Company registration number SC051054 (Scotland)
FIFE FABRICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
FIFE FABRICATIONS LIMITED
COMPANY INFORMATION
Directors
J Penman
C McIntosh
R Morris
S Smith
M Gare
(Appointed 2 February 2023)
W Taylor
(Appointed 2 February 2023)
R Waterson
(Appointed 2 February 2023)
Secretary
S Allsopp
Company number
SC051054
Registered office
29 Rutherford Road
Southfield Industrial Estate
Glenrothes
Fife
United Kingdom
KY6 2RT
Auditor
Azets Audit Services
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
Solicitors
Young & Partners
1 George Square
Castle Brae
Dunfermline
Inverkeithing
Fife
United Kingdom
KY11 8QF
FIFE FABRICATIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
FIFE FABRICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Business review

The results for the year are shown in the statement of comprehensive income. The company profit for the year after taxation was £1,545,853 (2022: £1,023,457).

Principal risks and uncertainties

The principal risks affecting the growth of the company include the uncertain economic climate, the availability of labour and competition for available work, both from home based and overseas companies.

Future developments

The company will continue to meet the demands of its varied customer base, promoting continuous improvement, people development, best practice lean manufacturing, and state of the art technological capability.

Key performance indicators

The directors regard turnover and gross profit percentage as key performance indicators. In the year under review the company’s turnover was £10,474,273 (2022: £10,383,535). The company’s gross profit percentage for the year was 29% (2022: 22%).

On behalf of the board

J Penman
Director
9 April 2024
FIFE FABRICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Principal activities

The principal activity of the company continued to be that of the manufacture of precision sheet metal products, electro-mechanical assemblies and precision machine components.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Penman
C McIntosh
R Morris
S Smith
M Gare
(Appointed 2 February 2023)
W Taylor
(Appointed 2 February 2023)
R Waterson
(Appointed 2 February 2023)
Post reporting date events

On 2 February 2023, Fifab Limited acquired 100% of the shares in Fifab Holdings Limited, and is now deemed to be the ultimate parent company. Following the transaction there is no ultimate controlling party.

Auditor

Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FIFE FABRICATIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
Statement of disclosure to auditor

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

On behalf of the board
J Penman
Director
9 April 2024
FIFE FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIFE FABRICATIONS LIMITED
- 4 -
Opinion

We have audited the financial statements of Fife Fabrications Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FIFE FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIFE FABRICATIONS LIMITED
- 5 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

FIFE FABRICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIFE FABRICATIONS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David MacCallum
Senior Statutory Auditor
For and on behalf of Azets Audit Services
9 April 2024
Chartered Accountants
Statutory Auditor
Titanium 1
King's Inch Place
Renfrew
Renfrewshire
United Kingdom
PA4 8WF
FIFE FABRICATIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,474,273
10,383,535
Cost of sales
(7,459,458)
(8,096,715)
Gross profit
3,014,815
2,286,820
Distribution costs
(598,310)
(572,725)
Administrative expenses
(497,241)
(468,593)
Other operating income
12,480
25,440
Operating profit
4
1,931,744
1,270,942
Interest receivable and similar income
7
20,647
895
Interest payable and similar expenses
8
(13,213)
(17,227)
Profit before taxation
1,939,178
1,254,610
Tax on profit
9
(393,325)
(231,153)
Profit for the financial year
1,545,853
1,023,457

The notes on pages 10 to 22 form part of these financial statements.

FIFE FABRICATIONS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,427,692
1,594,487
Current assets
Stocks
12
656,852
682,731
Debtors
13
3,441,869
1,949,196
Cash at bank and in hand
1,893,065
1,835,265
5,991,786
4,467,192
Creditors: amounts falling due within one year
14
(2,246,252)
(2,275,769)
Net current assets
3,745,534
2,191,423
Total assets less current liabilities
5,173,226
3,785,910
Creditors: amounts falling due after more than one year
15
(43,281)
(173,464)
Provisions for liabilities
Deferred tax liability
17
159,187
178,061
(159,187)
(178,061)
Accruals and deferred income
18
(79,160)
(88,640)
Net assets
4,891,598
3,345,745
Capital and reserves
Called up share capital
20
34,558
34,558
Capital redemption reserve
56,442
56,442
Profit and loss reserves
4,800,598
3,254,745
Total equity
4,891,598
3,345,745

The notes on pages 10 to 22 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 9 April 2024 and are signed on its behalf by:
J Penman
Director
Company Registration No. SC051054
FIFE FABRICATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
34,558
56,442
2,371,939
2,462,939
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
1,023,457
1,023,457
Dividends
10
-
-
(140,651)
(140,651)
Balance at 30 September 2022
34,558
56,442
3,254,745
3,345,745
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
1,545,853
1,545,853
Balance at 30 September 2023
34,558
56,442
4,800,598
4,891,598

The notes on pages 10 to 22 form part of these financial statements.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
1
Accounting policies
Company information

The continuing activities of Fife Fabrications Limited is that of the manufacture of precision sheet metal products, electro-mechanical assemblies and precision machine components.

 

The company is a private company limited by shares and is incorporated in the United Kingdom and registered in Scotland. Details of the registered office and registered number can be found on the company information page of the financial statements.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Fifab Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

The company has a strong balance sheet, good liquidity and a solid customer base. true As a consequence the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

 

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.4
Tangible fixed assets

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

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

Freehold property
Over 50 years
Long-term leasehold property
Over 50 years
Plant and machinery
12.5% to 20% straight line
Fixtures and fittings
12.5% to 25% straight line
Improvements (included in land
12.5% straight line
and buildings)

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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

 

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

Derecognition of financial assets

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.16

Interest income

Interest income is recognised in the statement of income and retained earnings using the effective interest method.

