Company registration number 01231325 (England and Wales)
FLEET FACTORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
FLEET FACTORS LIMITED
COMPANY INFORMATION
Directors
Mr B J E Hunter
Mr J M Hunter
Mr D K James
Ms K McManus
Mr M James
Mr J McCulloch
Secretary
Mr B J E Hunter
Company number
01231325
Registered office
Wallis Road
Middlesbrough
Cleveland
United Kingdom
TS6 6JB
Auditor
Mullen Stoker Chartered Accountants
Unit 12 Mullen Stoker House
Durham
United Kingdom
DH1 1TH
Business address
Wallis Road
Middlesbrough
Cleveland
United Kingdom
TS6 6JB
Bankers
HSBC Bank Plc
1 Prospect Place
Darlington
County Durham
United Kingdom
DL3 7LQ
FLEET FACTORS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 36
FLEET FACTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Review of the business
Turnover is strong with many strategic opportunities in all market places.
Historic Truck and Trailer revenue is up along with a strong Refinish sector. New marketplaces continue to develop, in particular PPE and Custodial.
New Depots, in various strategic locations throughout the UK, have been added to the portfolio. This has supported and developed the company's growth plans. Numerous stores sites have also been added to the portfolio. This has supported and developed the company's growth plans. These have also assisted existing and new customers develop and bring efficiencies to their businesses.
In line with market conditions in the year, gross and operating margins have increased.
Significant investment has been made into the companies procurement and logistics operation. This has seen an increase to the service capacity for all Fleet Factors outlets.
The company's IT Portfolio has also developed significantly with investment in developers and top specification hardware. This has assisted the company to remain the market leader in its historic market places and also to expand into new exciting markets.
Evolving with the market place opportunities is crucial with the ever changing vehicle park in the UK.
The directors consider the state of the company's affairs to be in good order and prepared for the trading conditions expected in the coming year.
On 4 November 2019 Fleet Factors Limited acquired the whole of the share capital in Tees Valley Components Limited and its figures are included in the group financial statements. During the post balance sheet period, the operations of the subsidiary were absorbed into the main company and it ceased to trade in its own right.
Principal risks and uncertainties
Bad debts
As with any business, the company is at risk of losses due to the failure of customers to honour their debts to the company. The company's rigorous credit control system helps to mitigate losses of this nature. The directors manage this risk by ensuring all staff are aware of the importance of agreeing credit terms and ensuring that they are adhered to.
Liquidity
Liquidity is strong. There is the availability of cash overdraft when needed.
Sales risk
A significant proportion of the company's income is generated through contacts with customers. These contracts are constantly reviewed by directors and senior management to ensure that sufficient income will be generated to meet targets and maintain profitability at an acceptable level.
Key performance indicators
Sales
2023 £75,400,779 (including subsidiary)
2022 £64,698,207 (including subsidiary)
2021 £53,008,297 (including subsidiary)
2020 £47,837,693 (including subsidiary)
2019 £49,058,185
2018 £46,444,840
FLEET FACTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Promoting the success of the company
The board of directors believe, in good faith, that they have acted both individually and collectively in accordance with the requirements of Section 172 of the Companies Act 2006, thus most likely to promote the success of the company for the benefit of its members as a whole.
The directors have consistently managed the strategy and investments of the business with a view to long term financial stability and sustainable growth, as shown in the strength and consistency of the brand offering and the balance sheet.
The directors invest significant time and resource into employee development and delivery. A culture of data-driven business, departmental and personal objectives structure the business activities, ensuring all employees are informed, engaged and collectively contributing to the company's success.
The directors throughout the value chain from supplier to wholesale distributor seek partnerships. They actively seek to establish long term relationships that are mutually beneficial, building an open and honest relationship that seeks to deliver excellent service and product to the consumer in an efficient and collaborative way. The length of partnerships in place for our supplier and customer base are evidence to this philosophy.
