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Company registration number: 02897887







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


FRANKI FOUNDATIONS UK LIMITED






































img2099.png                        

 


FRANKI FOUNDATIONS UK LIMITED
 


 
COMPANY INFORMATION


Directors
M Bottiau 
C Macklin 
C Schreurs 
A Ahmad (appointed 23 February 2023)
N Waite (appointed 22 June 2023)
J Chaloner (appointed 1 February 2024)




Registered number
02897887



Registered office
76 Powder Mill Lane
The Questor Estate

Dartford

Kent

DA1 1JA




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


FRANKI FOUNDATIONS UK LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Notes to the financial statements
11 - 23

 


FRANKI FOUNDATIONS UK LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors are pleased to present the financial statements for the year ended 31 December 2023.

Business review
 
The past 12 months have marked a return to a more normalised trading environment, and this is reflected within our trading results. After facing the challenges of previous years, bringing with them the Covid 19 pandemic, Brexit, and the Ukraine war, the company saw a significant increase in sales for the year to £23.5m.
The order book was strong entering the year. However, new business towards the back end of the year was difficult to secure due to global uncertainty in particular volatile interest rates and soaring inflation rates within the UK. 
During the year several major projects were delivered including Kings Road Park, Timber Square, Bethnal Green and Northumberland Line, all exceeding margins of 20%. These projects were delivered to a very high QA standard, adopting robust control processes ensuring efficient execution. The successful delivery on these projects further reinforced the Franki brand as being able to successfully deliver major projects within the London and the wider UK Market.
Quick start contracts during H1 increased our reliance on agency labour which was amplified by the continuation of HS2. This project was offering operatives up to 30% higher wages which in turn increased our labour costs and limited the available resource. 
The business has reacted to address recent challenges by starting procurement processes earlier, securing back-up suppliers mitigating supply risk and where possible, agreeing more favourable credit terms. The business has also implemented material inflation clauses and building material fluctuation risk into our tenders submitted.
Overall, it has been a healthy year, and this is reflected within our results. Going forward our new business pipeline looks stable, we are improving our procurement and commercial processes, our reliance on agency labour will reduce and we retain a loyal and dedicated work force.
2023 saw the implementation of a structured senior management team with continual focus on:
• Strategic planning        • Future growth
• Asset renewal planning • Employee development
• Operational efficiency • Increased market presence

Principal risks and uncertainties
 
The principal risk facing the business in the short term continues to be pressure on contract margins. However, we are now securing work under improved commercial terms and with less reliance on agency labour. This coupled with improved processes is delivering margins on current projects, higher than those achieved in the previous 18 months. Whilst the market conditions remain difficult due to interest and high inflation, the measures the company is taking to tackle these conditions is improving the trading outlook as the year progresses.
As a result of tighter margin control, cash management is more business critical than ever before. Operational and commercial protocols and procedures have and continue to be introduced and developed to ensure that the liquidity of the business remains strong. It is our intention to build cash reserves to enable us to deal with any market downturns that may be around the corner in any period of economic uncertainty.

Page 1

 


FRANKI FOUNDATIONS UK LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Development

The directors and senior management are continually assessing the needs and requirements of the business including investment in plant and its people, along with the continual efficiency improvements.
We are committed to investing in our workforce aiming to increase employee retention rates and improve overall company performance.
The company continues to maintain and monitor robust occupational health and wellbeing strategy to ensure the health of its employees. 2023 saw the implementation of a wellbeing committee to ensure the well being of all employees and the conformance and improvement of the company’s current policies.

Financial key performance indicators
 
As mentioned, and discussed in the business review, the company considers its key performance indicators to be:


2023
2022
        £
        £
Turnover

£23,525k

£15,462k
 
Gross profit margin

18.74%

14.20%
 
Operating profit / (loss)

£1,655k

£(375k)
 


This report was approved by the board and signed on its behalf.