1.17

Finance costs

Finance costs are charged to the the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Accounting estimation has been applied to the depreciation and amortisation rates and the provision for stock and bad debts. The depreciation and amortisation rates have been deemed to be appropriate for the class of asset. The stock provision has been deemed appropriate at the year-end based on an assessment of stock held. The bad debt provision has been deemed appropriate based on cash received in the post year-end period in relation to debts outstanding at the year-end.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Precision sheet metal products
10,474,273
10,383,535
2023
2022
£
£
Other revenue
Interest income
20,647
895
Grants received
12,480
8,732
Insurance claims
-
16,708
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(12,480)
(8,732)
Fees payable to the company's auditor for the audit of the company's financial statements
27,500
12,000
Depreciation of owned tangible fixed assets
141,980
153,530
Depreciation of tangible fixed assets held under finance leases
129,687
137,210
Profit on disposal of tangible fixed assets
-
(4,500)
Operating lease charges
418
671
FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 16 -
5
Employees

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

2023
2022
Number
Number
Administration
18
19
Production
86
90
Total
104
109

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,092,112
3,042,614
Social security costs
288,226
286,303
Pension costs
125,695
154,688
3,506,033
3,483,605
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
346,868
392,256
Company pension contributions to defined contribution schemes
78,338
63,824
425,206
456,080

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
123,228
150,661
Company pension contributions to defined contribution schemes
38,508
28,945
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
20,647
895
FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
13,213
17,227
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
412,559
217,757
Adjustments in respect of prior periods
(360)
(14,999)
Total current tax
412,199
202,758
Deferred tax
Origination and reversal of timing differences
(18,874)
28,395
Total tax charge
393,325
231,153

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

2023
2022
£
£
Profit before taxation
1,939,178
1,254,610
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
426,779
238,376
Tax effect of expenses that are not deductible in determining taxable profit
4,435
7,502
Tax effect of income not taxable in determining taxable profit
(3,386)
-
0
Adjustments in respect of prior years
(360)
(14,999)
Group relief
(34,307)
(3,577)
Deferred tax adjustments in respect of prior years
-
0
12,653
Fixed asset differences
2,423
(12,581)
Effect of change in deferred tax rate
(2,259)
3,779
Taxation charge for the year
393,325
231,153
10
Dividends
2023
2022
£
£
Final paid
-
0
140,651
FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
11
Tangible fixed assets
Freehold property
Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 October 2022
710,564
325,000
5,056,359
138,552
6,230,475
Additions
-
0
-
0
90,180
14,692
104,872
At 30 September 2023
710,564
325,000
5,146,539
153,244
6,335,347
Depreciation and impairment
At 1 October 2022
309,810
140,834
4,084,109
101,235
4,635,988
Depreciation charged in the year
28,706
6,500
228,100
8,361
271,667
At 30 September 2023
338,516
147,334
4,312,209
109,596
4,907,655
Carrying amount
At 30 September 2023
372,048
177,666
834,330
43,648
1,427,692
At 30 September 2022
400,754
184,166
972,250
37,317
1,594,487

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
268,544
398,231
12
Stocks
2023
2022
£
£
Raw materials
165,291
202,060
Work in progress
193,722
219,586
Finished goods and goods for resale
297,839
261,085
656,852
682,731
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,495,602
1,878,306
Amounts owed by group undertakings
1,941,276
-
0
Prepayments and accrued income
4,991
70,890
3,441,869
1,949,196
FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
16
130,194
159,471
Trade creditors
978,282
1,046,722
Amounts owed to group undertakings
-
0
42
Corporation tax
312,584
217,788
Other taxation and social security
360,681
384,995
Accruals and deferred income
464,511
466,751
2,246,252
2,275,769

The Royal Bank of Scotland Plc have a bond and a floating charge on the assets of the company and standard securities over the property.

 

Security is held by various funders in respect of the assets purchased under finance leases and hire purchase contracts.

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
43,281
173,464

Security is held by various funders in respect of the assets purchased under finance leases and hire purchase contracts.

16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
134,180
172,684
In two to five years
43,560
177,729
177,740
350,413
Less: future finance charges
(4,265)
(17,478)
173,475
332,935

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
At beginning of year
178,061
149,666
Charged to profit or loss
(18,874)
28,395
159,187
178,061
2023
Movements in the year:
£
Liability at 1 October 2022
178,061
Credit to profit or loss
(18,874)
Liability at 30 September 2023
159,187

 

18
Accruals and deferred income
2023
2022
£
£
Grants
79,160
88,640
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,695
154,688

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

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
34,558
34,558
34,558
34,558

Ordinary shares are non redeemable, are entitled to participate in a distribution on wind up and one vote can be cast per share.

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
21
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
114,210
68,521
Between two and five years
224,250
6,579
338,460
75,100
22
Related party transactions
Transactions with related parties
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
21,506
-
0
242,846
-
2023
2022
Amounts due to related parties
£
£
Other related parties
4,032
-

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Other related parties
8,056
-
Other information

The company has taken advantage of the exemption granted by FRS 102 not to disclose transactions with other group companies.

 

FIFE FABRICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
23
Ultimate controlling party

As at 30 September 2023, the ultimate parent company was Fifab Limited.

 

On 2 February 2023, 100% of the issued share capital of the immediate parent company, Fifab Holdings Limited, was acquired by Fifab Limited, a company registered in England and Wales. Prior to this date, the ultimate controlling party was J Penman by virtue of his majority shareholding in Fifab Holdings Limited. Following the acquisition by Fifab Limited, the directors consider there to be no controlling party.

 

The largest and smallest group into which the results of the company are consolidated is that headed by Fifab Limited. The consolidated accounts of this company are available to the public and may be obtained from Companies House.

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