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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021 |
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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 2021 |
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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 2021 |
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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 2021 |
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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 2021 |
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The directors present their strategic report for the year ended 31st December 2021. |
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REVIEW OF BUSINESS |
2021 proved to be a challenging and volatile landscape in respect of the sales and margin performance for FWB. Unprecedented uncertainty caused by COVID-19, ensured an unstable supply chain, coupled with monthly price increases on over 60% of the company's stock profile. |
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The first quarter of 2021 provided the business with an unfounded optimism as sales increased by 12% from the previous year, however the 2nd & 3rd quarters felt the economic impact of global market volatility. |
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From a local perspective the top 20 accounts, representing 40% of the total turnover, all got hit hard by extreme market forces, reducing the FWB order book by over 20%. Shortages in raw materials, such as steel & microchips that feed into the car manufacturing sector, delivered forced company shutdowns. The mid-range accounts did show some positive signs of recovery in Q4, which saw the business bounce back with renewed optimism. From September onwards, order values began to increase by over 8% from the previous 3 months, with signs of industry beginning to recover. Good stocks allowed the business to build confidence and, in some cases, secure new business from competitors, who lacked depth of cover. |
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The business continued to work on a proactive footing in sales and purchasing. Constantly seeking new ways of engaging with customers, driving home the positive message, reference our service offer. The business analysed those accounts, who, reduced spend, or even stopped, introducing a specific campaign to bring them back on board. Regular customer engagement was a key objective and showed our customers, we cared. |
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The constant threat of price increases dominated the buyer's resource. Over 440 increases, average 7.75%, increased our cost of purchase. Suppliers' loyalty towards FWB eroded as fixed price agreements, were affectively, invalid. The impact was felt even greater towards the customers, who in most cases bared the cost. The knock-on effect was a threat to sales and customers, now looked to "shop around" and became less loyal. However, despite of these pressures, the business continued to grow in certain customer sectors, with hope, any damage was short term. Towards the end of the year, sales showed resilience, with the strength of service to increase sales. |
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The margin despite all external factors, increased by over 1%. The ability to focus in on key product areas, allowing small margin gains. The sales teams, negotiated more effectively with customers, not accepting unwarranted small margins, on volume products. The business targeted low margin, high turnover accounts. |
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The purchasing objective, even with the continued cost pressures, investigated new supply routes, opting for direct channels into manufacturers. Creating economy of scale had a positive effect as consolidation of products allowed the business to pool purchasing spend, enticing new suppliers in on a lower cost footing. |
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Covid-19 continued to present challenges throughout the business for the duration of 2021. One area that affected all departments was the need to self-isolate and where possible to work from home. From the experiences of home working in 2020, it allowed FWB to have a contingency plan throughout the business departments. There has been another year of collaboration between Managers to ensure the labour availability is spread where necessary, providing a very unified & cohesive approach. |
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Employee numbers have now stabilised to match the current turnover position, the emphasis during 2021 was training and investment in our people. This has been well received and put confidence back into the staff that further reductions are no longer needed. |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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STRATEGIC REPORT |
for the Year Ended 31st December 2021 |
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Improvements have continued in our infrastructure with investment in IT, the business ERP System is now cloud based removing risk of downtime and therefore providing business continuity, a new server was installed to give the latest business speed and protection, there has been investment in our fleet with 4 new vehicles, and new guttering on the building to prevent any storm damage on the warehouse roof. In addition, the Trade Counter at the Stoke Branch has seen a full renovation, new products, new suppliers, new layout and new interior has proved a success with an immediate positive impact on takings. |
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To help maintain a healthy margin, cost control remains the focus of the business, a strict spend regime to budget and review of additional spend requirements has reduced the Year End costs significantly, this has helped to mitigate rises already seen in Fuel and Energy costs. |
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Debtor days has seen a year on year improvement, stock control objectives to remove slow moving stock have been successful for 2021 and also a general review of the stock profile has allowed the remaining stock to be reduced, all providing a healthy cash position for the business moving into 2022. |
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Overall, 2021 has been a challenging but rewarding year. The positives have far outweighed the negatives as the business has shown a strong level of resilience, this will carry the performance forward for many years to come. Whilst sales declined by 6%, the profits have increased resulting in a strong year for the business. |
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REVIEW OF BUSINESS RISKS |
Financial Risks |
The company's 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; |
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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 |
for the Year Ended 31st December 2021 |
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POLICY ON PAYMENT TO SUPPLIERS |
The company'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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The company values the involvement of its employees, and keeps them informed on issues affecting them as employees, and on the various factors affecting the company. The company's intranet site is being developed to keep staff informed of all company 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 company 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 company'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 company will not support or deal with any business knowingly involved in slavery or human trafficking. |
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The company 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 company reserves the right to conduct audits of key suppliers to ensure compliance with the company 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 |
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 2021 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2021. |
