REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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FOR
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FWB PRODUCTS LIMITED |
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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2019 |
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FOR
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FWB PRODUCTS LIMITED |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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CONTENTS OF THE FINANCIAL STATEMENTS
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for the Year Ended 31st December 2019
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Page
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Company Information
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1
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Strategic Report
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2
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Report of the Directors
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6
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Report of the Independent Auditors
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8
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Profit and Loss Account
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10
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Balance Sheet
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11
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Statement of Changes in Equity
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12
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Notes to the Financial Statements
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13
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FWB PRODUCTS LIMITED
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COMPANY INFORMATION
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for the Year Ended 31st December 2019
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DIRECTORS:
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REGISTERED OFFICE:
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REGISTERED NUMBER:
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AUDITORS:
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Chartered Accountants and Statutory Auditors
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1 City Road East
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Manchester
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M15 4PN
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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STRATEGIC REPORT
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for the Year Ended 31st December 2019
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REVIEW OF THE BUSINESS
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The principle activity of the FWB Group for 2019 was to supply and distribute a complete range of industrial and
engineering products covering 9 specialist categories into a wide portfolio of customers. The customer base
operates within the Construction, Manufacturing, Engineering, Automotive, Marine, Food & Beverage, Petrochemical,
Oil & Gas and Utility sectors, this has been facilitated through three FWB Branches within the UK.
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2019 was a turbulent year and this is reflected in the results. Market pressures bring fierce competition which in turn
can damage weak margin business and effect profitability. A full review of structure and practices has seen non-profit
making processes removed, low margin business addressed, and strategic measures developed to protect the
business moving forward.
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A change in leadership at half year has allowed for new strategic measures to limit the decline to one financial year
and stabalise sufficiently to put FWB on a strong footing for 2020. In conjunction with the initiatives the emphasis
has been to strengthen the balance sheet by removing slow moving stock, improving stock turn on core range lines,
improving the cash position via stock reduction and enhanced debtor days whilst ensuring swift & timely settlement
to suppliers promoting both improved and sustainable business partnerships throughout the supply chain.
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A forward-thinking approach has also been taken with regards to generating future business, from August 2019 two
initiatives started, one being an interactive website and the second a full product Catalogue.
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The new interactive website will allow both 'customer' and 'trade login', it provides 'How to Guides', and 'How to
Videos', there is a new mobile app for direct sales, the website can apply discount structures to trade accounts and
allows a basket of goods to remain available for future orders giving swift effortless use. The website is easy to
navigate, interesting visually and quick to use.
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The Catalogue consists of a full range of products from each of our 9 categories, with new high-resolution images and
the latest manufacturer descriptions, the catalogue provides the technical specifications throughout each category
along with the measuring and how to guides that are available on the website.
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Both the Website & Catalogue are ready to launch in Q1 of 2020 providing significant sales support and opportunities
to increase business with new customers and to gain potential new business.
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Both Quarter 3 & Quarter 4 of 2019 have successfully ensured that FWB can transition into 2020 in a positive way
with a strong foundation and the tools to focus on delivering sustainable growth and profit.
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THE IMPACT OF CORONAVIRUS
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The COVID -19 pandemic became apparent on 23rd March 2020 and since then the economy has seen the worst
trading times reported for many years, its effects are felt throughout every business. The key to FWB's success during
this period has been to react immediately and swiftly to the new trading conditions. Urgent emphasis was put onto
critical roles and forming skeleton staff needed to fill those roles according to skill set, new budgeting forecasts
completed to establish the breakeven point required by branch and by Group, financial arrangements made for
payment holidays initiated immediately, staff home working set-up & operational with equipment and software done
within 24 hours.
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The above measures meant that staff were furloughed at the earliest opportunity, critical roles could work from
home and skeleton staff were in each branch. New hunt groups were setup for the telephone and email systems
ensuring all incoming communication was routed to the correct people and the trade counters set-up to safely
manage daily trade by advance collections only.
