G T M (Europe) Limited - Limited company accounts 22.3

REGISTERED NUMBER: 04687174 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

FOR

G T M (EUROPE) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Mr Humayun Bashir

Mr Ziad Bashir

Mr Zaki Bashir

Mr Zain Bashir

Mr Mohomed Bashir

SECRETARY:

Mr Ziad Bashir

REGISTERED OFFICE:

Grane Road Grane Road

Haslingden

Rossendale

BB4 5ES

REGISTERED NUMBER:

04687174 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mark Croasdale BSc (Hons) FCA

AUDITORS:

Whitehead & Howarth

Statutory Auditors

327 Clifton Drive South

Lytham St Annes

Lancashire

FY8 1HN

BANKERS:

Habib Bank Ltd UK

2 Swan Street

Manchester

M4 5JN

The directors present their strategic report for the year ended 30 June 2022.

REVIEW OF BUSINESS

The group operations are the distribution of textile products. GTM (Europe) Ltd is the holding company and distributes overseas & online with subsidiaries Vantona Home Ltd mainly distributing in the UK, with GTM USA Corporation and Sky Home Corporation operating in USA.

The Company was incorporated on 5 March 2003 and acquired the subsidiaries over a period of time. The ultimate holding company is Gul Ahmed Textiles Mills Limited and is the main supplier of the company.

The group's key financial and other performance indicators during the year were as follows:

2022

2021

2020

Turnover

£11,494,475

£9,792,079

£8,336,772

Gross profit

£1,166,190

£800,345

£2,1,585

Gross profit margin

10.1%

8.2%

0.3%

Gross profit has increased as the group has sourced decreased costs from suppliers. Turnover has grown consistently as the company moved away from commission based trade to direct supplies. The UK & Europe home interior sector are highly competitive, particularly in the retail sector. Many companies offer similar products with aggressive pricing structures. The impact of technology has been significant and its essential the group keeps abreast of advances in this area.

The group's success is dependent on the proper selection, pricing and ongoing management of risks. We believe its important to retain a diversified portfolio in order to achieve maximum profitability in the highly competitive marketplace. The group will continue to consolidate its position and continue its efforts on achieving maximum growth in its existing markets and online.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's activities expose it to a number of financial risks including credit risk, interest rate risk and liquidity risk.

The group's principal financial instruments comprise bank balances, bank overdrafts, invoice discounting arrangements, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the group's operations.

Objectives and policies

The principal risks and uncertainties to which the group is subject are:

- People

- Macro economic environment

- Competition

People - The resignation of key individuals and the inability to recruit talented people could adversely affect the group results. The risk is mitigated by succession planning, training of staff and by implementing appropriate pay structures.

Macro economic environment - Home interior activity is largely driven by economic cycles and the levels of business confidence.

Competition - The degree of competition varies by region and by sector. The group's risk is spread by the diversity of the sectors in which it operates.

Position of the business

At the end of the period, the group had shareholder funds of £1,999,636 (2021 - £1,549,063 ).

Price risk, credit risk, liquidity risk and cash flow risk

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts and invoice discounting arrangements at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

Loans are comprised entirely of loans from financial institutions, all with variable rates of interest. The business manages the liquidity risk by ensuring that there are sufficient funds to meet any repayments that are due.

The business is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet any repayments that are

FUTURE DEVELOPMENTS

As for many businesses of our size, the environment in which the company and group operates continues to be challenging. The industry is subject to constraints on spending partly brought about by uncertainty in the European economy and partly by other factors. With these risks and uncertainties in mind, the directors are aware that any plans for future development of the company and the group may be subject to unforeseen future events outside of their control. Nevertheless, the directors consider that the company and the group is well placed to sustain the current level of activity in the foreseeable future.

ON BEHALF OF THE BOARD:

Mr Zaki Bashir - Director

29 September 2022

The directors present their report with the financial statements of the company for the year ended 30 June 2022.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2021 to the date of this report.

Mr Humayun Bashir

Mr Ziad Bashir

Mr Zaki Bashir

Mr Zain Bashir

Mr Mohomed Bashir

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.

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:

-	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 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.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Whitehead & Howarth, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr Zaki Bashir - Director

29 September 2022

Opinion

We have audited the financial statements of G T M (Europe) Limited (the 'company') for the year ended 30 June 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 2022 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.

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.

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 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 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.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the 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.

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.

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.

Responsibilities of directors

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

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In our assessment of the financial statements and their susceptibility to material misstatement and how fraud may occur we have considered the nature of the industry and sector the client operates in and the control environment and remuneration policies for key management. Communication with management and review of documentation is performed and discussions among the audit team takes place to identify and review the areas offering the greatest potential for fraud or error such as the timing of recognition of commercial income, complex transactions or unusual journal entries.

We have obtained an understanding of the legal and regulatory framework that the company operates in and focus on those laws or regulations which are considered central to the entity and the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety and tax legislation.

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.

