FSG Tool & Die Limited - Limited company accounts 16.3

REGISTERED NUMBER: 00680756 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2017

FOR

FSG TOOL & DIE LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

M J Tree

G M Jenkins

S E Davies

C Arnold

Mrs L Newsham

D Holley

SECRETARY:

L Newsham

REGISTERED OFFICE:

Unit 5 Llantrisant Business Park

Llantrisant

Mid Glamorgan

CF72 8LF

REGISTERED NUMBER:

00680756 (England and Wales)

AUDITORS:

Fergusons & Peters Chartered Accountants

4 High Street

Pontardawe

Swansea

SA8 4HU

The directors present their strategic report for the year ended 28 February 2017.

REVIEW OF BUSINESS

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

business supplies a very wide range of manufacturing companies.

RESULTS AND PERFORMANCE

The results for the year and financial position of the Company are as shown in the annexed Financial Statements.

The Company has strengthened its position during the year. The Company continues to meet its long term obligations to

the Pension Scheme with agreed annual payments of £118,000.

Whilst the underlying trend is one of growth particularly in export markets the 2016/2017 turnover does reflect the

difficult trading conditions in Europe.

FINANCIAL INSTRUMENTS

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

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

finance Company operations.

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

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

ensuring there are sufficient funds to meet repayments.

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

outstanding for both time and credit risk.

STRATEGY AND FUTURE DEVELOPMENTS

The board have continued to invest in the business for future growth in line with its solid operating performance. This

policy combined with our development of people makes the business globally competitive. We remain committed to

double digit growth in the long term with 50% of turnover coming from outside the UK. We will focus on building the

brand in Asia and the Middle East market.

As a business we are driven by technology and people. In planning for the future we are maintaining the high level of

recruitment of apprentices, this being a longterm investment in the business.

ON BEHALF OF THE BOARD:

L Newsham - Secretary

20 September 2017

The directors present their report with the financial statements of the company for the year ended 28 February 2017.

PRINCIPAL ACTIVITY

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

DIVIDENDS

No dividends will be distributed for the year ended 28 February 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 29 February 2016 to the date of this

report.

M J Tree

G M Jenkins

S E Davies

Other changes in directors holding office are as follows:

C Arnold , Mrs L Newsham and D Holley were appointed as directors after 28 February 2017 but prior to the date of this report.

R Williams ceased to be a director after 28 February 2017 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have

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

company's auditors are aware of that information.

AUDITORS

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

Annual General Meeting.

ON BEHALF OF THE BOARD:

L Newsham - Secretary

20 September 2017

We have audited the financial statements of FSG Tool & Die Limited for the year ended 28 February 2017 on pages

seven to twenty. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2017 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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 has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements in

the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

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.

Dean Beniamous (Senior Statutory Auditor)

for and on behalf of Fergusons & Peters Chartered Accountants

4 High Street

Pontardawe

Swansea

SA8 4HU

27 September 2017

TURNOVER

6,424,784

6,582,014

Cost of sales

4,543,834

4,530,630

GROSS PROFIT

1,880,950

2,051,384

Distribution costs

188,943

267,356

Administrative expenses

1,521,752

1,530,278

1,710,695

1,797,634

170,255

253,750

Other operating income

87,103

82,907

OPERATING PROFIT

5

257,358

336,657

Interest receivable and similar income

3,007

4,436

260,365

341,093

Interest payable and similar expenses

6

86,084

103,258

PROFIT BEFORE TAXATION

174,281

237,835

Tax on profit

7

(151,912

)

17,978

PROFIT FOR THE FINANCIAL YEAR

326,193

219,857

PROFIT FOR THE YEAR

326,193

219,857

OTHER COMPREHENSIVE INCOME

Return on scheme assets

1,335,000

(379,000

)

Actuarial (loss)/gain on liabilities

(1,784,000

)

980,000

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(449,000

)

601,000

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(122,807

)

820,857

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

3,253,739

3,502,214

3,253,739

3,502,214

CURRENT ASSETS

Stocks

10

1,191,062

1,242,800

Debtors

11

1,728,611

2,120,793

Cash at bank and in hand

1,146,627

814,797

4,066,300

4,178,390

CREDITORS

Amounts falling due within one year

12

1,057,535

1,491,264

NET CURRENT ASSETS

3,008,765

2,687,126

TOTAL ASSETS LESS CURRENT LIABILITIES

6,262,504

6,189,340

CREDITORS

Amounts falling due after more than one year

13

(282,706

)

(478,291

)

PROVISIONS FOR LIABILITIES

16

(238,905

)

(275,138

)

ACCRUALS AND DEFERRED INCOME

17

(654,327

)

(596,538

)

PENSION LIABILITY

20

(1,388,000

)

(1,018,000

)

