REGISTERED NUMBER: 09909212 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
FERTILIFE INDUSTRY LIMITED |
REGISTERED NUMBER: 09909212 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
FERTILIFE INDUSTRY LIMITED |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
FERTILIFE INDUSTRY LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 December 2022 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Leonard House |
5 - 7 Newman Road |
Bromley |
Kent |
BR1 1RJ |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
The director presents her strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The past year 2022, has been a very challenging year for the group due to extreme geopolitical turbulence. |
Production |
The production unit made its best efforts to maintain production volumes and sales. Despite a fall in overall sales the gross margin percentage was maintained and a good level of profitability was achieved. |
The production plant has continued to deliver a high quality product. |
Development |
The project to extend production capacity has been suspended for an indefinite period of time. |
Corporate responsibility |
In unstable geopolitical conditions the company continues to pay especially high attention to the protection of the psychological well-being and the personal development of each employee, basing itself on the highest standards of respect for human rights, social responsibility, codes of ethics and good practices. |
Future plans |
In 2023 the Group will continue its ongoing efforts to maintain its position and its strategic directions. |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company has exposure to the following risks from its use of financial instruments: |
o Interest rate risk |
o Liquidity risk |
o Market risk |
The Group's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. |
Interest-rate risk |
The Group's income and operating cash flows are exposed to changes in market interest rates. |
Management monitors changes in interest rates and takes steps to mitigate these risks as far as practicable by ensuring that the Group has financial liabilities with both floating and fixed interest rates as appropriate. |
Liquidity risk |
Since the Group's business is capital-intensive, the lack of available funding and potential increases in market interest rates could have an impact on the Group's ability to obtain financing for the settlement of its liabilities or cash to meet its financial obligations. |
The Group has a budgeting policy in place that allows the management to control current liquidity based on expected cash flows. These include, among others, operating cash flows, capital expenditure needs, funds borrowed from financial institutions. |
Market risk |
Market risk is the risk that the changes in market prices, such as foreign exchange rates and interest rates will affect the Group's income or the value of its holdings of financial instruments. |
The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the return. |
Capital risk management |
The Group actively and regularly reviews and manages its capital position to maintain a balance between its liability and equity level. |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
SECTION 172(1) STATEMENT |
The board confirm that they have complied with their duty to promote the success of the group, having due regard to section 172(1) (a) to (f) of the Companies Act 2006. |
The decision making by the board has focussed on fostering relationships with stakeholders, comprising suppliers, customers and employees. |
Strategic decisions are made with due consideration of the consequences in relation to delivering the long term objectives. The development plans for the Group, in the medium term, is set out in the strategic report. |
The Group is conscious that the products which form the basis of the trading activity are chemical based and have a potential for environmental effect. The policy of investment in research and development, noted in the review of business, includes due consideration of environmental protection. |
The reputation of the Group is important and this is reflected in the high standards applied when conducting business with all stakeholders. |
ON BEHALF OF THE BOARD: |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
REPORT OF THE DIRECTOR |
For The Year Ended 31 December 2022 |
The director presents her report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
