Registered number:
For the year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Company Information
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Contents
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Strategic report
For the year ended 30 September 2022
The Directors present their strategic report for the year ended 30 September 2022.
The principal activity of the Company is the provision of power tools and accessories, hand tools, fixings, construction consumables and building materials. The Company predominantly sells these products through its own website, as well as eBay and its growing technical sales channel.
The Company primarily serves the UK’s repair, maintenance, and improvement (RM&I) and new build markets where its products are used on a daily basis.
In the financial year ending 30th September 2022 the Company was impacted by the continuing and eventual lifting of Covid19 restrictions which led to traditional bricks and mortar retailers opening their doors to the public once again.
In the same period two further factors affected the business. The economic environment became more challenging as a result of the steep increase in fuel prices, inflation, and the subsequent impact this had on the cost of living. The other factor was the UK’s departure from European Union which saw the significant loss of some channel sales into the EU territory. In the 12 months following Brexit the business lost 14 wholesale customers and traded down on almost every other EU customer, which equated to £5.2m of lost revenue. Sales in the year totalled £98,449,265 down -9.5% on the previous year, during which time the business had benefitted from the period of lockdown and the resulting increased activity in the DIY market. Sales remain +24.4% and +67.8% ahead of preceding years 2019/20 and 2018/19 respectively. During 2021/22 the Company continued to build relationships with its suppliers resulting in a +0.2%pt improvement in gross margin. Amongst other improvements, the Company extended its next day delivery window even further to capture orders made up until 9pm, which was well received by the customer base. The business continues to put the customer at the forefront of all its activities to provide an industry leading service levels as evidenced by a Trust Pilot score of 96% 4* and 5* ratings, based on more than 94,000 reviews. Significant capital investment has been made to support the future growth aspirations of the business and drive higher levels of profitability. For example, a new ERP was implemented during the financial year and a warehouse automation project was commenced.
For the financial year ending 30 September 2022 the Company’s Adjusted EBITDA was £3,748,917, a decrease of -30.2% on the prior year. The Company also generated a profit before tax of £1,760,235 which was a -56.5% decrease on prior year (2021: £4,045,150).
The Directors define Adjusted EBITDA as earnings before interest, tax, depreciation, amortisation, monitoring/management fees charged by a related party, and unusual/non-recurring items. The directors are confident that the business has laid the groundwork to support further profitable growth over the next three years.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Strategic report (continued)
For the year ended 30 September 2022
The strategy for the business is for it to be one of the UK’s market leading hand and power tool specialist, whilst continuing to build a complementary national technical sales division to support on-going growth.
We continue to underpin these strategic objectives through a focus on: - Providing market leading customer service - Being a trusted partner to our longstanding suppliers - Delivering operational excellence - Offering the best products and the best range - Being the employer of choice, attracting the industry’s best talent
The main financial risks faced by the business through its normal activities are liquidity/credit risk, market risk, global supply chain risk, and Covid-19. The business seeks to minimise the effect of these risks through its policies and management activities.
Liquidity/Credit - the business manages liquidity risk by maintaining adequate reserves and banking facilities, and by continually monitoring forecast and actual cashflows. Good relationships are maintained with suppliers and credit agencies to ensure adequate credit limits are secured. Market - as a large part of the Company’s revenue directly and indirectly relates to the public, it is exposed to the impact of changing economic conditions (e.g. Cost of Living) upon the public’s propensity to spend on home improvement and DIY. The strategic objectives are geared towards gaining market share through delivering a “best in class” service proposition with the fastest delivery for the customer. Global supply chain – whilst the business mainly sources goods from UK suppliers there is risk of knock-on impact international supply chain issues. The business manages this risk by ensuring it is not only reliant on a small number of suppliers. Covid-19 and other variants – whilst no restrictions are currently in place, there remains a risk of future pandemics and government lockdowns. Being predominantly online, the business has already demonstrated its resilience and ability to continue operations through an ever-changing backdrop, and to do this with the safety of its employees and customers at the forefront. On-going strategic initiatives further support the ability to deal with these challenges.
Several financial KPIs were used to monitor the efficiency and profitability of the business:
2021/22 2020/21 % Var Sales (£m) £98.4 £108.8 (9.5%) Gross Profit (£m) £23.5 £25.8 (8.8%) Gross Margin (%) 23.9% 23.7% 0.2%pt Adjusted EBITDA (£m) £3.7 £5.4 (30.2%) Adjusted EBITDA Margin (%) 3.8% 4.9% (1.1%pt)
The business continues to invest in research and development to support its growth strategy. These internal research and development costs are expensed to the profit and loss in the period in which they are incurred.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Strategic report (continued)
For the year ended 30 September 2022
Sales performance in the financial year 2022/23 so far has been positive, with +2.2% YoY growth seen in the first 6 months of the year.
