Company Registration No. 03991145 (England and Wales)
FUEL PROOF LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
FUEL PROOF LIMITED
COMPANY INFORMATION
Directors
Mr A R Hargreaves
Mr T R Hendry
Mr H M Meyer
Ms J A Turnbull
Secretary
Ms J A Turnbull
Company number
03991145
Registered office
Middleton Business Park
Middleton Road
Morecambe
LA3 3FH
Auditor
MHA Moore and Smalley
Priory Close
St Marys Gate
Lancaster
LA1 1XB
FUEL PROOF LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
FUEL PROOF LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -

The directors present the strategic report for the year ended 31 March 2022.

Fair review of the business

The company’s principal activities during the year were the manufacture and sale of fuel storage equipment.

The company had a year of reasonable performance as we headed out of COVID-19 restrictions. Fuel shortages and the change in use of red diesel played a part in the positive results of the company.

The net profit before tax increased from £1,645,299 in 2021 to £1,823,482 in 2022. The net operating profit margin decreased from 18.60% in 2021 to 17.51% in 2022 due to commodity price volatility.

Principal risks and uncertainties

The company faces a number of business risks and uncertainties due to unprecedented increases in commodity prices, material shortages, shipping delays and a country that is currently recovering from a worldwide pandemic and the current war in Ukraine.

To address the foreign currency risk with the volatility of the currency markets, Fuel Proof already adopted a longer-term buying strategy to address for bought in goods, usually looking 3 to 9 months ahead and locking in purchases accordingly.

The company does not have any interest-bearing liabilities this eliminates any interest rate risks.

The credit risk of trade receivables is assessed on an ongoing basis by checking the credit scores of the customers and closely monitoring the outstanding customer balances, a large proportion of sales are payment prior to dispatch further reducing its exposure.

The company assessed the liquidity risk. It has £2,067,840 in cleared cash funds available at year-end. We consider this to be sufficient to meet any financial obligation that may fall due.

When we saw the risks of disruption in supply chain looming, we ramped up purchases accordingly, this has proved to be a great strength over others within our sector struggling to finish and ship goods even though sales are there to be had.

Development and performance

Key to the company’s success has also been the ability to design and develop tailored bespoke fuel storage units for every customer’s needs.

Post year end and future developments

As the global commodities markets remain volatile due to the ongoing conflict in Ukraine, we are still seeing high demand for bulk fuel storage units. This is also being amplified by the threat of further fuel cost rises by October. Recruitment of skilled labour is proving to be a big challenge at the present time with the increase in demand. It is our intention to look at more automation of manufacture going forward to counter this.

On behalf of the board

Mr T R Hendry
Director
11 August 2022
FUEL PROOF LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2022.

Principal activities

The principal activity of the company continued to be the manufacture and sale of fuel storage equipment.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £1,250,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A R Hargreaves
Mr T R Hendry
Mr H M Meyer
Ms J A Turnbull
Auditor

The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties, and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr T R Hendry
Director
11 August 2022
FUEL PROOF LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

FUEL PROOF LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUEL PROOF LIMITED
- 4 -
Opinion

We have audited the financial statements of Fuel Proof Limited (the 'company') for the year ended 31 March 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

FUEL PROOF LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUEL PROOF LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 and the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

 

FUEL PROOF LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUEL PROOF LIMITED
- 6 -

Because of the industry in which the company operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and safety, compliance with quality management systems accreditations, employment law, and compliance with the Companies Act.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Jenny McCabe (Senior Statutory Auditor)
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Priory Close
St Marys Gate
Lancaster
LA1 1XB
31 August 2022
FUEL PROOF LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 7 -
2022
2021
Notes
£
£
Turnover
3
10,416,869
8,845,037
Cost of sales
(6,486,505)
(5,255,070)
Gross profit
3,930,364
3,589,967
Administrative expenses
(2,107,355)
(1,988,195)
Other operating income
-
0
42,970
Operating profit
4
1,823,009
1,644,742
Interest receivable and similar income
7
472
557
Profit before taxation
1,823,481
1,645,299
Tax on profit
8
(247,227)
(312,607)
Profit for the financial year
1,576,254
1,332,692

