Company registration number 00650649 (England and Wales)
F.P. (Tools) Limited
Financial Statements
For The Year Ended 30 September 2022
Pages For Filing With Registrar
F.P. (Tools) Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 9
F.P. (Tools) Limited
Balance Sheet
As At 30 September 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
5
2,900
5,800
Tangible assets
6
718,882
726,927
721,782
732,727
Current assets
Stocks
444,607
391,648
Debtors
7
4,092,097
4,022,710
Cash at bank and in hand
25,278
501,202
4,561,982
4,915,560
Creditors: amounts falling due within one year
8
(2,628,121)
(2,305,493)
Net current assets
1,933,861
2,610,067
Total assets less current liabilities
2,655,643
3,342,794
Creditors: amounts falling due after more than one year
9
(427,083)
(668,083)
Provisions for liabilities
(26,472)
(20,029)
Net assets
2,202,088
2,654,682
Capital and reserves
Called up share capital
4,000
4,000
Revaluation reserve
427,485
427,485
Capital redemption reserve
22,200
22,200
Profit and loss reserves
1,748,403
2,200,997
Total equity
2,202,088
2,654,682
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 April 2023 and are signed on its behalf by:
Mr J S Dale
Director
Company Registration No. 00650649
F.P. (Tools) Limited
Notes To The Financial Statements
For The Year Ended 30 September 2022
Page 2
1
Accounting policies
Company information
F.P. (Tools) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Warwick House, Tyseley Lane, Tyseley, Birmingham, B11 3PX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% on straight line basis
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
1
Accounting policies
(Continued)
Page 3
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on straight line basis, land is not depreciated
Plant and equipment
15% on reducing balance
Fixtures and fittings
15% on reducing balance
Computers
20% on straight line basis
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
1
Accounting policies
(Continued)
Page 4
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
1
Accounting policies
(Continued)
Page 5
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
Page 6
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
5,000
5,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
38
36
5
Intangible fixed assets
Other
£
Cost
At 1 October 2021 and 30 September 2022
14,500
Amortisation and impairment
At 1 October 2021
8,700
Amortisation charged for the year
2,900
At 30 September 2022
11,600
Carrying amount
At 30 September 2022
2,900
At 30 September 2021
5,800
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
Page 7
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 October 2021
630,000
425,531
1,055,531
Additions
21,431
21,431
Disposals
(7,500)
(7,500)
At 30 September 2022
630,000
439,462
1,069,462
Depreciation and impairment
At 1 October 2021
13,960
314,644
328,604
Depreciation charged in the year
6,300
20,306
26,606
Eliminated in respect of disposals
(4,630)
(4,630)
At 30 September 2022
20,260
330,320
350,580
Carrying amount
At 30 September 2022
609,740
109,142
718,882
At 30 September 2021
616,040
110,887
726,927
The property has been revalued at 30 September 2022 by the directors. In estimating the fair value the directors used the market values of similar property sales in the area as a basis of market value. There was no change in the valuation.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2022
2021
£
£
Cost
401,639
401,639
Accumulated depreciation
(193,435)
(188,317)
Carrying value
208,204
213,322
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
Page 8
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
2,627,459
1,549,341
Corporation tax recoverable
1,126
Amounts owed by group undertakings
1,369,612
2,402,322
Other debtors
93,900
71,047
4,092,097
4,022,710
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
287,992
590,972
Trade creditors
1,849,507
1,389,453
Corporation tax
187,858
100,085
Other taxation and social security
126,338
119,579
Other creditors
176,426
105,404
2,628,121
2,305,493
The above bank loans and overdrafts are secured by a fixed charge on the Freehold Land and Buildings in England and Scotland together with a floating charge over the stock and trade debtors.
9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
427,083
668,083
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Mr Athos Louca FCCA, ICPAC
Statutory Auditor:
Loucas
11
Guarantee
The company's Bankers have provided a guarantee to HM Revenue & Customs in connection with the Duty Deferment for goods imported from outside the European Union. The amount guaranteed is £30,000 (2021 - £30,000).
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2022
Page 9
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
173,307
213,005
13
Parent company
The immediate and ultimate parent undertaking is F P Tools Holdings Limited company number 12349514. The group qualifies as small for the current year and is therefore exempt from preparing group accounts.
14
Related party transactions
Remuneration of key management personnel
2022
2021
£
£
Aggregate compensation
208,500
253,902
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2022
2021
£
£
Other related parties
60,220
-
2022
2021
Amounts due to related parties
£
£
Other related parties
23,152
-