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DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2021 was £279,507 (2020: £100,000). |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report. |
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POLITICAL DONATIONS AND EXPENDITURE |
The company made charitable donations amounting to £300 (2020: £nil). |
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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. |
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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. |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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REPORT OF THE DIRECTORS |
for the Year Ended 31st December 2021 |
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AUDITORS |
Under section 487(2) of the Companies Act 2006 Kay Johnson Gee Limited, will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier. |
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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 2021 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 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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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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 remuneration, 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
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identifying, evaluating and complying with laws and regulations and whether they were aware of any instances
of non compliance; |
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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, value of stocks and provisions. 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; |
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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. |
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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 2021 |
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2021 | 2020 |
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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546,182 | (146,814 | ) |
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Other operating income |
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OPERATING PROFIT | 7 |
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Interest receivable and similar income |
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563,671 | 417,552 |
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Interest payable and similar expenses | 8 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 9 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR |
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FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
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BALANCE SHEET |
31st December 2021 |
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2021 | 2020 |
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 2021 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1st January 2020 |
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Profit for the year | - | 327,633 | - | 327,633 |
Total comprehensive income | - |
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Dividends | - | ( |
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Balance at 31st December 2020 |
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Profit for the year | - | 422,796 | - | 422,796 |
Total comprehensive income | - |
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- |
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Dividends | - | ( |
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Balance at 31st December 2021 |
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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 2021 |
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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 |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
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Plant and machinery | - | 20% reducing balance or straight line |
Fixtures and fittings | - | 20% reducing balance or straight line |
Motor vehicles | - | 25% reducing balance |
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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 2021 |
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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. |
|
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. |
|
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 2021 |
|
|
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 before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
2021 | 2020 |
£ | £ |
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
2021 | 2020 |
£ | £ |
United Kingdom |
|
|
|
|
|
5. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
5. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Office and management | 43 | 48 |
Warehouse and distribution | 40 | 59 |
|
|
|
6. | DIRECTORS' EMOLUMENTS |
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
7. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Profit on disposal of fixed assets |
|
( |
) |
Auditors' remuneration |
|
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
|
|
Bank loan interest |
|
|
Hire purchase |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
9. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
Reconciliation of total tax 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: |
|
2021 | 2020 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses |
|
( |
) |
Non-trading loan relationship | (7,569 | ) | (7,569 | ) |
Deferred tax | 17,694 | 52,659 |
Total tax charge | 117,548 | 59,172 |
|
10. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Ordinary shares of £1 each |
Final |
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2021 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
( |
) | ( |
) |
At 31st December 2021 |
|
|
|
|
DEPRECIATION |
At 1st January 2021 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
( |
) | ( |
) |
At 31st December 2021 |
|
|
|
|
NET BOOK VALUE |
At 31st December 2021 |
|
|
|
|
At 31st December 2020 |
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1st January 2021 |
|
|
|
Transfer to ownership | (41,965 | ) | (38,352 | ) | (80,317 | ) |
At 31st December 2021 |
|
|
|
DEPRECIATION |
At 1st January 2021 |
|
|
|
Charge for year |
|
|
|
Transfer to ownership | (23,331 | ) | (4,736 | ) | (28,067 | ) |
At 31st December 2021 |
|
|
|
NET BOOK VALUE |
At 31st December 2021 |
|
|
|
At 31st December 2020 |
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1st January 2021 |
and 31st December 2021 |
|
NET BOOK VALUE |
At 31st December 2021 |
|
At 31st December 2020 |
|
|
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, |
|
13. | STOCKS |
2021 | 2020 |
£ | £ |
Finished goods |
|
|
|
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
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 | 96,577 | 116,350 |
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 17) |
|
|
Hire purchase contracts (see note 18) |
|
|
|
|
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
18. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
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 2021 |
|
|
18. | LEASING AGREEMENTS - continued |
|
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
19. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2021 | 2020 |
£ | £ |
Bank loans |
|
|
Hire purchase contracts | 28,901 | 47,408 |
|
|
|
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 |
2021 | 2020 |
£ | £ |
Deferred tax | 70,352 | 52,659 |
|
Deferred |
tax |
£ |
Balance at 1st January 2021 |
|
Provided during year |
|
Balance at 31st December 2021 |
|
|
21. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | £1 | 584,444 | 584,444 |
FWB PRODUCTS LIMITED (REGISTERED NUMBER: 01660947) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31st December 2021 |
|
|
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 £941,442 (2020: £1,037,196). |
|
23. | RELATED PARTY DISCLOSURES |
|
As at the year end, the balance due from companies under common control was £976,522 (2020: £1,037,074). |
|
During the year, the company paid £5,153 in terms of remuneration to directors family member. |
|
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. |