Company Registration No. 00974737 (England and Wales)
FISCHBACH (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
FISCHBACH (UK) LIMITED
COMPANY INFORMATION
Directors
Mr T Langensiepen
Mr W Bruening
Mr S Riding
(Appointed 16 January 2017)
Secretary
Mrs A M Callaghan
Company number
00974737
Registered office
Warrington Road
Manor Park
Runcorn
Cheshire
WA7 5NH
Auditor
Baldwins Audit Services Limited
Churchill House
59 Lichfield Street
Walsall
West Midlands
WS4 2BX
Business address
Warrington Road
Manor Park
Runcorn
Cheshire
WA7 5NH
FISCHBACH (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
FISCHBACH (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 1 -
The directors present the strategic report for the year ended 31 December 2016.
Fair review of the business
A number of factors affected the company's performance in 2016. A buoyant building market in the UK resulted in higher demand for sealants and adhesives, this in turn gave the Fischbach (UK) Limited a higher sales volume. The polymer market, which always has a significant effect on our performance, was relatively stable which resulted in us not having to buy at disadvantageous spot prices. We also continued our drive to increase efficiency and reduce rejects. These factors enabled the company to achieve an acceptable fiscal performance.
Principal risks and uncertainties
The management of the company and the execution of the company's strategy are subject to a number of risks. Our customers are increasingly connecting oil pricing with their expectations of HDPE prices. To manage this customer expectation and risk we strive to link prices through the supply chain and achieve transparency.
Key performance indicators
Due to the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not neccesary for an understanding of the development, performance or position of the business.
Mrs A M Callaghan
Secretary
9 May 2017
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2016.
Principal activities
The principal activity of the company continued to be that of the manufacture and distribution of plastic cylinders and cartridges.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C Robertson
(Resigned 23 August 2016)
Mr T Langensiepen
Mr W Bruening
Mr S Riding
(Appointed 16 January 2017)
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £700,000. The directors do not recommend payment of a final dividend.
Financial instruments
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable requirements.
Foreign currency risk
The company is exposed to foreign currency risks, and seeks to manage this by monitoring the fluctuation of foreign currency and exchange rates.
Credit risk
Given the significant trading with a relatively small number of major customers, the company has procedures in place to manage these accounts.
Auditor
Baldwins Audit Services Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
By order of the board
Mrs A M Callaghan
Secretary
9 May 2017
FISCHBACH (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
The directors are responsible for preparing the annual report 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; • state whether applicable UK 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. 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.
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;
-
state whether applicable UK 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.
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.
FISCHBACH (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FISCHBACH (UK) LIMITED
- 4 -
We have audited the financial statements of Fischbach (UK) Limited for the year ended 31 December 2016 which comprise the Profit And Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes. 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 FRS 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 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.
Respective responsibilities of directors and auditor
As explained more fully in the Directors' Responsibilities Statement, 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 annual report 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 31 December 2016 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.
-
give a true and fair view of the state of the company's affairs as at 31 December 2016 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 matters 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
true
, and the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
FISCHBACH (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FISCHBACH (UK) LIMITED
- 5 -
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 identifie d material misstatements in the Strategic Report and the Directors' 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 directors' remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.
d
material misstatements in the Strategic Report and the Directors' 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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Dawn Owen BA (Hons) FCA
(Senior Statutory Auditor)
for and on behalf of Baldwins Audit Services Limited
15 May 2017
Churchill House
Chartered Accountants
59 Lichfield Street
Statutory Auditor
Walsall
West Midlands
WS4 2BX
FISCHBACH (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
2016
2015
Notes
£
£
Turnover
3
11,107,264
10,796,097
Cost of sales
(5,252,889)
(5,161,521)
Gross profit
5,854,375
5,634,576
Distribution costs
(459,278)
(494,516)
Administrative expenses
(3,808,298)
(4,047,182)
Operating profit
4
1,586,799
1,092,878
Interest receivable and similar income
7
3,554
3,388
Profit before taxation
1,590,353
1,096,266
Taxation
8
(326,115)
(229,468)
Profit for the financial year
1,264,238
866,798
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FISCHBACH (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2016
- 7 -
2016
2015
£
£
Profit for the year
1,264,238
866,798
Other comprehensive income
-
-
Total comprehensive income for the year
1,264,238
866,798
FISCHBACH (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 8 -
2016
2015
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,813,348
