REGISTERED NUMBER: 12776047 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
FOR |
FIRDEV HOLDINGS LIMITED |
REGISTERED NUMBER: 12776047 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2022 |
FOR |
FIRDEV HOLDINGS LIMITED |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 May 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 20 |
FIRDEV HOLDINGS LIMITED |
COMPANY INFORMATION |
for the year ended 31 May 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
GROUP STRATEGIC REPORT |
for the year ended 31 May 2022 |
The directors present their strategic report of the company and the group for the year ended 31 May 2022. |
REVIEW OF BUSINESS |
General Overview |
The coronavirus pandemic whilst generally causing a depression within the economy due to lockdowns and travel restrictions also created opportunities for online retail businesses particularly within the food sector in the UK and globally. As a result the group was able to increase its levels of turnover with its range of wines and spirits, chocolates and gift arrangements. The group has been able to maintain those high levels of sales in the last financial year. |
Business Environment |
Although the group faces competition from supermarkets and other retailers, it was able to differentiate itself and grow its client base both online and through its specialist shops. |
Trading Results |
The directors are pleased to report a successful year for the group. As a result turnover has remained stable at £15.48 million (2021: £15.35 million). A reduction in cost of sales resulted in gross profit of £4.4 million (2021: £3 million) reported. The directors consider the profit achieved on ordinary activities before taxation to be particularly satisfactory given the continued pressure on margins due to increased competition and costs at all parts of the supply chain. |
As shown in the profit and loss account, the group's operating profit for the year was £2,462,876 (2021: £1,236,595). The group's balance sheet shows net assets of £4,054,551 (2021: £2,136,865) at the end of the year, with a cash position of £1,321,196 (2021: £1,052,190). The state of affairs at the balance sheet date is considered to be satisfactory. |
Strategy |
The current economic climate and the war in Ukraine present challenges to the industry, however the directors are pleased to announce that the current trading year continues to build on the strong base. The directors will continually review the marketplace and manage the risks to maintain and improve the group's profitability. |
Social responsibility is a core principal on which the group is based and the directors are pleased that the group has been able to make charitable donations in excess of £200,000. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
GROUP STRATEGIC REPORT |
for the year ended 31 May 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. |
The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied. Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board but work closely with their financial and other professional advisers in managing this. The policies set by the directors are implemented by the group's finance department. |
Price risk |
The company is exposed to price risk due to normal inflationary increases in the purchase price of the goods, but mitigates this with a robust pricing strategy. The company has no exposure to equity securities price risk as it holds no significant listed or other equity investments. |
Liquidity risk |
The company actively maintains short-term debt facilities which are designed to ensure that the company has sufficient available funds for operations and planned expansions. |
Interest rate risk |
The group has interest bearing liabilities. Short term debt is sensitive to fluctuations in interest rates and these are kept under regular review. Long term debt enables the finance department to project future expenditure with interest rates locked in. The directors will revisit the appropriateness of this policy if the operations of the group change in size or nature. |
KEY PERFORMANCE INDICATORS |
The key performance indicators for the company are as follows - |
2022 | 2021 | Measure |
Gross profit margin | 28% | 20% | Gross profit/turnover |
Stock turnover ratio | 3.66 times | 6.65 times | Cost of sales/average stock |
Average stock holding period | 100 days | 55 days | Average stock/cost of sales x 365 |
These indicators suggest that the company has maintained effective controls even as turnover has increased. In spite of pressures on margins, constant monitoring as well as a move to holding more stock, have resulted in the gross profit margin remaining stable. Holding a wider range of stock for longer is reflected in the reduction in stock turnover ratio and the increase in the average stock holding period. |
- Client satisfaction - Maintaining high standards of client satisfaction and encouraging customer loyalty is a key target for management. |
- Employee satisfaction and skills - Hiring a good workforce has been a key factor in the company's stability. This in turn improves morale and efficiencies. |