Mark Croasdale BSc (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Whitehead & Howarth

Statutory Auditors

327 Clifton Drive South

Lytham St Annes

Lancashire

FY8 1HN

29 September 2022

TURNOVER

11,494,475

9,792,079

Cost of sales

10,328,285

8,991,734

GROSS PROFIT

1,166,190

800,345

Administrative expenses

1,015,365

745,200

150,825

55,145

Other operating income

385,136

557,558

OPERATING PROFIT

4

535,961

612,703

Interest payable and similar expenses

5

2

21

PROFIT BEFORE TAXATION

535,959

612,682

Tax on profit

6

85,386

87,318

PROFIT FOR THE FINANCIAL YEAR

450,573

525,364

Retained earnings at beginning of year

1,049,063

523,699

RETAINED EARNINGS AT END OF YEAR

1,499,636

1,049,063

FIXED ASSETS

Tangible assets

7

62,765

25,203

Investments

8

389,981

389,981

452,746

415,184

CURRENT ASSETS

Stocks

9

183,116

203,526

Debtors

10

8,459,784

5,359,782

Cash at bank

716,446

1,005,038

9,359,346

6,568,346

CREDITORS

Amounts falling due within one year

11

7,812,245

5,433,238

NET CURRENT ASSETS

1,547,101

1,135,108

TOTAL ASSETS LESS CURRENT LIABILITIES

1,999,847

1,550,292

PROVISIONS FOR LIABILITIES

13

211

1,229

NET ASSETS

1,999,636

1,549,063

CAPITAL AND RESERVES

Called up share capital

14

500,000

500,000

Retained earnings

15

1,499,636

1,049,063

SHAREHOLDERS' FUNDS

1,999,636

1,549,063

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2022 and were signed on its behalf by:

Mr Zaki Bashir - Director

Cash flows from operating activities

Cash generated from operations

1

109,998

(209,092

)

Interest paid

(2

)

(21

)

Amounts owed by group

(1,822,888

)

1,697,674

Amounts owed to group

1,549,726

(1,399,807

)

Tax paid

(75,976

)

(910

)

Net cash from operating activities

(239,142

)

87,844

Cash flows from investing activities

Purchase of tangible fixed assets

(59,447

)

(12,626

)

Sale of tangible fixed assets

9,997

-

Net cash from investing activities

(49,450

)

(12,626

)

(Decrease)/increase in cash and cash equivalents

(288,592

)

75,218

Cash and cash equivalents at beginning of year

2

1,005,038

929,820

Cash and cash equivalents at end of year

2

716,446

1,005,038

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.6.22

30.6.21

£

£

Profit before taxation

535,959

612,682

Depreciation charges

11,888

2,962

Finance costs

2

21

547,849

615,665

Decrease/(increase) in stocks

20,410

(79,223

)

Increase in trade and other debtors

(1,277,114

)

(1,010,305

)

Increase in trade and other creditors

818,853

264,771

Cash generated from operations

109,998

(209,092

)

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 30 June 2022

30.6.22

1.7.21

£

£

Cash and cash equivalents

716,446

1,005,038

Year ended 30 June 2021

30.6.21

1.7.20

£

£

Cash and cash equivalents

1,005,038

929,820

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.21

Cash flow

At 30.6.22

£

£

£

Net cash

Cash at bank

1,005,038

(288,592

)

716,446

1,005,038

(288,592

)

716,446

Total

1,005,038

(288,592

)

716,446

1.	STATUTORY INFORMATION

G T M (Europe) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Preparation of consolidated financial statements

The financial statements contain information about G T M (Europe) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Gul Ahmed Textile Mills Ltd, Pakistan.

Related party exemption

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets liabilities as at the balance sheet date and the amounts reported in the profit and loss accounting during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Accruals, depreciation useful life of intangible assets and stock contain the most significant estimates of the amounts recognised in the accounts.

Turnover

The turnover shown in the profit and loss account represents the value of all goods sold and services provided during the year, less returns received, at selling price exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product and service have been transferred to the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

20% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Functional and presentation currency

Items included in the financial statements are presented in 'Sterling £GBP, the currency of the primary economic environment in which the entity operates (the 'functional currency').

Transactions and balances

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction or at a contracted rate. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date or the contracted rate. Non-monetary items that are measured at historical cost are translated at the foreign exchange rate ruling at the date of the transaction. Non-monetary items measured at fair value are translated at the rate of exchange at the date of the valuation. All differences are taken to the profit and loss account as part of the fair value gain or loss.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

The financial statements have been prepared on a going concern basis.

The company has made a net profit after tax of £450,573 (2021 £525,364) for the year ended 30 June 2022 and, as at that date, had net current asset's of £1,547,101 (2021 £1,135,108). Included in debtors due within one year is £3,840,132 (2021 £2,017,878) of debts due from subsidiary undertakings of which £1,712,483 (2021 £1,041,074) is due from Vantona Homes Limited.

The director's have prepared the accounts on a going concern basis based on:

1) Increase of customer base in the UK and new client wins with aggressive marketing campaigns & strategies including higher quality products.

2) Focusing on higher business margins as well as actively marketing activities in order to increase further customer base in the UK.