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FUEL PROOF LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
£
£
Profit for the year
1,576,254
1,332,692
Other comprehensive income
-
-
Total comprehensive income for the year
1,576,254
1,332,692
FUEL PROOF LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,282,224
885,415
Current assets
Stocks
11
2,531,438
1,792,035
Debtors
12
3,051,796
2,749,466
Cash at bank and in hand
2,067,840
1,396,304
7,651,074
5,937,805
Creditors: amounts falling due within one year
13
(3,795,284)
(2,160,514)
Net current assets
3,855,790
3,777,291
Total assets less current liabilities
5,138,014
4,662,706
Provisions for liabilities
Deferred tax liability
14
303,464
154,410
(303,464)
(154,410)
Net assets
4,834,550
4,508,296
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
4,834,450
4,508,196
Total equity
4,834,550
4,508,296
The financial statements were approved by the board of directors and authorised for issue on 11 August 2022 and are signed on its behalf by:
Mr T R Hendry
Director
Company Registration No. 03991145
FUEL PROOF LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
100
3,175,504
3,175,604
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
1,332,692
1,332,692
Balance at 31 March 2021
100
4,508,196
4,508,296
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
1,576,254
1,576,254
Dividends
9
-
(1,250,000)
(1,250,000)
Balance at 31 March 2022
100
4,834,450
4,834,550
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
1
Accounting policies
Company information

Fuel Proof Limited is a private company limited by shares incorporated in England and Wales. The registered office is Middleton Business Park, Middleton Road, Morecambe, LA3 3FH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Fuel Proof Limited is a wholly owned subsidiary of Argent Industrial Limited, a company registered in South Africa, and the results of Fuel Proof Limited are included in the consolidated financial statements of Argent Industrial Limited which are available from https://www.argent.co.za.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
15% reducing balance
Fixtures and fittings
15-33% reducing balance
Motor vehicles
25% on reducing balance
Hire fleet
5% 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 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.

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.

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 at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

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.

FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 13 -
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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 14 -
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.

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. 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.

FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 15 -
1.14
Government grants

Government grants receivable represent income under the Coronavirus Job Retention Scheme (CJRS) to reimburse the company of costs incurred in retaining staff who were furloughed due to the impact of closure due to COVID-19. CJRS grants are recognised to match the costs incurred by the company for the period claims are made.

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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of stocks

As stated in accounting policy note 1.6, stock is valued at the lower of cost and net realisable value. In reaching this valuation, management have used the cost of materials and labour, as well as a judgemental element relating to the margin.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Fuel storage equipment
10,416,869
8,845,037
2022
2021
£
£
Other significant revenue
Interest income
472
557
Grants received
-
0
42,970
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
3
Turnover and other revenue
(Continued)
- 16 -
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
8,467,255
6,768,425
Europe
466,507
503,031
Rest of the world
1,483,107
1,573,581
10,416,869
8,845,037
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(5,927)
7,421
Government grants
-
0
(42,970)
Fees payable to the company's auditor for the audit of the company's financial statements
9,800
10,500
Depreciation of owned tangible fixed assets
222,384
144,948
(Profit)/loss on disposal of tangible fixed assets
(1,922)
62,513
Operating lease charges
159,590
162,518
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Sales and distribution
5
6
Production
53
50
Administration
12
12
Total
70
68

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
2,236,063
2,084,038
Social security costs
232,268
212,439
Pension costs
53,218
53,440
2,521,549
2,349,917
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
197,485
164,298
Company pension contributions to defined contribution schemes
13,321
16,313
210,806
180,611

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 3).

7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
472
557
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
230,751
356,997
Adjustments in respect of prior periods
(132,578)
-
0
Total current tax
98,173
356,997
Deferred tax
Origination and reversal of timing differences
149,054
(44,390)
Total tax charge
247,227
312,607
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
8
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
1,823,481
1,645,299
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
346,461
312,607
Adjustments in respect of prior years
(132,578)
-
0
Effect of change in corporation tax rate
72,832
-
0
Permanent capital allowances in excess of depreciation
(39,488)
-
0
Taxation charge for the year
247,227
312,607

Factors affecting future tax and charges

In the budget on 3 March 2021, the UK Government announced an increase in the main corporation tax rate from 19% to 25% with effect from 1 April 2023. The change in rate was substantively enacted on 24 May 2021. Deferred tax has been calculated at this rate which was the rate substantively enacted at 31 March 2022 and expected to apply on crystallisation.

9
Dividends
2022
2021
£
£
Interim paid
1,250,000
-
0
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 19 -
10
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Hire fleet
Total
£
£
£
£
£
Cost
At 1 April 2021
556,950
116,426
369,898
562,274
1,605,548
Additions
414,702
10,111
267,946
-
0
692,759
Disposals
(23,250)
-
0
(15,935)
(87,169)
(126,354)
At 31 March 2022
948,402
126,537
621,909
475,105
2,171,953
Depreciation and impairment
At 1 April 2021
371,324
56,244
124,848
167,717
720,133
Depreciation charged in the year
63,406
16,124
124,868
17,986
222,384
Eliminated in respect of disposals
(10,673)
-
0
(14,024)
(28,091)
(52,788)
At 31 March 2022
424,057
72,368
235,692
157,612
889,729
Carrying amount
At 31 March 2022
524,345
54,169
386,217
317,493
1,282,224
At 31 March 2021
185,626
60,182
245,050
394,557
885,415
11
Stocks
2022
2021
£
£
Finished goods and goods for resale
2,531,438
1,792,035
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,109,063
1,019,574
Other debtors
1,641,522
1,521,847
Prepayments and accrued income
301,211
208,045
3,051,796
2,749,466
FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
890,874
732,109
Amounts owed to group undertakings
850,455
-
0
Corporation tax
230,751
356,997
Other taxation and social security
981
3,257
Other creditors
1,541,629
849,546
Accruals and deferred income
280,594
218,605
3,795,284
2,160,514
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
303,464
154,410
2022
Movements in the year:
£
Liability at 1 April 2021
154,410
Charge to profit or loss
149,054
Liability at 31 March 2022
303,464