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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STRATEGIC REPORT
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for the Year Ended 31st December 2019
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Communication has also been major contributing factor, it was imperative to understand which suppliers were still
open and able to trade, what urgent orders were available and when they could be delivered, alongside this all
customers had to be contacted to let them know FWB was open as a main supplier of PPE and Janitorial supplies
along with our other 7 categories within industrial and engineering supplies.
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Due to the strong partnerships in place with our supply chain FWB were able to procure much needed PPE supplies
for the NHS, care homes and our key accounts, alongside maintenance supplies for all the key workers in other
sectors such as the water utilities, plumbing, electrical etc. Following the decisive actions taken FWB has been able to
generate profit and sustain business during these unprecedented times.
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Trading during the first four months of 2020 has already exceeded the budgeted figures projected prior to Covid-19,
this is an incredible result under the most extreme market pressures.
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From the cashflow projections and the strict credit control procedures FWB has not required any financial assistance
from either the Bank or via the Covid-19 Loan Schemes and has managed to significantly improve its cash position
from Year end to current period.
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Although both the new website and new catalogue have been developed it has been decided to delay the launch
until Coronavirus has passed and businesses are back to healthy trading levels. The main reason for this is a launch
under the current trading circumstances whereby many businesses are either closed or on skeleton staff would
greatly reduce the impact expected, this will now be delayed until July / August so that FWB can maximise on a full
launch and build on what is already an excellent start to 2020.
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FINANCIAL KEY PERFORMANCE INDICATORS
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During the year turnover dropped by 9% from £17,956,457 to £16,287,046 which resulted in loss before tax of
£463,823.
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REVIEW OF BUSINESS RISKS
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Financial Risks
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The Groups operations expose it to a limited number of financial risks, primarily credit risk and liquidity risk.
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Credit Risk
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Appropriate credit checks are undertaken on all potential customers before liabilities are incurred. Individual
exposures are monitored on an ongoing basis to ensure bad debts are minimised.
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A credit insurance policy has been established to further reduce exposure.
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Liquidity Risk
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The company regularly forecasts cash flow to ensure that sufficient funds are available for operational requirements.
This is supplemented with appropriate banking facilities.
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Non-Financial Risks
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Non-financial risks are monitored on a regular basis by the Board. The principal risks and how they are migrated re
set out below;
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Loss of business due to fall in demand or current economic climate - the Directors review prospects and sales
forecasts on a regular basis. The company maintains a consistent and good order book and puts considerable effort
into maintaining customer focused activities.
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Loss of suppliers - The Company maintains strong relationships with its supplier and actively manages its supplier
base. The receipt of many industry/supplier accolades is evidence of the success.
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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STRATEGIC REPORT
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for the Year Ended 31st December 2019
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POLICY ON PAYMENT TO SUPPLIERS
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The Group's supplier payment policy is to agree terms and conditions for business transactions with suppliers.
Suppliers are made aware of the Company's terms and payment is made according to those terms.
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OUR PEOPLE
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The Company believes that its people are a real asset to the company and the key to long term success. We have
continued to invest in the development of talent within the business.
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The Group values the involvement of its employees, and keeps them informed on issues affecting them as employees,
and on the various factors affecting the Group, The Groups intranet site is being developed to keep staff informed of
all Group developments and news.
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DISABLED EMPLOYEES
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Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the
applicant concerned. In the event of employees becoming disabled every effort is made to ensure that their
employment with the Company continues and that appropriate & relevant training is arranged. It is the policy of the
Group that the training, career development and promotion of disabled persons should, as far as possible, be
identical to that of other employees.
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HUMAN TRAFFICKING AND ANTI-SLAVERY STATEMENT
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The Company is committed to ensuring that it is free from acts of modern slavery from within its own business and
within its supply chain. The Company acknowledges responsibility for implementing the requirements of the Modern
Slavery Act 2015 and will ensure transparency within the organisation and with suppliers of goods and services to the
organisation.
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As part of the Group's due diligence process into slavery and human trafficking, the supplier approval process will
require all suppliers to confirm that they are compliant with the requirements of the Act. The Group will not support
r deal with any business knowingly involved in slavery or human trafficking.
