Company Registration No. 00974737 (England and Wales)
FISCHBACH (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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
Rumer Hill Business Estate
Rumer Hill Road
Cannock
WS11 0ET
FISCHBACH (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
FISCHBACH (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present the strategic report for the year ended 31 December 2020.
Fair review of the business
Quarter one 2020 saw higher than average sales this continuing from Q3/4 2019. In March sales started to slow down as the UK government brought the country into lockdown which had a significant effect on the UK building/DIY market. Most of our top ten customers cut back on purchasing products over Q2. This had a significant negative effect on Fi UK.
Second half of Q2 the customer schedules started to return and from late June onwards up to the end of the year sales were buoyant to the point Fi UK was working 24 hours x 6 days per week up to the end of the year. The uplift in sales was due to customers catching up on their delayed orders from the lockdown, a stronger than usual DIY market in the UK, delayed major UK civils building projects needing to be completed by the end of the year and forward buying by our customers in anticipation of the pending Brexit.
Principal risks and uncertainties
Two main threats for the trading year.
-
The main concern for 2020 was the ongoing threat of the Covid virus. This did impact the business not only in terms of lost sales but also to risk of an infection in the factory that could lead to absence of staff due to isolation periods. The Company did have a minor infection issue in November, but this did not disrupt the factory greatly.
-
The uncertainty of the Brexit. As previously stated, this helped improve sales in the second half of the year driven by the uncertainty of the deal/no deal with the EU which was not signed until late December. Customers stockpiled just in case of a no deal scenario.
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
11 March 2022
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
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 8.
Ordinary dividends were paid amounting to £1,500,000. 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
The ongoing development of the Fischbach UK facility continued through 2020. Our new technology print line was delivered in June, but we were not able to commission the machine until August/September due to the manufacturers engineers not being allowed to fly into the UK due to covid restrictions. Once running, the print line helped with Q4 sales output.
Special training was needed with all production staff in the use of this equipment.
The project for the introduction of recycled plastic into our products was delayed from Q4/20 to Q1/21 at the request of our main customer as they concentrated on current products sales growth to meet market demand and close out the year.
The Future
The market for 2021 with be challenging. The Company believe they will continue to dominate the UK in our market segment. Continuing high demand for our products will test our manufacturing capacities along with imminent raw material cost increases. Also, tighter raw materials capacity in the supply market is also anticipated as OEM sellers restrict polymer volume across the globe.
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.
FISCHBACH (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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
11 March 2022
FISCHBACH (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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 2020 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 2020 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
- 6 -
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
- 7 -
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
16 March 2022
Azets Audit Services
Chartered Accountants
Statutory Auditor
Rumer Hill Business Estate
Rumer Hill Road
Cannock
WS11 0ET
FISCHBACH (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
2020
2019
Notes
£
£
Turnover
3
13,340,006
13,630,336
Cost of sales
(6,028,680)
(6,481,072)
Gross profit
7,311,326
7,149,264
Distribution costs
(616,503)
(629,195)
Administrative expenses
(5,207,481)
(4,842,619)
Other operating income
22,531
Operating profit
4
1,509,873
1,677,450
Interest receivable and similar income
8
3,046
8,704
Profit before taxation
1,512,919
1,686,154
Tax on profit
9
(275,900)
(338,400)
Profit for the financial year
1,237,019
1,347,754
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 2020
- 9 -
2020
2019
£
£
Profit for the year
1,237,019
1,347,754
Other comprehensive income
-
-
Total comprehensive income for the year
1,237,019
1,347,754
FISCHBACH (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 10 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,399,988
2,622,169
Current assets
Stocks
13
604,096
635,876
Debtors
14
3,755,496
3,640,862
Cash at bank and in hand
923,544
1,415,349
5,283,136
5,692,087
Creditors: amounts falling due within one year
15
(1,336,728)
(817,991)
Net current assets
3,946,408
4,874,096
Total assets less current liabilities
7,346,396
7,496,265
Provisions for liabilities
Deferred tax liability
16
113,112
(113,112)
-
Net assets