An interim dividend of $3,625,179 per share was paid on 1 March 2022. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2022 will be $ 3,625,179 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
REPORT OF THE DIRECTOR |
For The Year Ended 31 December 2022 |
AUDITORS |
The auditors, Crane & Partners, 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 |
FERTILIFE INDUSTRY LIMITED |
Opinion |
We have audited the financial statements of Fertilife Industry Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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 the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's 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 group 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 |
FERTILIFE INDUSTRY 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 Director 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 Director 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FERTILIFE INDUSTRY 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: |
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to those laws which have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and tax legislation. |
We evaluated management's opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and potential management bias towards accounting estimates. |
Audit procedures included discussions with management, challenging assumptions made by management in their significant accounting estimates, and identifying and testing journal entries posted with unusual account combinations. |
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material fraud is higher than the risk of not detecting one resulting from error, as fraud may be deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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. |
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 |
Chartered Accountants & Statutory Auditors |
Leonard House |
5 - 7 Newman Road |
Bromley |
Kent |
BR1 1RJ |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONSOLIDATED INCOME STATEMENT |
For The Year Ended 31 December 2022 |
2022 | 2021 |
Notes | $ | $ |
TURNOVER | 33,735,798 | 50,937,635 |
Cost of sales | 25,876,383 | 39,106,713 |
GROSS PROFIT | 7,859,415 | 11,830,922 |
Administrative expenses | 1,083,221 | 1,733,808 |
OPERATING PROFIT | 4 | 6,776,194 | 10,097,114 |
Interest receivable and similar income | 1,183 | 1,183 |
6,777,377 | 10,098,297 |
Interest payable and similar expenses | 5 | 324,610 | 147,120 |
PROFIT BEFORE TAXATION | 6,452,767 | 9,951,177 |
Tax on profit | 6 | 534,711 | 109,863 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 4,669,286 | 7,819,896 |
Non-controlling interests | 1,248,770 | 2,021,418 |
5,918,056 | 9,841,314 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
For The Year Ended 31 December 2022 |
2022 | 2021 |
Notes | $ | $ |
PROFIT FOR THE YEAR | 5,918,056 | 9,841,314 |
OTHER COMPREHENSIVE INCOME |
Reserves movement | 661,994 | 609,837 |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
661,994 |
609,837 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
6,580,050 |
10,451,151 |
Total comprehensive income attributable to: |
Owners of the parent | 7,160,280 | 8,857,683 |
Non-controlling interests | (580,230 | ) | 1,593,468 |
6,580,050 | 10,451,151 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONSOLIDATED BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | $ | $ | $ | $ |
FIXED ASSETS |
Intangible assets | 9 | 92,154 | 62,658 |
Tangible assets | 10 | 9,553,174 | 7,276,308 |
Investments | 11 | - | - |
9,645,328 | 7,338,966 |
CURRENT ASSETS |
Stocks | 12 | 3,865,296 | 2,505,274 |
Debtors | 13 | 9,266,278 | 7,832,026 |
Cash at bank | 1,272,568 | 2,770,682 |
14,404,142 | 13,107,982 |
CREDITORS |
Amounts falling due within one year | 14 | 286,262 | 310,637 |
NET CURRENT ASSETS | 14,117,880 | 12,797,345 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
23,763,208 |
20,136,311 |
CREDITORS |
Amounts falling due after more than one year |
15 |
4,325,271 |
2,852,823 |
NET ASSETS | 19,437,937 | 17,283,488 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 1 | 1 |
Revaluation reserve | 18 | 1,450,231 | - |
Retained earnings | 18 | 14,160,462 | 13,904,592 |
SHAREHOLDERS' FUNDS | 15,610,694 | 13,904,593 |
NON-CONTROLLING INTERESTS | 3,827,243 | 3,378,895 |
TOTAL EQUITY | 19,437,937 | 17,283,488 |
The financial statements were approved by the director and authorised for issue on 29 January 2024 and were signed by: |