Ms K McManus
Director
31 July 2024
FLEET FACTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be the sales of products and services for motor vehicle maintenance, industrial plant maintenance and the vehicle refinish market.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,715,250. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B J E Hunter
Mr J M Hunter
Mr M J Hunter
(Deceased 21 October 2023)
Mr D K James
Ms K McManus
Mr M James
Mr J McCulloch
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
The company looks to consolidate it's position in the UK market with regular new tenders and will continue to explore opportunities to grow the business, primarily in the UK.
Energy and carbon report
Our mandatory annual greenhouse gas emissions reporting, relating to the company's physical presence, is detailed below.
FLEET FACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
196,517
230,599
- Electricity purchased
536,434
530,034
- Fuel consumed for transport
5,082,464
4,153,395
5,815,415
4,914,028
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
36.00
42.00
- Fuel consumed for owned transport
1,298.00
1,062.00
1,334.00
1,104.00
Scope 2 - indirect emissions
- Electricity purchased
111.00
103.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
1,445.00
1,207.00
Intensity ratio
Tonnes CO2e per employee
19.4
22.8
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1 million turnover, the recommended ratio for the sector.
Measures taken to improve energy efficiency
The current reporting period has been a period of consolidation for Fleet Factors. The Company opened one additional depot in Daventry early in 2023; however, due to a significant number of contract wins, turnover increased by almost 30% during the relevant period from £63 million to £74.7 million. Although tCO2 emissions generated by the operation of our depots have increased slightly, this increase is minimal and can, in part, be accounted for by the small increase in depot numbers.
Our main increase in emissions (19%) has occurred as a result of our vehicle fleet operation. During the period in question, the number of vehicles in our fleet increased from 190 to 215 (an increase of 13.2%). As part of our carbon reduction and fleet renewal strategies, all vehicles operated on the fleet are now in Euro 6 classifications. In addition, we have commenced several trials with fully electric and hybrid vehicles to determine the environmental and commercial effects of the same.
Notwithstanding the increase in vehicle numbers (and resultant emissions), our Energy Intensity Ratio has decreased by almost 15% from the previous reporting period. We aim to continually improve this as the business grows and our carbon reduction strategies become more developed and embedded within our operations.
FLEET FACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Ms K McManus
Director
31 July 2024
FLEET FACTORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FLEET FACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEET FACTORS LIMITED
- 7 -
Opinion
We have audited the financial statements of Fleet Factors (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
FLEET FACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLEET FACTORS LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
FLEET FACTORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLEET FACTORS LIMITED
- 9 -
Mr Neil Mullen (Senior Statutory Auditor)
For and on behalf of Mullen Stoker Chartered Accountants
31 July 2024
Chartered Accountants
Statutory Auditor
Unit 12 Mullen Stoker House
Durham
United Kingdom
DH1 1TH
FLEET FACTORS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
75,400,779
64,698,207
Cost of sales
(55,630,882)
(47,442,474)
Gross profit
19,769,897
17,255,733
Distribution costs
(10,779,450)
(10,298,669)
Administrative expenses
(4,283,055)
(4,165,573)
Other operating income
79,520
10,061
Operating profit
4
4,786,912
2,801,552
Interest payable and similar expenses
8
(168,972)
(85,820)
Profit before taxation
4,617,940
2,715,732
Tax on profit
9
(1,256,937)
(604,068)
Profit for the financial year
3,361,003
2,111,664
Profit for the financial year is all attributable to the owners of the parent company.
FLEET FACTORS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
2023
2022
£
£
Profit for the year
3,361,003
2,111,664
Other comprehensive income
-
-
Total comprehensive income for the year
3,361,003
2,111,664
Total comprehensive income for the year is all attributable to the owners of the parent company.
