FG4 UK Limited - Period Ending 2023-03-31

FG4 UK Limited

(Registration number: 07818165)
Balance Sheet as at 31 March 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	4	21,688	-
Tangible assets	5	12,389	45,450
		34,077	45,450
Current assets
Debtors	6	1,011,872	973,619
Cash at bank and in hand		29,613	49,022
		1,041,485	1,022,641
Creditors: Amounts falling due within one year	7	(49,261)	(136,940)
Net current assets		992,224	885,701
Total assets less current liabilities		1,026,301	931,151
Deferred tax liabilities	8	(6,872)	(9,353)
Net assets		1,019,429	921,798
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		1,018,429	920,798
Shareholders' funds		1,019,429	921,798

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 1 November 2023
 

G W Davies
Director

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Studios
Gd International Draycott Industrial Estate
Draycott
Moreton-In-Marsh
GL56 9JY

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Furniture, fittings and equipment	5 years straight line
Office equipment	3 years straight line

Intangible assets

Separately acquired trademarks and licences are shown at historic cost.

Licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Software	10 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 23 (2022 - 30).

4

Intangible assets

	Software costs £
Cost
Additions	23,250
At 31 March 2023	23,250
Amortisation
Amortisation charge	1,562
At 31 March 2023	1,562
Carrying amount
At 31 March 2023	21,688

5

Tangible assets

	Furniture, fittings and equipment  £	Office equipment  £	Total £
Cost
At 1 April 2022	74,006	20,029	94,035
Additions	982	4,720	5,702
Disposals	(60,281)	-	(60,281)
At 31 March 2023	14,707	24,749	39,456
Depreciation
At 1 April 2022	35,992	12,593	48,585
Charge for the year	8,638	5,324	13,962
Eliminated on disposal	(35,480)	-	(35,480)
At 31 March 2023	9,150	17,917	27,067
Carrying amount
At 31 March 2023	5,557	6,832	12,389
At 31 March 2022	38,014	7,436	45,450

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

6

Debtors

	2023  £	2022  £
Trade debtors	188,772	261,955
Amounts owed by related parties	821,386	657,121
Other debtors	1,714	26,569
Prepayments	-	27,974
	1,011,872	973,619

7

Creditors

	2023  £	2022  £
Due within one year
Trade creditors	24,164	71,471
Social security and other taxes	-	25,567
Other creditors	111	14,747
Accrued expenses	-	5,191
Corporation tax liability	24,986	19,964
	49,261	136,940

8

Deferred tax

Deferred tax assets and liabilities

2023	Liability £
Accelerated tax depreciation	6,872
	6,872

2022	Liability £
Accelerated tax depreciation	9,353
	9,353

9

Related party transactions

Summary of transactions with other related parties
At 31 March 2023, FG4 UK Limited was owed £625,094 (2022: £544,255) from S'porter International Limited and £1,727 (2022: £30,692) from GWD International Limited, in the form of loans. No interest is charged on the loans and they are repayable on demand. The director G W Davies has an interest in these companies.

At 31 March 2023, FG4 UK Limited was owed £165,848 (2022: £53,458) from FG4 General Trading FZE, in the form of a loan. No interest is charged on the loan and it is repayable on demand. These companies have a common parent, FG4 Limited.

At 31 March 2023, FG4 UK Limited was owed £28,717 (2022: £28,717) from FG4 Limited, its parent company, in the form of a loan. No interest is charged on the loan and it is repayable on demand.

FG4 UK Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

10

Parent and ultimate parent undertaking

The company's immediate parent is FG4 Limited, incorporated in The United Arab Emirates.