FSG Tool & Die Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00680756 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2019

FOR

FSG TOOL & DIE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

M J Tree

G M Jenkins

S E Davies

Mrs L Newsham

D Holley

C Arnold

SECRETARY:

L Newsham

REGISTERED OFFICE:

Unit 5 Llantrisant Business Park

Llantrisant

Mid Glamorgan

CF72 8LF

REGISTERED NUMBER:

00680756 (England and Wales)

AUDITORS:

Fergusons & Peters Chartered Accountants

4 High Street

Pontardawe

Swansea

SA8 4HU

The directors present their strategic report for the year ended 28 February 2019.

REVIEW OF BUSINESS

The Company is a Precision Engineering Company and manufactures and repairs a wide range of specialist tools. The

business supplies a very wide range of manufacturing companies.

RESULTS AND PERFORMANCE

The results for the year as set out in the financial statements show that turnover and operating profit have improved

significantly from the previous year. This was the result of increased levels of new business from both home and

overseas markets.

The board was pleased to appoint three new Directors as internal appointments from the senior management team. These

appointments cover the core competences of Sales, Manufacturing and Finance. The board noted the retirement of the

Sales Director Rob Williams after 43 years of outstanding service.

The company is well positioned as a solid business with sustainable growth.

FINANCIAL INSTRUMENTS

The Company's Principal Financial Instruments comprise of bank balance, loans, trade debtors and creditors together

with finance lease arrangements. The main purpose of these instruments is to raise funds for Company operations and to

finance Company operations.

Due to the nature of the Financial Instruments used by the Company there is no exposure to price risk. The Company

loans and leasing arrangements are covered by fixed monthly repayments. The Company manages liquidity risk by

ensuring there are sufficient funds to meet repayments.

Trade debtors are managed by policies concerning the credit offered to customers and the regular monitoring of amounts

outstanding for both time and credit risk.

STRATEGY AND FUTURE DEVELOPMENTS

Strategy

The board have continued with ambitious but pragmatic plans for the coming years. This continues the policy of

investing in the business for future growth in line with its solid operating profit performance. The policy of internal

succession continues to yield benefits and will continue to train highly skilled engineers to a world class standard.

Future developments

As a business we are driven by new technology, our people and market demands. We will continue to pursue a policy of

a balanced customer profile both in terms of market and location.

ON BEHALF OF THE BOARD:

L Newsham - Secretary

26 July 2019

The directors present their report with the financial statements of the company for the year ended 28 February 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of precision engineering.

DIVIDENDS

No dividends will be distributed for the year ended 28 February 2019.

DIRECTORS

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

M J Tree

G M Jenkins

S E Davies

Mrs L Newsham

D Holley

C Arnold

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 or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

company's auditors are aware of that information.

AUDITORS

The auditors, Fergusons & Peters Chartered Accountants, will be proposed for re-appointment at the forthcoming

Annual General Meeting.

ON BEHALF OF THE BOARD:

L Newsham - Secretary

26 July 2019

Opinion

We have audited the financial statements of FSG Tool & Die Limited (the 'company') for the year ended

28 February 2019 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial

Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 2019 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

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

you where:

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

-

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

Other information

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

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

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

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

report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the 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 three, 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.

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.

Dean Beniamous (Senior Statutory Auditor)

for and on behalf of Fergusons & Peters Chartered Accountants

4 High Street

Pontardawe

Swansea

SA8 4HU

26 July 2019

TURNOVER

7,860,299

7,256,943

Cost of sales

5,568,402

5,200,681

GROSS PROFIT

2,291,897

2,056,262

Distribution costs

183,139

197,469

Administrative expenses

1,982,836

1,644,759

2,165,975

1,842,228

125,922

214,034

Other operating income

87,980

87,286

OPERATING PROFIT

5

213,902

301,320

Interest receivable and similar income

4,812

2,669

218,714

303,989

Interest payable and similar expenses

6

55,560

76,854

PROFIT BEFORE TAXATION

163,154

227,135

Tax on profit

7

(71,226

)

(109,206

)

PROFIT FOR THE FINANCIAL YEAR

234,380

336,341

PROFIT FOR THE YEAR

234,380

336,341

OTHER COMPREHENSIVE INCOME

Return on scheme assets

(71,000

)

678,000

Actuarial (loss)/gain on liabilities

(191,000

)

155,000

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(262,000

)

833,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(27,620

)

1,169,341

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

3,712,445

3,656,137

3,712,445

3,656,137

CURRENT ASSETS

Stocks

10

1,394,941

1,261,014

Debtors

11

1,452,806

1,537,308

Cash at bank and in hand

1,572,557

1,525,683

4,420,304

4,324,005

CREDITORS

Amounts falling due within one year

12

1,282,464

1,239,761

NET CURRENT ASSETS

3,137,840

3,084,244

TOTAL ASSETS LESS CURRENT LIABILITIES

6,850,285

6,740,381

CREDITORS

Amounts falling due after more than one year

13

(569,219

)

(553,687

)

PROVISIONS FOR LIABILITIES

15

(213,050

)

(218,032

)

ACCRUALS AND DEFERRED INCOME

16

(446,729

)

(506,755

)