- Reliability of supply chains - Developing relationships with suppliers is essential in ensuring inventory can be sourced when required. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
GROUP STRATEGIC REPORT |
for the year ended 31 May 2022 |
EMPLOYEES |
The policy of the group is to employ the most suitably qualified persons regardless of age, religion, gender, sexual orientation or ethnic origin or any other grounds not related to a person's ability to work safely and effectively for the business. The directors recognises the importance of ensuring that relevant business information is provided to the employees prior to the employee's commencement date. This is achieved through initial induction and regular training. |
ON BEHALF OF THE BOARD: |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
REPORT OF THE DIRECTORS |
for the year ended 31 May 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of retail wine and spirit shops and online sales. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
DONATIONS |
During the year the group made donations of £232,997 to UK charities. No political donations were made during the year. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | 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. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
REPORT OF THE DIRECTORS |
for the year ended 31 May 2022 |
AUDITORS |
The auditors, Raffingers LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRDEV HOLDINGS LIMITED |
Qualified Opinion |
We have audited the financial statements of Firdev Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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). |
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our |
report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 31 May 2022 and of the company's loss for the |
year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
We were not appointed as auditor of the company until after 31 July 2021 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 July 2021, which are included in the balance sheet at £2,060,500, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to the inventory balance to be required, the strategic report would also need to be amended. |
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 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 qualified 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRDEV HOLDINGS LIMITED |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Other matter |
In the previous accounting period, the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore, the prior period financial statements were not subject to audit. |
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. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRDEV HOLDINGS LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, and health and safety legislation; |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators where appropriate. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRDEV HOLDINGS LIMITED |
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. |
for and on behalf of |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 May 2022 |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
Notes | £ | £ |
TURNOVER | 15,480,265 | 15,348,754 |
Cost of sales | (11,082,862 | ) | (12,318,353 | ) |
GROSS PROFIT | 4,397,403 | 3,030,401 |
Administrative expenses | (2,037,057 | ) | (1,828,070 | ) |
2,360,346 | 1,202,331 |
Other operating income | 102,530 | 34,264 |
OPERATING PROFIT | 4 | 2,462,876 | 1,236,595 |
Interest receivable and similar income | 258 | 105 |
2,463,134 | 1,236,700 |
Gain/loss on revaluation of investment property | 58,720 | - |
2,521,854 | 1,236,700 |
Interest payable and similar expenses | 5 | (82,415 | ) | (41,271 | ) |
PROFIT BEFORE TAXATION | 2,439,439 | 1,195,429 |
Tax on profit | 6 | (521,873 | ) | (229,590 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,917,566 | 965,839 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 May 2022 |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,917,566 | 965,839 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,917,566 | 965,839 |
Total comprehensive income attributable to: |
Owners of the parent | 1,917,566 | 965,839 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONSOLIDATED BALANCE SHEET |
31 May 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 5,250 | 6,300 |
Tangible assets | 10 | 638,673 | 460,819 |
Investments | 11 | - | - |
Investment property | 12 | 3,655,000 | 3,596,280 |
4,298,923 | 4,063,399 |
CURRENT ASSETS |
Stocks | 13 | 3,997,604 | 2,060,500 |
Debtors | 14 | 716,838 | 863,449 |
Cash at bank and in hand | 1,321,196 | 1,052,310 |
6,035,638 | 3,976,259 |
CREDITORS |
Amounts falling due within one year | 15 | 3,858,833 | 3,523,800 |
NET CURRENT ASSETS | 2,176,805 | 452,459 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 6,475,728 | 4,515,858 |
CREDITORS |
Amounts falling due after more than one year | 16 | (2,285,788 | ) | (2,350,911 | ) |
PROVISIONS FOR LIABILITIES | 19 | (135,389 | ) | (27,962 | ) |
NET ASSETS | 4,054,551 | 2,136,985 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 240 | 240 |
Fair value reserve | 21 | 43,720 | - |
Retained earnings | 21 | 4,010,591 | 2,136,745 |