The new warehouse management system (WMS) is now up and running with significant investment into Hand Held Terminal (HHT) technology to improve productivity. There has been a continued focus on margin and working capital improvements through supplier price and payment terms discussions.
This statement is intended by the Board of Directors to set out how they have approached and met their responsibilities under s172(1)(a) to (f) of the Companies Act 2006 in the financial reporting year ending 30 September 2022.
Stakeholders of the Company include employees, shareholders, customers, suppliers, creditors of the business and the community in which it operates. The Directors, both individually and collectively, consider that they have acted in good faith to promote the success of the Company for the benefit of its stakeholders (having regard to the matters set out in s172 of the Act) in the decisions taken during the year. In particular:
∙To ensure the Board takes account of the likely consequences of their decisions in the long term, they receive regular and timely information on all the key areas of the business including financial performance, operational m atters, health and safety and risks and opportunities, all supported by detailed analysis and KPIs. The Company's performance and progress is also reviewed regularly at Board and senior management meetings
∙The Company's employees are key to the success of the business. The Directors understand that it is important to understand their views and to ensure that all employees interests are considered. Quarterly departmental “roadshows” are held to brief the employees on the results and performance of the Company along with the future plans. Employees are encouraged to ask questions and feedback on any issues. Regular departmental meetings and one to ones are in place for all employees. Employees are encouraged to raise any concerns or suggestions with the senior managers or Directors. During the year, the Company invested in measures to ensure COVID-19-related best practices were achieved throughout the Distribution Centre, branches and offices, coupled with investment in IT infrastructure to enable employees to work from home where at all possible.
∙The Company's customers are critical to the success of the business and investment has been made in building relationships with trade customers through our branches and direct sales team. Continual investment in the website, the operations and customer service teams have been made to further enhance the customer experience and ensure OTIF KPIs are met.
∙The Company's suppliers are fundamental to the success of the business and it is essential that good quality product can be sourced in time at competitive prices. Close, open and honest working relationships have been built up with the suppliers and their support during COVID-19 has been testament to that.
∙The Directors take environmental matters into consideration as part of their decision making process and aim to ensure they and the Company are responsible members of the local and wider community and minimising the Company's impact on the environment wherever possible.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Strategic report (continued)
For the year ended 30 September 2022
∙The Directors have overall responsibility for determining the Company's purpose, values and strategy and for ensuring high standards of governance. The primary aim of the Directors is to promote the long term sustainable success of the Company, generating value for the stakeholders and the wider community. The Directors will continue to review and challenge how the Company can improve engagement with its employees and other stakeholders.
This report was approved by the board and signed on its behalf.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Directors' report
For the year ended 30 September 2022
The directors present their report and the financial statements for the year ended 30 September 2022.
The directors are responsible for preparing the Strategic report, the Directors' report 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 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 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 for the Company'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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,711,231 (2021 - £4,051,136).
Ordinary dividends were paid amounting to £Nil (2021: £Nil)
The directors who served during the year were:
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Directors' report (continued)
For the year ended 30 September 2022
Environmental factors are based on the Government published 2021 GHG conversion factors.
Measures taken to increase energy efficiency in the next 12 months: - Invested in new packaging solution/machinery (Kite Packaging) to ensure supply chain is as free from single use plastic as possible (saving equivalent of 1.2m plastic bottles), also increasing energy efficiency. - Commenced investment in energy efficient lighting across our sites. The SECR submission has been compiled using the 2019 HM Government Environmental Reporting Guidelines. Emissions have been grouped according to the GHG Protocol Corporate Standard. We have used the following data sources to compile the report: - Energy and fuel data - energy supplier billing data; and - Transport data - company mileage records; CO2 emission have been calculated using the 2021 UK Government Conversion Factors for Company Reporting. Emissions have been calculated for the company financial year 1 October 2021 to 30 September 2022.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonne produced. This equates to 0.59 for 2022.
∙so far as each director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and
∙each 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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Directors' report (continued)
For the year ended 30 September 2022
The Company has chosen in accordance with Companies Act 2006, s 414C(11) to set out in the Company’s strategic report information required by Large and Medium-sized Companies and Groups (accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors’ report. It has done so in respect of principal risks and uncertainties and future developments.
Under section 487(2) of the Companies Act 2006, RSM UK Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Independent auditors' report to the members of Folkestone Fixings Limited
We have audited the financial statements of Folkestone Fixings Limited (the 'Company') for the year ended 30 September 2022, which comprise the Statement of comprehensive income, the Balance sheet, the 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).
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 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.
