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COMPANY REGISTRATION NUMBER: 04076792
Fork Truck Direct Limited
Financial Statements
31 October 2023
Fork Truck Direct Limited
Strategic Report
Year ended 31 October 2023
Review of the business
Throughout the financial year November 2022 to October 2023, Fork Truck Direct (FTD) has remained commited to offering quality material handling products and providing exceptional after-sales service and support. The overall revenue across all our business sectors of Forklift Sales, Hire and Service generally held up quite well, with an increased turnover of between 7 and 14%. Most of the increase had been driven by supplier cost increases on all new forklifts purchases, forklift parts and all ancillary items, as well as an increase in our internal labour rates, which we in turn passed onto our customer by increasing our sales costs, where possible. Our profitability has fallen due to inflationary cost pressures in most of our direct and indirect expenditure. Although we increased our sales costs across the board to help mitigate our supplier price increases, we weren't always able to pass on all of the associated costs. We were also subject to a rent review on all three of our buildings in February 2023 and this resulted in a substantial increase in our monthly rent and service rates, which also impacted our profit. Financial Risk Management The group's financial risk is monitored closely by the finance function, through the following processes: - We monitor our debt ratio year-on-year and in general this year has seen no material change in HP finance commitments in supporting vehicles (lorries and vans) and new forklift purchases for our own short term hire fleet. - All of our forklift HP agreements carry a clause that enables us to settle the agreement at net book value, at any time, without penalty. As we typically pay an upfront deposit of 10% on these HP agreements, then spread the remainder of the cost over 3 or 4 years, the market value of the forklift is always comfortably above its net book value, meaning that if we see a downturn in demand for hire trucks, we always have the option to settle the outstanding finance and sell them on with a good profit margin. - Due to a large cash outlay of £600,000 for the repurchase of 60% of Doosan Industrial Vehicle UK Ltd's shareholding in Fork Truck Direct Ltd (£600,000), this has obviously reduced the amount of cash we hold in the bank which has increased the pressure on our cashflow management. FTD has introduced weekly cashflow meetings to help monitor our cash position more closely, and also now use the services of a self-employed Credit Controller, who works 30-40 hours per month chasing all aged debt. - FTD has also made a conscious effort to reduce our forklift stockholding and turn this into cash. In addition, we are also looking to improve our operational efficiencies which will result in a reduction in our headcount in our service and workshop operations.
Principal risks & uncertainties
Market Risk Economic uncertainty (as mentioned before) could impact demand for forklifts. Although inflation has fallen back to near expected levels and interest rates stabilised, the UK market has softened and customers seem to be more cautious. As mentioned above, there has also been a big shift in the market towards lithium powered forklifts and FTD has mitigated this risk by introducing 2 new lithium forklift manufacturers to its product range. Health and Safety and increased legislation FTD has brought in additional experience by re-employing former General Manager, Stan Kidney, who is IOSH & AIIRSM qualified (H & S), to support John Southern in carrying out and monitoring all of our H&S risks to ensure we comply with all necessary regulations and new legislation. Supply Chain Generally we have seen a return to normal in both forklift delivery lead times and parts supply through 2023. All our suppliers have improved their stock holdings and we currently see no issues going forward for the coming 12 months. The introduction of two new forklift suppliers also helps further mitigate the risk of any global supply issues.
Suppliers & customers
Suppliers Throughout the year ended 31 October 2023 FTD continued to maintain strong relationships with all its key suppliers. FTD also broadened and improved its product range by introducing 2 new forklift suppliers, with the addition of the Heli and Cesab Lithium ranges to its product offering. This has been driven by demand in the market shifting from traditional diesel and gas engine forklifts to lithium (Li-ion) and lead-acid powered forklifts. The Heli lithium products have the added benefit of being far more profitable per truck sale than the other forklift brands we sell. Doosan's material handling division was sold to the Bobcat Group and has been incorporated into the Bobcat brand. This resulted in a material change in management control from the UK to Europe, which caused some difficulties in the parts supply chain and technical support for the initial 3 to 6 months, whilst the management and support teams were being set up and trained. FTD monitored the situation closely and held regular meetings with the new Bobcat parts division to minimise the impact on our operations. Customers Throughout year ended 31 October 2023 FTD's Customers have continued to stay loyal and we put this down to our continued commitment to provide a fast and efficient service response, especially when compared with the national providers. FTD monitors its customer service response time and for the financial year we again achieved our target of over 90% for responding to all service calls within 24 hours. FTD has again achieved its target of <90% retention rate on long-term contract rental renewals (this represents approximately 30% of our overall forklift unit sales), which provides further support that customers are happy with the service and are staying with us. Although there were no new large customer fleet deals in the financial year, several key customers including Sport Supplements Ltd, The Logistics Terminal Ltd, Quality Kernels Ltd, Hills Prospect Ltd, Transporter Engineering, and Canvey Supply Co Ltd all either replaced their fleet with new trucks or signed long-term contract rental renewals for their existing fleet.
