Standard Fuel Oils Limited - Limited company accounts 23.2
Standard Fuel Oils Limited - Limited company accounts 23.2
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 March 2023 |
for |
Standard Fuel Oils Limited |
Standard Fuel Oils Limited (Registered number: 07555993) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Standard Fuel Oils Limited |
Company Information |
for the Year Ended 31 March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Oriel House |
2/8 Oriel Road |
Bootle |
Merseyside |
L20 7EP |
Standard Fuel Oils Limited (Registered number: 07555993) |
Strategic Report |
for the Year Ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
The directors are pleased with the performance of the business for the year. Sales volumes were approximately 191 million litres. This was managed through a combination of organic growth with existing customers, emerging into new markets and being awarded new supply contracts. |
We continue to prioritise long term customer contracts as opposed to spot work which affords stability and mitigates against the risks of what can be considered an incredibly seasonal industry. Oil prices remained high throughout the year only starting to reduce slowly during the latter part of the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Without mitigation the business could be exposed to a number of risks. |
Credit Risk: The company operates a strict credit control policy with the majority of our debt insured. |
Environmental Risk: Standard Fuel Oils are exposed to environmental risks due to the nature of the products it delivers. The company places significant emphasis on compliance ensuring that best practice is incorporated into its key processes. Our insurance policies remain effective enough to mitigate the risk of any unseen events. |
Liquidity Risk: The company continues to hold significant cash balances and has no long term intention to move away from a policy of doing otherwise. |
Competition: Fuel distribution is a highly competitive market, and although a significant amount of consolidation has taken place over the last decade, competition is still deemed to be the main force of regulation. We employ a dedicated and experienced sales team and have control over our own storage and logistics operation. |
Major Disruption: The company has a disaster recovery plan which is reviewed on an ongoing basis. |
SECTION 172(1) STATEMENT |
Standard Fuel Oils Ltd depends on the trust and confidence of all its stakeholders to operate sustainably in the long term. The Company seeks to build strong partnerships, create a culture of safety, invest in its people, respect the environment in which it operates and strives to generate sustainable value for shareholders. |
The Directors 'of the Company, both individually and together, have acted in accordance with their duties codified in law, which includes their duty to act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, having regard to its stakeholders and the matters contained in Section 172(1) of the Companies Act 2006, set out below; |
- | Likely consequences of any decisions in the long term; |
- | Interests of the Company's employees; |
- |
Need to foster the Company's business relationships with suppliers, customers and others; impact of the Company's operations on the community and environment; |
- |
Desirability of the Company maintaining a reputation for high standards of business conduct; and need to act fairly as between members of the Company |
The Directors' understanding of the interests of the Company's stakeholders is informed by the programme of stakeholder engagement detailed overleaf. Section 172 considerations are embedded in decision making at Board level and throughout the Company. |
Standard Fuel Oils Limited (Registered number: 07555993) |
Strategic Report |
for the Year Ended 31 March 2023 |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The S172 statement published by Standard Fuel Oils Ltd sets out in detail how the Board have engaged with stakeholders including shareholders, employees, suppliers, customers and community. |
The Group seeks to build strong partnerships, create a culture of safety, invest in its people, respect the environment in which it operates and strives to generate sustainable value for shareholders. |
Our Customers |
Commitment to customer service remains critical to our success. Our customers' expectations are that we maintain a reliable service that is delivered on time and in full; supply quality products that are value for money; and have knowledgeable end responsive teams who provide technical excellent in their respective fields. |
Our Suppliers |
Through collaborative and mutually beneficial relationship we can continue to deliver efficient, quality services and high standards in a sustainable manner. We actively engage with suppliers to ensure strong relationships are maintained and co-operate with them to improve their products and services and resolve any issues. We ensure we are in compliance with contractual terms and conditions. We maintain high standards and take steps to ensure compliance with anti-bribery, modem slavery and diversity and inclusion best practices via our supply chain. |
Employee engagement |
The Company systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the Company is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the Company plays a major role in its performance. |
The Company is committed to an active equal opportunities policy from recruitment and selection, through training and development, performance reviews and promotion to retirement. The Company's policy is to, promote an environment free from discrimination, harassment and victimisation, where all employees receive equal treatment regardless of gender, colour, ethnic or national origin. health condition, disability, age, marital or civil partner status, sexual orientation or religion. All decisions relating to employment practices will be objective, free from bias and based solely upon work criteria and individual merit. |
Bankers |
Our bankers, Lloyds Bank, are kept informed of the business through regular meetings with the bank relationship manager and scheduled reports. |
Community and Environment |
We are strong supporters of the local community, sourcing from local or regional suppliers in an effort to support the community whilst reducing our environmental impact. Many of our employees live within close proximity of our offices and depots. We frequently support local charities and are continuously looking at ways to minimise our carbon footprint. |