................................................
C Macklin
Director

Date: 10 April 2024
Page 2

 


FRANKI FOUNDATIONS UK LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,246,883 (2022 - loss £732,729).

The directors have not recommended a dividend (2022 - £nil).

Directors

The directors who served during the year were:

M Bottiau 
C Macklin 
C Schreurs 
A Ahmad (appointed 23 February 2023)
N Waite (appointed 22 June 2023)

Future developments

Please refer to the Strategic Report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 


FRANKI FOUNDATIONS UK LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
C Macklin
Director

Date: 10 April 2024

Page 4

 


FRANKI FOUNDATIONS UK LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKI FOUNDATIONS UK LIMITED

Opinion


We have audited the financial statements of Franki Foundations UK Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 December 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 United Kingdom, including the Financial Reporting Council'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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


FRANKI FOUNDATIONS UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKI FOUNDATIONS UK LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report 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 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:


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 Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 


FRANKI FOUNDATIONS UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKI FOUNDATIONS UK LIMITED (CONTINUED)

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety, general data protection regulation and copyright law. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
• We understood how the Company is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of Board minutes.
• The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
• We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
o Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
o Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
o Challenging assumptions and judgments made by management in its significant accounting estimates; and
o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
• As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
o Posting of unusual journals and complex transactions;
o Misappropriation of funds through fraudulent supplier ledger and payroll activity; and 
o Manipulation of amounts subject to significant judgement or estimate.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 


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 Auditors' Report.


Page 7

 


FRANKI FOUNDATIONS UK LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRANKI FOUNDATIONS UK LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Andrew Galliers FCA (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

10 April 2024
Page 8

 


FRANKI FOUNDATIONS UK LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
23,524,727
15,461,699

Cost of sales
  
(19,115,761)
(13,266,683)

Gross profit
  
4,408,966
2,195,016

Administrative expenses
  
(3,189,036)
(3,021,617)

Other operating income
 5 
434,921
451,567

Operating profit/(loss)
 6 
1,654,851
(375,034)

Interest receivable and similar income
 10 
14,800
-

Interest payable and similar expenses
 11 
(422,768)
(357,695)

Profit/(loss) before tax
  
1,246,883
(732,729)

Profit/(loss) after tax
  
1,246,883
(732,729)

  

  

Retained earnings at the beginning of the year
  
1,131,059
1,863,788

  
1,131,059
1,863,788

Profit/(loss) for the year
  
1,246,883
(732,729)

Retained earnings at the end of the year
  
2,377,942
1,131,059
The notes on pages 11 to 23 form part of these financial statements.

Page 9

 


FRANKI FOUNDATIONS UK LIMITED
REGISTERED NUMBER:02897887



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
3,943,052
3,276,077

Investments
 14 
8,707,023
8,707,023

  
12,650,075
11,983,100

Current assets
  

Stocks
 15 
105,707
54,265

Debtors: amounts falling due within one year
 16 
7,779,779
7,736,073

Cash at bank and in hand
 17 
505,586
62,199

  
8,391,072
7,852,537

Creditors: amounts falling due within one year
 18 
(3,024,156)
(4,535,766)

Net current assets
  
 
 
5,366,916
 
 
3,316,771

Total assets less current liabilities
  
18,016,991
15,299,871

Creditors: amounts falling due after more than one year
 19 
(15,372,009)
(13,901,772)

  

Net assets
  
2,644,982
1,398,099


Capital and reserves
  

Called up share capital 
 21 
267,040
267,040

Profit and loss account
 22 
2,377,942
1,131,059

  
2,644,982
1,398,099


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 April 2024.




................................................
C Macklin
Director

The notes on pages 11 to 23 form part of these financial statements.

Page 10

 


FRANKI FOUNDATIONS UK LIMITED
 


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

1.


General information

Franki Foundations UK Limited is a company limited by shares in England within the United Kingdom. The address of the registered office is given on the company information page at the front of the financial statements.
The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £.
The significant accounting policies applied in the preperation of these financial statements are set out below. These policies have been consistently applied to all years presented unless stated otherwise. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of The Manor House Hotel (Castle Combe) Limited as at 2 April 2023 and these financial statements may be obtained from Companies House.

