Company Registration No. 00974737 (England and Wales)
FISCHBACH (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
FISCHBACH (UK) LIMITED
COMPANY INFORMATION
Directors
Mr T Langensiepen
Mr S Riding
Secretary
Mrs A M Callaghan
Company number
00974737
Registered office
Warrington Road
Manor Park
Runcorn
Cheshire
WA7 5NH
Auditor
Baldwins Audit Services
Column House
London Road
Shrewsbury
Shropshire
England
SY2 6NN
Business address
Warrington Road
Manor Park
Runcorn
Cheshire
WA7 5NH
FISCHBACH (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
FISCHBACH (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
The first half of 2019 was dominated by higher than normal sales for our UK customers. This was primarily driven by the pending Brexit deadline dates of end of March then October. Manufacturing output pushed the company into 6 & 7 day working to meet the demand as customers stockpiled products due to Brexit uncertainty. Customer lead times became extended due to the higher than normal demand.
As we entered the second half of the year again with the October Brexit date, customers started to pull back on ordering as they began to de-stock their warehouses. Although second half sales were lower than we would have expected the overall performance of the company produced another sales growth year and acceptable bottom line result.
Principal risks and uncertainties
Throughout 2019 the main threat to the business was the uncertainty of the Brexit deadline. The rumoured strategic introduction of competitive activity within our biggest customer was evident through the year but never materialised. However, this threat is still evident in 2020 and we should be aware of this.
Late in 2019 new global sources of HDPE polymer started to enter Europe & raw material prices started to fall in the market. Certain key customers became proactive in tracking material prices and started pushing for cost reductions which we were successful avoiding. This will continue to be a real threat to margins as this trend continues into 2020.
The C-19 Covid virus is begging to impact the UK economy. Fischbach supplies C. 90% of the UK DIY cartridge filling industry so we are under pressure to maintain supply to the market. However recently customers have reduced their call off. To control costs we have changed our shift patterns and furloughed some staff to balance out our resource to the reduced demand. We have cash in the bank to meet any financial commitments & we are maintaining tight control of creditors. We also have weekly Telcon meetings with major customers. The forecast over the coming weeks looks to be an improving one as customers are now projecting increased orders as the DIY market starts to improve at which point we hope to return to full manufacturing efficiency.
The planned Brexit date in December will continue to create uncertainty in the marketplace. Though increased stockpiling for the Brexit could again be a reality again which could boost sales late in the year.
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 necessary for an understanding of the development, performance or position of the business.
Fischbach (UK) Ltd is a highly efficient manufacturer of plastic cartridge systems. The business employs systems & procedures to monitor our performance and these will continue to be developed for the future. There are also key staff appointments which will improve the way we operate the business.
Mrs A M Callaghan
Secretary
12 June 2020
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
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 T Langensiepen
Mr W Bruening
(Resigned 1 January 2019)
Mr S Riding
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £1,000,000. 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.
Future developments
The ongoing development of the Fischbach UK facility will continue through 2020. We have a major investment in technology planned for the year to improve the printed quality of our products & increase plant capacity. Additional factory expenditure is also planned in support of this and as part of the overall strategy to develop the UK site in line with other Fischbach European facilities. Further training in key staff positions is also required in support of this strategy.
A major project for the year will be the introduction of recycled plastic into our products. Key customers, the UK market in general, government & environmentalists are all pushing to reduce the amount of single use plastics entering society. To this end we are working with our main customers to develop a range of products that will meet this goal during 2020.
Auditor
Baldwins Audit Services were appointed as 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.
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
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
12 June 2020
FISCHBACH (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
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;
-
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
- 5 -
Opinion
We have audited the financial statements of Fischbach (UK) Limited (the 'company') for the year ended 31 December 2019 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 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 FRS 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 December 2019 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.
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's
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are 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.
