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REGISTERED NUMBER: 01638922 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

FOR

FIROW LIMITED

FIROW LIMITED (REGISTERED NUMBER: 01638922)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


FIROW LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2023







DIRECTORS: P A Rowley
A Bromley
A J Rowley
M Rowley
G S Unsworth


SECRETARY: A Bromley


REGISTERED OFFICE: Firow House
Tarporley Road
Oakmere
Northwich
Cheshire
CW8 2ES


REGISTERED NUMBER: 01638922 (England and Wales)


SENIOR STATUTORY AUDITOR: Darren Cooper BA (Hons) FCA CTA


AUDITORS: A. Allen & Son Limited
Chartered Accountants
& Statutory Auditors
45 Union Road
New Mills
High Peak
SK22 3EL


BANKERS: National Westminster Bank Plc
The Bull Ring
Northwich
Cheshire
CW9 5BN


SOLICITORS: Dixon Keogh
Old Bank Chambers
32 High Street
Northwich
Cheshire
CWM 5BL

FIROW LIMITED (REGISTERED NUMBER: 01638922)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their strategic report for the year ended 31 July 2023.

We aim to present a balanced review of the development and performance of our business during the year and at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties the business faces.

Firow Limited is a specialised supplier of municipal, waste collection and skip commercial vehicles on both a long-term contractual hire basis as well as a short-term ad-hoc basis. During the year the ongoing economic uncertainty and supply chain issues have continued to bring operational and logistical challenges. These have required us to undertake regular reviews of our short and medium term plans. Given our highly respected position within the industry and strong customer base we have continued to see steady growth in turnover again this year. Despite this, operating margins and profit before tax have seen some contraction in the year due mainly to rising wage costs, vehicle maintenance and interest rates.

As the majority of the hire vehicles we own are committed to longer term contract hire periods, the revenue streams for these vehicles are predetermined and will provide a consistent cash flow into the business. The threat to this consistency is the strength of the clients we hold these contracts with. Particular attention is paid to this area and monitored closely. Our short term hire rental fleet is used to supplement and complement the contract fleet. We consider that our key performance indicators are those that communicate the prudent approach towards structuring the contractual elements of our commitment to clients.

The company holds a strong balance sheet.
The company produces a steady positive cash flow position.
The company holds excellent cash reserves.
The company has fixed contract debt secured at excellent rates.
The company is financially strong and is managed in a prudent manner.
The company achieves good residual values from the disposal of fleet assets.
The company has invested in its maintenance facility and staff resources.
The company has continued to invest in equipment to increase efficiency.
The company has maintained a stable cost base.

Key financial indicators used to monitor the business cover profit, liquidity and gearing as follows:

Gross profit margin 69.12% (2022: 72.37%)
Asset ratio 114.40% (2022: 113.27%)
Gearing ratio 50.39% (2022: 49.49%)

Others also considered are:

Debtor days 39 days (2022: 57 days)
Creditor days 101 days (2022: 71 days)

ON BEHALF OF THE BOARD:





A Bromley - Secretary


20 December 2023

FIROW LIMITED (REGISTERED NUMBER: 01638922)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report with the financial statements of the company for the year ended 31 July 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of specialist providers of municipal and waste vehicles on contract hire, short term hire, associated vehicle maintenance services and facilities management.

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of £240.00 per share.

The total distribution of dividends for the year ended 31 July 2023 will be £ 240,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

P A Rowley
A Bromley
A J Rowley
M Rowley
G S Unsworth

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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:

-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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, A. Allen & Son Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



A Bromley - Secretary


20 December 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FIROW LIMITED

Opinion
We have audited the financial statements of Firow Limited (the 'company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FIROW LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FIROW 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:

Our audit procedures were designed to respond to those identified risks, including non compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our Audit procedures include but are not limited to:


discussing with the directors and management their policies and procedures regarding compliance with laws
and regulations:


communicating identified laws and regulations throughout our engagement team and remaining alert to any
indications on non compliance throughout our audit.

Our audit procedures in relation to fraud included but were not limited to:


marking enquires of the directors and management on whether they had knowledge of any actual, suspected or
alleged fraud:

gaining an understanding of the internal controls established to mitigate risks related to fraud:

discussing amongst the engagement team the risk of fraud; and

addressing the risk of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentation or override of internal controls.

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.

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.




