F&B Profiles Limited - Period Ending 2023-03-31
F&B Profiles Limited - Period Ending 2023-03-31
Year Ended
Registration number:
F&B Profiles Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Director's Report |
|
|
Statement of Director's Responsibilities |
|
|
Independent Auditor's Report |
|
|
Profit and Loss Account |
|
|
Balance Sheet |
|
|
Statement of Changes in Equity |
|
|
Notes to the Financial Statements |
F&B Profiles Limited
Company Information
|
Director |
R F Avery |
|
Company secretary |
L H Sinclair |
|
Registered office |
|
|
Auditors |
|
F&B Profiles Limited
Strategic Report for the Year Ended 31 March 2023
The director presents his strategic report together with the audited financial statements for the year ended 31 March 2023.
Fair review of the business
Turnover and gross profit have increased versus the prior year as a result of continued organic growth across the product types and in the context of volatile raw material prices. Ongoing strong control of costs has resulted in the company achieving a pre tax profit of £5,351,477 (2022: £3,896,017). The gross profit percentage, which was the main key performance indicator used by the director to monitor the performance of the business has increased to 28.02% (2022: 27.2%). Turnover has increased to £43,706,225 from £38,287,135 in 2022. The director is satisfied with the result for the year.
The year end balance sheet position remains strong this year with net assets of £22,497,713 (2022: £19,256,830). The company maintained its stock holding strategy in order to ensure customer service and supply thereby retaining and enhancing those customer relationships. The year also saw significant fixed asset investment with the addition of further plant and machinery (£307,808).
Having given due consideration to the principal risk and uncertainties as described below, as well as the ongoing impact on global supply chains, steel, and oil and other energy prices (which impact the cost of steel production) of the conflicts in Ukraine and the Middle East, the director looks forward to a further successful year to March 2024 and beyond.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are the uncertainty of the British and European economies. The company is exposed to market risk in relation to the performance of the broader UK economy and competition from other market participants. The key customer sector of aerospace, defence and engineering are impacted to varying degrees. The board considers the likelihood of changes in the wider UK economy to be moderate however considers the impact of any such change to be low.
Steel prices have fluctuated during the year, impacting gross margins. The company closely monitors the steel market and prepares for anticipated price changes by altering stock levels. In addition, the company's gross profit margin is under constant review and where possible any input price increase is passed on.
F&B Profiles Limited
Strategic Report for the Year Ended 31 March 2023
S172 statement
Investment in plant and machinery
To facilitate growth, efficiency and quality of manufacturing processes the company made further investments in plant and equipment during the year. Consideration is given to the service offered to customers and the safety of staff when selecting and purchasing all equipment..
Investment in freehold property
The company has focused on the restricted capacity and opportunity for future growth in certain areas of the business. Consideration has been given to the service offered to customers and the safety of staff. During the year the decision was taken by the director to remove from the company, by way of demerger, the freehold property owned by the company; this was done in order to facilitate succession and ultimate shareholder value protection as well as to ensure that the group itself remains as flexible and adaptable as possible for the future. The demerger was implemented subsequent to the year end.
Company stakeholders
Our key stakeholders are our customers, employees, suppliers, shareholders, and the bank. The company takes care to take strategic decisions that improve the long-term value of the business, whilst considering the needs of our various stakeholders.
Customers are at the heart of our business. We strive to deliver at the right price and on time. We have regular contact with our major customers, lots of whom have been our partners for many years, with credit control a key process within the business.
Our employees are essential to the operation of the business and the delivery of our objectives. We endeavour to create a culture of openness and inclusivity to enable them to focus on delivering excellent service to our customers.
Approved and authorised by the
|
......................................... |
F&B Profiles Limited
Director's Report for the Year Ended 31 March 2023
The director presents his report and the financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company is to supply profile, plasma and laser cut steel and stainless plate, engineering steels, cutting tools and fasteners to engineering companies in the United Kingdom. In addition the company manufactures precision engineered products including ground support equipment for airlines worldwide.
Results and dividends
The profit for the year, after taxation, amounted to £4,340,883 (2022 - £3,109,146).
An interim dividend of £1,100,000 (2022 - £1,050,000) was declared and paid during the year. No final dividend has been declared.
