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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020 |
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FWB PRODUCTS LIMITED |
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 2020 |
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FWB PRODUCTS LIMITED |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31st December 2020 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Profit and Loss Account | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Notes to the Financial Statements | 14 |
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FWB PRODUCTS LIMITED |
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COMPANY INFORMATION |
for the Year Ended 31st December 2020 |
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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 |
1 City Road East |
Manchester |
M15 4PN |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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STRATEGIC REPORT |
for the Year Ended 31st December 2020 |
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REVIEW OF THE BUSINESS |
The principle activity of the FWB Group for 2020 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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THE IMPACT OF CORONAVIRUS |
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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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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From March 2020 FWB was trading at 60% less than expected budgeted levels and every sales was critical. As a business we had to recognise where demand existed and target those areas. |
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The business had to be restructured to the new turnover levels very quickly to prevent any losses. The most poignant action being redundancies across all areas of the business. This went hand in hand with a removal of any element of cost in the business that was no longer needed. |
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Over Q2 & Q3 various internal projects were carried out, improvements made in Goods-in and Despatch departments ensured efficiency. As we could no longer use our External Sales team for customer engagement, the new catalogue was successfully launched and over 3000 copies are now in circulation and a second print is underway. The website has continued to improve with our mobile App and customer login ready to launch. The trade counter underwent a complete renovation to improve the layout and presentation of product and to help maximise on every customer visit. |
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The major contributing factor to the success of 2020 was the margin improvements made. Analysis clearly showed that there were areas in the business where sales were done below an acceptable level of margin. This was addressed and negotiations with Customers carried out, successful price increases were put in place and decisions made to remove low margin turnover. It was recognised that the internal Sales team should be encouraged and mentored to improve margin on every sale and a targeted bonus scheme was put in place with successful results already seen. |
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During the year cashflow was paramount and credit control procedures meant that our debt was paid on time, along with costs savings from every element of the business, both have contributed heavily to the bank making a positive increase of in excess of £1.1 million in the bank balance during these turbulent times. |
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FWB as a business has had an exceptionally successful trading year under the most extreme circumstances, despite a significant reduction in sales the business is streamlined to its new trading levels, the margin is strong, the bank balance healthy and there is a positive improvement of £900k in operating profits. |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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STRATEGIC REPORT |
for the Year Ended 31st December 2020 |
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2021 |
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It is important to have a strategic and realistic budget in place for the business to benchmark its activities. Trading levels predicted for Jan 2021 are on budget and profits are in excess by 5.8%. |
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FWB relies on both the computer package, phones and internet to trade therefore it is critical that these functions are robust and protected, during January and February 2021 FWB has embarked on a program of improvements to the IT infrastructure by moving the phones system to a cloud based system followed by the email system also now in the cloud, the next major IT project is to move the Merlin Software system also into the cloud providing protection against hardware failures and ultimately lost sales due to downtime. |
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Following Government announcements that the lockdown restrictions now have a road map for removal and will hopefully be completed by June 2021, FWB will be ensuring all avenues to grow business will be explored and continuous improvements measures are at the forefront. |
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REVIEW OF BUSINESS RISKS |
Financial Risks |
The Groups operations expose it to a limited number of financial risks, primarily credit risk and liquidity risk. |
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Credit Risk |
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 |
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 |
Non-financial risks are monitored on a regular basis by the Board. The principal risks and how they are migrated re set out below; |
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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POLICY ON PAYMENT TO SUPPLIERS |
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 |
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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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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STRATEGIC REPORT |
for the Year Ended 31st December 2020 |
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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 |
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 |
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 or 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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REPORT OF THE DIRECTORS |
for the Year Ended 31st December 2020 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2020. |
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DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2020 was £100,000 (2019: £100,000). |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2020 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 |
The company made charitable donations amounting to £Nil (2019: £151). |
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DISCLOSURE IN THE STRATEGIC REPORT |
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 |
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 |
for the Year Ended 31st December 2020 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
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 |
The auditors, Kay Johnson Gee Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FWB PRODUCTS LIMITED |
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Opinion |
We have audited the financial statements of FWB Products Limited (the 'company') for the year ended 31st December 2020 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 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. |
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Basis for opinion |
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 |
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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
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 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | 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 |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FWB PRODUCTS LIMITED |
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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 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: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FWB PRODUCTS LIMITED |
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Auditors' 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 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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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following: |
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The nature of the industry and sector, control environment and business performance including the company's
remuneration policies, key drivers for directors bonus levels and performance targets. |
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Results of the enquiries of management about their own identification and assessment of the risks of
irregularities |
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Any matters we have identified having obtained and reviewed the company's documentation of their policies
and procedures relating to: |
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identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of noncompliance; |
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detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
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the matters discussed among the audit engagement team regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud. |
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As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income, valuation of stock and completeness of purchases. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