FLEET FACTORS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
255,330
510,660
Tangible assets
12
2,344,837
1,523,157
2,600,167
2,033,817
Current assets
Stocks
16
7,522,288
7,985,314
Debtors
17
12,563,003
13,392,948
Cash at bank and in hand
74,756
103,133
20,160,047
21,481,395
Creditors: amounts falling due within one year
18
(16,441,032)
(17,403,207)
Net current assets
3,719,015
4,078,188
Total assets less current liabilities
6,319,182
6,112,005
Creditors: amounts falling due after more than one year
19
(587,719)
(1,256,946)
Provisions for liabilities
Provisions
22
91,667
91,667
Deferred tax liability
23
470,239
239,588
(561,906)
(331,255)
Net assets
5,169,557
4,523,804
Capital and reserves
Called up share capital
25
61,279
61,768
Capital redemption reserve
5,220
4,731
Profit and loss reserves
5,103,058
4,457,305
Total equity
5,169,557
4,523,804
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Ms K McManus
Director
Company registration number 01231325 (England and Wales)
FLEET FACTORS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,301,038
1,470,388
Investments
13
543,199
1,390,000
2,844,237
2,860,388
Current assets
Stocks
16
7,225,981
7,677,103
Debtors
17
12,802,594
12,372,614
Cash at bank and in hand
66,094
52,508
20,094,669
20,102,225
Creditors: amounts falling due within one year
18
(16,949,229)
(16,571,466)
Net current assets
3,145,440
3,530,759
Total assets less current liabilities
5,989,677
6,391,147
Creditors: amounts falling due after more than one year
19
(587,719)
(1,256,946)
Provisions for liabilities
Provisions
22
91,667
91,667
Deferred tax liability
23
460,379
221,163
(552,046)
(312,830)
Net assets
4,849,912
4,821,371
Capital and reserves
Called up share capital
25
61,279
61,768
Capital redemption reserve
5,220
4,731
Profit and loss reserves
4,783,413
4,754,872
Total equity
4,849,912
4,821,371
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,743,791 (2022 - £2,289,154 profit).
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
31 July 2024
Ms K McManus
Director
Company registration number 01231325 (England and Wales)
FLEET FACTORS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
61,768
4,731
3,728,525
3,795,024
Year ended 31 October 2022:
Profit and total comprehensive income
-
-
2,111,664
2,111,664
Dividends
10
-
-
(1,382,884)
(1,382,884)
Balance at 31 October 2022
61,768
4,731
4,457,305
4,523,804
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
3,361,003
3,361,003
Dividends
10
-
-
(1,715,250)
(1,715,250)
Own shares acquired
-
-
(1,000,000)
(1,000,000)
Redemption of shares
25
(489)
489
-
Balance at 31 October 2023
61,279
5,220
5,103,058
5,169,557
FLEET FACTORS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
61,768
4,731
3,848,602
3,915,101
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
2,289,154
2,289,154
Dividends
10
-
-
(1,382,884)
(1,382,884)
Balance at 31 October 2022
61,768
4,731
4,754,872
4,821,371
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
2,743,791
2,743,791
Dividends
10
-
-
(1,715,250)
(1,715,250)
Own shares acquired
-
-
(1,000,000)
(1,000,000)
Redemption of shares
25
(489)
489
-
Balance at 31 October 2023
61,279
5,220
4,783,413
4,849,912
FLEET FACTORS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
5,845,495
317,739
Interest paid
(168,972)
(85,820)
Income taxes paid
(515,976)
(195,065)
Net cash inflow from operating activities
5,160,547
36,854
Investing activities
Purchase of tangible fixed assets
(1,675,568)
(32,779)
Proceeds from disposal of tangible fixed assets
152,837
76,201
Repayment of loans
-
(195,000)
Net cash used in investing activities
(1,522,731)
(151,578)
Financing activities
Purchase of treasury shares
(1,000,000)
Repayment of borrowings
(45,814)
(252,421)
Proceeds from new bank loans
-
1,500,000
Repayment of bank loans
(462,163)
(211,522)
Payment of finance leases obligations
(53,455)
(18,487)
Dividends paid to equity shareholders
(1,715,250)