SHAREHOLDERS' FUNDS | 4,054,551 | 2,136,985 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2023 and were signed on its behalf by: |
Mr D Margulies - Director |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
COMPANY BALANCE SHEET |
31 May 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (7,200 | ) | 61,500 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 May 2022 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | 240 | - | - | 240 |
Total comprehensive income | - | 2,136,745 | - | 2,136,745 |
Balance at 31 July 2021 | 240 | 2,136,745 | - | 2,136,985 |
Changes in equity |
Total comprehensive income | - | 1,873,846 | 43,720 | 1,917,566 |
Balance at 31 May 2022 | 240 | 4,010,591 | 43,720 | 4,054,551 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 May 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Profit for the period | - | 61,500 | 61,500 |
Total comprehensive income | - |
Issue of share capital | - |
Total transactions with owners, recognised directly in equity | 240 | - | 240 |
Balance at 31 July 2021 |
Deficit for the year | - | (7,200 | ) | (7,200 | ) |
Total comprehensive income | - | ( | ) | ( | ) |
Total transactions with owners, recognised directly in equity | - | - | - |
Balance at 31 May 2022 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 May 2022 |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,285,323 | 1,353,553 |
Interest paid | (82,415 | ) | (41,271 | ) |
Tax paid | (224,774 | ) | (211,761 | ) |
Net cash from operating activities | 978,134 | 1,100,521 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (324,641 | ) | (472,178 | ) |
Purchase of investment property | - | (3,596,280 | ) |
Cash from acquisition | - | 889,340 |
Interest received | 258 | 105 |
Net cash from investing activities | (324,383 | ) | (3,179,013 | ) |
Cash flows from financing activities |
New loans in year | - | 2,451,000 |
Loan repayments in year | (65,122 | ) | (34,539 | ) |
Amount introduced by directors | - | 714,221 |
Amount withdrawn by directors | (319,743 | ) | - |
Share issue | - | 120 |
Net cash from financing activities | (384,865 | ) | 3,130,802 |
Increase in cash and cash equivalents | 268,886 | 1,052,310 |
Cash and cash equivalents at beginning of year | 2 | 1,052,310 | - |
Cash and cash equivalents at end of year | 2 | 1,321,196 | 1,052,310 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 May 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
£ | £ |
Profit before taxation | 2,439,439 | 1,195,429 |
Depreciation charges | 147,837 | 74,647 |
Loss on disposal of fixed assets | - | 4,330 |
Gain on revaluation of fixed assets | (58,720 | ) | - |
Finance costs | 82,415 | 41,271 |
Finance income | (258 | ) | (105 | ) |
2,610,713 | 1,315,572 |
Increase in stocks | (1,937,104 | ) | (415,340 | ) |
Decrease/(increase) in trade and other debtors | 146,611 | (102,726 | ) |
Increase in trade and other creditors | 465,103 | 556,047 |
Cash generated from operations | 1,285,323 | 1,353,553 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 1,321,196 | 1,052,310 |
Period ended 31 July 2021 |
31.7.21 | 29.7.20 |
£ | £ |
Cash and cash equivalents | 1,052,310 | - |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 May 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.6.21 | Cash flow | At 31.5.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,052,310 | 268,886 | 1,321,196 |
1,052,310 | 268,886 | 1,321,196 |
Debt |
Debts falling due within 1 year | (65,550 | ) | - | (65,550 | ) |
Debts falling due after 1 year | (2,350,911 | ) | 65,123 | (2,285,788 | ) |
(2,416,461 | ) | 65,123 | (2,351,338 | ) |
Total | (1,364,151 | ) | 334,009 | (1,030,142 | ) |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 May 2022 |
1. | STATUTORY INFORMATION |
Firdev Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group's financial statements consolidate the financial statements of Firdev Holdings Limited and are drawn up to 31 May 2022. |
The group's principal subsidiary undertaking, First Developments Limited, has a year end drawn up to the same date. The group's other subsidiary undertaking, Lion Wall 2 Ltd, has its accounts drawn up to 30 June 2022. Professional judgement has been used to ascertain that no significant transactions or events occurred during June 2022 that would affect the judgment of the users of the financial statements. The group's other subsidiary undertaking, Lion Wall 3 Ltd, has its accounts dawn up to 28 February 2022 but as this entity is dormant, no adjustment was considered necessary for the consolidated group accounts. |
The comparatives shown in the accounts show the group's consolidated figures to 31 July 2021 as such was the year end date of the parent in the previous financial year. The group's principal subsidiary undertaking, First Developments Limited, had a year end of 31 May 2021 and the figures from that date were used in the 31 July 2021 group figures. Professional judgement has been used to ascertain that no significant transactions or events occurred during these two months that would affect the judgment of the users of the financial statements. |
Going concern |