Operating review
FTD's revenue increased by 9.43% from £11,408,530 in 2022 to £12,484,290 in 2023. This was in line with our target and expectations for the year. Gross profit (before direct depreciation) (GP) increased by 7.31% from £2,564,908 in 2022 to £2,752,519 in 2023. We aim to keep our GP percentage increase in line with our revenue percentage increase, so we were marginally below our target for the year ended 31 October 2023. Although, where possible, we tried to pass the full cost of the price increases from our suppliers onto our customer, to remain competitive on certain deals, we weren't always able to do so, and this is the main reason that GP is is slightly lower than expected. We target a 5% growth in profit before tax (PBT), however our PBT actually decreased by 6.58% in the year ended 31 October 2023. There are various contributing factors that have resulted in a downturn in our PBT: - Global economic uncertainty and poor decision making by the UK government caused inflation and interest rates to soar, with inflation reaching 11% in autumn 2022, and taking more than a year to fall back below 5%. This resulted in all of our suppliers imposing price rises from between 5-15% during the financial year. As mentioned previously, we did our best to mitigate the increases by increasing our sales costs and increasing labour and travel charges to our customers; however, many of the trucks we we maintain are on fixed rate rental agreements with full maintenance cover included which meant that we weren't able to pass any of the increased costs associated with maintaining these trucks onto our customers. - The majority of our HP finance agreements are variable rate agreements meaning our interest payable for 2023 also increased greatly due to the increase in the Bank of England base rate. - We were subject to a rent review on all three of our buildings in February 2023 and this resulted in a substantial increase of 40.45% in our rent, from an annual cost of £135,350 to £190,100. - The number of staff employed for the year increased from an average of 49 per month in 2022 to an average of 55 per month in 2023. This increase includes a couple of new engineers, but the majority are Admin and Support Staff. Whilst Admin and Support Staff help improve operational efficiencies across the whole company, it often takes several months to train them and get them operating at a level where the company would start to see a material benefit. FTD's forklift stock value increased by 5% from £1,769,173 at 31 October 2022 to £1,863,364 at 31 October 2023 which is fairly typical of the growth we'd expect to see year-to-year.
Financial key performance indicators
Financial - Revenue Growth: Target annual growth of 8-12% FTD achieved this target as revenue increased by 9.43%. - PBT as a Percentage of Revenue: Target of 8-10% PBT as a percentage of revenue PBT as a percentage of revenue was 7.3% for year ended 31 October 2023, down from 8.5% in the previous financial year, which is below the target. FTD is looking to improve operational efficiencies and reduce headcount which should help us get back on track with achieving this target in the next financial year. Inflation and interest rates have also stabilised, and this should also have a positive impact on this target. Non-financial - Service Response Time: respond to over 90% of customer breakdowns within 24 hours FTD achieved this target again for year ended 31 October 2023. - Customer Retention rate: over 90% retention rate on long-term contract rental renewals FTD achieved this target again for year ended 31 October 2023.
Post balance sheet events
As agreed within the share repurchase agreement, FTD is committed to purchasing the remaining shares held by Doosan Industrial Vehicle UK Ltd in two further instalments of £200,000 - one in December 2023, and then the final instalment in December 2024. As a result, FTD is continuing to closely monitor its cash position and may take advantage of a stock finance facility offered by Close Brothers Asset Finance, which will release equity from forklifts we'd previously bought and paid for outright in cash for our short-term hire fleet, if necessary.