Director of the company
The director who held office during the year was as follows:
Information included in the Strategic Report
For a review of the business and description of future developments please see the strategic report on page 2.
Financial instruments
Objectives and policies
The company's financial risk management objective is broadly to seek to make neither profit nor loss from exposure to currency or interest rate risks.
The company does not use hedge accounting.
Price risk, credit risk, liquidity risk and cash flow risk
The company's exposure to the price risk of financial instuments is minimal. As the counterparty to all financial instruments is its bankers, it is also exposed to minimal credit and liquidity risks in respect of these instruments.
Its cash flow risk is also minimal as it aims to pay suppliers in accordance with their stated terms. The director does not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position or profit.
Environmental report
The company has assessed its carbon footprint inside the UK across Scope 1 and Scope 2 emission releasing activities in line with the UK Government’s Environmental Reporting Guidelines 2019. The summary shows total CO2e emissions during the year, our selected intensity metric, the total usage of electricity and gas, and a summary of actions taken in regard to energy use reduction during the period.
F&B Profiles Limited
Director's Report for the Year Ended 31 March 2023
|
CO2e (tonnes) |
Energy Use (mWh) |
|
|
2023 |
2023 |
|
|
Emissions from the combustion of gas, fuel and operation of facilities (Scope 1) |
557 |
1,237 |
|
Emissions from the combustion of fuel for transport purposes (Scope 1) |
256 |
2,387 |
|
Total Scope 1 |
813 |
3,624 |
|
Emissions from electricity purchases for own use (Scope 2) |
397 |
2,055 |
|
Total Scope 2 |
397 |
2,055 |
|
Total |
1,210 |
5,679 |
|
Total CO2e tonnes per £m revenue |
27.68 |
n/a |
The company is taking steps to identify opportunities to reduce its carbon emissions. During the financial year to 31 March 2023 the company has installed energy efficient lighting and sensors in many of its buildings and begun the replacement of the existing delivery fleet with more efficient alternatives.
Important non adjusting events after the financial period
Subsequent to the year end, on 30 June 2023, as part of a demerger exercise, the freehold property owned by the company was transferred to F&B Profiles (Holdings) Limited and leases entered into to lease back the relevant trading properties.
On 31 July 2023, the company's immediate parent changed from F&B Profiles (Holdings) Limited to Ash Properties (Bristol) Limited. On 30 November 2023 Ash Properties (Bristol) Limited changed its name to F&B Profiles (Holdings) Limited.
Disclosure of information to the auditors
The director has taken 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. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Reappointment of auditors
The auditor, PKF Francis Clark, will be proposed for reappointment in accordance with Section 485 of Companies Act 2006.
Approved and authorised by the
|
......................................... |
F&B Profiles Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Strategic Report, the Director's Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
|
• |
select suitable accounting policies and apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
|
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
F&B Profiles Limited
Independent Auditor's Report to the Members of F&B Profiles Limited
Opinion
We have audited the financial statements of F&B Profiles Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and the 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 auditor 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
F&B Profiles Limited
Independent Auditor's Report to the Members of F&B Profiles Limited
Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Director's Report.
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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 6, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
F&B Profiles Limited
Independent Auditor's Report to the Members of F&B Profiles Limited
As part of our planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. As part of this, we reviewed the company's website for indication of the regulations and certification in place and discussed these with the relevant individuals responsible for compliance.
The key regulations we identified were employment law, health and safety regulations, tax legislation, Environment Act 2021, and anti-bribery, We have also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the UK Generally Accepted Accounting Practice and the Companies Act 2006.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of non-compliance with laws and regulations on the company's ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
- Review of the company's health and safety incident logs, for any instances of reportable breaches or non-compliance; and
- Reviewed the legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
As part of our enquiries, we discussed with management whether there had been any instances of known or alleged fraud, of which management confirmed that there were none. We remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We assessed the susceptibility of the financial statements to material misstatements through management override or fraud and obtained an understanding of the controls in place to mitigate the manipulation of the financial statements. Based upon our understanding we designed and conducted audit procedures including:
- Audited 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;
- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates;
- Performed cut off procedures of revenue both before the period end and after; and
- Investigated the rationale behind significant or unusual transactions.