Darren Cooper BA (Hons) FCA CTA (Senior Statutory Auditor)
for and on behalf of A. Allen & Son Limited
Chartered Accountants
& Statutory Auditors
45 Union Road
New Mills
High Peak
SK22 3EL

20 December 2023

FIROW LIMITED (REGISTERED NUMBER: 01638922)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

31/7/23 31/7/22
Notes £    £   

TURNOVER 3 15,469,543 13,412,496

Cost of sales 4,776,896 3,705,822
GROSS PROFIT 10,692,647 9,706,674

Administrative expenses 7,641,554 6,842,158
3,051,093 2,864,516

Other operating income 84,200 69,609
OPERATING PROFIT 5 3,135,293 2,934,125

Interest receivable and similar income 7 142,883 12,982
3,278,176 2,947,107

Interest payable and similar expenses 8 482,637 313,367
PROFIT BEFORE TAXATION 2,795,539 2,633,740

Tax on profit 9 711,066 518,705
PROFIT FOR THE FINANCIAL YEAR 2,084,473 2,115,035

FIROW LIMITED (REGISTERED NUMBER: 01638922)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

31/7/23 31/7/22
Notes £    £   

PROFIT FOR THE YEAR 2,084,473 2,115,035


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,084,473

2,115,035

FIROW LIMITED (REGISTERED NUMBER: 01638922)

BALANCE SHEET
31 JULY 2023

31/7/23 31/7/22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 25,392,941 21,530,202
Investments 12 987,000 987,000
26,379,941 22,517,202

CURRENT ASSETS
Stocks 13 70,000 60,000
Debtors 14 1,799,979 2,253,186
Cash at bank and in hand 7,343,797 5,361,129
9,213,776 7,674,315
CREDITORS
Amounts falling due within one year 15 7,886,666 6,775,476
NET CURRENT ASSETS 1,327,110 898,839
TOTAL ASSETS LESS CURRENT
LIABILITIES

27,707,051

23,416,041

CREDITORS
Amounts falling due after more than one
year

16

(11,650,563

)

(9,679,879

)

PROVISIONS FOR LIABILITIES 20 (623,853 ) (148,000 )
NET ASSETS 15,432,635 13,588,162

CAPITAL AND RESERVES
Called up share capital 21 1,000 1,000
Retained earnings 22 15,431,635 13,587,162
SHAREHOLDERS' FUNDS 15,432,635 13,588,162

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by:





A Bromley - Director


FIROW LIMITED (REGISTERED NUMBER: 01638922)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2021 1,000 11,682,127 11,683,127

Changes in equity
Dividends - (210,000 ) (210,000 )
Total comprehensive income - 2,115,035 2,115,035
Balance at 31 July 2022 1,000 13,587,162 13,588,162

Changes in equity
Dividends - (240,000 ) (240,000 )
Total comprehensive income - 2,084,473 2,084,473
Balance at 31 July 2023 1,000 15,431,635 15,432,635

FIROW LIMITED (REGISTERED NUMBER: 01638922)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

31/7/23 31/7/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 9,430,519 6,772,128
Interest element of hire purchase payments
paid

(482,637

)

(313,367

)
Government grants - 1,111
Tax paid (518,089 ) (112,227 )
Net cash from operating activities 8,429,793 6,347,645

Cash flows from investing activities
Purchase of tangible fixed assets (9,953,815 ) (9,257,182 )
Purchase of fixed asset investments - (987,000 )
Sale of tangible fixed assets 592,954 236,377
Interest received 142,883 12,982
Net cash from investing activities (9,217,978 ) (9,994,823 )

Cash flows from financing activities
Capital repayments in year 2,988,311 3,379,110
Amount introduced by directors 240,000 210,000
Amount withdrawn by directors (217,500 ) (150,000 )
Equity dividends paid (240,000 ) (210,000 )
Net cash from financing activities 2,770,811 3,229,110

Increase/(decrease) in cash and cash equivalents 1,982,626 (418,068 )
Cash and cash equivalents at beginning of
year

2

5,361,129

5,779,197

Cash and cash equivalents at end of year 2 7,343,755 5,361,129

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31/7/23 31/7/22
£    £   
Profit before taxation 2,795,539 2,633,740
Depreciation charges 5,838,776 4,888,437
Profit on disposal of fixed assets (340,654 ) (81,487 )
Government grants - (1,109 )
Finance costs 482,637 313,367
Finance income (142,883 ) (12,982 )
8,633,415 7,739,966
Increase in stocks (10,000 ) (10,000 )
Decrease/(increase) in trade and other debtors 440,966 (863,425 )
Increase/(decrease) in trade and other creditors 366,138 (94,413 )
Cash generated from operations 9,430,519 6,772,128

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 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 7,343,797 5,361,129
Bank overdrafts (42 ) -
7,343,755 5,361,129
Year ended 31 July 2022
31.7.22 1.8.21
£    £   
Cash and cash equivalents 5,361,129 5,779,197


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.8.22 Cash flow At 31.7.23
£    £    £   
Net cash
Cash at bank and in hand 5,361,129 1,982,668 7,343,797
Bank overdrafts - (42 ) (42 )
5,361,129 1,982,626 7,343,755
Debt
Finance leases (14,942,933 ) (2,988,311 ) (17,931,244 )
(14,942,933 ) (2,988,311 ) (17,931,244 )
Total (9,581,804 ) (1,005,685 ) (10,587,489 )

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1. STATUTORY INFORMATION

Firow Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The principal accounting policies adopted in the preparation of the financial statements are set out below.