Future outlook
FTD is cautiously optimistic that it will achieve all of its financial and non-financial targets in the year ahead. FTD expects the increase in lithium forklift sales to continue through 2024 and beyond. We believe we are well placed in this market by offering the Heli lithium forklift products which have an excellent price point and added value, when compared with rival brands. YTD we have sold approximately 50% more electric forklifts than in the same period last year. As a sizeable percentage of this increase has been sales of Heli lithium forklifts (which, as mentioned previously, have a far greater profit margin than our other forklift products), this should result in a reasonable improvement in our gross profit going forward. FTD took on a small premises in Ipswich to provide a local service centre to our growing customer base in Suffolk. The service centre will provide much needed storage space for nearly 20 forklifts, and 3 workshop bays. FTD believe that with some additional local marketing this should further promote additional service and sales revenues. FTD also plans to continue investing in our in-house training program and plans to induct 1 or 2 new young apprentices onto the FTEC forklift engineering apprenticeship course in the coming year. We currently have 3 workshop engineers in year 2 and 3 of this apprenticeship scheme and we are now seeing a material benefit in terms of the quality of their work and the value they are now giving back to the company.
This report was approved by the board of directors on 24 July 2024 and signed on behalf of the board by:
M T Dixon
Director
Registered office:
12 Station Court
Station Approach
Wickford
Essex
SS11 7AT
Fork Truck Direct Limited
Directors' Report
Year ended 31 October 2023
The directors present their report and the financial statements of the company for the year ended 31 October 2023 .
Directors
The directors who served the company during the year were as follows:
M T Dixon
S M Culham
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Events after the end of the reporting period
Particulars of events after the reporting date are detailed in note 27 to the financial statements.
Going concern review
Under company law, the directors are required to consider whether it is appropriate to prepare financial statements on a going concern basis.
The directors have considered the ability of the company to meet its liabilities as they fall due for a period of 12 months from the date of signing of the financial statements.
At the time of approving the financial statements the directors have reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months.
In line with FRC guidance, the company has considered a downside scenario to assess the impact of adverse events. The directors are satisfied that the company remains a going concern in all scenarios modelled and the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of signature of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
As a result, the financial statements do not include any adjustments that would result from the consequences of the company not being able to trade.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 24 July 2024 and signed on behalf of the board by:
M T Dixon
Director
Registered office:
12 Station Court
Station Approach
Wickford
Essex
SS11 7AT
Fork Truck Direct Limited
Independent Auditor's Report to the Members of Fork Truck Direct Limited
Year ended 31 October 2023
Qualified opinion
We have audited the financial statements of Fork Truck Direct Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were not appointed as auditor of the company until after 31 October 2022 and thus did not observe the counting of physical stock at the start of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 October 2022. Consequently we were unable to determine whether any adjustment to these amounts were necessary. Our audit opinion on the financial statements for the year ended 31 October 2023 is modified accordingly.
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 qualified opinion.
Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the directors' conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. As described in the basis for qualified opinion section of our report, our audit opinion is qualified as we were unable to satisfy ourselves concerning the amount disclosed as stock for the comparative period. We have concluded that where the other information refers to stock or cost of sales, it may have been materially misstated.
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
- the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors reports and take advantage of the small companies exemption from the requirement to prepare a strategic report. Arising solely from the limitation of scope of our work relating to the figure for stock in the comparative year: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; 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, 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. 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: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company's regulatory and legal correspondence. We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations, communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect; employment legislation; health and safety legislation; GDPR; anti-bribery and corruption legislation. International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements. In relation to fraud, we performed the following specific procedures in addition to those already noted: - Challenging assumptions made by management in its significant accounting estimates in particular regarding income recognition; - Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations; - Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; - Ensuring that testing undertaken on both the performance statement, and the Statement of Financial Position includes a number of items selected on a random basis; These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards UK. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud. A further description of our responsibilities is located on the Financial Reporting Council's website at https:www.frc.org.uk/auditors responsibilities. This description forms part of our auditors report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
SPENCER WATSON FCA
(Senior Statutory Auditor)
For and on behalf of
Buckley Watson Limited
Chartered Accountants & statutory auditor
57a Broadway
Leigh-on-Sea
Essex
SS9 1PE
24 July 2024
Fork Truck Direct Limited
Statement of Comprehensive Income
Year ended 31 October 2023
2023
2022
(restated)
Note
£
£
Turnover
4
12,484,290
11,408,530
Cost of sales
9,884,020
8,968,775
-------------
-------------
Gross profit
2,600,270
2,439,755
Administrative expenses
1,647,123
1,435,067
------------
------------
Operating profit
5
953,147
1,004,688
Other interest receivable and similar income
9
3,095
102
Interest payable and similar expenses
10
43,742
28,018
------------
------------
Profit before taxation
912,500
976,772
Tax on profit
11
285,308
174,455
---------
---------
Profit for the financial year and total comprehensive income
627,192
802,317
---------
---------
All the activities of the company are from continuing operations.
