Gateway Crafts Limited - Period Ending 2023-06-30
Gateway Crafts Limited - Period Ending 2023-06-30
Company Registration number:
Gateway Crafts Limited
for the Period from 1 January 2022 to 30 June 2023
Gateway Crafts Limited
Contents
|
Company Information |
|
|
Directors' Report |
|
|
Income Statement |
|
|
Statement of Financial Position |
|
|
Notes to the Unaudited Financial Statements |
Gateway Crafts Limited
Company Information
|
Directors |
P R Holmes S G Chandler C N Cuthill A F Wakefield |
|
Company secretary |
P R Holmes |
|
Registered office |
|
|
Bankers |
|
|
Accountants |
|
Gateway Crafts Limited
Directors' Report for the Period from 1 January 2022 to 30 June 2023
The directors present their report and the financial statements for the period from 1 January 2022 to 30 June 2023.
Principal activities and business review
Sadly, the directors made the decision to cease trading at the end of February 2023 as sales did not recover to their pre-Covid levels and the shop was making losses every month. The directors had hoped that business would pick up but the sales did not materialise. In addition, a number of the costs incurred by the shop were set to increase substantially and there was no realistic way to mitigate against this. This was a very difficult decision for all concerned – customers, staff, suppliers and directors – due to the shop’s history and the passion everyone had for it.
Until stopping trading, the main activity of the company in the period was the retailing, in a fair and just manner, of a wide range of ceramics, wood carvings, jewellery, accessories, food products and hand-made paper, the majority of which originated from developing countries. The Company traded under the name Gateway World Shop.
The main “stakeholders” in Gateway World Shop were the producers and suppliers whose livelihoods Gateway endeavoured to support.
The shop was managed by Hazel Dobson and staffed by a number of contracted and other support staff. The directors would like to record their sincere gratitude to all of the staff for their commitment and support through this difficult period and across the years.
Gateway was also well supported by St Nicholas Church in many practical ways and, once again, the directors are grateful for this support which contributed to the shop’s ability to trade for the many years it did so.
Since Gateway Crafts Limited is below the turnover level at which an audit is mandatory, one has not been performed. However, as in previous years, Evelyn Partners, formally Leathers LLP, services have been used in the compilation of these financial statements.
Gateway Crafts Limited
Directors' Report for the Period from 1 January 2022 to 30 June 2023 (continued)
Results
As with many other businesses, the impact of Covid 19 on Gateway’s results was very significant in 2021 and, up to the period the shop ceased trading, the ongoing impact of Covid continued to be felt in terms of changed shopping behaviour; additionally, the cost of living crisis is thought to have impacted sales. Although the shop opening hours were more regular and longer than in the previous year, sales were running consistently at around 70% of pre-Covid levels.
Comparison of the figures for the 18 month period to June 2023 against the 12 month period to December 2021 are difficult as:
• 2021 had periods of very limited opening hours and substantial Covid furlough support, the latter being the only reason the shop was profitable.
• The more recent period was a 14 month trading period, versus a 12 month 2021 period.
• The more recent period includes severance costs of the employees.
However, even taking the above into account, it is clear from the result for the period ended June 2023 that the shop was no longer viable.
Before tax, the loss for the year was £44.9k (2021: profit of £10.5k). This result generated a tax credit of £2.0k (2021: charge of £2.0k). The post-tax loss was therefore £42.9k (2021: profit of £8.5k).
Outlook
The intention is to liquidate the legal entity in the near future.
Directors
The directors who served the company during the year were as follows:
S Chandler
C Cuthill
PR Holmes
AF Wakefield was appointed as a director on 20th April 2022.
Dividends
The directors do not recommend the payment of a dividend.
Gateway Crafts Limited
Directors' Report for the Period from 1 January 2022 to 30 June 2023 (continued)
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
|
......................................... |
Registered office:
St Nicholas Church
Market Place
Durham DH1 3NJ
Gateway Crafts Limited
Income Statement for the Period from 1 January 2022 to 30 June 2023
|
Note |
18 months ended 30 June 2023 |
12 months ended 31 December 2021 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating (loss)/profit |
(45,210) |
10,500 |
|
|
Other interest receivable and similar income |
|
|
|
|
(Loss)/profit before tax |
( |
|
|
|
Tax on (loss)/profit |
|
( |
|
|
(Loss)/profit for the financial period |
( |
|
The company has ceased trading and all activities have been discontinued.
The company has no recognised gains or losses for the period other than the results above.
Gateway Crafts Limited
(Registration number: 02674600)
Statement of Financial Position as at 30 June 2023
|
Note |
30 June 2023 |
31 December 2021 |
|
|
Fixed assets |
|||
|
Investments |
- |
|
|
|
Current assets |
|||
|
Stocks |
- |
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
2 |
2 |
|
|
Share premium reserve |
19,022 |
19,022 |
|
|
Retained earnings |
(13,621) |
29,272 |
|
|
Shareholders' funds |
5,403 |
48,296 |
For the financial period ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
|
• |
|
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
|
......................................... |
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023
|
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements have been prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.
Going concern
As noted in the Directors' Report, the company has ceased activity and accordingly, the financial statements have been prepared on the basis other than going concern. The company has sufficient funds to meet all liabilities. The Directors' intend to strike off the company in due course, once all remaining balances have been settled. No adjustments have been required in preparing the financial statements on the basis other than going concern
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
2 |
Accounting policies (continued) |
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of estimation means the actual outcomes could differ from those estimates. There are no judgements and estimates that have a significant effect on the financial statements. .
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
2 |
Accounting policies (continued) |
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Fixtures & Fittings |
10% straight line |
|
Office Equipment |
25% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
2 |
Accounting policies (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
|
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
|
Loss/profit before tax |
Arrived at after charging/(crediting)
|
2023 |
2021 |
|
|
Impairment loss |
|
- |
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
Tangible assets |
|
Fixtures and fittings |
Office equipment |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2022 |
|
|
|
|
Disposals |
( |
( |
( |
|
At 30 June 2023 |
- |
- |
- |
|
Depreciation |
|||
|
At 1 January 2022 |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 30 June 2023 |
- |
- |
- |
|
Carrying amount |
|||
|
At 30 June 2023 |
- |
- |
- |
|
Investments |
|
Investments |
£ |
|
Cost |
|
|
At 1 January 2022 |
|
|
Provision |
|
|
Provision |
|
|
Carrying amount |
|
|
At 30 June 2023 |
- |
|
At 31 December 2021 |
|
Investments represent 100 ordinary £1 shares in Traidcraft plc, stated at cost. Traidcraft plc went into administration on 8 February 2023.
|
Stocks |
|
2023 |
2021 |
|
|
Raw materials and consumables |
- |
|
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
Debtors |
|
Current |
2023 |
2021 |
|
Prepayments |
- |
|
|
Other debtors |
|
- |
|
|
|
|
Creditors |
Creditors: amounts falling due within one year
|
2023 |
2021 |
|
|
Due within one year |
||
|
Taxation and social security |
- |
|
|
Accruals and deferred income |
|
|
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2021 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
|
Related party transactions |
Summary of transactions with other related parties
Gateway Crafts Limited
Notes to the Unaudited Financial Statements for the Period from 1 January 2022 to 30 June 2023 (continued)
|
Parent and ultimate parent undertaking |
The company's immediate parent is
These financial statements are available upon request from St Nicholas Church, Market Place, Durham, DH1 3NJ.