(1,037,884)
Net cash used in financing activities
(3,276,682)
(20,314)
Net increase/(decrease) in cash and cash equivalents
361,134
(135,038)
Cash and cash equivalents at beginning of year
(1,236,236)
(1,101,198)
Cash and cash equivalents at end of year
(875,102)
(1,236,236)
Relating to:
Cash at bank and in hand
74,756
103,133
Bank overdrafts included in creditors payable within one year
(949,858)
(1,339,369)
FLEET FACTORS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
5,888,000
570,837
Interest paid
(168,972)
(85,541)
Income taxes paid
(515,976)
(194,676)
Net cash inflow from operating activities
5,203,052
290,620
Investing activities
Purchase of tangible fixed assets
(1,675,568)
(32,779)
Proceeds from disposal of tangible fixed assets
152,295
67,008
Repayment of loans
(195,000)
Net cash used in investing activities
(1,523,273)
(160,771)
Financing activities
Purchase of treasury shares
(1,000,000)
Repayment of borrowings
(45,814)
(252,421)
Proceeds from new bank loans
-
1,500,000
Repayment of bank loans
(462,163)
(211,522)
Payment of finance leases obligations
(53,455)
(18,487)
Dividends paid to equity shareholders
(1,715,250)
(1,037,884)
Net cash used in financing activities
(3,276,682)
(20,314)
Net increase in cash and cash equivalents
403,097
109,535
Cash and cash equivalents at beginning of year
(1,286,861)
(1,396,396)
Cash and cash equivalents at end of year
(883,764)
(1,286,861)
Relating to:
Cash at bank and in hand
66,094
52,508
Bank overdrafts included in creditors payable within one year
(949,858)
(1,339,369)
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
1
Accounting policies
Company information
Fleet Factors Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3/4 Wallis Road, Skippers Lane Industrial Estate, Middlesbrough, United Kingdom, TS6 6JB
The group consists of Fleet Factors Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Fleet Factors Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
4% straight line
Plant and equipment
1-4 years straight line
Fixtures and fittings
20-25% straight line and reducing balance
Motor vehicles
25% straight line and reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies 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 group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 23 -
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Motor vehicle and plant maintenance products
75,400,779
64,698,207
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
75,179,750
64,562,196
Europe
221,029
136,011
75,400,779
64,698,207
2023
2022
£
£
Other revenue
Grants received
-
10,061
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(10,061)
Depreciation of owned tangible fixed assets
646,005
459,286
Depreciation of tangible fixed assets held under finance leases
153,969
202,691
Profit on disposal of tangible fixed assets
(98,923)
(58,274)
Amortisation of intangible assets
255,330
255,330
Operating lease charges
801,292
780,108
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,770
11,200
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
5
Auditor's remuneration
(Continued)
- 25 -
For other services
Taxation compliance services
600
600
All other non-audit services
15,400
6,200
16,000
6,800
For services in respect of associated pension schemes
All other non-audit services
1,300
1,300
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Selling and distribution
314
309
302
297
Administration
59
55
57
53
Total
373
364
359
350
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,585,262
8,520,737
8,559,751
8,212,524
Social security costs
771,092
710,531
771,092
710,531
Pension costs
531,494
518,290
531,494
518,290
9,887,848
9,749,558
9,862,337
9,441,345
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
89,773
127,879
Company pension contributions to defined contribution schemes
240,000
240,000
329,773
367,879
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 6).