Fork Truck Direct Limited
Statement of Financial Position
31 October 2023
2023
2022
(restated)
Note
£
£
£
Fixed assets
Tangible assets
14
1,272,403
1,268,274
Current assets
Stocks
15
2,091,744
1,963,721
Debtors
16
1,126,086
1,380,092
Cash at bank and in hand
492,069
837,411
------------
------------
3,709,899
4,181,224
Creditors: amounts falling due within one year
17
1,653,252
1,976,016
------------
------------
Net current assets
2,056,647
2,205,208
------------
------------
Total assets less current liabilities
3,329,050
3,473,482
Creditors: amounts falling due after more than one year
18
468,428
497,893
Provisions
Taxation including deferred tax
20
318,101
240,972
Other provisions
20
22,125
21,413
---------
---------
340,226
262,385
------------
------------
Net assets
2,520,396
2,713,204
------------
------------
Capital and reserves
Called up share capital
23
796
936
Share premium account
24
19,206
619,066
Profit and loss account
24
2,500,394
2,093,202
------------
------------
Shareholders funds
2,520,396
2,713,204
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 24 July 2024 , and are signed on behalf of the board by:
M T Dixon
Director
Company registration number: 04076792
Fork Truck Direct Limited
Statement of Cash Flows
Year ended 31 October 2023
2023
2022
(restated)
£
£
Cash flows from operating activities
Profit for the financial year
627,192
802,317
Adjustments for:
Depreciation of tangible assets
319,903
348,815
Other interest receivable and similar income
( 3,095)
( 102)
Interest payable and similar expenses
43,742
28,018
Gains on disposal of tangible assets
( 46,869)
( 113,891)
Tax on profit
285,308
174,455
Accrued expenses/(income)
15,058
( 22,593)
Changes in:
Stocks
( 128,023)
( 132,954)
Trade and other debtors
254,006
( 490,448)
Trade and other creditors
( 469,714)
122,777
Provisions and employee benefits
712
1,050
---------
---------
Cash generated from operations
898,220
717,444
Interest paid
( 43,742)
( 28,018)
Interest received
3,095
102
Tax paid
( 150,321)
( 78,290)
---------
---------
Net cash from operating activities
707,252
611,238
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 416,334)
( 597,225)
Proceeds from sale of tangible assets
139,171
235,280
---------
---------
Net cash used in investing activities
( 277,163)
( 361,945)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 45,000)
( 45,000)
Payments of finance lease liabilities
89,569
233,819
Dividends paid
( 220,000)
( 220,000)
Redemption of shares
( 600,000)
---------
---------
Net cash used in financing activities
( 775,431)
( 31,181)
---------
---------
Net (decrease)/increase in cash and cash equivalents
( 345,342)
218,112
Cash and cash equivalents at beginning of year
837,411
619,299
---------
---------
Cash and cash equivalents at end of year
492,069
837,411
---------
---------
Fork Truck Direct Limited
Notes to the Financial Statements
Year ended 31 October 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 12 Station Court, Station Approach, Wickford, Essex, SS11 7AT.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis and in accordance with Financial Reporting Standards. The financial statements are prepared in sterling, which is the functional currency of the entity. Going concern Under company law, the directors are required to consider whether it is appropriate to prepare financial statements on a going concern basis. The directors have considered the ability of the company to meet its liabilities as they fall due for a period of 12 months from the date of signing of the financial statements. At the time of approving the financial statements the directors have reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months. Thus the directors continue to adopt the going concern basis in preparing the financial statements. In line with FRC guidance, the company has stress-tested its forecasts to assess the impact of adverse events. The directors are satisfied that the company remains a going concern in all scenarios modelled and the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of signature of the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. As a result, the financial statements do not include any adjustments that would result from the consequences of the company not being able to trade. 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. In addition, this note also explains where there have been actual adjustments this year as a result of errors and changes to previous estimates. Key sources of estimation uncertainty Useful economic life of fixed assets in respect of plant out for hire The company depreciates the plant out for hire over its useful economic lives which reflects management's estimate for the period that the company intends to derive future economic benefits from the use of those fixed assets. Changes in the expected level of usage from technological developments could affect the useful economic lives and residual values of these assets. This could affect the future depreciation charge of these assets. Net realisable value of these assets and those held as stock is often hard to assess and depends on the condition of the plant when returned off-contract. Some plant may require extensive rectification costs although these can be mitigated somewhat by re-charging the customer for