Opinions 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' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; 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
- 6 -
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'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
Dawn Owen BA(Hons) BFP FCA
for and on behalf of Baldwins Audit Services
6 July 2020
Statutory Auditor
Column House
London Road
Shrewsbury
Shropshire
England
SY2 6NN
FISCHBACH (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
2019
2018
Notes
£
£
Turnover
3
13,630,336
12,820,549
Cost of sales
(6,481,072)
(6,346,206)
Gross profit
7,149,264
6,474,343
Distribution costs
(629,195)
(570,104)
Administrative expenses
(4,842,619)
(4,340,813)
Operating profit
4
1,677,450
1,563,426
Interest receivable and similar income
8
8,704
5,090
Profit before taxation
1,686,154
1,568,516
Tax on profit
9
(338,400)
(312,346)
Profit for the financial year
1,347,754
1,256,170
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 2019
- 8 -
2019
2018
£
£
Profit for the year
1,347,754
1,256,170
Other comprehensive income
-
-
Total comprehensive income for the year
1,347,754
1,256,170
FISCHBACH (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,622,169
2,943,745
Current assets
Stocks
12
635,876
610,443
Debtors
13
3,640,862
3,397,153
Cash at bank and in hand
1,415,349
1,219,888
5,692,087
5,227,484
Creditors: amounts falling due within one year
14
(817,991)
(1,022,718)
Net current assets
4,874,096
4,204,766
Total assets less current liabilities
7,496,265
7,148,511
Capital and reserves
Called up share capital
16
285,000
285,000
Share premium account
21,500
21,500
Profit and loss reserves
7,189,765
6,842,011
Total equity
7,496,265
7,148,511
The financial statements were approved by the board of directors and authorised for issue on 12 June 2020 and are signed on its behalf by:
Mr T Langensiepen
Mr S Riding
Director
Director
Company Registration No. 00974737
FISCHBACH (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2018
285,000
21,500
6,985,841
7,292,341
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
1,256,170
1,256,170
Dividends
10
-
-
(1,400,000)
(1,400,000)
Balance at 31 December 2018
285,000
21,500
6,842,011
7,148,511
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
1,347,754
1,347,754
Dividends
10
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2019
285,000
21,500
7,189,765
7,496,265
FISCHBACH (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,848,416
1,306,832
Income taxes paid
(357,225)
(359,588)
Net cash inflow from operating activities
1,491,191
947,244
Investing activities
Purchase of tangible fixed assets
(304,434)
(371,751)
Proceeds on disposal of tangible fixed assets
-
12,000
Interest received
8,704
5,090
Net cash used in investing activities
(295,730)
(354,661)
Financing activities
Dividends paid
(1,000,000)
(1,400,000)
Net cash used in financing activities
(1,000,000)
(1,400,000)
Net increase/(decrease) in cash and cash equivalents
195,461
(807,417)
Cash and cash equivalents at beginning of year
1,219,888
2,027,305
Cash and cash equivalents at end of year
1,415,349
1,219,888
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
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
true
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.
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
it is probable will be
recover
ed
.
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.
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 2019
1
Accounting policies
(Continued)
- 13 -
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.
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.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
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.
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.
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 2019
1
Accounting policies
(Continued)
- 15 -
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
through
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 transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
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.
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 2019
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Sale of goods
13,630,336
12,820,549
2019
2018
£
£
Other significant revenue
Interest income
8,704
5,090
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
13,440,594
12,643,576
Other European Union
189,742
176,798
Rest of world
-
175
13,630,336
12,820,549
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
76,571
117,383
Depreciation of owned tangible fixed assets
626,010
619,094
Profit on disposal of tangible fixed assets
-
(11,998)
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £76,571 (2018 - £117,383).
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,150
9,326
Audit of the financial statements of the company's subsidiaries
1,050
-
9,200
9,326
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Production staff
41
41
Directors
1
1
Administrative and sales staff
13
13
55
55
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
2,113,506
1,893,123
Social security costs
172,470
157,209
Pension costs
33,554
18,948
2,319,530
2,069,280
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
117,246
117,674
Company pension contributions to defined contribution schemes
4,000
4,000
121,246
121,674
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2018 - 1).