Page 11

 


FRANKI FOUNDATIONS UK LIMITED
 


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

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss 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. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 12

 


FRANKI FOUNDATIONS UK LIMITED
 


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

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight line method and the reducing balance basis..

Depreciation is provided on the following basis:

Rigs and large plant
-
10% reducing balance with 20% residual balance
Plant and machinery
-
2 - 10 years straight line
Motor vehicles
-
5 years straight line
Fixtures and fittings
-
4 years straight line
Database
-
5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 13

 


FRANKI FOUNDATIONS UK LIMITED
 


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

2.Accounting policies (continued)

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

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

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 14

 


FRANKI FOUNDATIONS UK LIMITED
 


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

2.Accounting policies (continued)


2.15
Financial instruments (continued)


Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects on that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
Sources of estimation uncertainty
Valuation of amounts recoverable on long term contracts
Included within debtors are amounts in relation to work completed on long term contracts. Management have reviewed each project in turn and assessed the costs involved and the likely recoverability of those costs using their experience of the market and judgement of the conditions prevailing during the works. The amounts recorded in the books are those amounts that management feel are fully recoverable


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rendering of services
23,524,727
15,461,699

23,524,727
15,461,699


All turnover arose within the United Kingdom.

Page 15

 


FRANKI FOUNDATIONS UK LIMITED
 


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

5.


Other operating income

2023
2022
£
£

Management fees
434,921
451,567

434,921
451,567



6.


Operating profit/(loss)

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

2023
2022
£
£

Other operating lease rentals
159,073
136,720


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
27,850
27,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 16

 


FRANKI FOUNDATIONS UK LIMITED
 


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

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,313,722
2,765,492

Social security costs
348,328
351,413

Cost of defined contribution scheme
58,182
52,914

3,720,232
3,169,819


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Weekly
35
26



Monthly
31
33

66
59


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
346,816
291,453

Company contributions to defined contribution pension schemes
10,702
20,285

357,518
311,738


During the year retirement benefits were accruing to 3 directors (2022 -2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £177,071 (2022 -£152,008).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,381 (2022 -£9,071).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
14,800
-

14,800
-

Page 17

 


FRANKI FOUNDATIONS UK LIMITED
 


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

11.


Interest payable and similar expenses

2023
2022
£
£


Loans from group undertakings
143,274
269,707

Finance leases and hire purchase contracts
279,494
87,988

422,768
357,695


12.


Taxation


2023
2022
£
£



Total current tax
-
-



Tax on profit/(loss)
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -higher than) the standard rate of corporation tax in the UK of 23.52% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
1,246,883
(732,729)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 -19%)
293,267
(139,219)

Effects of:


Permanent differences
(198,484)
(74,463)

Utilisation of tax losses
(92,213)
-

Deferred tax not recognised
-
213,638

Other differences leading to an increase (decrease) in the tax charge
(2,570)
44

Total tax charge for the year
-
-


Factors that may affect future tax charges

The company and its parent are subject to Pillar Two corporation tax legislation. Disclosures around the impact on tax charges across the wider group are included within the Besix Group s.a. consolidated financial statements.

Page 18

 


FRANKI FOUNDATIONS UK LIMITED
 


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

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
6,056,759
54,793
344,041
6,455,593


Additions
959,062
-
11,060
970,122



At 31 December 2023

7,015,821
54,793
355,101
7,425,715



Depreciation


At 1 January 2023
2,810,609
46,648
322,259
3,179,516


Charge for the year
288,555
5,430
9,162
303,147



At 31 December 2023

3,099,164
52,078
331,421
3,482,663



Net book value



At 31 December 2023
3,916,657
2,715
23,680
3,943,052



At 31 December 2022
3,246,150
8,145
21,782
3,276,077



The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
1,807,717
984,099

Motor vehicles
2,715
8,145

1,810,432
992,244

Page 19

 