excessive wear and tear. The carrying amount of the company's plant out for hire is in note 14 to the financial statements. Classification of assets between plant out for hire and stock Generally fork trucks are classified as fixed assets if they are out on long-term hire contracts and as stock if they are short-term hire or available for sale. However, the status can change for any individual truck should it become off-hire or back on hire and transfers in classification may be necessary. Consequently, the assessment of net realisable value of stock is subject to the same uncertainties as plant out of hire as mentioned above. Provision for warranty claim credits receivable The company is entitled to ongoing warranty credit notes which refund costs incurred in respect of rectification work on covered under manufacturers' warranty. The timing of the recognition of these credits is difficult to estimate as there isn't a specific period listed that each credit covers, merely being for all of the claims that have been accepted and completed and credited on the date of the credit note. Claims are bulked together and may be from anything from a few days to several months previous, depends on the complexity of the claim and what is involved. The recognition of this credit is recognised for based on receipts for the following month, taking this as an average length of time between claim and settlement. Revenue recognition Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When cash flows are deferred and represent a hire contracting arrangement, the fair value of the consideration is recognised in the monthly period to which the invoice relates. Income tax The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Operating leases Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. Goodwill Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill in respect of amounts paid in connection with the acquisitions of businesses in 2004, 2012 and 2014 has already been fully amortised. It is considered that as the goodwill no longer has any separable value to the company, that it should be treated as a disposal this year.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant out for hire
-
20% reducing balance
Fixtures & fittings
-
25% reducing balance
Motor vehicles
-
25% reducing balance
IT equipment
-
33% reducing balance
Depreciation regarding plant out for hire is considered a direct cost of sale.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. 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 of rectification is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments. A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. 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 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. 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. Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including creditors, bank loans, and preference shares that are classified as debt, 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. Derecognition of financial liabilities Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. Equity instruments Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
Correction of errors in accounting for depreciation, profit on disposal of fixed assets and deferred taxation
As a result of the company breaching the medium company threshold and therefore being subject to audit for the first time, the directors undertook a review of its compliance with accounting policies and certain classification, recognition and calculation errors that occurred during the preparation of the 2022 financial statements were identified. These errors, in aggregate, resulted in a material misstatement of the 2022 financial position and as a result management has restated the 2022 results.
The restatements related to the classification of depreciation and profit on disposal of plant out for hire from administrative expenses to direct costs and the provision of a creditor in respect of deferred taxation which had not previously been recognised.
The following primary statements required a 2022 restatement as a result of the errors identified: the statement of comprehensive income, the statement of financial position, the statement of changes in equity and the statement of cash flows.
The following notes required a 2022 restatement as a result of the errors identified below and other non-material re-classifications: notes 8,10,11 and 17.
The nature and quantity of each error is described below:
Classification of depreciation and profit or loss on disposal of plant out for hire
During 2023, management carried out a detailed review of items capitalised on the company's fixed asset register and identified that in respect of plant out for hire, depreciation of £225,843 and profit on sale of plant out for hire of £100,691 recorded under administrative expenses were cost of sales in nature.
Recognition of deferred taxation liability
As a result of reviewing the taxation calculations and position for 31 October 2023 and the recognition of the deferred taxation liability of £318,101 therein, management performed a review of the previous year's taxation calculation and position and assessed that a similar liability was valid last year in the sum of £240,792 and the previous year of £216,838.