The financial statements have been prepared under the historic cost convention, except for modification to a fair value basis for certain fixed assets, as specified in the accounting policies below.

Turnover
Turnover represents net invoiced vehicle hire rentals and sales of associated logistical and maintenance services, excluding value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Property (Oakmere) - in accordance with the property years
Improvements (Oakmere) - 12.5% on cost
Improvements (Pinxton) - 12.5% on cost
Plant & equipment - 20% on reducing balance
Fixtures & fittings - 20% on reducing balance
Motor vehicles - 25% on reducing balance
Computer & office equipment - 33% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The following assets and liabilities are classified as financial instruments; trade debtors, trade creditors, bank loans and directors loans.

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits
Short term employee benefits, including holiday pay, are recognised as an expense in the Statement of Income and Retained Earnings in the period in which they are incurred.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

31/7/23 31/7/22
£    £   
Vehicle hire 14,597,404 12,666,005
Services & parts 872,139 746,491
15,469,543 13,412,496

An analysis of turnover by geographical market is given below:

31/7/23 31/7/22
£    £   
United Kingdom 15,469,543 13,412,496
15,469,543 13,412,496

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

4. EMPLOYEES AND DIRECTORS
31/7/23 31/7/22
£    £   
Wages and salaries 2,521,090 2,053,551
Social security costs 97,392 84,326
Other pension costs 149,119 147,798
2,767,601 2,285,675

The average number of employees during the year was as follows:
31/7/23 31/7/22

Directors 3 3
Administration 6 6
Operations 33 33
42 42

31/7/23 31/7/22
£    £   
Directors' remuneration 731,636 658,048
Directors' pension contributions to money purchase schemes 149,119 147,798

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Information regarding the highest paid director is as follows:
31/7/23 31/7/22
£    £   
Emoluments etc 291,832 254,169
Pension contributions to money purchase schemes 27,798 27,798

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31/7/23 31/7/22
£    £   
Depreciation - owned assets 722,067 1,030,331
Depreciation - assets on hire purchase contracts 5,116,709 3,858,108
Profit on disposal of fixed assets (340,654 ) (81,487 )
Auditors' remuneration 8,418 7,770

6. EXCEPTIONAL ITEMS
31/7/23 31/7/22
£    £   
Intercompany loan written off Firow Propshafts
Limited

-

(100,000

)



FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

7. INTEREST RECEIVABLE AND SIMILAR INCOME
31/7/23 31/7/22
£    £   
Bank interest received 142,883 12,982

8. INTEREST PAYABLE AND SIMILAR EXPENSES
31/7/23 31/7/22
£    £   
Hire purchase interest 482,637 313,367

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/7/23 31/7/22
£    £   
Current tax:
UK corporation tax 235,213 416,705

Deferred tax 475,853 102,000
Tax on profit 711,066 518,705

UK corporation tax has been charged at 25% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/7/23 31/7/22
£    £   
Profit before tax 2,795,539 2,633,740
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

698,885

500,411

Effects of:
Expenses not deductible for tax purposes 11,177 24,631
Capital allowances in excess of depreciation (427,759 ) (108,337 )

Change in corporate tax rate (47,090 ) -
Deferred tax movement 475,853 102,000
Total tax charge 711,066 518,705

10. DIVIDENDS
31/7/23 31/7/22
£    £   
Ordinary shares of £1 each
Final 240,000 210,000

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

11. TANGIBLE FIXED ASSETS
Property Improvements Improvements Plant &
(Oakmere) (Oakmere) (Pinxton) equipment
£    £    £    £   
COST OR VALUATION
At 1 August 2022 433,443 192,333 58,653 450,630
Additions - 258,427 - 56,113
Disposals - - - -
At 31 July 2023 433,443 450,760 58,653 506,743
DEPRECIATION
At 1 August 2022 37,212 170,106 58,653 332,549
Charge for year 4,334 - - 34,838
Eliminated on disposal - - - -
At 31 July 2023 41,546 170,106 58,653 367,387
NET BOOK VALUE
At 31 July 2023 391,897 280,654 - 139,356
At 31 July 2022 396,231 22,227 - 118,081

Computer
Fixtures Motor & office
& fittings vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1 August 2022 92,934 47,079,689 219,663 48,527,345
Additions - 9,624,664 14,611 9,953,815
Disposals - (2,259,911 ) - (2,259,911 )
At 31 July 2023 92,934 54,444,442 234,274 56,221,249
DEPRECIATION
At 1 August 2022 70,304 26,130,400 197,919 26,997,143
Charge for year 4,526 5,782,960 12,118 5,838,776
Eliminated on disposal - (2,007,611 ) - (2,007,611 )
At 31 July 2023 74,830 29,905,749 210,037 30,828,308
NET BOOK VALUE
At 31 July 2023 18,104 24,538,693 24,237 25,392,941
At 31 July 2022 22,630 20,949,289 21,744 21,530,202