FRANKI FOUNDATIONS UK LIMITED
 


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

14.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
8,707,023



At 31 December 2023
8,707,023





Direct subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Martello (Holdings) Limited
Ordinary
100%
Able Piling & Construction Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Martello (Holdings) Limited
7,413,492
(248)

Able Piling & Construction Limited
(218,341)
(124,583)

Indirect subsidiary undertakings
The following were indirect subsidiary undertakings of the company;
Martello Piling Limited
High Mead Developments Limited
Each entity is 100% owned by Martello (Holdings) Limited, and the registered office for all four companies is;
76 Powder Mill Lane, The Questor Estate, Dartford, DA1 1JA.


15.


Stocks

2023
2022
£
£

Raw materials and consumables
105,707
54,265

105,707
54,265


Page 20

 


FRANKI FOUNDATIONS UK LIMITED
 


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

16.


Debtors

2023
2022
£
£


Trade debtors
105,151
107,127

Amounts owed by group undertakings
4,439,059
3,753,890

Other debtors
2,596,120
3,219,264

Prepayments and accrued income
129,868
84,144

Amounts recoverable on long-term contracts
509,581
571,648

7,779,779
7,736,073


Amounts owed by group undertakings are unsecured, interest free and repayable on demand. 


17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
505,586
62,199

505,586
62,199



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
544,548
1,680,144

Trade creditors
627,704
1,665,228

Amounts owed to group undertakings
-
218,169

Corporation tax
6,039
2,049

Other taxation and social security
114,116
150,576

Obligations under finance lease and hire purchase contracts
320,361
109,848

Other creditors
66,032
121,864

Accruals and deferred income
1,345,356
587,888

3,024,156
4,535,766


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Securities
The company and its subsidiary, Martello Piling Limited have access to a term loan facility which is secured by way of an all-monies debenture creating fixed and floating charges over the assets of the company in favour of KBC Bank NV.

Page 21

 


FRANKI FOUNDATIONS UK LIMITED
 


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

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
429,648
-

Net obligations under finance leases and hire purchase contracts
825,355
338,856

Amounts owed to group undertakings
14,117,006
13,562,916

15,372,009
13,901,772


Amounts owed to group undertakings are unsecured and repayable on demand. Interest is charged quarterly at LIBOR + 2.92%.


20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
544,548
1,680,144


544,548
1,680,144


Amounts falling due 2-5 years

Bank loans
429,648
-


429,648
-


974,196
1,680,144



21.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



267,040 (2022 -267,040) Ordinary Shares shares of £1.00 each
267,040
267,040

Each Ordinary share holds equal voting and dividend rights.



22.


Reserves

Profit and loss account

The profit and loss account comprises of the accumulated retained earnings less dividends. 

Page 22

 


FRANKI FOUNDATIONS UK LIMITED
 


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

23.


Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held seperatly from
those of the company in an independently administered fund. The pension cost charge represents contributions
payable by the company to the fund and amounted to £58,182 (2022 - £52,914). Contributions totalling £9,689 (2022 - £15,127) were payable to the fund at the statement of financial position date and are included in other creditors.


24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
202,191
152,151

Later than 1 year and not later than 5 years
314,059
201,736

516,250
353,887


25.


Controlling party

The immediate parent company is Franki Foundations Belgium s.a, a company registered in Belgium.
The smallest group which prepares consolidated accounts in which these figures are included is BESIX Group s.a. A copy of these can be obtained from:
Avenue des Comunautes
Gemeenschappenlaan 100
1200 Brussels
Belgium
The BESIX Group is 50% owned by Orascom Construction Limited, a company dual listed on the Dubai and Egypt stock exchange. No individual owns more than Orascom Construction Limited's shareholding and therefore the directors consider that there is no individual ultimate controlling party. 

 
Page 23