Company Registration No. 00974737 (England and Wales)
FISCHBACH (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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
United Kingdom
WA7 1SN
Auditor
Azets Audit Services
St David's Court
Union Street
Wolverhampton
WV1 3JE
FISCHBACH (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
FISCHBACH (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
In 2021 we saw continuing high sales carrying over from 2020. Due to the sheer demand for our products allied to some operational problems (plant & equipment issues, Covid isolation, contract labour supply, etc.) Fischbach UK continued to struggle to meet its UK customers demand for products. As in 2020 this was a backdrop for the business for the whole of the year as the UK DIY & professional markets continued to be very busy.
The above issues resulted in our delivery lead times becoming extended & some customers sourced elsewhere to supplement the shortfall in cartridge supplies from us though the plant was working 24 hours 5/6 days per week to meet UK market demands.
Some UK customers’ orders were placed with our sister companies in Germany & Belgium to supplement our capacity, support our customers & keep the business within the Fischbach group. This was a successful plan used throughout 2021.
Principal risks and uncertainties
The main threats for the trading year.
-
Due to our inability to support our main customers with volume of products & in timely fashion they would source elsewhere & this did happen though not wholly successful & in limited volume.
-
Raw material costs & supply lines would continue to be a challenge for the year.
-
Covid-19 cases in the local area were rising and would remain concern to our business due to the need for infected employees to isolate at home which reduces our operational efficiency due to lack of key personnel.
-
The impact on the operation due to the growing transition of our UK customers towards recycled products & the potential for disruption on our production lines.
Developments
The continuing development of recycled products in the UK market to meet the UK government plastics tax program (PPT) did not accelerate at the anticipated levels. This was due in the main to customers focus on maintaining & growing current business levels rather than preparing for the April 2022 PPT. This real transition to recycled products will now start in 2022.
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.
The Future
The market for 2022 with continue to be challenging. Fi UK will continue to be the lead in cartridge & ancillaries manufacturing in the UK. Ongoing high demand for our products will continue to test our manufacturing capacities along with further possibilities of raw material cost increases. Assuming the growth in the demand for our products continues then further investment in the Runcorn plant will be needed to satisfy the market. The ongoing threat of the Covid pandemic is also likely to affect the business in some way.
FISCHBACH (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Mrs A M Callaghan
Secretary
21 September 2022
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the manufacture and distribution of plastic cylinders and cartridges.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a final dividend.
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 S Riding
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
Developments.
2022 will continue to offer challenges as we continue to transition over to more sustainable products with the advent of the UK plastics tax & and increasing demand from our customers to switch over to recycled products for their customers.
With our dedicated & specialized workforce plus further investment in manufacturing technology, Fischbach (UK) Ltd will continue to develop as a company & intends to maintain its market position for the future.
Based on the 2021 financial results it is projected that 2022 demand for our products will continue and that the company
expectation is to continue to trade for at least 12 months from March 2022
Auditor
Azets 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.
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.
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
By order of the board
Mrs A M Callaghan
Secretary
21 September 2022
FISCHBACH (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
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
- 6 -
Opinion
We have audited the financial statements of Fischbach (UK) Limited (the 'company') for the year ended 31 December 2021 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 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 2021 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
FISCHBACH (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FISCHBACH (UK) LIMITED
- 7 -
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.