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The Group Directors and Senior Management will take responsibility for enhancing this policy statement and its
objectives, and shall provide adequate training to ensure that, wherever possible, slavery and human trafficking is not
taking place within the organisation or within its supply chains.
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The Group reserves the right to conduct audits of key suppliers to ensure compliance with the Group Supplier Code of
Conduct. These audits can be done either by employees or by contracted, independent third parties or a
combination. We expect our suppliers to respect human rights, including maintaining policies and procedures to
prevent the use of child or forced labour
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EMPLOYMENT POLICY
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The company continues to encourage and support employees seeking qualifications or vocational training at all levels
through the organisation. There is a well developed NVQ training program in place, and further in-service skills
training is undertaken in a planned manner. The company sponsors some employees seeking further academic
education through financial and study time methods.
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ON BEHALF OF THE BOARD:
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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STRATEGIC REPORT
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for the Year Ended 31st December 2019
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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REPORT OF THE DIRECTORS
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for the Year Ended 31st December 2019
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The directors present their report with the financial statements of the company for the year ended 31st December 2019.
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DIVIDENDS
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The total distribution of dividends for the year ended 31 December 2019 was £100,000 (2018: NIL).
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DIRECTORS
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The directors shown below have held office during the whole of the period from 1st January 2019 to the date of this
report.
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Other changes in directors holding office are as follows:
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POLITICAL DONATIONS AND EXPENDITURE
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The company made charitable donations amounting to £155 (2018: £1,181).
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DISCLOSURE IN THE STRATEGIC REPORT
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The Group has chosen, in accordance with Section 414 C(ii) of the Companies Act 2006, and as noted in this Directors'
Report, to include certain matters in its Strategic Report that would otherwise be required to disclose in this
Directors' Report, specifically in respect of the review of the business, disabled employees, research and
development, future developments and key risks in the business.
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STATEMENT OF DIRECTORS' RESPONSIBILITIES
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The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
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- | 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. |
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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. |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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REPORT OF THE DIRECTORS
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for the Year Ended 31st December 2019
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
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So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS
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Kay Johnson Gee Limited acquired the audit practice of Kay Johnson Gee LLP and has been appointed as auditor in
succession. In accordance with section 485 of the Companies Act 2006, Kay Johnson Gee Limited will be proposed for
reappointment.
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ON BEHALF OF THE BOARD:
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
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FWB PRODUCTS LIMITED
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Opinion
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We have audited the financial statements of FWB Products Limited (the 'company') for the year ended 31st December 2019 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st December 2019 and of its loss 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. |
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Basis for opinion
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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 Auditors' 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.
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Conclusions relating to going concern
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We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report
to you where:
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a
period of at least twelve months from the date when the financial statements are authorised for issue.
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Other information
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The directors are responsible for the other information. The other information comprises the information in the
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the
Auditors thereon.
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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.
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether there is a material
misstatement in the financial statements or a material misstatement of the other information. If, based on the work
we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
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Opinions on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
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FWB PRODUCTS LIMITED
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Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the company and its environment obtained in the course of the
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.
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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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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Responsibilities of directors
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As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
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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.
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Auditors' responsibilities for the audit of the financial statements
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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 a Report of the Auditors 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.
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A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of
the Auditors.
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Use of our report
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This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's
members as a body, for our audit work, for this report, or for the opinions we have formed.