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
165,888
66,500
Other finance costs:
Interest on finance leases and hire purchase contracts
3,084
19,320
Total finance costs
168,972
85,820
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
865,613
490,538
Adjustments in respect of prior periods
160,673
Total current tax
1,026,286
490,538
Deferred tax
Origination and reversal of timing differences
230,651
113,530
Total tax charge
1,256,937
604,068
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
4,617,940
2,715,732
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
1,039,037
515,989
Tax effect of expenses that are not deductible in determining taxable profit
9,782
30,433
Adjustments in respect of prior years
160,673
Effect of change in corporation tax rate
8,160
53,079
Permanent capital allowances in excess of depreciation
(18,164)
(43,946)
Amortisation of goodwill arising on consolidation
57,449
48,513
Taxation charge
1,256,937
604,068
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 27 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
1,715,250
1,382,884
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
1,276,650
Amortisation and impairment
At 1 November 2022
765,990
Amortisation charged for the year
255,330
At 31 October 2023
1,021,320
Carrying amount
At 31 October 2023
255,330
At 31 October 2022
510,660
The company had no intangible fixed assets at 31 October 2023 or 31 October 2022.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 28 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
115,150
702,039
838,004
3,219,570
4,874,763
Additions
54,454
1,621,114
1,675,568
Disposals
(629,629)
(629,629)
At 31 October 2023
115,150
756,493
838,004
4,211,055
5,920,702
Depreciation and impairment
At 1 November 2022
115,150
667,319
766,330
1,802,807
3,351,606
Depreciation charged in the year
30,287
15,762
753,925
799,974
Eliminated in respect of disposals
(575,715)
(575,715)
At 31 October 2023
115,150
697,606
782,092
1,981,017
3,575,865
Carrying amount
At 31 October 2023
58,887
55,912
2,230,038
2,344,837
At 31 October 2022
34,720
71,674
1,416,763
1,523,157
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
115,150
702,039
760,157
3,147,810
4,725,156
Additions
54,454
1,621,114
1,675,568
Disposals
(629,629)
(629,629)
At 31 October 2023
115,150
756,493
760,157
4,139,295
5,771,095
Depreciation and impairment
At 1 November 2022
115,150
667,319
715,391
1,756,908
3,254,768
Depreciation charged in the year
30,287
13,455
747,262
791,004
Eliminated in respect of disposals
(575,715)
(575,715)
At 31 October 2023
115,150
697,606
728,846
1,928,455
3,470,057
Carrying amount
At 31 October 2023
58,887
31,311
2,210,840
2,301,038
At 31 October 2022
34,720
44,766
1,390,902
1,470,388
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
543,199
1,390,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022
1,390,000
Valuation changes
(846,801)
At 31 October 2023
543,199
Carrying amount
At 31 October 2023
543,199
At 31 October 2022
1,390,000
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Tees Valley Components Limited
Units 3 & 4, Wallis Road, Middlesbrough, TS6 6JB
Ordinary
100.00
15
Financial instruments
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
7,522,288
7,985,314
7,225,981
7,677,103
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,025,111
13,038,059
12,079,616
12,026,897
Corporation tax recoverable
68,250
68,250
68,250
68,250
Other debtors
349,309
261,625
535,932
261,627
Prepayments and accrued income
120,333
25,014
118,796
15,840
12,563,003
13,392,948
12,802,594
12,372,614
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
1,461,929
1,862,905
1,461,929
1,862,905
Obligations under finance leases
21
637,943
472,869
637,943
472,869
Other borrowings
20
461,758
507,572
461,758
507,572
Trade creditors
11,711,431
13,117,730
12,255,827
12,467,309
Corporation tax payable
1,064,455
554,145
1,031,734
517,125
Other taxation and social security
749,754
792,968
749,754
763,030
Other creditors
96,687
(289,988)
96,056
(155,496)
Accruals and deferred income
257,075
385,006
254,228
136,152
16,441,032
17,403,207
16,949,229
16,571,466
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
314,244
764,942
314,244
764,942
Obligations under finance leases
21
273,475
492,004
273,475
492,004
587,719
1,256,946
587,719
1,256,946
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 31 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
826,315
1,288,478
826,315
1,288,478
Bank overdrafts
949,858
1,339,369
949,858
1,339,369
Other loans
461,758
507,572
461,758
507,572
2,237,931
3,135,419
2,237,931
3,135,419
Payable within one year
1,923,687
2,370,477
1,923,687
2,370,477
Payable after one year
314,244
764,942
314,244
764,942
The bank loan and overdraft are secured by way of a fixed and floating charge over all of the company's assets.
The bank loan is repayable over 36 months. Interest is charged at 2.25% per annum over the Bank of England Base Rate.
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
637,943
472,869
637,943
472,869
In two to five years
273,475
492,004
273,475
492,004
911,418
964,873
911,418
964,873
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Share redemption
91,667
91,667
91,667
91,667
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
22
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Share redemption
Group
£
At 1 November 2022 and 31 October 2023
91,667
Company
£
At 1 November 2022 and 31 October 2023
91,667
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
470,239
239,588
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
460,379
221,163
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
239,588
221,163
Charge to profit or loss
230,651
239,216
Liability at 31 October 2023
470,239
460,379
The deferred tax liability set out above is expected to reverse over the lifetime of the assets to which it relates and relates to accelerated capital allowances that are expected to mature within the same period.