H Shirin - Director |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
COMPANY BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
Notes | $ | $ | $ | $ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,537,885 | 2,136,737 |
The financial statements were approved by the director and authorised for issue on |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
$ | $ | $ |
Balance at 1 January 2021 | 1 | 8,174,859 | - |
Changes in equity |
Dividends | - | (2,700,000 | ) | - |
Total comprehensive income | - | 8,429,733 | - |
Balance at 31 December 2021 | 1 | 13,904,592 | - |
Changes in equity |
Dividends | - | (3,625,179 | ) | - |
Total comprehensive income | - | 3,881,049 | 1,450,231 |
Balance at 31 December 2022 | 1 | 14,160,462 | 1,450,231 |
Non-controlling | Total |
Total | interests | equity |
$ | $ | $ |
Balance at 1 January 2021 | 8,174,860 | 1,785,427 | 9,960,287 |
Changes in equity |
Dividends | (2,700,000 | ) | - | (2,700,000 | ) |
Total comprehensive income | 8,429,733 | 1,593,468 | 10,023,201 |
Balance at 31 December 2021 | 13,904,593 | 3,378,895 | 17,283,488 |
Changes in equity |
Dividends | (3,625,179 | ) | - | (3,625,179 | ) |
Total comprehensive income | 5,331,280 | (580,230 | ) | 4,751,050 |
Balance at 31 December 2022 | 15,610,694 | 2,798,665 | 18,409,359 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
$ | $ | $ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
2022 | 2021 |
Notes | $ | $ |
Cash flows from operating activities |
Cash generated from operations | 1 | 6,151,988 | 4,326,182 |
Interest paid | (324,610 | ) | (147,120 | ) |
Tax paid | (534,711 | ) | (109,863 | ) |
Net cash from operating activities | 5,292,667 | 4,069,199 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (36,626 | ) | (46,903 | ) |
Purchase of tangible fixed assets | (3,367,685 | ) | (382,563 | ) |
Sale of tangible fixed assets | 237,526 | 2,306 |
Interest received | 1,183 | 1,183 |
Net cash from investing activities | (3,165,602 | ) | (425,977 | ) |
Cash flows from financing activities |
Equity dividends paid | (3,625,179 | ) | (2,700,000 | ) |
Net cash from financing activities | (3,625,179 | ) | (2,700,000 | ) |
(Decrease)/increase in cash and cash equivalents | (1,498,114 | ) | 943,222 |
Cash and cash equivalents at beginning of year |
2 |
2,770,682 |
1,827,460 |
Cash and cash equivalents at end of year |
2 |
1,272,568 |
2,770,682 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
$ | $ |
Profit before taxation | 6,452,767 | 9,951,177 |
Depreciation charges | 812,520 | 602,089 |
Finance costs | 324,610 | 147,120 |
Finance income | (1,183 | ) | (1,183 | ) |
7,588,714 | 10,699,203 |
Increase in stocks | (1,360,022 | ) | (1,841,356 | ) |
Increase in trade and other debtors | (1,434,252 | ) | (4,046,788 | ) |
Increase/(decrease) in trade and other creditors | 1,357,548 | (484,877 | ) |
Cash generated from operations | 6,151,988 | 4,326,182 |
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 December 2022 |
31.12.22 | 1.1.22 |
$ | $ |
Cash and cash equivalents | 1,272,568 | 2,770,682 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
$ | $ |
Cash and cash equivalents | 2,770,682 | 1,827,460 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.22 | Cash flow | At 31.12.22 |
$ | $ | $ |
Net cash |
Cash at bank | 2,770,682 | (1,498,114 | ) | 1,272,568 |
2,770,682 | (1,498,114 | ) | 1,272,568 |
Debt |
Debts falling due after 1 year | (2,852,823 | ) | (1,472,448 | ) | (4,325,271 | ) |
(2,852,823 | ) | (1,472,448 | ) | (4,325,271 | ) |
Total | (82,141 | ) | (2,970,562 | ) | (3,052,703 | ) |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Fertilife Industry Limited is a |
The presentation currency of the financial statements is the US Dollar ($). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The Group consolidated financial statements include the financial statements of the Company and its subsidiary undertaking made up to 31 December 2022. |
Related party exemption |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 |
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
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 |
The Group financial statements are presented in United States Dollars. The Company’s functional and presentation currency is the United States Dollars. |
3. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
$ | $ |
Wages and salaries | 1,182,086 | 489,494 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Administration | 23 | 25 |