Cost or valuation at 31 July 2023 is represented by:

Property Improvements Improvements Plant &
(Oakmere) (Oakmere) (Pinxton) equipment
£    £    £    £   
Cost 433,443 450,760 58,653 506,743

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

11. TANGIBLE FIXED ASSETS - continued

Computer
Fixtures Motor & office
& fittings vehicles equipment Totals
£    £    £    £   
Cost 92,934 54,444,442 234,274 56,221,249

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 August 2022 29,864,310
Additions 9,484,837
Transfer to ownership (2,717,231 )
At 31 July 2023 36,631,916
DEPRECIATION
At 1 August 2022 11,825,744
Charge for year 5,116,709
Transfer to ownership (2,072,419 )
At 31 July 2023 14,870,034
NET BOOK VALUE
At 31 July 2023 21,761,882
At 31 July 2022 18,038,566

12. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 August 2022
and 31 July 2023 987,000
NET BOOK VALUE
At 31 July 2023 987,000
At 31 July 2022 987,000

13. STOCKS
31/7/23 31/7/22
£    £   
Stocks 70,000 60,000

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/23 31/7/22
£    £   
Trade debtors 1,650,624 2,102,243
Tax recoverable 30,110 42,351
Sundry debtors & prepayments 119,245 108,592
1,799,979 2,253,186

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/7/23 31/7/22
£    £   
Bank loans and overdrafts (see note 17) 42 -
Hire purchase contracts (see note 18) 6,280,681 5,263,054
Trade creditors 999,379 555,207
Taxation 235,213 530,330
Social security & other taxes 55,250 66,815
VAT 50,857 101,913
Rowleys of Northwich Limited 7,183 12,570
Directors' current accounts 232,500 210,000
Sundry creditors & accruals 25,561 35,587
7,886,666 6,775,476

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/7/23 31/7/22
£    £   
Hire purchase contracts (see note 18) 11,650,563 9,679,879

17. LOANS

An analysis of the maturity of loans is given below:

31/7/23 31/7/22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 42 -

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31/7/23 31/7/22
£    £   
Gross obligations repayable:
Within one year 6,280,681 5,263,054
Between one and five years 13,450,719 10,747,963
19,731,400 16,011,017

Finance charges repayable:
Between one and five years 1,800,156 1,068,084

Net obligations repayable:
Within one year 6,280,681 5,263,054
Between one and five years 11,650,563 9,679,879
17,931,244 14,942,933

Non-cancellable operating leases
31/7/23 31/7/22
£    £   
Within one year 93,480 91,410
Between one and five years 373,920 365,640
467,400 457,050

19. SECURED DEBTS

The following secured debts are included within creditors:

31/7/23 31/7/22
£    £   
Bank overdraft 42 -
Hire purchase contracts 17,931,244 14,942,933
17,931,286 14,942,933

All providers of HP finance and lease finance hold floating charges respectively over the particular assets subject to the agreement and all such charges are registered at Companies House.

20. PROVISIONS FOR LIABILITIES
31/7/23 31/7/22
£    £   
Deferred tax 623,853 148,000

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

20. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 August 2022 148,000
Charge to Income Statement during year 475,853
Balance at 31 July 2023 623,853

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/7/23 31/7/22
value: £    £   
1,000 Ordinary £1 1,000 1,000

22. RESERVES
Retained
earnings
£   

At 1 August 2022 13,587,162
Profit for the year 2,084,473
Dividends (240,000 )
At 31 July 2023 15,431,635

23. RELATED PARTY DISCLOSURES

Rowleys of Northwich Limited. Mr P A Rowley is a director and shareholder.
31/7/23 31/7/22
£    £   
Sales 874 1,288
Purchases 43,340 145,863
Amount due to related party 7,183 12,570

Firow Propshafts Limited. Mr M Rowley is a director and shareholder.
31/7/23 31/7/22
£    £   
Sales 697 275
Purchases 4,378 3,235
Amount due from related party 227 -
Amount due to related party - 438

Rowley Pension fund of which Mr P A Rowley, A J Rowley and M Rowley are beneficiaries.
31/7/23 31/7/22
£    £   
Commercial rent 42,000 42,000

FIROW LIMITED (REGISTERED NUMBER: 01638922)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2023

24. SECURITIES

National Westminster Bank Plc hold an Unscheduled Mortgage Debenture dated 15 October 1997 incorporating a specific equitable charge over all freehold and leasehold properties and a floating charge over all current and future fixed assets and intellectual property of the company.