F&B Profiles Limited
Independent Auditor's Report to the Members of F&B Profiles Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Ground Floor
90 Victoria Street
BS1 6DP
F&B Profiles Limited
Profit and Loss Account
Year Ended 31 March 2023
|
Note |
2023 |
2022 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
- |
|
|
|
Operating profit |
5,382,830 |
3,889,269 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
F&B Profiles Limited
Balance Sheet
31 March 2023
|
Note |
2023 |
2022 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Capital redemption reserve |
|
|
|
|
Revaluation reserve |
|
|
|
|
Profit and loss account |
|
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
|
......................................... |
Company Registration Number: 02185821
F&B Profiles Limited
Statement of Changes in Equity
Year Ended 31 March 2023
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
|
At 1 April 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Transfers |
- |
- |
(903) |
903 |
- |
|
At 31 March 2023 |
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
|
At 1 April 2021 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Transfers |
- |
- |
(903) |
903 |
- |
|
At 31 March 2022 |
|
|
|
|
|
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
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 nature of the company's operations and its principal activities are set out in the director's report.
These financial statements were authorised for issue by the
|
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.
Basis of preparation
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and Companies Act 2006.
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
• Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Group accounts not prepared
Going concern
The director's report describes the company's exposure to credit risk and cash flow risk. The director has, at the time of approving the financial statements, a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the company continues to adopt the going concern basis of accounting in preparing the financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Revenue is recognised when the goods are dispatched.
Government grants
Grants of a revenue nature are recognised in the statement of comprehensive income in the same period as the related expenditure.
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 rate on the date when the fair value is re-measured.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within administrative expenses. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within administrative expenses.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation 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.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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 balance sheet at cost or valuation, less any subsequent accumulated depreciation and subsequent 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.
At each reporting date, the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of comprehensive income during the period in which they are incurred.
Depreciation
Depreciation is charged so as to write off the cost or valuation of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold property |
2% straight line |
|
Long-term leasehold property |
over the period of the lease or useful life |
|
Vehicles, plant and machinery |
15% - 25% straight line |
|
Fixtures and fittings |
15% - 33% straight line |
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 recognised in the statement of comprehensive income.
Revaluation of tangible fixed assets
As permitted by the transitional provision of FRS 102, the company elected not to adopt a policy of revaluation of tangible fixed assets. The company retained the book value of land and buildings as at 27 January 2000.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
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.
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out (FIFO) basis. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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 subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Operating leases: the company as a lessee
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 lease term.
Dividends
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.
Defined contribution pension obligation
The company operates a defined contribution scheme for its employees. A defined contribution scheme is a pension scheme 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 ans expense in the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the scheme are held separately from the company in independently administered funds.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Intercompany debtors and creditors; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Impairment
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the Company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from the 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 where the revision affects only that period, or in the period of the revision and future periods where the revision reflects both current and future periods.
The key judgement that has a significant effect on the financial statements is in respect of going concern. The disclosure within the accounting policies describes the processes undertaken around the judgement in more detail.
The key estimates that have a significant effect on the amounts recognised in the financial statements are described below:
Determining whether there are indicators of impairment of the company's tangible assets. Tangible fixed assets are depreciated over their useful life taking into account residual values, where appropriate. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. The carrying amount is £6,482,684 (2022 - £6,762,613)
Determining whether stock is held at the correct value by ensuring it is stated at the lower of cost or net realisable value, the estimate being the selling price less costs to complete and sell. Stock is assessed for impairment and potential provision is estimated. Management undertake regular stocktakes and review the ageing and selling profile of stock The carrying amount is £6,025,198 (2022 - £5,756,456)