Standard Fuel Oils Limited (Registered number: 07555993) |
Strategic Report |
for the Year Ended 31 March 2023 |
STREAMLINED ENERGY AND CARBON REPORTING |
Standard Fuel Oils use the three most common ISO management systems which are UKAS certified and audited annually. |
These management systems focus on action and objectives on areas in our business that will have the most significant impact on the environment. |
ISO 9001 - Quality Management |
ISO 14001 - Environmental Management |
ISO 45001 - Occupational Health and Safety |
Following Covid-19 we have continued to decrease our emissions by reducing travel and low office occupancy through flexible working. |
The group's activities resulted in consumption of 1,297 tonnes of CO2e during the year ended 31st March 2023 in the delivery of fuel to customers (2022: 1,364) |
Whilst the reduction of the consumption is relatively small this has been achieved during a period of growth within the group. |
The Standard group purchased 20,000 kWh of electricity for its own use (2022: 13,519 kWh) for the purpose of providing heat and light to its premises. The directors continue to monitor the usage of energy across the company, with a view to reducing the carbon footprint where possible. |
In an effort to mitigate the company's carbon emissions and use resources more responsibly, Standard has implemented the following: |
Fleet improvement |
Switching the life cycle of company vehicles; |
New computer truck software to reduce paper consumption within the company and assisting with fuel fleet management; |
Launch Green Car Scheme to employees; |
Employees continue to be encouraged to join the bike to ride scheme. |
Premises Improvement |
Installation of LED Lighting to offices and operational premises; |
Install electric charging points to company premises; |
Changing the heating system in the office to burn a more environmentally friendly fuel. |
Company Policy |
Build awareness amongst workforce about the impact of their decision on our journey to net zero; |
Implemented more flexible working practices to reduce carbon emissions from unnecessary travel by air, rail and road; |
We run our own fleet of vehicles on HVO (Hydrotreated Vegetable Oil) which is a fossil-free alternative to mineral diesel, resulting in up to 90% reduction in Greenhouse Gas emissions; |
We work with suppliers to encourage them to set their ow carbon reduction targets. |
Standard Fuel Oils Limited (Registered number: 07555993) |
Strategic Report |
for the Year Ended 31 March 2023 |
FINANCIAL PERFORMANCE |
Once again the company delivered impressive results during a year of supply challenges with the uncertainties surrounding the continued War in Ukraine and the Red Diesel legislation changes introduced by the Government on 1st April 2022. Turnover increased £80.7m, 46.66% year on year. Net profit increased by £213k, this is reflective in a rise in Shareholders funds of £8,892,207. |
Key Performance Indicators (KPIs) |
The company has made good progress throughout the year in relation to the key elements of its strategy. The Board monitors the progress of the group using the following Key Performance Indicators: |
- | Gross Profit margin per product |
- | Debtor Days |
- | Creditor Days |
- | Targeted new customers per month |
- | Sales Volume by Location |
Performance is measured against prior year and prior month for each of these measures. Management continues to monitor these KPI's on a monthly basis and act upon any significant variances immediately. |
FUTURE DEVELOPMENTS |
The company has maintained strong growth, adding to its workforce and fleet, with the expectant delivery of a further four road tankers in 2023/24 and expanding the current storage facilities. The business is forecast to deliver approximately 210 million litres of mixed fuels during the 2023/24 financial year. We continue to bring on new customers on a regular basis and will continue to invest in sustainable & renewable fuels to supply some of our contracted customers who have switched to replacement products such as HVO (Hydrotreated Vegetable Oil). |
ON BEHALF OF THE BOARD: |
Standard Fuel Oils Limited (Registered number: 07555993) |
Report of the Directors |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of provision of fuels. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
650,000 | - 4 April 2022 |
72,500 | - 9 June 2022 |
350,000 | - 7 September 2022 |
400,000 | - 25 November 2022 |
300,000 | - 1 February 2023 |
558,000 | - 1 March 2023 |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
POLITICAL DONATIONS AND EXPENDITURE |
There were no political donations made or political expenditure incurred during the financial year. |
DISCLOSURE IN THE STRATEGIC REPORT |
Items required under Schedule 7 to be disclosed in the directors' report can be found in the Strategic Report in accordance with Section 414C(11) of the Companies Act 2006. |
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), 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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. |
Standard Fuel Oils Limited (Registered number: 07555993) |
Report of the Directors |
for the Year Ended 31 March 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Standard Fuel Oils Limited |
Opinion |
We have audited the financial statements of Standard Fuel Oils Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Standard Fuel Oils Limited |
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 pages six and seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). |
In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which it operates. We determined that the following laws and regulations were most significant:; |
- | Those which are directly relevant to specific assertions in the financial statements. |
- |
Those that relate to reporting frameworks being FRS102, the Companies Act 2006, and the relevant tax compliance regulations. |
- | In addition, we considered other laws and regulations which may be fundamental to the company's ability to operate including complying with regulations as part of our audit procedures which included discussions with management. The regulations the company adhere to are; |
- | International Carriage of Dangerous Goods by Road (ADR) |
- | International Organization for Standardization (ISO) |
- | We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries of management, reviewing any board meeting minutes, and reviewing the legal costs incurred in the year and enquiring with management as to the circumstances around these legal costs. |