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.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Independent auditors' report to the members of Folkestone Fixings Limited (continued)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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 Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Independent auditors' report to the members of Folkestone Fixings Limited (continued)
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 financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk 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, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
∙obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
∙inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
∙discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and evaluating advice received from external tax advisors
The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and reviewing revenue transactions around the year end.
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.
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Independent auditors' report to the members of Folkestone Fixings Limited (continued)
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.
for and on behalf of
Statutory Auditor
Chartered Accountants
T Bromley
15-17 London Road
Kent
BR1 1DE
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Statement of comprehensive income
For the year ended 30 September 2022
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Registered number: 05668753
Balance sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 32 form part of these financial statements.
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Statement of changes in equity
For the year ended 30 September 2022
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Folkestone Fixings Limited is a private company limited by shares and is incorporated in England with the registration number 05668753. The address of the registered office is Dyna House, Lympne Industrial Estate, Otterpool Lane, Lympne, Kent, CT21 4LR.
2.Accounting policies
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, including the provisions of the large and medium sized Companies and Groups (Accounts and Reports) Regulations 2008.
The Company's functional and presentational currency is GBP. Monetary amounts in these financial statements are rounded to the nearest £.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The Company is itself a subsidiary undertaking and is exempt from the the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its Group.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Trupanon Topco Limited as at 30 September 2022 and these financial statements may be obtained from Companies House.
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
The Directors have prepared detailed financial projections including projected profit and loss, cashflows and covenant reviews, which indicate that the company can continue to operate as a going concern for a period of at least 12 months. These projections cover the period 12 months from the date of signing of these financial statements.
Management have considered possible negative impacts both directly to the company as well as the potential wider economic effects of the challenges ahead in forming these projections. The company is forecast to still be in a positive EBITDA position as well as continuing to generate positive cashflows in the period under review. The Directors are satisfied that the Company is in a position to meet its liabilities as they fall due over the next 12 months from the date of signing of these financial statements and on this basis, the financial statements have been prepared on a going concern basis.
Transactions and balances
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
The estimated useful lives range as follows:
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
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.
Impairment of fixed assets At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for loss of service potential. 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 and loss.
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 'Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors (including accrued income), cash and bank balances, amounts owed by group undertakings and invoice discounting facilities are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. Impairment of financial assets Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade and other creditors (including accruals and amounts owed to group undertakings), are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Derecognition of financial liabilities Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled, or they expire. Equity instruments Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. and the grant will be received.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
The tax expense represents the sum of the current tax expense and deferred tax expense. Current
tax assets are recognised when tax paid exceeds the tax payable. Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity. Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits. Termination benefits are recognised immediately as an expense when the company is demonstrably
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company 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. The following judgements have had the most significant impact on amounts recognised in the financial statements: Lease commitments The company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the company has acquired the risks and rewards associated with the ownership of the underlying assets. Stock The company has recognised closing stock for finished goods and goods for resale of £13,471,694 at the reporting date (see note 15). This includes a provision of £175,000 for slow moving stock the directors have considered will not be able to be sold to customers.
The whole of the turnover is attributable to the sale of goods.
Analysis of turnover by country of destination:
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
11.Taxation (continued)
The UK government have announced that the main rate will increase on 1 April 2023 to 25%, for companies with taxable profits above £250,000. Companies with taxable profits below £50,000 will continue to pay at 19%, marginal relief will apply between these thresholds. This change formed part of the Finance Bill 2021, which was substantively enacted on 24 May 2021.
Deferred taxes have been measured using rates substantively enacted at the reporting date and reflected in these financial statements.
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
13.Tangible fixed assets (continued)
The aggregate amount of research and development recognised as an expense in the profit and loss account is £nil (2021: £657,112).
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
Share premium account
This reserve represents the excess of the fair value of the consideration receivable on the issue of ordinary share capital, net of the direct costs incurred in their issue, over the nominal value of those shares (which is recognised as called up share capital). Share premium may only be utilised to write-off any expenses incurred or commissions paid on the issue of those shares, or to pay up new shares to be allotted to members as fully paid bonus shares. Profit and Loss account This reserve comprises all current and prior retained profits and losses after deducting any distributions made to the company's ultimate parent undertaking.
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Folkestone Fixings Limited
Notes to the financial statements
For the year ended 30 September 2022
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £145,027 (2021 - £165,779). Contributions totalling £28,708 (2021 - £28,929) were payable to the fund at the balance sheet date and are included in other creditors.
The ultimate parent undertaking is Trupanon Topco Limited, a company incorporated in England and Wales whose registered office is Dyna House, Lympne Industrial Estate, Otterpool Lane, Lympne, Kent, CT21 4LR. Copies of this company's group financial statements may be obtained from Companies House.
The ultimate controlling party is Cooperatieve H2 Equity Partners Fund V U.A. (H2) by virtue of its holding in Trupanon Topco Limited.
Page 32
|