Dilapidations provisions have been estimated. These provisions represent the best estimate of the liability to make good property in accordance with the terms of lease agreements, at the time of the balance sheet date, the actual liability being dependent on future events such as economic environment and market place demand. Expectations will be revised each period until the liability arises, with any difference accounted for in the period in which the revision is made. The carrying amount is £798,721 (2022 - £544,255)
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
|
2023 |
2022 |
|
|
Sale of goods |
|
|
The analysis of the company's Turnover for the year by market is as follows:
|
2023 |
2022 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2023 |
2022 |
|
|
Government grants - furlough income |
- |
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2023 |
2022 |
|
|
Depreciation expense |
|
|
|
Foreign exchange gains |
( |
( |
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Auditor's remuneration |
|
2023 |
2022 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other assurance services |
|
|
|
|
|
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
2023 |
2022 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
|
2023 |
2022 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Other interest receivable and similar income |
|
2023 |
2022 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2023 |
2022 |
|
|
Interest on bank overdrafts |
|
|
|
Interest expense on other finance liabilities |
|
- |
|
|
|
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2023 |
2022 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
1,152,929 |
543,230 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Arising from changes in tax rates and laws |
- |
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(103,408) |
- |
|
Total deferred taxation |
( |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2023 |
2022 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
|
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
- |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Total tax charge |
|
|
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
Liability |
|
Fixed asset timing differences |
- |
|
|
Short term timing differences |
|
- |
|
|
|
|
2022 |
Asset |
Liability |
|
Fixed asset timing differences |
- |
|
|
Short term timing differences |
|
- |
|
|
|
|
Dividends |
Final dividends paid
|
2023 |
2022 |
|||
|
Final dividend |
1,100,000 |
1,050,000 |
||
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost |
||
|
At 1 April 2022 |
|
|
|
At 31 March 2023 |
|
|
|
Amortisation |
||
|
At 1 April 2022 |
|
|
|
At 31 March 2023 |
|
|
|
Carrying amount |
||
|
At 31 March 2023 |
- |
- |
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Plant and machinery |
Total |
|
|
Cost |
||||
|
At 1 April 2022 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
|
At 31 March 2023 |
|
|
|
|
|
Depreciation |
||||
|
At 1 April 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
|
At 31 March 2023 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2023 |
|
|
|
|
|
At 31 March 2022 |
|
|
|
|
Included within the net book value of land and buildings above is £4,306,917 (2022 - £4,399,121) in respect of freehold land and buildings and £728,561 (2022 - £773,220) in respect of long leasehold land and buildings.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Investments |
|
2023 |
2022 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 April 2022 |
|
|
Carrying amount |
|
|
At 31 March 2023 |
|
|
At 31 March 2022 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2023 |
2022 |
|||
|
Subsidiary undertakings |
||||
|
|
C/O Precision Profiles, Southway Drive, Warmley, Bristol, BS30 5LW |
|
|
|
|
Subsidiary undertakings |
|
Whites Material Handling Limited The principal activity of Whites Material Handling Limited is |
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Stocks |
|
2023 |
2022 |
|
|
Raw materials and consumables |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Debtors |
|
Note |
2023 |
2022 |
|
|
Trade debtors |
|
|
|
|
Amounts due from group undertakings |
|
|
|
|
Other debtors and prepayments |
|
|
|
|
|
|
The impairment loss recognised in the profit or loss for the year in regards to bad and doubtful trade debtors was credit of £5,232 (2022 - £9,755).
|
Creditors |
|
Note |
2023 |
2022 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax |
405,289 |
147,360 |
|
|
|
|
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Loans and borrowings |
|
2023 |
2022 |
|
|
Current loans and borrowings |
||
|
Bank overdrafts |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 April 2022 |
|
|
|
|
Increase/(decrease) in existing provisions |
( |
|
|
|
At 31 March 2023 |
|
|
|
|
|
|||
Other provision relates to dilapidations and represents the best estimate of the liability to make good properties in accordance with the terms of lease agreements.
|
Non adjusting events after the financial period |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £30,162 (2022 - £31,065) were payable to the scheme at the end of the year and are included in accruals.
F&B Profiles Limited
Notes to the Financial Statements
Year Ended 31 March 2023
|
Obligations under leases |
Operating leases
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
456 |
|
456 |
|
Related party transactions |
The company has taken advantage of the exemption given by section 33.1A of FRS 102 not to disclose transactions with its parent company and other wholly owned subsidiaries in the group.
|
Other transactions with the director |
During the year the company paid rent of £53,624 (2022 - £53,624) to the wife of R F Avery, the director of the company, and paid rent of £91,872 (2022 - 91,872) to R F Avery and his wife.
During the year, the director loaned £1,005,319 (2022- £Nil) to the Company and interest of £22,971 (2022- £Nil) was charged. At the balance sheet date, the directors loan account was fully repaid (2022- £Nil).