the following balances with related parties:


2021
2020
£
£

A Betts
(321,465)
(201,550)
C Costello
(389,275)
(221,126)
(710,740)
(422,676)

The loans from A Betts and C Costello were made to GBM Digital Technologies Limited.
GBM Digital Technologies Limited is the wholly owned subsidiary of GBM Digital Technologies Group Limited.


29.


Controlling party

The directors consider the controlling parties to be A. Betts, C Betts and C Costello.

 
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