3) Focus to enhance further volume of online business via, acquisition and investment in new platforms as well as enhancement in features of existing platforms.

On this basis the directors have concluded that the going concern basis is appropriate.

Financial instruments

Cash and cash equivalents

Cash consists of cash on hand and demand deposits. Cash equivalents consist of short term highly liquid investments that are readily convertible to known amounts of cash that are subject to an insignificant risk of change in value.

Other financial assets

Other financial assets including trade debtors for goods sold to customers on short-term credit, are initially measured at the undiscounted amount of cash receivable from that customer, which is normally the invoice price, and are subsequently measured at amortised cost less impairment, where there is objective evidence of impairment.

Loans and borrowings

All loans and borrowings, both assets and liabilities are initially recorded at the present value of cash payable to the lender in settlement of the liability discounted at the market interest rate. Subsequently loans and borrowings are stated at amortised cost using the effective interest rate method. The computation of amortised cost includes any issue costs, transaction costs and fees, and any discount or premium on settlement, and the effect of this is to amortise these amounts over the expected borrowing period. Loans with no stated interest rate and repayable within one year or on demand are not amortised. Loans and borrowings are classified as current assets or liabilities unless then borrower has an unconditional right to defer settlement of the liability for at least twelve months after the financial year end date.

Other financial liabilities

Trade creditors are measured at invoice price, unless payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. In this case the arrangement constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

At the end of each reporting period, the company assesses whether there is objective evidence of impairment of any financial assets that are measured at cost or amortised cost, including unlisted investments, loans, trade debtors and cash. If there is objective evidence of impairment, impairment losses are recognised in the Profit and Loss account in that financial year.

3.	EMPLOYEES AND DIRECTORS

30.6.22

30.6.21

£

£

Wages and salaries

414,458

228,359

Social security costs

30,036

10,862

Other pension costs

12,206

6,014

456,700

245,235

The average number of employees during the year was as follows:

30.6.22

30.6.21

Management

1

1

Administration and finance

11

6

12

7

30.6.22

30.6.21

£

£

Directors' remuneration

44,833

48,025

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.22

30.6.21

£

£

Hire of plant and machinery

7,500

-

Depreciation - owned assets

11,888

2,962

Auditors' remuneration

5,000

5,000

Foreign exchange differences

(21,340

)

26,999

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.6.22

30.6.21

£

£

Bank interest

2

21

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.6.22

30.6.21

£

£

Current tax:

UK corporation tax

86,404

117,187

Under / over provision

-

(32,008

)

Total current tax

86,404

85,179

Deferred tax

(1,018

)

2,139

Tax on profit

85,386

87,318

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:

30.6.22

30.6.21

£

£

Profit before tax

535,959

612,682

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

101,832

116,410

Effects of:

Expenses not deductible for tax purposes

-

951

Capital allowances in excess of depreciation

(947

)

(2,113

)

Adjustments to tax charge in respect of previous periods

(3,132

)

-

Prior year expense

-

(3,339

)

R&D claim

(11,349

)

(26,730

)

Deferred tax

(1,018

)

2,139

Total tax charge

85,386

87,318

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 July 2021

45,584

12,626

58,210

Additions

8,766

50,681

59,447

Disposals

-

(12,626

)

(12,626

)

At 30 June 2022

54,350

50,681

105,031

DEPRECIATION

At 1 July 2021

32,376

631

33,007

Charge for year

3,179

8,709

11,888

Eliminated on disposal

-

(2,629

)

(2,629

)

At 30 June 2022

35,555

6,711

42,266

NET BOOK VALUE

At 30 June 2022

18,795

43,970

62,765

At 30 June 2021

13,208

11,995

25,203

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 July 2021

and 30 June 2022

389,981

NET BOOK VALUE

At 30 June 2022

389,981

At 30 June 2021

389,981

The company's investments at the Balance Sheet date in the share capital of companies include the following:

JCCO 406 Limited

Registered office: Grane Road Mill, Haslingden, Rossendale BB4 5BT

Nature of business: Home textiles

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

350,101

350,101

Vantona Home Ltd

Registered office: Grane Road Mill, Haslingden, Rossendale BB4 5BT

Nature of business: Home textiles

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

(303,155

)

(306,005

)

Profit for the year

2,850

138,407

GTM USA Corporation

Registered office: 303 5th Avenue, New York, NY 10016

Nature of business: Home textiles

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

101,540

90,806

Loss for the year

(2,635

)

(5,634

)

Sky Home Corporation

Registered office: 328 South King Charles Home Textiles Road, Raleigh, North Carolina, NC, 27610

Nature of business: Home textiles

%

Class of shares:

holding

Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

(496,240

)

(446,877

)

Profit for the year

14,070

3,199

9.

STOCKS

30.6.22

30.6.21

£

£

Stocks

183,116

203,526

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22

30.6.21

£

£

Trade debtors

4,592,336

3,333,277

Amounts owed by group undertakings

3,840,766

2,017,878

Other debtors

-

5,707

VAT

14,434

-

Prepayments and accrued income

12,248

2,920

8,459,784

5,359,782