7,233,284
7,496,265
Capital and reserves
Called up share capital
18
285,000
285,000
Share premium account
21,500
21,500
Profit and loss reserves
6,926,784
7,189,765
Total equity
7,233,284
7,496,265
The financial statements were approved by the board of directors and authorised for issue on 11 March 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 2020
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2019
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
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
FISCHBACH (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 12 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,621,845
1,848,416
Income taxes paid
(252,606)
(357,225)
Net cash inflow from operating activities
2,369,239
1,491,191
Investing activities
Purchase of tangible fixed assets
(1,364,090)
(304,434)
Interest received
3,046
8,704
Net cash used in investing activities
(1,361,044)
(295,730)
Financing activities
Dividends paid
(1,500,000)
(1,000,000)
Net cash used in financing activities
(1,500,000)
(1,000,000)
Net (decrease)/increase in cash and cash equivalents
(491,805)
195,461
Cash and cash equivalents at beginning of year
1,415,349
1,219,888
Cash and cash equivalents at end of year
923,544
1,415,349
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 13 -
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 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 2020
1
Accounting policies
(Continued)
- 14 -
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 2020
1
Accounting policies
(Continued)
- 15 -
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 2020
1
Accounting policies
(Continued)
- 16 -
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
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 2020
1
Accounting policies
(Continued)
- 17 -
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
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.
1.15
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 2020
- 18 -
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 in 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:
2020
2019
£
£
Turnover analysed by class of business
Sale of goods
13,340,006
13,630,336
2020
2019
£
£
Other significant revenue
Interest income
3,046
8,704
Grants received
22,531
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
13,106,891
13,440,594
Other European Union
233,115
189,742
13,340,006
13,630,336
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 19 -
4
Operating profit
2020
2019
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
93,966
76,571
Government grants
(22,531)
Depreciation of owned tangible fixed assets
586,270
626,010
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 £93,966 (2019 - £76,571).
5
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,500
8,150
For other services
Taxation compliance services
1,226
1,050
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Production staff
41
41
Directors
1
1
Administrative and sales staff
13
13
Total
55
55
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
1,776,033
1,752,432
Social security costs
179,120
172,470
Pension costs
37,695
33,554
2,392,672
2,319,530
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 20 -
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
116,487
117,246
Company pension contributions to defined contribution schemes
4,000
4,000
120,487
121,246
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2019 - 1).
8
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
2,840
8,596
Other interest income
206
108
Total income
3,046
8,704
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
2,840
8,596
9
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
162,788
338,400
Deferred tax
Origination and reversal of timing differences
113,112
Total tax charge
275,900
338,400
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
9
Taxation
(Continued)
- 21 -
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:
2020
2019
£
£
Profit before taxation
1,512,919
1,686,154
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
287,455
320,369
Tax effect of expenses that are not deductible in determining taxable profit
85
129
Change in unrecognised deferred tax assets
9,328
Non qualifying depreciation
8,574
8,574
Deferred tax calculated at lower rate
(6,284)
Deferred tax adjustments in respect of prior year
(15,660)
Expenses to be relieved next year
1,730
Taxation charge for the year
275,900
338,400
10
Dividends
2020
2019
£
£
Interim paid
1,500,000
1,000,000
11
Tangible fixed assets
Freehold buildings
Plant and equipment
Moulds
Total
£
£
£
£
Cost
At 1 January 2020
2,362,733
6,658,214
3,562,403
12,583,350
Additions
1,216,328
147,761
1,364,089
At 31 December 2020
2,362,733
7,874,542
3,710,164
13,947,439
Depreciation and impairment
At 1 January 2020
693,867
5,841,291
3,426,023
9,961,181
Depreciation charged in the year
45,128
461,658
79,484
586,270
At 31 December 2020
738,995
6,302,949
3,505,507
10,547,451
Carrying amount
At 31 December 2020
1,623,738
1,571,593
204,657
3,399,988
At 31 December 2019
1,668,866
816,923
136,380
2,622,169
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
11
Tangible fixed assets
(Continued)
- 22 -
Included in freehold land and buildings is £246,548 (2019 £246,548 (as re stated)) in relation to land which is not depreciated.