4. Turnover
Turnover arises from:
2023
2022
(restated)
£
£
Sale of goods
7,785,394
7,082,451
Hire contract
2,693,579
2,468,304
Repairs and servicing
1,835,370
1,600,028
Other
169,947
257,747
-------------
-------------
12,484,290
11,408,530
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
(restated)
£
£
Depreciation of tangible assets
319,903
348,815
Gains on disposal of tangible assets
( 46,869)
( 113,891)
Impairment of trade debtors
34,017
5,490
Operating lease rentals
221,374
187,125
---------
---------
6. Auditor's remuneration
2023
2022
(restated)
£
£
Fees payable for the audit of the financial statements
8,000
-------
----
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Management staff
2
2
Administrative staff
3
3
Sales staff
7
6
Service administrative staff
14
11
Service engineering staff
29
27
----
----
55
49
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
(restated)
£
£
Wages and salaries
1,915,876
1,680,580
Social security costs
206,026
183,428
Other pension costs
43,737
37,602
------------
------------
2,165,639
1,901,610
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
(restated)
£
£
Remuneration
49,029
46,331
--------
--------
9. Other interest receivable and similar income
2023
2022
(restated)
£
£
Interest on cash and cash equivalents
3,095
102
-------
----
10. Interest payable and similar expenses
2023
2022
(restated)
£
£
Interest on banks loans and overdrafts
10,417
5,220
Interest on obligations under finance leases and hire purchase contracts
33,325
22,798
--------
--------
43,742
28,018
--------
--------
11. Tax on profit
Major components of tax expense
2023
2022
(restated)
£
£
Current tax:
UK current tax expense
208,179
150,321
Deferred tax:
Origination and reversal of timing differences
153,473
24,134
Impact of change in tax rate
( 76,344)
---------
--------
Total deferred tax
77,129
24,134
---------
---------
Tax on profit
285,308
174,455
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 22.52 % (2022: 19 %).
2023
2022
(restated)
£
£
Profit on ordinary activities before taxation
912,500
976,772
---------
---------
Profit on ordinary activities by rate of tax
205,475
185,587
Effect of expenses not deductible for tax purposes
2,202
1,461
Increase in deferred taxation as a result of an increase in the tax rate
76,344
130% Superallowance capital allowances
1,287
( 12,593)
---------
---------
Tax on profit
285,308
174,455
---------
---------
12. Dividends
2023
2022
(restated)
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
220,000
220,000
---------
---------
13. Intangible assets
Goodwill
£
Cost
At 1 November 2022 (as restated)
476,580
Additions
Disposals
( 476,580)
---------
At 31 October 2023
---------
Amortisation
At 1 November 2022
476,580
Charge for the year
Disposals
( 476,580)
---------
At 31 October 2023
---------
Carrying amount
At 31 October 2023
---------
At 31 October 2022
---------
14. Tangible assets
Plant out for hire
Fixtures and fittings
Motor vehicles
IT equipment
Total
£
£
£
£
£
Cost
At 1 November 2022 (as restated)
1,490,451
81,627
742,357
46,938
2,361,373
Additions
260,727
5,043
150,104
460
416,334
Disposals
( 158,167)
( 38,784)
( 25,488)
( 222,439)
------------
--------
---------
--------
------------
At 31 October 2023
1,593,011
86,670
853,677
21,910
2,555,268
------------
--------
---------
--------
------------
Depreciation
At 1 November 2022
587,079
67,495
399,995
38,530
1,093,099
Charge for the year
197,917
10,897
109,473
1,616
319,903
Disposals
( 73,663)
( 34,842)
( 21,632)
( 130,137)
------------
--------
---------
--------
------------
At 31 October 2023
711,333
78,392
474,626
18,514
1,282,865
------------
--------
---------
--------
------------
Carrying amount
At 31 October 2023
881,678
8,278
379,051
3,396
1,272,403
------------
--------
---------
--------
------------
At 31 October 2022
903,372
14,132
342,362
8,408
1,268,274
------------
--------
---------
--------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant out for hire
Motor vehicles
Total
£
£
£
At 31 October 2023
307,562
321,458
629,020
---------
---------
---------
At 31 October 2022
252,941
276,863
529,804
---------
---------
---------
15. Stocks
2023
2022
(restated)
£
£
Raw materials and consumables
228,380
194,548
Finished goods and goods for resale
1,863,364
1,769,173
------------
------------
2,091,744
1,963,721
------------
------------
Included within the carrying value of stock is £51,000 (2022: £4,500) relating to assets held under finance leases or hire purchase agreements.