8
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
8,596
5,090
Other interest income
108
-
Total income
8,704
5,090
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
8
Interest receivable and similar income
(Continued)
- 19 -
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
8,596
5,090
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
338,400
322,146
Deferred tax
Origination and reversal of timing differences
-
(9,800)
Total tax charge
338,400
312,346
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:
2019
2018
£
£
Profit before taxation
1,686,154
1,568,516
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
320,369
298,018
Tax effect of expenses that are not deductible in determining taxable profit
129
(539)
Change in unrecognised deferred tax assets
9,328
14,867
Non qualifying depreciation
8,574
-
Taxation charge for the year
338,400
312,346
10
Dividends
2019
2018
£
£
Interim paid
1,000,000
1,400,000
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
11
Tangible fixed assets
Freehold buildings
Plant and equipment
Moulds
Total
£
£
£
£
Cost
At 1 January 2019
2,362,733
6,517,397
3,398,786
12,278,916
Additions
-
140,817
163,617
304,434
At 31 December 2019
2,362,733
6,658,214
3,562,403
12,583,350
Depreciation and impairment
At 1 January 2019
648,738
5,455,782
3,230,651
9,335,171
Depreciation charged in the year
45,129
385,509
195,372
626,010
At 31 December 2019
693,867
5,841,291
3,426,023
9,961,181
Carrying amount
At 31 December 2019
1,668,866
816,923
136,380
2,622,169
At 31 December 2018
1,713,995
1,061,615
168,135
2,943,745
Included in freehold land and buildings is £598,548 (2018 £598,548) in relation to land which is not depreciated.
2019
2018
£
£
Freehold
598,548
598,548
12
Stocks
2019
2018
£
£
Raw materials and consumables
337,847
303,341
Finished goods and goods for resale
298,029
307,102
635,876
610,443
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,769,367
3,137,665
Amounts owed by group undertakings
1,893
4,062
Prepayments and accrued income
869,602
255,426
3,640,862
3,397,153
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
14
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
134,009
215,591
Amounts owed to group undertakings
16,304
30,851
Corporation tax
116,386
135,211
Other taxation and social security
274,893
390,962
Accruals and deferred income
276,399
250,103
817,991
1,022,718
15
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,554
18,948
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.
16
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
285,000 Ordinary of £1 each
285,000
285,000
17
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:
2019
2018
£
£
Within one year
-
7,161
Between two and five years
56,284
6,676
56,284
13,837
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
18
Capital commitments
Amounts contracted for but not provided in the financial statements:
2019
2018
£
£
Acquisition of tangible fixed assets
412,340
169,360
Included in the capital commitments of £412,340 is £298,714 in relation to the final 30% payment required on machinery for which we have already paid a deposit of 70%. This deposit is held within the prepayments figure in the accounts.
19
Events after the reporting date
At the Annual General Meeting held on 4th March 2020 it was agreed that a dividend for the 2020 year of £1,500,000 would be paid by 1st May 2020..
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2019
2018
£
£
Aggregate compensation
363,297
436,859
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2019
2018
2019
2018
£
£
£
£
Fischbach KG
70,034
49,012
1,489,443
772,340
Fischbach Belgium
35,226
29,884
-
-
Fischbach Iberica
15,259
19,831
-
76
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Fischbach KG
14,207
30,851
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
20
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due from related parties
£
£
Fischbach KG
1,893
2,397
Fischbach Belgium
-
1,665
Fischbach Iberica
(2,097)
-
21
Ultimate 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 Fischbach KG, a company incorporated in Germany.
22
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
1,347,754
1,256,170
Adjustments for:
Taxation charged
338,400
312,346
Investment income
(8,704)
(5,090)
Gain on disposal of tangible fixed assets
-
(11,998)
Depreciation and impairment of tangible fixed assets
626,010
619,094
Movements in working capital:
Increase in stocks
(25,433)
(24,257)
Increase in debtors
(243,709)
(489,451)
Decrease in creditors
(185,902)
(349,982)
Cash generated from operations
1,848,416
1,306,832
23
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
1,219,888
195,461
1,415,349
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