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We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
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In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
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Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
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reviewing the financial statement disclosures and testing to supporting documentation to assess compliance
with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | enquiring of management concerning actual and potential litigation and claims; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FWB PRODUCTS LIMITED |
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We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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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 |
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 |
1 City Road East |
Manchester |
M15 4PN |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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PROFIT AND LOSS ACCOUNT |
for the Year Ended 31st December 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 4 |
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Cost of sales | ( |
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GROSS PROFIT |
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Distribution costs | ( |
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Administrative expenses | ( |
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(146,814 | ) | (418,894 | ) |
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Other operating income |
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OPERATING PROFIT/(LOSS) | 7 |
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Interest payable and similar expenses | 8 | ( |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 9 | ( |
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PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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BALANCE SHEET |
31st December 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
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Investments | 12 |
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CURRENT ASSETS |
Stocks | 13 |
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Debtors | 14 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 15 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
16 |
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PROVISIONS FOR LIABILITIES | 20 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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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 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 |
for the Year Ended 31st December 2020 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1st January 2019 |
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Deficit for the year | - | (404,573 | ) | - | (404,573 | ) |
Total comprehensive loss | - | ( |
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Dividends | - | ( |
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Balance at 31st December 2019 |
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Profit for the year | - | 327,633 | - | 327,633 |
Total comprehensive income | - |
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- |
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Dividends | - | ( |
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Balance at 31st December 2020 |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31st December 2020 |
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1. | 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. | 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": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
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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. |
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Turnover |
Turnover represents amounts recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of sale of goods which is recognised at the point goods are delivered and legal title is passed. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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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. |
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Stocks |
Stocks are valued at the lower of cost and selling price less cost to sell, 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. |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
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2. | ACCOUNTING POLICIES - continued |
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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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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. |
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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. |
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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. |
|
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 2020 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Government grants |
Government grants are recognised on the accrual model and are measured at fair value of the asset receivable. Grants are classified as relating either to other income or to assets. Grants related to other income are recognised in profit or loss over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income. |
|
3. | 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. |
|
Provisions |
The company accounts for provisions in accordance with FRS 102. There are currently no significant provisions. |
|
4. | TURNOVER |
|
The turnover and profit (2019 - loss) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
2020 | 2019 |
£ | £ |
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
2020 | 2019 |
£ | £ |
United Kingdom |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
5. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Office and management | 48 | 66 |
Warehouse and distribution | 59 | 67 |
|
|
|
6. | DIRECTORS' EMOLUMENTS |
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
Information regarding the highest paid director for the year ended 31st December 2020 is as follows: |
2020 |
£ |
Emoluments etc |
|
|
7. | OPERATING PROFIT/(LOSS) |
|
The operating profit is stated after charging the following: |
|
|
Year Ended | Year Ended |
31.12.20 | 31.12.19 |
£ | £ |
Depreciation - owned assets | 104,403 | 107,050 |
Depreciation- assets on hire purchase contracts | 17,252 | 12,625 |
Gain on disposal of fixed assets | (1,579 | ) | (1,500 | ) |
Operating lease rentals | 360,647 | 312,254 |
Auditors remuneration | 29,604 | 33,303 |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank interest |
|
|
Bank loan interest |
|
|
Hire purchase |
|
|
|
|
|
9. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit/(loss) |
|
( |
) |
|
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) 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 | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Utilisation of tax losses | ( |
) |
|
Surrendered to Group | - | 18,910 |
Deferred tax | 52,659 | (59,250 | ) |
|
Loss not utilised | - | 75,917 |
Total tax charge/(credit) | 59,172 | (59,250 | ) |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
10. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary shares of £1 each |
Final |
|
|
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2020 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
At 31st December 2020 |
|
|
|
|
DEPRECIATION |
At 1st January 2020 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
At 31st December 2020 |
|
|
|
|
NET BOOK VALUE |
At 31st December 2020 |
|
|
|
|
At 31st December 2019 |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
11. | 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 2020 |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
At 31st December 2020 |
|
|
|
|
DEPRECIATION |
At 1st January 2020 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
At 31st December 2020 |
|
|
|
|
NET BOOK VALUE |
At 31st December 2020 |
|
|
|
|
At 31st December 2019 |
|
|
|
|
|
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1st January 2020 |
and 31st December 2020 |
|
NET BOOK VALUE |
At 31st December 2020 |
|
At 31st December 2019 |
|
|
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 |
|
The registered office is Whieldon Road, Stoke-on-Trent, Staffordshire, ST4 4JE, |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
13. | STOCKS |
2020 | 2019 |
£ | £ |
Finished goods |
|
|
|
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 17) |
|
|
Hire purchase contracts (see note 18) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 116,350 | 151,977 |
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans (see note 17) |
|
|
Hire purchase contracts (see note 18) |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
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 |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
18. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
19. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank overdraft |
|
|
Bank loans |
|
|
Hire purchase contracts | 47,408 | 76,739 |
|
|
|
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. |
|
20. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax | 52,659 | - |
|
Deferred |
tax |
£ |
Provided during year |
|
Balance at 31st December 2020 |
|
|
21. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 584,444 | 584,444 |
|
22. | 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 £1,037,196 (2019: £1,037,196). |
|
23. | RELATED PARTY DISCLOSURES |
|
As at the year end, the balance due from companies under common control was £1,037,074 (2019: £1,264,951). |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2020 |
|
|
24. | 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. |