PENSION LIABILITY

19

(781,000

)

(594,000

)

NET ASSETS

4,840,287

4,867,907

CAPITAL AND RESERVES

Called up share capital

17

800,000

800,000

Retained earnings

18

4,040,287

4,067,907

SHAREHOLDERS' FUNDS

21

4,840,287

4,867,907

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

G M Jenkins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2017

800,000

2,898,566

3,698,566

Changes in equity

Total comprehensive income

-

1,169,341

1,169,341

Balance at 28 February 2018

800,000

4,067,907

4,867,907

Changes in equity

Total comprehensive income

-

(27,620

)

(27,620

)

Balance at 28 February 2019

800,000

4,040,287

4,840,287

Cash flows from operating activities

Cash generated from operations

1

652,585

972,039

Interest element of hire purchase payments paid

(40,560

)

(37,854

)

Tax paid

66,244

88,333

Net cash from operating activities

678,269

1,022,518

Cash flows from investing activities

Purchase of tangible fixed assets

(726,958

)

(995,461

)

Sale of tangible fixed assets

1

53,950

Interest received

4,812

2,669

Net cash from investing activities

(722,145

)

(938,842

)

Cash flows from financing activities

Increase in hire purchase agreements

90,750

295,380

Net cash from financing activities

90,750

295,380

Increase in cash and cash equivalents

46,874

379,056

Cash and cash equivalents at beginning of year

2

1,525,683

1,146,627

Cash and cash equivalents at end of year

2

1,572,557

1,525,683

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

28.2.19

28.2.18

£

£

Profit before taxation

163,154

227,135

Depreciation charges

631,347

590,527

Loss/(profit) on disposal of fixed assets

39,302

(51,413

)

Contributions to defined pension scheme

(90,000

)

-

Government grants

-

(1

)

Finance costs

55,560

76,854

Finance income

(4,812

)

(2,669

)

794,551

840,433

Increase in stocks

(133,927

)

(69,952

)

Decrease in trade and other debtors

84,502

191,303

(Decrease)/increase in trade and other creditors

(92,541

)

10,255

Cash generated from operations

652,585

972,039

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of

these Statement of Financial Position amounts:

Year ended 28 February 2019

28.2.19

1.3.18

£

£

Cash and cash equivalents

1,572,557

1,525,683

Year ended 28 February 2018

28.2.18

1.3.17

£

£

Cash and cash equivalents

1,525,683

1,146,627

1.	STATUTORY INFORMATION

FSG Tool & Die 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

at varying rates on cost

Motor vehicles

-

25% on cost

Stocks

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

moving items.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of

activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the

valuation of work in progress.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax

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

statement of financial position 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

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Hire purchase and leasing commitments

Assets obtained under hire hire purchase contracts and finance leases are capitalised as tangible assets and

depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are

included in creditors net of the finance charge allocated to future periods. The finance element of the rental

payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net

obligation outstanding in each period.

Pension costs and other post-retirement benefits

The company operates a defined benefit pension scheme. In addition to standard payments to the pension

scheme, agreement has been reached with the Pension Trustees make regular additional contributions to

ultimately eliminate the Scheme deficit.Pension payments are written off to the profit and loss account in the year

that payments arise.

Development costs

Development costs are valued at costs less accumulated amortisation is calculated to write off the cost in equal

instalments over their estimated useful lives.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss

account over the expected useful life of the assets.

3.	EMPLOYEES AND DIRECTORS

28.2.19

28.2.18

£

£

Wages and salaries

3,550,768

3,154,609

Other pension costs

186,703

134,272

3,737,471

3,288,881

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

28.2.19

28.2.18

Production Staff

76

67

Administrative Staff

13

16

Management Staff

5

5

94

88

4.	DIRECTORS' EMOLUMENTS

28.2.19

28.2.18

£

£

Directors' remuneration

484,014

393,801

Directors' pension contributions to money purchase schemes

56,736

51,626

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes

2

2

Information regarding the highest paid director is as follows:

28.2.19

28.2.18

£

£

Emoluments etc

155,742

129,323

Pension contributions to money purchase schemes

39,628

39,605

5.	OPERATING PROFIT

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

28.2.19

28.2.18

£

£

Hire of plant and machinery

4,879

-

Depreciation - owned assets

631,347

590,526

Loss/(profit) on disposal of fixed assets

39,302

(51,413

)

Auditors' remuneration

7,796

6,599

Government Grants

(65,291

)

(68,565

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.19

28.2.18

£

£

Interest on pension scheme

liabilities

15,000

39,000

Hire purchase

40,560

37,854

55,560

76,854

7.

TAXATION

Analysis of the tax credit

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

28.2.19

28.2.18

£

£

Current tax:

R & D receipt

(66,244

)

(88,333

)

Deferred tax

(4,982

)

(20,873

)

Tax on profit

(71,226

)

(109,206

)

Tax effects relating to effects of other comprehensive income

28.2.19

Gross

Tax

Net

£

£

£

Return on scheme assets

(71,000

)

-

(71,000

)

Actuarial (loss)/gain on liabilities

(191,000

)

-

(191,000

)

(262,000

)

-

(262,000

)