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its consolidated financial statements. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and entities controlled by the group (its subsidiaries). Control is achieved where the group has power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquire plus costs direct attributed to the business combination. |
Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill. |
The results of subsidiaries acquired or disposed of during the year are included in total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. |
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. Wholly owned dormant subsidiaries are considered not to material for the purposes of providing a true and fair view and excluded from consolidation. |
Related parties |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i)the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
(ii)the company and the party are subject to common control; |
(iii)the party is an associate of the company or a joint venture in which the company is a venturer; |
(iv)the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v)the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; |
(vi)the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
(vii)the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The company may be required to make significant estimates and assumptions concerning the future. These estimates and judgements are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under circumstances. The principle area where judgement was exercised are as follows: |
Amounts recoverable on contracts: Amounts recoverable on long-term contracts represents the difference between the value of work completed on live construction projects at the balance sheet date and the amounts billed to customers. The value of work done is assessed by management with reference to stage of completion of the project and contract price. Management continuously review the balance to assess whether a provision needs to be entered against amounts which may not be recoverable. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes from rendering of service. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done during the year, including estimates of amounts not invoiced. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
Short leasehold - Straight line over the life of the lease |
Improvements to property - 10% on cost |
Plant and machinery - 25% on reducing balance |
Fixtures and fittings - 25% on reducing balance |
Motor vehicles - 25% on reducing balance |
Computer equipment - 25% on reducing balance |
Investment property |
Investment properties are properties held to earn rentals and for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. |
Stocks |
Stocks of raw materials are stated at the lower of cost and realisable value after making due allowance for obsolete items. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group only enters into basic financial instrument transactions that result in the recognition of financial asset or liabilities. |
Short term debtors are measured at transaction price, less impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Short term trade creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Taxation |
Income tax expense represents the sum of the tax currently payable and deferred tax. |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period. |
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. |
Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. |
Pension costs and other post-retirement benefits |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
The obligations for contributions to defined contribution scheme are recognised as an expense in the period they are incurred. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
2. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
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. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the investment have been affected. |
For all other financial assets, objective evidence of impairment could include: |
-significant financial difficulty of the issuer or counterparty; or |
-breach of contract, such as a default or delinquency in interest or principal payments; or |
-it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or |
-the disappearance of an active market for that financial asset because of financial difficulties. |
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit, as well as observable changes in national or local economic conditions that correlate with default on receivables. |
For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was 35 (2021 - 28). |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
£ | £ |
Directors' remuneration | 43,126 | 43,056 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
£ | £ |
Depreciation - owned assets | 146,787 | 73,597 |
Loss on disposal of fixed assets | - | 4,330 |
Goodwill amortisation | 1,050 | 1,050 |
Foreign exchange differences | (1,352 | ) | (10,080 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
£ | £ |
Bank loan interest | 82,415 | 40,713 |
Other interest | - | 558 |
82,415 | 41,271 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
29.7.20 |