NET ASSETS

3,698,566

3,821,373

CAPITAL AND RESERVES

Called up share capital

18

800,000

800,000

Retained earnings

19

2,898,566

3,021,373

SHAREHOLDERS' FUNDS

22

3,698,566

3,821,373

The financial statements were approved by the Board of Directors on 20 September 2017 and were signed on its behalf by:

G M Jenkins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2015

800,000

2,200,516

3,000,516

Changes in equity

Total comprehensive income

-

820,857

820,857

Balance at 28 February 2016

800,000

3,021,373

3,821,373

Changes in equity

Total comprehensive income

-

(122,807

)

(122,807

)

Balance at 28 February 2017

800,000

2,898,566

3,698,566

Cash flows from operating activities

Cash generated from operations

1

1,187,503

677,757

Interest paid

(7,898

)

(1,439

)

Interest element of hire purchase payments paid

(39,186

)

(45,819

)

Tax paid

115,678

-

Net cash from operating activities

1,256,097

630,499

Cash flows from investing activities

Purchase of tangible fixed assets

(320,205

)

(682,382

)

Interest received

3,007

4,436

Net cash from investing activities

(317,198

)

(677,946

)

Cash flows from financing activities

Loan repayments in year

(360,291

)

(335,065

)

Increase in hire purchase agreements

(246,778

)

95,944

Net cash from financing activities

(607,069

)

(239,121

)

Increase/(decrease) in cash and cash equivalents

331,830

(286,568

)

Cash and cash equivalents at beginning of year

2

814,797

1,101,365

Cash and cash equivalents at end of year

2

1,146,627

814,797

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

28.2.17

28.2.16

£

£

Profit before taxation

174,281

237,835

Depreciation charges

568,680

556,752

Contributions to defined pension scheme

(118,000

)

(117,000

)

Finance costs

86,084

103,258

Finance income

(3,007

)

(4,436

)

708,038

776,409

Decrease/(increase) in stocks

51,738

(216,424

)

Decrease in trade and other debtors

392,182

41,260

Increase in trade and other creditors

35,545

76,512

Cash generated from operations

1,187,503

677,757

2.	CASH AND CASH EQUIVALENTS

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

these Statement of Financial Position amounts:

Year ended 28 February 2017

28.2.17

29.2.16

£

£

Cash and cash equivalents

1,146,627

814,797

Year ended 28 February 2016

28.2.16

1.3.15

£

£

Cash and cash equivalents

814,797

1,101,365

1.	STATUTORY INFORMATION

FSG Tool & Die Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

value added tax and other sales taxes.

Intangible assets

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

less any accumulated amortisation and any accumulated impairment losses.

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

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

at variable rates on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

moving items.

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

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

valuation of work in progress.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

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

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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

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

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

operating result.

Pension costs and other post-retirement benefits

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

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

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

that payments arise.

Development costs

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

instalments over their estimated useful lives.

Government grants

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

account over the expected useful life of the assets.

3.	EMPLOYEES AND DIRECTORS

28.2.17

28.2.16

£

£

Wages and salaries

2,985,511

3,048,705

Other pension costs

191,805

189,055

3,177,316

3,237,760

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

28.2.17

28.2.16

Production Staff

67

69

Administrative Staff

16

14

Management Staff

5

7

88

90

4.	DIRECTORS' EMOLUMENTS

28.2.17

28.2.16

£

£

Directors' remuneration

247,294

274,362

Directors' pension contributions to money purchase schemes

34,214

24,763

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

Defined benefit schemes

2

2

Information regarding the highest paid director is as follows:

28.2.17

28.2.16

£

£

Emoluments etc

110,217

128,785

Pension contributions to money purchase schemes

28,207

19,067

5.	OPERATING PROFIT

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

28.2.17

28.2.16

£

£

Depreciation - owned assets

568,680

556,752

Auditors' remuneration

7,650

7,300

Government Grants

(77,740

)

(82,907

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.17

28.2.16

£

£

Bank interest

7,898

1,439

Interest on pension scheme

liabilities

39,000

56,000

Hire purchase

39,186

45,819

86,084

103,258

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the profit for the year was as follows:

28.2.17

28.2.16

£

£

Current tax:

R & D receipt re 2016

(115,678

)

-

Deferred tax

(36,234

)

17,978

Tax on profit

(151,912

)

17,978

Tax effects relating to effects of other comprehensive income

28.2.17

Gross

Tax

Net

£

£

£

Return on scheme assets

1,335,000

-

1,335,000

Actuarial (loss)/gain on liabilities

(1,784,000

)

-

(1,784,000

)

(449,000

)

-

(449,000

)

28.2.16

Gross

Tax

Net

£

£

£

Return on scheme assets

(379,000

)

-

(379,000

)

Actuarial Gain/(Loss) on liabilities

980,000

-

980,000

601,000

-

601,000