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for and on behalf of
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Chartered Accountants and Statutory Auditors
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1 City Road East
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Manchester
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M15 4PN
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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PROFIT AND LOSS ACCOUNT
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for the Year Ended 31st December 2019
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2019
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2018
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Notes
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£
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£
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TURNOVER
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3
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Cost of sales
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(
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)
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(
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GROSS PROFIT
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Distribution costs
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(
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)
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(
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)
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Administrative expenses
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(
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)
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(
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)
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OPERATING (LOSS)/PROFIT
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6
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(
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)
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Interest payable and similar expenses
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7
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(
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)
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(
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)
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(LOSS)/PROFIT BEFORE TAXATION
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(
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)
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Tax on (loss)/profit
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8
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(
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)
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(LOSS)/PROFIT FOR THE FINANCIAL YEAR
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(
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)
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OTHER COMPREHENSIVE INCOME
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-
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-
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TOTAL COMPREHENSIVE (LOSS)/INCOME
FOR THE YEAR
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(
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)
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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BALANCE SHEET
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31st December 2019
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2019
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2018
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Notes
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£
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£
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FIXED ASSETS
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Tangible assets
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10
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Investments
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11
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CURRENT ASSETS
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Stocks
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12
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Debtors
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13
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Cash at bank and in hand
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CREDITORS
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Amounts falling due within one year
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14
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(
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)
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(
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)
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NET CURRENT ASSETS
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TOTAL ASSETS LESS CURRENT LIABILITIES
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CREDITORS
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Amounts falling due after more than one
year
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15
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(
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)
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(
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)
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PROVISIONS FOR LIABILITIES
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19
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(
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)
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NET ASSETS
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CAPITAL AND RESERVES
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Called up share capital
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20
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Share premium
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Retained earnings
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SHAREHOLDERS' FUNDS
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The financial statements were authorised and approved for issue by the Board of Directors and authorised for issue
on
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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STATEMENT OF CHANGES IN EQUITY
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for the Year Ended 31st December 2019
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Called up
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share
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Retained
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Share
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Total
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capital
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earnings
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premium
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equity
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£
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£
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£
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£
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Balance at 1st January 2018
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Profit for the year
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-
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315,132
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-
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315,132
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Total comprehensive income
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-
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-
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Balance at 31st December 2018
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Deficit for the year
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-
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(404,573
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)
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-
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(404,573
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)
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Total comprehensive loss
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-
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(
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)
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-
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(
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)
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Dividends
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-
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(
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)
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-
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(
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Balance at 31st December 2019
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
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NOTES TO THE FINANCIAL STATEMENTS
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for the Year Ended 31st December 2019
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1.
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STATUTORY INFORMATION
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FWB Products Limited is a private company limited by share capital, incorporated in England and Wales,
registration number 01660947. The address of the registered office is Whieldon Road, Stoke-on-Trent,
Staffordshire, ST4 4JE. The principle places of business are Whieldon Road, Stoke-on-Trent, Staffordshire, ST4
4JE, Five Crosses Industrial Estate, Minera, Coedpoeth LL11 3RD and Threemilestone Industrial Estate,
Threemilestone, Truro TR4 9LD.
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2.
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ACCOUNTING POLICIES
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Basis of preparing the financial statements
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|
Financial Reporting Standard 102 - reduced disclosure exemptions
|
|
The company has taken advantage of the following disclosure exemptions in preparing these financial
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of
Ireland":
|
|
|
•
|
the requirements of Section 7 Statement of Cash Flows;
|
|
•
|
the requirement of Section 33 Related Party Disclosures paragraph 33.7.
|
|
|
Related parties
|
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party
transactions with wholly owned subsidiaries within the group.
|
|
|
Critical accounting judgements and key sources of estimation uncertainty
|
In the application of the Company's accounting policies above, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period. |
|
Depreciation |
The company accounts for depreciation in accordance with FRS 102. The depreciation and expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment. |
|
Provisions |
The company accounts for provisions in accordance with FRS 102. There are currently no significant provisions. |
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
2.
|
ACCOUNTING POLICIES - continued
|
|
|
Turnover
|
|
Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for
estimated customer returns, rebates and other similar allowances.
|
|
|
Turnover from the sale of goods is recognised when all the following conditions are satisfied:
|
|
|
- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
|
|
- the Company retains neither continuing managerial involvement to the degree usually associated with
ownership nor effective control over the goods sold;
|
|
- the amount of revenue can be measured reliably;
|
|
- it is probable that the economic benefits associated with the transaction will flow to the company; and
|
|
- the costs incurred or too be incurred in respect of the transaction can be measured reliably.
|
|
|
Specifically, turnover from the sale of goods is recognised when goods are delivered and legal title is passed.
