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Registered number: 03064932
FPS 1995 LIMITED
UNAUDITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 MARCH 2022
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FPS 1995 LIMITED
REGISTERED NUMBER: 03064932
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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Capital redemption reserve
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FPS 1995 LIMITED
REGISTERED NUMBER: 03064932
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2022
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 November 2022.
The notes on pages 3 to 10 form part of these financial statements.
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
FPS 1995 Limited is a private company, limited by shares, incorporated in England and Wales, registration number 03064932. The registered office is King Street House, 15 Upper King Street, Norwich, NR3 1RB.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling which is the functional currency of the Company and rounded to the nearest £.
On 18 February 2017 the directors sold the business and assets of Funeral Planning Services Limited from which date all new business has been written through a new provider.
From the date of sale until 27 July 2022, FPS 1995 Limited has not marketed, promoted or sold any new business. It did continue to receive instalment payments on part-paid already existing plans and ensured existing plans were serviced. This activity ceased on 27 July 2022 when responsibility for providing funerals in accordance with the plans was transferred to a new provider. The company continues to manage investments and be eligible to receive distributions of the Funeral Planning Trust surplus.
The Company can therefore continue to meet its liabilities as and when they fall due and will continue to operate in the future. The directors therefore consider it appropriate for the accounts to be prepared on a going concern basis.
Turnover represents income from instalment payments on part-paid funeral plans. Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
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.
Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting 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 Statement of financial position.
Specifically, provision is made for the accrued liability arising on the Company to funeral directors for the payment of funerals.
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Payments to funeral directors
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Payments to funeral directors relate to those funeral plan commitments which have crystallised and which have either been paid out or provided for in the year.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.
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The average monthly number of employees, including directors, during the year was 4 (2021 - 6).
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Proceeds from the sale of funeral plans have been paid to a trust (Funeral Planning Trust) established by the Company and retained on trust for the plan holders until such time as they are required to pay for funerals and associated costs. The net amount (prior to expenses) debited from the Trust fund during the year was £10,802,009 (2021 - £18,669,539). The balance of the fund is held on trust for the Company to meet its liability to Funeral Directors.
The balance of the fund held on trust for the Company at 31 March 2022 was £53,429,412 (2021 - £65,707,271), and this amount is included as an asset in note 6 of these financial statements. The accrued liability to Funeral Directors as at 31 March 2022 was £18,987,695 (2021 - £44,182,533), and this amount is included as a provision in note 9. The result is an increase in the balance of the fund of £12,916,979 for the year (2021 - increase of £14,443,813), and this amount is seen as the net movement in trust fund surplus entry on the face of the income statement in these financial statements.
All transfers of funds to or from the assets held by the Trust are made in accordance with the provisions of the trust deed.
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Charge for the year on owned assets
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Due after more than one year
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Prepayments and accrued income
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Current asset investments
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Enhancements of funeral payments
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Charged to profit or loss
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Capital redemption reserve
The capital redemption reserve contains nominal value of the shares repurchased by the Company.
Profit and loss account
The profit and loss account contains all current and prior period retained profits and losses.
Under the terms of the trust deed of Funeral Planning Trust, the Company, with the agreement of the trustees, is entitled to any annual surpluses arising from the actuarial valuation, and has a liability to reimburse an actuarial deficit limited to surpluses previously withdrawn. Based on the actuarial valuation as at 31 March 2022 there remains an actuarial surplus and therefore there is currently no liability within the Company to reimburse the Trust.
The Trust is obliged to reimburse the Company for tax liabilities arising on trust investment income and surpluses.
The Company operates a defined contribution 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 £18,623 (2021 - £19,081). Contributions of £Nil (2021 - £320) were payable to the fund at the reporting date.
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FPS 1995 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Related party transactions
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During the year, two of the directors were managing trustees of Funeral Planning Trust (the trust), a trust established by the Company for the purpose of holding the proceeds from the sale of funeral plans until such time as they are required to pay for funerals and associated costs. Some transactions with Funeral Planning Trust during the year, along with the balances outstanding at the year end, are disclosed in note 4 to the accounts. Those not disclosed in Note 4 are disclosed below.
FPS 1995 Limited (the company) provides the management and the administration of the funeral plans sold to customers and maintains the trust records. During the year £4,290,000 (2021 - £Nil) was remitted by the trust to the company.
FPS 1995 Limited and Funeral Planning Trust are registered with HMRC as a combined taxable entity with the company responsible for all tax liabilities. The trust reimburses the company for its share of the liability. This is included in other debtors and at year end was £Nil (2021 - £1,604,964). In addition, trade debtors includes £Nil (2021 - £1,077,838) due to the company from the trust.
Within creditors, the other creditors balance includes a cash float of £Nil (2021 - £989,777) granted by the trust to the company and held in the company's bank account, but which will ultimately be paid back to the trust.
The company has taken advantage of the exemption within Section 33 of FRS 102 not to disclose transactions with wholly owned group companies.
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Post balance sheet events
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Post year-end Funeral Planning Trust continued to reduce the number of plans under management. At the date of signing the accounts, the Trust no longer held any plans.
The Company's ultimate parent company is FPS Holdings Limited, a company registered in England and Wales. In the opinion of the directors, no one party has control over the Company.
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