Production | 56 | 60 |
2022 | 2021 |
$ | $ |
Director's remuneration | - | - |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
$ | $ |
Depreciation - owned assets | 811,054 | 596,803 |
Patents and licences amortisation | 7,218 | 7,343 |
Auditors' remuneration | 5,000 | 5,250 |
Auditors' remuneration for non audit work | 5,100 | 7,336 |
Foreign exchange differences | (1,505,490 | ) | 263,300 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
$ | $ |
Bank interest | 324,610 | 147,120 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
$ | $ |
Current tax: |
UK corporation tax | 534,711 | 109,863 |
Tax on profit | 534,711 | 109,863 |
Tax effects relating to effects of other comprehensive income |
2022 |
Gross | Tax | Net |
$ | $ | $ |
Reserves movement | 661,994 | - | 661,994 |
2021 |
Gross | Tax | Net |
$ | $ | $ |
Reserves movement | 609,837 | - | 609,837 |
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. | DIVIDENDS |
2022 | 2021 |
$ | $ |
Ordinary share of GBP 1 |
Interim | 3,625,179 | 2,700,000 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
licences |
$ |
COST |
At 1 January 2022 | 78,398 |
Additions | 36,626 |
Exchange differences | 142 |
At 31 December 2022 | 115,166 |
AMORTISATION |
At 1 January 2022 | 15,740 |
Amortisation for year | 7,218 |
Exchange differences | 54 |
At 31 December 2022 | 23,012 |
NET BOOK VALUE |
At 31 December 2022 | 92,154 |
At 31 December 2021 | 62,658 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
$ | $ | $ | $ |
COST |
At 1 January 2022 | 3,379,825 | 5,953,714 | 57,901 | 9,391,440 |
Additions | 442,657 | 2,925,028 | - | 3,367,685 |
Disposals | - | (240,784 | ) | - | (240,784 | ) |
Exchange differences | 11,734 | (46,876 | ) | 244 | (34,898 | ) |
At 31 December 2022 | 3,834,216 | 8,591,082 | 58,145 | 12,483,443 |
DEPRECIATION |
At 1 January 2022 | 243,850 | 1,841,274 | 30,008 | 2,115,132 |
Charge for year | 102,014 | 700,910 | 8,130 | 811,054 |
Eliminated on disposal | - | (3,258 | ) | - | (3,258 | ) |
Exchange differences | 847 | 6,391 | 103 | 7,341 |
At 31 December 2022 | 346,711 | 2,545,317 | 38,241 | 2,930,269 |
NET BOOK VALUE |
At 31 December 2022 | 3,487,505 | 6,045,765 | 19,904 | 9,553,174 |
At 31 December 2021 | 3,135,975 | 4,112,440 | 27,893 | 7,276,308 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
$ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Belagrofert LLC |
Registered office: Belarus |
Nature of business: Fertilizer production |
% |
Class of shares: | holding |
Ordinary | 80.00 |
2022 | 2021 |
$ | $ |
Aggregate capital and reserves | 19,136,216 | 16,894,473 |
Profit for the year | 6,243,849 | 10,107,093 |
12. | STOCKS |
Group |
2022 | 2021 |
$ | $ |
Raw materials | 3,865,296 | 2,505,274 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
$ | $ | $ | $ |
Trade debtors | 8,720,055 | 6,097,527 |
Amounts owed by group undertakings | 465,413 | 465,413 |
Prepayments | 80,810 | 1,269,086 |
9,266,278 | 7,832,026 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
$ | $ | $ | $ |
Trade creditors | 274,078 | 176,342 |
Other creditors | - | 132,211 |
Accrued expenses | 12,184 | 2,084 |
286,262 | 310,637 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
$ | $ |
Bank loans (see note 16) | 4,325,271 | 2,852,823 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
$ | $ |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 4,325,271 | 2,852,823 |
The bank loan is secured against the production line of the subsidiary company The maturity date of the loan is 25 August 2025 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | $ | $ |
Ordinary | GBP 1 | 1 | 1 |
FERTILIFE INDUSTRY LIMITED (REGISTERED NUMBER: 09909212) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
18. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
$ | $ | $ |
At 1 January 2022 | 13,904,592 | - | 13,904,592 |
Profit for the year | 4,669,286 | 4,669,286 |
Dividends | (3,625,179 | ) | (3,625,179 | ) |
Foreign exchange adjustment | (788,237 | ) | - | (788,237 | ) |
Revaluation in year | - | 1,450,231 | 1,450,231 |
At 31 December 2022 | 14,160,462 | 1,450,231 | 15,610,693 |
19. | ULTIMATE PARENT COMPANY |
UTA Group is regarded by the director as being the company's ultimate parent company. |
20. | RELATED PARTY DISCLOSURES |
Entities over which the entity has control, joint control or significant influence |
2022 | 2021 |
$ | $ |
Dividend received | 3,625,179 | 3,003,143 |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr Ragheb Amhan. |