|
|
|
Tangible fixed assets
|
|
|
|
Plant and machinery
|
-
|
|
|
Fixtures and fittings
|
-
|
|
|
Motor vehicles
|
-
|
|
|
At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
|
|
Stocks
|
|
Stocks are valued at the lower of cost and selling price after making due allowance for obsolete and slow
moving items. Cost is calculated on a first in first out basis and includes all costs and duties incurred in bringing
the stock to the company's premises.
|
|
|
Taxation
|
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
2.
|
ACCOUNTING POLICIES - continued
|
|
|
Hire purchase and leasing commitments
|
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the
lease.
|
|
|
Assets that are held by the Company under leases which transfer to the Company substantially all the risks
and rewards of ownership are classified as being held under finance leases. Leases which do not transfer
substantially all the risks and rewards of ownership to the company are classified as operating leases.
|
|
|
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding
liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease
payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability, finance expenses are recognised
immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are
capitalised in accordance with the Company's policy on borrowing costs . Contingent rentals are recognised as
expenses in the periods in which they are incurred.
|
|
|
Operating lease payments are recognised as an expense on straight-line basis over the lease term, except
where another systematic basis is more representative of the time pattern in which economic benefits from
the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an
expense in the period in which they are incurred.
|
|
|
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as
a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line
basis, except where another systematic basis is more representative of the time pattern in which economic
benefits from the leased asset are consumed.
|
|
|
Pension costs and other post-retirement benefits
|
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in an independent administered fund. |
|
|
Trade and other debtors
|
|
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the
effective interest method, less impairment losses for bad and doubtful debts except where the effect of
discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for
bad and doubtful debts.
|
|
|
Trade and other creditors
|
|
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using
the effective interest method unless the effect of discounting would be immaterial, in which case they are
stated at cost.
|
|
|
Cash and cash equivalents
|
|
Cash and cash equivalents comprise cash at bank and in hand. Any bank overdrafts are shown within current
liabilities.
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
3.
|
TURNOVER
|
|
|
The turnover and loss (2018 - profit) before taxation are attributable to the one principal activity of the
company.
|
|
|
An analysis of turnover by class of business is given below:
|
|
|
2019
|
|
2018
|
£
|
£
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below:
|
|
|
2019
|
|
2018
|
£
|
£
|
|
|
United Kingdom
|
|
|
|
|
|
|
|
|
|
|
|
4.
|
EMPLOYEES AND DIRECTORS
|
|
|
|
|
2019
|
|
2018
|
|
|
|
£
|
|
£
|
|
|
Wages and salaries
|
|
3,187,423
|
|
3,289,889
|
|
|
Other pension costs
|
|
62,949
|
|
58,613
|
|
|
|
3,250,372
|
|
3,348,502
|
|
|
|
The average monthly number of full time equivalent employees during the year was as follows:
|
|
|
|
2019
|
|
2018
|
|
|
|
|
Office and management
|
|
66
|
|
72
|
|
|
|
Warehouse and distribution
|
|
67
|
|
68
|
|
|
|
|
|
|
140
|
|
|
|
5.
|
DIRECTORS' EMOLUMENTS
|
|
2019
|
|
2018
|
£
|
£
|
|
|
Directors' remuneration
|
|
|
|
|
|
|
Directors' pension contributions to money purchase schemes
|
|
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
5.
|
DIRECTORS' EMOLUMENTS - continued
|
|
|
The number of directors to whom retirement benefits were accruing was as follows:
|
|
|
Money purchase schemes
|
|
|
|
|
|
|
6.
|
OPERATING (LOSS)/PROFIT
|
|
The operating profit is stated after charging the following: |
|
|
Year Ended | Year Ended |
31.12.19 | 31.12.18 |
£ | £ |
Depreciation - owned assets | 107,050 | 85,070 |
Depreciation- assets on hire purchase contracts | 12,625 | 10,813 |
Gain on disposal of fixed assets | (1,500 | ) | - |
Operating lease rentals | 312,254 | 331,175 |
Auditors remuneration | 33,303 | 29,447 |
|
7.