3,069,147
Current assets
Stocks
13
539,909
565,457
Debtors
14
2,828,389
2,425,147
Cash at bank and in hand
2,076,511
1,622,717
5,444,809
4,613,321
Creditors: amounts falling due within one year
15
(1,226,214)
(1,200,763)
Net current assets
4,218,595
3,412,558
Total assets less current liabilities
7,031,943
6,481,705
Provisions for liabilities
16
(16,000)
(30,000)
Net assets
7,015,943
6,451,705
Capital and reserves
Called up share capital
19
285,000
285,000
Share premium account
21,500
21,500
Profit and loss reserves
6,709,443
6,145,205
Total equity
7,015,943
6,451,705
The financial statements were approved by the board of directors and authorised for issue on 9 May 2017 and are signed on its behalf by:
Mr T Langensiepen
Director
Company Registration No. 00974737
FISCHBACH (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2016
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2015
285,000
21,500
5,778,407
6,084,907
Year ended 31 December 2015:
Profit and total comprehensive income for the year
-
-
866,798
866,798
Dividends
9
-
-
(500,000)
(500,000)
Balance at 31 December 2015
285,000
21,500
6,145,205
6,451,705
Year ended 31 December 2016:
Profit and total comprehensive income for the year
-
-
1,264,238
1,264,238
Dividends
9
-
-
(700,000)
(700,000)
Balance at 31 December 2016
285,000
21,500
6,709,443
7,015,943
FISCHBACH (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 10 -
2016
2015
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,647,566
1,898,624
Income taxes paid
(240,988)
(237,609)
Net cash inflow from operating activities
1,406,578
1,661,015
Investing activities
Purchase of tangible fixed assets
(256,591)
(877,186)
Proceeds on disposal of tangible fixed assets
253
-
Interest received
3,554
3,388
Net cash used in investing activities
(252,784)
(873,798)
Financing activities
Dividends paid
(700,000)
(500,000)
Net cash used in financing activities
(700,000)
(500,000)
Net increase in cash and cash equivalents
453,794
287,217
Cash and cash equivalents at beginning of year
1,622,717
1,335,500
Cash and cash equivalents at end of year
2,076,511
1,622,717
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 11 -
1
Accounting policies
Company information
Fischbach (UK) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Warrington Road, Manor Park, Runcorn, Cheshire, WA7 5NH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business , and is shown net of VAT and other sales related taxes . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
straight line over 50 years
Plant and equipment
over 6 years
Moulds
over 3 years
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 12 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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. Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
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 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.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2016
2015
£
£
Turnover
Sale of goods
11,107,264
10,796,097
Other significant revenue
Interest income
3,554
3,388
Turnover analysed by geographical market
2016
2015
£
£
United Kingdom
10,845,133
10,512,164
Other European Union
261,230
282,947
Rest of world
901
986
11,107,264
10,796,097
4
Operating profit
2016
2015
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(17,392)
2,756
Fees payable to the company's auditor for the audit of the company's financial statements
8,526
8,776
Depreciation of owned tangible fixed assets
511,981
583,318
Impairment of owned tangible fixed assets
-
129,083
Loss on disposal of tangible fixed assets
156
-
Cost of stocks recognised as an expense
5,252,889
5,161,521
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2016
2015
Number
Number
Production staff
41
41
Directors
1
1
Administrative and sales staff
12
12
54
54
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2016
2015
£
£
Wages and salaries
1,739,391
1,766,125
Social security costs
147,532
141,638
Pension costs
9,492
9,291
1,896,415
1,917,054
6
Directors' remuneration
2016
2015
£
£
Remuneration for qualifying services
51,108
123,654
Company pension contributions to defined contribution schemes
3,051
3,818
54,159
127,472
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2015 - 1).
7
Interest receivable and similar income
2016
2015
£
£
Interest income
Interest on bank deposits
3,554
3,388
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
3,554
3,388
8
Taxation
2016
2015
£
£
Current tax
UK corporation tax on profits for the current period
340,115
217,468
Deferred tax
Origination and reversal of timing differences
(14,000)
12,000
Total tax charge
326,115
229,468
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2016
2015
£
£
Profit before taxation
1,590,353
1,096,266
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2015: 20.00%)
318,071
219,253
Tax effect of expenses that are not deductible in determining taxable profit
157
58
Change in unrecognised deferred tax assets
7,887
7,509
Effect of change in corporation tax rate
-
2,648
Taxation charge for the year
326,115
229,468
9
Dividends
2016
2015
£
£
Interim paid
700,000
500,000
10
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2016
2015
£
£
In respect of:
Property, plant and equipment
-
129,083
Recognised in:
Administrative expenses
-
129,083
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 19 -
11
Tangible fixed assets
Freehold buildings
Plant and equipment
Moulds
Total
£
£
£
£
Cost
At 1 January 2016
2,362,733
7,104,416
2,993,448
12,460,597
Additions
-
81,612
174,979
256,591
Disposals
-
(1,384,066)
(271,986)
(1,656,052)
At 31 December 2016
2,362,733
5,801,962
2,896,441
11,061,136
Depreciation and impairment
At 1 January 2016
515,221
5,980,119
2,896,110
9,391,450
Depreciation charged in the year
43,259
313,753
154,969
511,981
Eliminated in respect of disposals
-
(1,383,669)
(271,974)
(1,655,643)
At 31 December 2016
558,480
4,910,203
2,779,105
8,247,788
Carrying amount
At 31 December 2016
1,804,253
891,759
117,336
2,813,348
At 31 December 2015
1,847,512
1,124,297
97,338
3,069,147
Included in freehold land and buildings is £598,548 (2015 £598,548) in relation to land which is not depreciated.