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
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
FISCHBACH (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FISCHBACH (UK) LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
-
Reviewing minutes of meetings of those charged with governance;
-
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
-
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Lee Meredith ACA (Senior Statutory Auditor)
For and on behalf of
23 September 2022
Azets Audit Services
Chartered Accountants
St David's Court
Statutory Auditor
Union Street
Wolverhampton
WV1 3JE
FISCHBACH (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
Turnover
3
16,006,928
13,340,006
Cost of sales
(7,805,893)
(6,028,680)
Gross profit
8,201,035
7,311,326
Distribution costs
(688,083)
(616,503)
Administrative expenses
(5,462,134)
(5,207,481)
Other operating income
3,561
22,531
Operating profit
4
2,054,379
1,509,873
Interest receivable and similar income
8
3,046
Profit before taxation
2,054,379
1,512,919
Tax on profit
9
(436,900)
(275,900)
Profit for the financial year
1,617,479
1,237,019
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 2021
- 10 -
2021
2020
£
£
Profit for the year
1,617,479
1,237,019
Other comprehensive income
-
-
Total comprehensive income for the year
1,617,479
1,237,019
FISCHBACH (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 11 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,594,750
3,399,988
Current assets
Stocks
13
958,338
604,096
Debtors
14
3,642,137
3,755,496
Cash at bank and in hand
946,620
923,544
5,547,095
5,283,136
Creditors: amounts falling due within one year
15
(1,022,356)
(1,336,728)
Net current assets
4,524,739
3,946,408
Total assets less current liabilities
8,119,489
7,346,396
Provisions for liabilities
Deferred tax liability
16
268,726
113,112
(268,726)
(113,112)
Net assets
7,850,763
7,233,284
Capital and reserves
Called up share capital
18
285,000
285,000
Share premium account
21,500
21,500
Profit and loss reserves
7,544,263
6,926,784
Total equity
7,850,763
7,233,284
The financial statements were approved by the board of directors and authorised for issue on 21 September 2022 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 2021
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
285,000
21,500
7,189,765
7,496,265
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
1,237,019
1,237,019
Dividends
10
-
-
(1,500,000)
(1,500,000)
Balance at 31 December 2020
285,000
21,500
6,926,784
7,233,284
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
1,617,479
1,617,479
Dividends
10
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2021
285,000
21,500
7,544,263
7,850,763
FISCHBACH (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,089,716
2,621,845
Income taxes paid
(174,706)
(252,606)
Net cash inflow from operating activities
1,915,010
2,369,239
Investing activities
Purchase of tangible fixed assets
(891,934)
(1,364,090)
Interest received
3,046
Net cash used in investing activities
(891,934)
(1,361,044)
Financing activities
Dividends paid
(1,000,000)
(1,500,000)
Net cash used in financing activities
(1,000,000)
(1,500,000)
Net increase/(decrease) in cash and cash equivalents
23,076
(491,805)
Cash and cash equivalents at beginning of year
923,544
1,415,349
Cash and cash equivalents at end of year
946,620
923,544
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
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, United Kingdom, WA7 1SN.
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.
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 land and buildings
straight line over 50 years
Plant and equipment
over 6 years
Moulds
over 3 years
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
.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
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 cost and replacement 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.
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.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
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 2021
1
Accounting policies
(Continued)
- 17 -
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 th
r
ough 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
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.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
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
in the period
are included in profit or loss.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Stock valuation
Stock valuation policy requires the use of estimation ascertaining how much of which overheads relate to stock production and how much to general overheads. It also involves the estimation of optimum production levels.
Both of these then form part of the overhead absorption calculation in determining the final stock valuations.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sale of goods
16,006,928
13,340,006
2021
2020
£
£
Other significant revenue
Interest income
-
3,046
Grants received
3,561
22,531
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
15,660,617
13,106,891
Other European Union
346,311
233,115
16,006,928
13,340,006
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
71,213
93,966
Government grants
(3,561)
(22,531)
Depreciation of owned tangible fixed assets
697,172
586,270
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 £71,213 (2020 - £93,966).
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,100
8,500
For other services
Taxation compliance services
1,175
1,226
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production staff
42
41
Directors
1
1
Administrative and sales staff
14
13
Total
57
55
Their aggregate remuneration comprised:
2021
2020
£
£
as restated
Wages and salaries
1,431,884
1,403,500
Social security costs
187,106
179,120
Pension costs
39,246
37,695
2,124,959
2,020,139
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Employees
(Continued)
- 21 -
The 2020 wages and salaries figure has been re-stated, as they incorrectly included subcontract costs, this has no impact on the profit and loss account.