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 33 -
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
531,494
518,290
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of 10p each
262,149
262,149
26,214
26,214
B ordinary shares of 10p each
242,356
242,356
24,236
24,236
C ordinary shares of 10p each
9,770
14,655
978
1,467
D ordinary shares of 10p each
98,490
98,490
9,849
9,849
E ordinary shares of 10p each
5
5
1
1
F ordinary shares of 10p each
2
2
-
-
G ordinary shares of 10p each
2
2
-
-
H ordinary shares of 10p each
1
1
-
-
J ordinary shares of 10p each
13
13
1
1
612,788
617,673
61,279
61,768
During the year 4,885 C ordinary shares were purchased by the company and cancelled. Consideration of £1,000,000 was paid.
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
139,851
139,851
139,851
139,851
Between two and five years
559,404
559,404
559,404
559,404
In over five years
227,776
367,626
227,776
367,626
927,031
1,066,881
927,031
1,066,881
27
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
27
Related party transactions
(Continued)
- 34 -
2023
2022
£
£
Group
Fleet Factors Pension Scheme - rent paid
328,076
331,557
Dividends paid to other connected persons
610,154
718,632
Company
Fleet Factors Pension Scheme - rent paid
328,076
331,557
Dividends paid to other connected persons
613,153
718,632
During the year the company made payments on behalf of Fleet factors Pension Scheme totalling £32,798 (2022 - £52,422). At 31 October 2023 £461,758 (2022 - £507,572) was owed to the pension scheme.
28
Directors' transactions
Dividends totalling £1,102,097 (2022 - £594,252) were paid in the year in respect of shares held by the company's directors.
During the year, 4890 C ordinary shares (2022: nil) were purchased by the company, from a director, and cancelled. Consideration of £1,000,000 (2022: £nil) was paid. No amount was outstanding at the year end (2022: £nil).
Interest free loans have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Closing balance
£
£
Director's Loan
-
150,000
150,000
150,000
150,000
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 35 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,361,003
2,111,664
Adjustments for:
Taxation charged
1,256,937
604,068
Finance costs
168,972
85,820
Gain on disposal of tangible fixed assets
(98,923)
(58,274)
Amortisation and impairment of intangible assets
255,330
255,330
Depreciation and impairment of tangible fixed assets
799,974
661,977
Movements in working capital:
Decrease/(increase) in stocks
463,026
(1,735,279)
Decrease/(increase) in debtors
829,945
(3,417,138)
(Decrease)/increase in creditors
(1,190,769)
1,809,571
Cash generated from operations
5,845,495
317,739
30
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,743,791
2,289,154
Adjustments for:
Taxation charged
1,269,801
558,806
Finance costs
168,972
85,541
Gain on disposal of tangible fixed assets
(98,381)
(62,096)
Depreciation and impairment of tangible fixed assets
791,004
640,149
Other gains and losses
846,801
-
Movements in working capital:
Decrease/(increase) in stocks
451,122
(1,707,131)
Increase in debtors
(429,980)
(3,279,987)
Increase in creditors
144,870
2,046,401
Cash generated from operations
5,888,000
570,837
FLEET FACTORS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 36 -
31
Analysis of changes in net debt - group
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
103,133
(28,377)
74,756
Bank overdrafts
(1,339,369)
389,511
(949,858)
(1,236,236)
361,134
(875,102)
Borrowings excluding overdrafts
(1,796,050)
507,977
(1,288,073)
Obligations under finance leases
(964,873)
53,455
(911,418)
(3,997,159)
922,566
(3,074,593)
32
Analysis of changes in net debt - company
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
52,508
13,586
66,094
Bank overdrafts
(1,339,369)
389,511
(949,858)
(1,286,861)
403,097
(883,764)
Borrowings excluding overdrafts
(1,796,050)
507,977
(1,288,073)
Obligations under finance leases
(964,873)
53,455
(911,418)
(4,047,784)
964,529
(3,083,255)
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