The 2019 figure has been re-stated, this has no impact on either the Profit and Loss account or the Balance Sheet.
12
Financial instruments
2020
2019
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,629,859
4,186,609
Carrying amount of financial liabilities
Measured at amortised cost
806,985
426,712
Financial assets measured at amortised cost consists of trade debtors, amounts due from fellow group undertakings, and cash at bank.
Financial liabilities measured at amortised cost consists of trade creditors, amounts due to group undertakings, other creditors and accruals.
13
Stocks
2020
2019
£
£
Raw materials and consumables
373,508
337,847
Finished goods and goods for resale
230,588
298,029
604,096
635,876
14
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
3,696,711
2,769,367
Amounts owed by group undertakings
9,604
1,893
Prepayments and accrued income
49,181
869,602
3,755,496
3,640,862
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 23 -
15
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
207,863
134,009
Amounts owed to group undertakings
87,041
16,304
Corporation tax
26,568
116,386
Other taxation and social security
503,175
274,893
Accruals and deferred income
512,081
276,399
1,336,728
817,991
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
2020
2019
Balances:
£
£
Accelerated capital allowances
113,112
-
2020
Movements in the year:
£
Liability at 1 January 2020
-
Charge to profit or loss
113,112
Liability at 31 December 2020
113,112
17
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,695
33,554
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 £9,746 (2019 - £9,292)
18
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
285,000
285,000
285,000
285,000
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
18
Share capital
(Continued)
- 24 -
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:
2020
2019
(Restated)
£
£
Within one year
15,723
9,343
Between two and five years
56,512
32,926
In over five years
3,114
14,015
75,349
56,284
The 2019 disclosures have been restated, however this has no impact on either the Profit and Loss account or the Balance Sheet.
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2020
2019
£
£
Acquisition of tangible fixed assets
364,275
412,340
21
Events after the reporting date
At the Annual General Meeting held on 15th December 2021 it was agreed that a dividend for the 2021 year of £1,000,000 would be paid by 31st December 2021. This has now been paid - £500,000 on 23rd December 2021 and £500,000 on 29th December 2021.
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2020
2019
£
£
Aggregate compensation
343,051
363,297
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
22
Related party transactions
(Continued)
- 25 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2020
2019
2020
2019
£
£
£
£
Fischbach KG
70,985
70,034
1,462,906
1,489,443
Fischbach Belgium
76,647
35,226
71,873
-
Fischbach GmbH
-
15,259
-
-
Fischbach Iberica
17,811
436
-
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due to related parties
£
£
Fischbach KG
69,996
14,207
Fischbach GmbH
17,045
-
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due from related parties
£
£
Fischbach KG
8,374
1,893
Fischbach Belgium
1,230
-
Fischbach GmbH
-
(2,097)
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.
FISCHBACH (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 26 -
24
Cash generated from operations
2020
2019
£
£
Profit for the year after tax
1,237,019
1,347,754
Adjustments for:
Taxation charged
275,900
338,400
Investment income
(3,046)
(8,704)
Depreciation and impairment of tangible fixed assets
586,270
626,010
Movements in working capital:
Decrease/(increase) in stocks
31,780
(25,433)
Increase in debtors
(114,633)
(243,709)
Increase/(decrease) in creditors
608,555
(185,902)
Cash generated from operations
2,621,845
1,848,416
25
Analysis of changes in net funds
1 January 2020
Cash flows
31 December 2020
£
£
£
Cash at bank and in hand
1,415,349
(491,805)
923,544
2020-12-31
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