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
133,491
116,487
Company pension contributions to defined contribution schemes
4,000
4,000
137,491
120,487
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
2,840
Other interest income
206
Total income
3,046
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
2,840
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
281,286
162,788
Deferred tax
Origination and reversal of timing differences
155,614
113,112
Total tax charge
436,900
275,900
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 22 -
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:
2021
2020
£
£
Profit before taxation
2,054,379
1,512,919
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
390,332
287,455
Tax effect of expenses that are not deductible in determining taxable profit
85
Non qualifying depreciation
8,576
8,574
Deferred tax calculated at higher/(lower) rate
64,494
(6,284)
Deferred tax adjustment in respect of prior year
6,284
(15,660)
Expenses to be relieved next year
1,730
Expenses prior year now relieved
(1,730)
Enhanced capital allowances
(31,056)
Taxation charge for the year
436,900
275,900
10
Dividends
2021
2020
£
£
Interim paid
1,000,000
1,500,000
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Moulds
Total
£
£
£
£
Cost
At 1 January 2021
2,362,733
7,874,542
3,710,164
13,947,439
Additions
891,934
891,934
At 31 December 2021
2,362,733
8,766,476
3,710,164
14,839,373
Depreciation and impairment
At 1 January 2021
738,995
6,302,949
3,505,507
10,547,451
Depreciation charged in the year
45,129
548,570
103,473
697,172
At 31 December 2021
784,124
6,851,519
3,608,980
11,244,623
Carrying amount
At 31 December 2021
1,578,609
1,914,957
101,184
3,594,750
At 31 December 2020
1,623,738
1,571,593
204,657
3,399,988
Included in freehold land and buildings is £246,548 (2020 £246,548) in relation to land which is not depreciated.
2021
2020
£
£
Freehold land
246,548
246,548
12
Financial instruments
2021
2020
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,503,120
4,629,859
Carrying amount of financial liabilities
Measured at amortised cost
889,208
1,310,160
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 taxation and social security and accruals.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
13
Stocks
2021
2020
£
£
Raw materials and consumables
568,459
373,508
Finished goods and goods for resale
389,879
230,588
958,338
604,096
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
3,554,415
3,696,711
Amounts owed by group undertakings
2,085
9,604
Prepayments and accrued income
85,637
49,181
3,642,137
3,755,496
15
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
86,296
207,863
Amounts owed to group undertakings
99,435
87,041
Corporation tax
133,148
26,568
Other taxation and social security
364,211
503,175
Accruals and deferred income
339,266
512,081
1,022,356
1,336,728
16
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
2021
2020
Balances:
£
£
Accelerated capital allowances
268,726
113,112
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
16
Deferred taxation
(Continued)
- 25 -
2021
Movements in the year:
£
Liability at 1 January 2021
113,112
Charge to profit or loss
155,614
Liability at 31 December 2021
268,726
17
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,246
37,695
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.
The liability at the year end in respect of defined contribution schemes was £10,440 (2020 - £9,746).
18
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
285,000
285,000
285,000
285,000
19
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:
2021
2020
£
£
Within one year
17,849
15,723
Between two and five years
41,777
56,512
In over five years
3,114
59,626
75,349
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2021
2020
£
£
Acquisition of tangible fixed assets
36,842
364,275
21
Events after the reporting date
At the Annual General Meeting held on 7 June 2022 it was agreed that a dividend for the 2021 year of £1,200,000 would be in two instalments, £600,000 was paid on 20 June 2022 and £600,000 was paid on 31 August 2022.
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021
2020
£
£
Aggregate compensation
324,576
343,051
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Fischbach KG
91,700
70,985
1,838,662
1,462,906
Fischbach Belgium
127,475
76,647
79,559
71,873
Other related parties
18,840
17,811
-
436
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Fischbach KG
99,435
69,996
Fischbach GmbH
-
17,045
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
22
Related party transactions
(Continued)
- 27 -
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Fischbach KG
-
8,374
Fischbach Belgium
2,085
1,230
23
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.
24
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,617,479
1,237,019
Adjustments for:
Taxation charged
436,900
275,900
Investment income
(3,046)
Depreciation and impairment of tangible fixed assets
697,172
586,270
Movements in working capital:
(Increase)/decrease in stocks
(354,242)
31,780
Decrease/(increase) in debtors
113,359
(114,633)
(Decrease)/increase in creditors
(420,952)
608,555
Cash generated from operations
2,089,716
2,621,845
25
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
923,544
23,076
946,620
2021-12-31
2021-01-01
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