|
INTEREST PAYABLE AND SIMILAR EXPENSES
|
|
|
2019
|
|
2018
|
£
|
£
|
|
|
Bank interest
|
|
|
|
|
|
|
Bank loan interest
|
|
|
|
|
|
|
Hire purchase
|
|
|
|
|
|
|
|
|
|
|
|
8.
|
TAXATION
|
|
|
Analysis of the tax (credit)/charge
|
|
The tax (credit)/charge on the loss for the year was as follows:
|
|
2019
|
|
2018
|
£
|
£
|
|
|
Current tax:
|
|
Corporation tax prior years
|
-
|
|
(392
|
)
|
|
|
|
Deferred tax
|
(
|
)
|
|
|
|
|
Tax on (loss)/profit
|
(
|
)
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
8.
|
TAXATION - continued
|
|
|
Reconciliation of total tax (credit)/charge included in profit and loss
|
|
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is
explained below:
|
|
|
2019
|
|
2018
|
£
|
£
|
|
|
(Loss)/profit before tax
|
(
|
)
|
|
|
|
|
(Loss)/profit multiplied by the standard rate of corporation tax in the UK
of
|
(
|
)
|
|
|
|
|
|
Effects of:
|
|
Expenses not deductible for tax purposes
|
|
|
|
|
|
|
Capital allowances in excess of depreciation
|
(
|
)
|
(
|
)
|
|
|
Utilisation of tax losses
|
|
|
(
|
)
|
|
|
Surrendered to Group
|
18,910
|
|
-
|
|
|
|
Deferred tax
|
(59,250
|
)
|
15,305
|
|
|
|
Prior year adjustment
|
-
|
|
(392
|
)
|
|
|
Loss not utilised
|
75,917
|
|
-
|
|
|
|
Total tax (credit)/charge
|
(59,250
|
)
|
14,913
|
|
|
|
9.
|
DIVIDENDS
|
|
A final dividend of £0.00011399253 per share was paid on 31 March 2019 in respect of the year ended 31 December 2019. |
|
10.
|
TANGIBLE FIXED ASSETS
|
|
Fixtures
|
|
|
Plant and
|
|
and
|
|
Motor
|
|
|
machinery
|
|
fittings
|
|
vehicles
|
|
Totals
|
£
|
£
|
£
|
£
|
|
|
COST
|
|
At 1st January 2019
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION
|
|
At 1st January 2019
|
|
|
|
|
|
|
|
|
|
|
Charge for year
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
NET BOOK VALUE
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2018
|
|
|
|
|
|
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
10.
|
TANGIBLE FIXED ASSETS - continued
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
|
|
Fixtures
|
|
|
Plant and
|
|
and
|
|
Motor
|
|
|
machinery
|
|
fittings
|
|
vehicles
|
|
Totals
|
£
|
£
|
£
|
£
|
|
|
COST
|
|
At 1st January 2019
|
|
|
|
|
|
|
|
|
|
|
Additions
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
DEPRECIATION
|
|
At 1st January 2019
|
|
|
|
|
|
|
|
|
|
|
Charge for year
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
NET BOOK VALUE
|
|
At 31st December 2019
|
|
|
|
|
|
|
|
|
|
|
At 31st December 2018
|
|
|
|
|
|
|
|
|
|
|
11.
|
FIXED ASSET INVESTMENTS
|
|
|
The following were subsidiary undertakings of the company:
|
|
|
Name
|
|
Country of
incorporation
|
|
Class of
shares
|
|
Holding
|
|
Principal Activity
|
|
|
|
FWB Cymru Limited
|
|
England and
Wales
|
|
Ordinary
|
|
100%
|
|
Dormant
|
|
|
|
FWB Southwest Limited
|
|
England and
Wales
|
|
Ordinary
|
|
100%
|
|
Dormant
|
|
|
|
12.
|
STOCKS
|
2019
|
2018
|
|
£
|
£
|
|
|
Finished goods
|
|
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
13.