Year Ended | to |
31.5.22 | 31.7.21 |
£ | £ |
Current tax: |
UK corporation tax | 414,434 | 211,760 |
Under provision of tax | 13 | - |
Total current tax | 414,447 | 211,760 |
Deferred tax | 107,426 | 17,830 |
Tax on profit | 521,873 | 229,590 |
UK corporation tax has been charged at 19 % . |
Factors that may affect future tax charges |
From 1 April 2023, the corporation tax main rate for non-ring fenced profits will be increased to 25% applying to profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | PENSION COMMITMENTS |
The company operates a defined contribution scheme. During the year the company contributed £166,741 (2021: £3,815). There were no outstanding contributions at the reporting date. |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 June 2021 |
and 31 May 2022 | 15,000 |
AMORTISATION |
At 1 June 2021 | 8,700 |
Amortisation for year | 1,050 |
At 31 May 2022 | 9,750 |
NET BOOK VALUE |
At 31 May 2022 | 5,250 |
At 31 May 2021 | 6,300 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Short | to | Plant and |
leasehold | property | machinery |
£ | £ | £ |
COST |
At 1 June 2021 | 8,000 | 417,185 | 15,077 |
Additions | - | - | 168,179 |
At 31 May 2022 | 8,000 | 417,185 | 183,256 |
DEPRECIATION |
At 1 June 2021 | 8,000 | 51,999 | 6,957 |
Charge for year | - | 41,719 | 44,075 |
At 31 May 2022 | 8,000 | 93,718 | 51,032 |
NET BOOK VALUE |
At 31 May 2022 | - | 323,467 | 132,224 |
At 31 May 2021 | - | 365,186 | 8,120 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2021 | 138,033 | 22,770 | 74,677 | 675,742 |
Additions | 96,136 | - | 60,326 | 324,641 |
At 31 May 2022 | 234,169 | 22,770 | 135,003 | 1,000,383 |
DEPRECIATION |
At 1 June 2021 | 113,074 | 5,693 | 29,200 | 214,923 |
Charge for year | 30,274 | 4,269 | 26,450 | 146,787 |
At 31 May 2022 | 143,348 | 9,962 | 55,650 | 361,710 |
NET BOOK VALUE |
At 31 May 2022 | 90,821 | 12,808 | 79,353 | 638,673 |
At 31 May 2021 | 24,959 | 17,077 | 45,477 | 460,819 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 June 2021 |
Reclassification/transfer |
At 31 May 2022 |
NET BOOK VALUE |
At 31 May 2022 |
At 31 May 2021 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 June 2021 | 3,596,280 |
Revaluations | 58,720 |
At 31 May 2022 | 3,655,000 |
NET BOOK VALUE |
At 31 May 2022 | 3,655,000 |
At 31 May 2021 | 3,596,280 |
Fair value at 31 May 2022 is represented by: |
£ |
Valuation in 2022 | 3,655,000 |
The investment properties were valued on an open market basis on 31 May 2022 by the directors. The investment properties are located within the United Kingdom. |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Stocks | 3,997,604 | 2,060,500 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 383,799 | 575,632 |
Amounts owed by group undertakings | - | - |
Other debtors | 34,615 | 82,983 |
VAT | 228,318 | 155,870 |
Prepayments and accrued income | 70,106 | 48,964 |
716,838 | 863,449 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 65,550 | 65,550 |
Trade creditors | 1,891,963 | 1,590,974 |
Tax | 622,955 | 433,282 |
Social security and other taxes | 59,945 | 57,113 |
Pension payable | 1,515 | (110 | ) | - | - |
Other creditors | 697,990 | 613,517 |
Directors' current accounts | 413,325 | 733,068 | - | - |
Accruals and deferred income | 105,590 | 30,406 |
3,858,833 | 3,523,800 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans (see note 17) | 2,285,788 | 2,350,911 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans within 1 year | 65,550 | 65,550 |
Amounts falling due between one and two | years: |
Bank loans within 1-2 years | 131,100 | 131,100 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years | 2,154,688 | 2,219,811 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank loans | 2,351,338 | - |
The mortgage is secured by way of a fixed charge over the investment properties held by Lion Wall 2 Ltd. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 135,389 | 27,962 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2021 | 27,962 |
Provided during year | 107,427 |
Balance at 31 May 2022 | 135,389 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary A | £1 | 80 | 80 |
Ordinary B | £1 | 80 | 80 |
Ordinary C | £1 | 80 | 80 |
240 | 240 |
FIRDEV HOLDINGS LIMITED (REGISTERED NUMBER: 12776047) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 May 2022 |
21. | RESERVES |
Group |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
At 1 June 2021 | 2,136,745 | - | 2,136,745 |
Profit for the year | 1,917,566 | 1,917,566 |
Fair value reserve | (43,720 | ) | 43,720 | - |
At 31 May 2022 | 4,010,591 | 43,720 | 4,054,311 |
22. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The company has entered into a liability limitation agreement with Raffingers LLP, the statutory auditor, in respect of the statutory audit for the period ended 31 May 2022. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the members on 29 August 2023. |
23. | CONTINGENT LIABILITIES |
There were no contingent liabilities at either the beginning or end of the financial year. |
24. | CAPITAL COMMITMENTS |
As at 31 May 2022 the company had no capital commitments which had been contracted for but not provided inthe financial statements. |