- | We assessed the susceptibility of the company's financial statements to materiality misstatement, including how fraud might occur. Audit procedures performed by the audit engagement team included: |
- | identifying the controls that management has in place to prevent and detect fraud; |
- | challenging assumptions and judgements made by management in its significant accounting estimates; |
- | auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; |
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. |
Report of the Independent Auditors to the Members of |
Standard Fuel Oils Limited |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Oriel House |
2/8 Oriel Road |
Bootle |
Merseyside |
L20 7EP |
Standard Fuel Oils Limited (Registered number: 07555993) |
Statement of Comprehensive Income |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
13,951,782 | 13,539,629 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Standard Fuel Oils Limited (Registered number: 07555993) |
Balance Sheet |
31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Standard Fuel Oils Limited (Registered number: 07555993) |
Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Standard Fuel Oils Limited (Registered number: 07555993) |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
31.3.23 | 31.3.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
13,732,871 |
Cash and cash equivalents at end of year | 2 | 31,544,835 | 24,910,692 |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.23 | 31.3.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 1,863 | 9,920 |
Finance income | (139,968 | ) | (1,705 | ) |
14,418,532 | 13,997,431 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 31,544,835 | 24,910,692 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 24,910,692 | 13,732,871 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 24,910,692 | 6,634,143 | 31,544,835 |
24,910,692 | 31,544,835 |
Debt |
Finance leases | (22,198 | ) | 22,198 | - |
(22,198 | ) | 22,198 | - |
Total | 24,888,494 | 6,656,341 | 31,544,835 |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Standard Fuel Oils Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes for the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
Tangible fixed assets |
Plant and machinery | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulative depreciation and any accumulative impairment losses. Cost includes costs directly attributable to making the asset capable or operating as intended. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Employee benefits |
The company operates a defined contribution plan for the benefit of its employees. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.3.23 | 31.3.22 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
31.3.23 | 31.3.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.23 | 31.3.22 |
Directors | 5 | 3 |
Administration | 5 | 4 |
Distribution | 23 | 19 |
Marketing | - | 3 |
Sales | 8 | 8 |
Cleaning | 1 | - |
31.3.23 | 31.3.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 31 March 2023 is as follows: |
31.3.23 |
£ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.23 | 31.3.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Foreign exchange differences | ( |
) |
6. | AUDITORS' REMUNERATION |
31.3.23 | 31.3.22 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
8,000 |
8,000 |
Total audit fees | 8,000 | 8,000 |
Taxation compliance services |
Total non-audit fees | 250 | 250 |
Total fees payable | 8,250 | 8,250 |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.23 | 31.3.22 |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax under/(over) |
provision | - | (8,251 | ) |
Corporation Tax Interest | 7,867 | (125 | ) |
Total current tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.23 | 31.3.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Tax Interest | 7,867 | (125 | ) |
Group relief | (5,011 | ) | (6,353 | ) |
Change in tax rate | 92,620 | - |
Total tax charge | 2,727,212 | 2,520,017 |
9. | DIVIDENDS |
31.3.23 | 31.3.22 |
£ | £ |
A Share shares of £1 each |
Interim |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
10. | TANGIBLE FIXED ASSETS |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 April 2022 |
Transfer to ownership | (372,510 | ) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Transfer to ownership | (262,243 | ) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | STOCKS |
31.3.23 | 31.3.22 |
£ | £ |
Stocks |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Marine duty | 507,252 | 392,261 |
Tax debtor | 49,003 | 49,003 |
Directors' current accounts | 150,778 | 150,778 |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Pensions | 16,645 | 11,197 |
VAT | 232,345 | 171,286 |
Other creditors |
Accruals and deferred income |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.3.23 | 31.3.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Finance charges repayable: |
Within one year |
Net obligations repayable: |
Within one year |
Non-cancellable | operating leases |
31.3.23 | 31.3.22 |
£ | £ |
Within one year |
Between one and five years |
The total lease payments recognised as an expenses in the year was £25,187 (2022: £13,871). |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.23 | 31.3.22 |
£ | £ |
Hire purchase contracts | - | 22,198 |
Hire purchase liabilities are secured against the assets to which they relate. |
16. | PROVISIONS FOR LIABILITIES |
31.3.23 | 31.3.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 March 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.23 | 31.3.22 |
value: | £ | £ |
A Share | £1 | 100 | 100 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. During the year the costs of the scheme amount to £79,290 (2022: 61,777). |
Standard Fuel Oils Limited (Registered number: 07555993) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2023 and 31 March 2022: |
31.3.23 | 31.3.22 |
£ | £ |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
21. | RELATED PARTY DISCLOSURES |
31.3.23 | 31.3.22 |
£ | £ |
Amount due from related party |
During the year, a total of key management personnel compensation of £ |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |
23. | PARENT CONSOLIDATION |
The company is included within the consolidated financial statements of Standard Group Holdings Ltd the |
registered office of which is Carlton House, Gores Lane, Knowsley Industrial Estate, Liverpool, L33 7XS. |