16. Debtors
2023
2022
(restated)
£
£
Trade debtors
957,951
1,248,110
Prepayments and accrued income
24,189
3,737
Directors loan account
73,851
81,352
Other debtors
70,095
46,893
------------
------------
1,126,086
1,380,092
------------
------------
17. Creditors: amounts falling due within one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
45,000
45,000
Trade creditors
937,829
1,448,925
Accruals and deferred income
23,642
8,584
Corporation tax
208,179
150,321
Social security and other taxes
159,834
119,117
Obligations under finance leases and hire purchase contracts
277,438
203,404
Other creditors
1,330
665
------------
------------
1,653,252
1,976,016
------------
------------
Many suppliers of stock lines include a reservation of title clause such that amounts owed to those suppliers and included within trade creditors are secured against the stock held by the company. The maximum value of trade creditors which could be secured this way is as per the balance above. Obligations under finance leases and hire purchase contracts are secured on related fixed assets and stock.
18. Creditors: amounts falling due after more than one year
2023
2022
(restated)
£
£
Bank loans and overdrafts
71,250
116,250
Obligations under finance leases and hire purchase contracts
397,178
381,643
---------
---------
468,428
497,893
---------
---------
The company originally took out a Coronavirus Business Interruption Loan Scheme with Natwest for £225,000. This commenced in June 2021 and is repayable over 5 years with monthly instalments of £3,750 attracting an interest rate of 3.34% p.a. over Base Rate.
Obligations under finance leases and hire purchase contracts are secured on related fixed assets and stock.
Included within creditors: amounts falling due after more than one year is an amount of £26,250 (2022: £71,250) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
(restated)
£
£
Not later than 1 year
313,896
226,427
Later than 1 year and not later than 5 years
463,021
437,019
---------
---------
776,917
663,446
Less: future finance charges
( 102,301)
( 78,399)
---------
---------
Present value of minimum lease payments
674,616
585,047
---------
---------
20. Provisions
Deferred tax (note 21)
Warranty claims
Total
£
£
£
At 1 November 2022 (as restated)
240,972
21,413
262,385
Additions
77,129
712
77,841
---------
--------
---------
At 31 October 2023
318,101
22,125
340,226
---------
--------
---------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
(restated)
£
£
Included in provisions (note 20)
318,101
240,972
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
(restated)
£
£
Accelerated capital allowances
318,101
240,972
---------
---------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 43,737 (2022: £ 37,602 ).
23. Called up share capital
Issued, called up and fully paid
2023
2022
(restated)
No.
£
No.
£
Ordinary shares of £ 1 each
626
626
626
626
Non-voting shares of £ 1 each
76
76
76
76
Convertible redeemable preferred shares of £ 1 each
94
94
234
234
----
----
----
----
796
796
936
936
----
----
----
----
24. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs and premiums paid on redemptions of share capital above par. Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Analysis of changes in net debt
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
837,411
(345,342)
492,069
Debt due within one year
(248,404)
(74,034)
(322,438)
Debt due after one year
(497,893)
29,465
(468,428)
---------
---------
---------
91,114
( 389,911)
( 298,797)
---------
---------
---------
26. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
(restated)
£
£
Not later than 1 year
246,883
82,225
Later than 1 year and not later than 5 years
1,647,993
31,531
------------
---------
1,894,876
113,756
------------
---------
Fork Truck Direct Limited
Notes to the Financial Statements (continued)
Year ended 31 October 2023
27. Events after the end of the reporting period
The company has the following financial commitments at the Balance Sheet date: On 14 December 2023 the company redeemed a further 47 convertible redeemable preferred shares for £200,000. There is a final tranche contracted for the final 47 convertible redeemable preferred shares to be redeemed for £200,000 on 16 December 2024. The effect of these two transactions is to reduce the profit and loss reserve by £180,747 in the year ended 31 October 2024 and by £199,953 in the following year.
28. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
M T Dixon
26,137
107,292
( 116,189)
17,240
S M Culham
55,215
120,800
( 119,404)
56,611
--------
---------
---------
--------
81,352
228,092
( 235,593)
73,851
--------
---------
---------
--------
2022
Balance brought forward
Advances/ (credits) to the directors
Amounts repaid
Balance outstanding
£
£
£
£
M T Dixon
38,201
101,299
( 106,992)
32,508
S M Culham
44,572
99,176
( 94,904)
48,844
--------
---------
---------
--------
82,773
200,475
( 201,896)
81,352
--------
---------
---------
--------
29. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
Shareholder of convertible redeemable preferred capital
2,512,883
3,017,276
175,153
399,770
------------
------------
---------
---------
All transactions were undertaken at normal commercial terms.