2016
2015
£
£
Freehold
598,548
598,548
More information on the impairment arising in the
prior year is given in note 10.
12
Financial instruments
2016
2015
£
£
Carrying amount of financial assets
Trade debts measured at cost
4,558,865
3,909,716
Carrying amount of financial liabilities
Trade creditors measured at cost
1,066,207
1,104,347
Financial assets measured at amortised cost consists of trade debtors, amounts due from fellow group undertakings, and cash at bank.
Financial liabilities measured at amortised cost consists of trade creditors, amounts due to group undertakings, other creditors and accruals.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 20 -
13
Stocks
2016
2015
£
£
Raw materials and consumables
237,740
227,359
Finished goods and goods for resale
302,169
338,098
539,909
565,457
14
Debtors
2016
2015
Amounts falling due within one year:
£
£
Trade debtors
2,479,013
2,280,955
Amounts due from group undertakings
3,341
6,044
Prepayments and accrued income
346,035
138,148
2,828,389
2,425,147
15
Creditors: amounts falling due within one year
2016
2015
£
£
Trade creditors
98,348
136,086
Amounts due to group undertakings
363,097
255,345
Corporation tax
194,114
94,987
Other taxation and social security
268,274
357,887
Accruals and deferred income
302,381
356,458
1,226,214
1,200,763
16
Provisions for liabilities
2016
2015
Notes
£
£
Deferred tax liabilities
17
16,000
30,000
16,000
30,000
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 21 -
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2016
2015
Balances:
£
£
Accelerated capital allowances
16,000
30,000
2016
Movements in the year:
£
Liability at 1 January 2016
30,000
Credit to profit or loss
(14,000)
Liability at 31 December 2016
16,000
The deferred tax liability set out above is expected to reverse within 4 years and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2016
2015
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,492
9,291
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
285,000 Ordinary of £1 each
285,000
285,000
20
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2016
2015
£
£
Between two and five years
22,677
20,719
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 22 -
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2016
2015
£
£
Acquisition of tangible fixed assets
193,592
196,147
22
Events after the reporting date
At the Annual General Meeting held on 7th March 2017 it was agreed that a dividend of £1,000,000 would be paid in instalments of £500,000 by 31st March 2017 and £500,000 by 30th April 2017.
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2016
2015
£
£
Aggregate compensation
374,623
344,941
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2016
2015
2016
2015
£
£
£
£
Fischbach KG
20,253
40,366
884,536
1,036,256
Fischbach Belgium
143,475
124,254
-
314
Fischbach Iberica
47,554
19,191
-
-
The following amounts were outstanding at the reporting end date:
2016
2015
Amounts owed to related parties
£
£
Fischbach KG
363,097
255,345
Fischbach Iberica
-
6,044
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
23
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2016
Balance
Amounts owed by related parties
£
Fischbach Belgium
1,982
Fischbach Iberica
1,359
Fischbach Belgium
6,044
24
Controlling party
The company's immediate parent undertaking at the balance sheet date was Fischbach Beteiligungsgesellschaft GMbH, a company incorporated in Germany. The Ultimate holding company of the group is Alfred Fischbach KG, a company incorporated in Germany and controlled by the directors of Fischbach UK Ltd.
25
Cash generated from operations
2016
2015
£
£
Profit for the year after tax
1,264,238
866,798
Adjustments for:
Taxation charged
326,115
229,468
Investment income
(3,554)
(3,388)
Loss on disposal of tangible fixed assets
156
-
Depreciation and impairment of tangible fixed assets
511,981
712,401
Movements in working capital:
Decrease/(increase) in stocks
25,548
(38,013)
(Increase)/decrease in debtors
(403,242)
401,935
(Decrease) in creditors
(73,676)
(270,577)
Cash generated from operations
1,647,566
1,898,624
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