No material movement in deferred tax liabilities is expected within the next 12 months.

15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,218
53,440

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

FUEL PROOF LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
16
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
199,488
199,488
Between two and five years
49,872
249,360
249,360
448,848
18
Capital commitments

Amounts contracted for but not provided in the financial statements:

2022
2021
£
£
Acquisition of tangible fixed assets
-
189,875
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Category
Description of
Income
Expenditure
transaction
2022
2021
2022
2021
£
£
£
£
Other related parties
Misc items
8,321
-
0
71,388
-
0
Other related parties
Rent paid
-
0
-
0
159,590
159,590

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.

20
Ultimate controlling party

The immediate and ultimate parent company is Argent Industrial Limited, a company resident in South Africa. The company's financial activities are consolidated into the group accounts prepared by Argent Industrial Limited.

2022-03-312021-04-01falseCCH SoftwareCCH Accounts Production 2022.200Mr A R HargreavesMr T R HendryMr H M MeyerMs J A TurnbullMs J A Turnbull039911452021-04-012022-03-3103991145bus:Director12021-04-012022-03-3103991145bus:Director22021-04-012022-03-3103991145bus:Director32021-04-012022-03-3103991145bus:CompanySecretaryDirector12021-04-012022-03-3103991145bus:CompanySecretary12021-04-012022-03-3103991145bus:Director42021-04-012022-03-3103991145bus:RegisteredOffice2021-04-012022-03-31039911452022-03-31039911452020-04-012021-03-3103991145core:RetainedEarningsAccumulatedLosses2020-04-012021-03-3103991145core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31039911452021-03-3103991145core:PlantMachinery2022-03-3103991145core:FurnitureFittings2022-03-3103991145core:MotorVehicles2022-03-3103991145core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-3103991145core:PlantMachinery2021-03-3103991145core:FurnitureFittings2021-03-3103991145core:MotorVehicles2021-03-3103991145core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-03-3103991145core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3103991145core:CurrentFinancialInstrumentscore:WithinOneYear2021-03-3103991145core:CurrentFinancialInstruments2022-03-3103991145core:CurrentFinancialInstruments2021-03-3103991145core:ShareCapital2022-03-3103991145core:ShareCapital2021-03-3103991145core:RetainedEarningsAccumulatedLosses2022-03-3103991145core:RetainedEarningsAccumulatedLosses2021-03-3103991145core:ShareCapital2020-03-3103991145core:RetainedEarningsAccumulatedLosses2020-03-31039911452020-03-3103991145core:PlantMachinery2021-04-012022-03-3103991145core:FurnitureFittings2021-04-012022-03-3103991145core:MotorVehicles2021-04-012022-03-3103991145core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-04-012022-03-3103991145core:UKTax2021-04-012022-03-3103991145core:UKTax2020-04-012021-03-3103991145core:PlantMachinery2021-03-3103991145core:FurnitureFittings2021-03-3103991145core:MotorVehicles2021-03-3103991145core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-03-31039911452021-03-3103991145core:WithinOneYear2022-03-3103991145core:WithinOneYear2021-03-3103991145core:BetweenTwoFiveYears2022-03-3103991145core:BetweenTwoFiveYears2021-03-3103991145core:EntitiesControlledByKeyManagementPersonnel2021-04-012022-03-3103991145core:EntityControlledByKeyManagementPersonnel1core:RentalExpenseTransactions2021-04-012022-03-3103991145core:EntitiesControlledByKeyManagementPersonnel2020-04-012021-03-3103991145core:EntityControlledByKeyManagementPersonnel1core:RentalExpenseTransactions2020-04-012021-03-3103991145bus:PrivateLimitedCompanyLtd2021-04-012022-03-3103991145bus:FRS1022021-04-012022-03-3103991145bus:Audited2021-04-012022-03-3103991145bus:FullAccounts2021-04-012022-03-31xbrli:purexbrli:sharesiso4217:GBP