|
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Trade debtors
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
Other debtors
|
|
|
|
|
|
|
Prepayments
|
|
|
|
|
|
|
|
|
|
|
|
14.
|
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Bank loans and overdrafts (see note 16)
|
|
|
|
|
|
|
Hire purchase contracts (see note 17)
|
|
|
|
|
|
|
Trade creditors
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
Social security and other taxes
|
|
|
|
|
|
|
VAT
|
151,977
|
|
241,394
|
|
|
|
Other creditors
|
|
|
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
|
|
|
|
|
15.
|
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Bank loans (see note 16)
|
|
|
|
|
|
|
Hire purchase contracts (see note 17)
|
|
|
|
|
|
|
|
|
|
|
|
16.
|
LOANS
|
|
|
An analysis of the maturity of loans is given below:
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Amounts falling due within one year or on demand:
|
|
Bank overdrafts
|
|
|
|
|
|
|
Bank loans
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due between one and two years:
|
|
Bank loans - 1-2 years
|
|
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
16.
|
LOANS - continued
|
2019
|
2018
|
|
£
|
£
|
|
|
Amounts falling due between two and five years:
|
|
Bank loans - 2-5 years
|
|
|
|
|
|
|
17.
|
LEASING AGREEMENTS
|
|
|
Minimum lease payments fall due as follows:
|
|
|
Hire purchase contracts
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Net obligations repayable:
|
|
Within one year
|
|
|
|
|
|
|
Between one and five years
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cancellable
|
operating leases
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Within one year
|
|
|
|
|
|
|
Between one and five years
|
|
|
|
|
|
|
|
|
|
|
|
18.
|
SECURED DEBTS
|
|
|
The following secured debts are included within creditors:
|
|
2019
|
2018
|
|
£
|
£
|
|
|
Bank overdrafts
|
|
|
|
|
|
|
Bank loans
|
|
|
|
|
|
|
Hire purchase contracts
|
76,739
|
|
65,322
|
|
|
|
|
|
|
|
|
|
The bank facilities are secured by the freehold property held in FWB Properties Limited and a composite
guarantee as detailed in the contingent liability note.
|
|
|
The bank loans are repayable by quarterly instalments with interest payable.
|
|
|
The majority of trade creditors supply goods for which title does not pass until payment is made.
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947)
|
|
NOTES TO THE FINANCIAL STATEMENTS - continued
|
for the Year Ended 31st December 2019
|
|
|
19.
|
PROVISIONS FOR LIABILITIES
|
2019
|
2018
|
|
£
|
£
|
|
|
Deferred tax
|
-
|
|
59,250
|
|
|
|
|
Deferred
|
|
|
tax
|
|
£
|
|
|
Balance at 1st January 2019
|
|
|
|
|
Credit to Profit and Loss Account during year
|
(
|
)
|
|
|
Balance at 31st December 2019
|
|
|
|
|
20.
|
CALLED UP SHARE CAPITAL
|
|
|
|
Allotted, issued and fully paid:
|
|
Number:
|
Class:
|
Nominal
|
2019
|
2018
|
|
|
value:
|
£
|
£
|
|
|
|
Ordinary
|
£1
|
584,444
|
|
584,444
|
|
|
|
21.
|
CONTINGENT LIABILITIES
|
|
|
The bank facilities are supported by a cross guarantee between group companies and a legal charge on group
freehold property. The total liable amounts at the date of the balance sheet was £1,415,935 (2018:
£1,575,062).
|
|
22.
|
RELATED PARTY DISCLOSURES
|
|
|
As at the year end, the balance due from companies under common control was £1,263,670 (2018:
£1,230,371).
|
|
23.
|
ULTIMATE CONTROLLING PARTY
|
|
|
The ultimate controlling party is FWB Holdings Limited by virtue of their controlling interest.
|
|
|
The immediate parent company of the largest and smallest group that includes the company and for which
group financial statements are prepared is FWB Holdings Limited. Copies of FWB Holdings Limited financial
statements can be obtained from the registered office at Whieldon Road, Stoke-on-Trent, ST4 4JE.
|