Fab Freight Ltd |
Notes to the Accounts |
for the year ended 31 March 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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2 |
Employees |
2024 |
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2023 |
Number |
Number |
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Average number of persons employed by the company |
1 |
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1 |
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3 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Directors current account |
35,099 |
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29,699 |
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Other taxes and social security costs |
(240) |
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- |
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34,859 |
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29,699 |
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4 |
Other information |
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Fab Freight Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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C/O Stuart McBain Ltd |
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Unit 14 Century Building |
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Tower Street |
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Liverpool |
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L3 4BJ |
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5 |
Going Concern |
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The director is confident the business has managed to establish itself within the UK market as an efficient and economic freight operator. The company meets its day-to-day working capital requirements through its own banking requirements and has no long-term debt obligations. The company has access to funding facilities to support growth from the company's business banking facility should this be necessary. It's important to note that in the first 6 months from incorporation, the company was unable to trade until it obtained a VAT number due to legislative restrictions with the shipping lines turnover has increased significantly since then |
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The Company has successfully secured positive trading terms with all its suppliers thereby supporting cash flow with the increase in trading volumes |
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The Company expects to continue to trade and should be able to operate within the level of its current facilities for the foreseeable future |
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To ensure continuity, of importance will be to grow the customer base within the UK and keep operational costs as low as possible while using key resources in the industry to ensure operational expertise for customer involvement and maintain a low-cost operation structure |
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6 |
Risks |
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The management of the company and the execution of its strategy are subject to several risks: The company’s liquidity risk: this is periodically assessed and additional funding as backup is in place. While the company is considered fairly new, cash flow is closely monitored, ensuring the company has sufficient headroom to meet its obligations. Credit risk is one risk of a party failing to meet its financial obligations. While being a new company we are limited to what exposure we turn away, however with word of mouth we can limit which suppliers in the market are known to default or defer payments and company policy will in so much as possible avoid business transactions with these parties. |
7 |
Future Developments |
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The company wishes to continue a low cost infrastructure but develop an innovative approach to moving freight. |