Company registration number 03872195 (England and Wales)
FLUID OPTIONS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
FLUID OPTIONS UK LIMITED
COMPANY INFORMATION
Directors
Mr AC Gregson
Mr Matthew Gregson
Mr S Orchard
Secretary
Mrs Jacqueline Gregson
Company number
03872195
Registered office
Unit 2
Shannon Commercial Centre
Beverley Way
New Malden
Surrey
KT3 4PT
Auditor
Hardy & Company
Chartered Accountants
860-862 Garratt Lane
London
SW17 0NB
FLUID OPTIONS UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
FLUID OPTIONS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
The company's principal activity during the year continued to be the provision of cleaning services to the commercial and non-domestic sectors. The key financial indicators during the year were as follows: 2024 2023 £'000 £'000 Turnover 13,768 14,452 Operating profit 485 365 Profit after tax 271 221 Equity shareholders funds 367 224 Current assets as % current liabilities 127% 127% Average number of employees 640 696 The results for the year are considered by the directors to be satisfactory in the present economic climate. The decrease in turnover is due to challenging economic environment. However, the increase in operating profit during the year was the result of tighter cost control. |
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Principal risks and uncertainties
The company is highly exposed to the bars and restaurants chains operating on the high streets and other shopping and leisure areas. Although the directors are taking steps to develop other sectors, it will take few years before the impact of that strategy is seen in the accounts. |
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Development and performance
Although the trading conditions are tough, the directors are concentrating on maintaining the quality of service the customers have come to expect from the company. At a time of great uncertainty, it is more important than ever to assure the clients of the value of their relationship with the Fluid brand.
Mr AC Gregson
Director
31 July 2024
FLUID OPTIONS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of provision of cleaning services to the commercial and non-domestic sectors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £127,000. The directors do not recommend payment of a further dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr AC Gregson
Mr Matthew Gregson
Mr S Orchard
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 at meetings, matters likely to affect employees' interests.
Information of 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 group's performance.
The company does not operate employees share scheme at present.
Auditor
In accordance with the company's articles, a resolution proposing that Hardy & Company be reappointed as auditor of the company will be put at a General Meeting.
FLUID OPTIONS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr AC Gregson
Director
31 July 2024
FLUID OPTIONS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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) including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business;
use the going concern basis of accounting unless they either intend to liquidate the company of to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
FLUID OPTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLUID OPTIONS UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Fluid Options UK Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
FLUID OPTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLUID OPTIONS UK LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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:
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to incomplete revenue recognition.
Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, including review of correspondence with legal advisors, enquiries of management and review of internal audit reports in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
FLUID OPTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLUID OPTIONS UK LIMITED (CONTINUED)
- 7 -
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.
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.
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.
Rehan Shah Khan
Senior Statutory Auditor
For and on behalf of Hardy & Company
31 July 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants
860-862 Garratt Lane
London
SW17 0NB
FLUID OPTIONS UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,768,005
14,451,852
Cost of sales
(11,981,374)
(12,881,145)
Gross profit
1,786,631
1,570,707
Administrative expenses
(1,301,628)
(1,205,812)
Operating profit
4
485,003
364,895
Interest receivable and similar income
7
2,376
823
Interest payable and similar expenses
8
(119,196)
(85,318)
Profit before taxation
368,183
280,400
Tax on profit
9
(97,593)
(59,342)
Profit for the financial year
270,590
221,058
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FLUID OPTIONS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
270,590
221,058
Other comprehensive income
-
-
Total comprehensive income for the year
270,590
221,058
FLUID OPTIONS UK LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
48,803
50,629
Current assets
Stocks
12
312,183
385,857
Debtors
13
2,294,312
2,348,741
Cash at bank and in hand
269,053
404,989
2,875,548
3,139,587
Creditors: amounts falling due within one year
14
(2,262,873)
(2,472,131)
Net current assets
612,675
667,456
Total assets less current liabilities
661,478
718,085
Creditors: amounts falling due after more than one year
15
(283,333)
(483,333)
Provisions for liabilities
Deferred tax liability
17
11,021
11,218
(11,021)
(11,218)
Net assets
367,124
223,534
Capital and reserves
Called up share capital
19
81
81
Profit and loss reserves
367,043
223,453
Total equity
367,124
223,534
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
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:
Mr AC Gregson
Director
Company registration number 03872195 (England and Wales)
FLUID OPTIONS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
81
44,395
44,476
Year ended 31 March 2023:
Profit and total comprehensive income
-
221,058
221,058
Dividends
10
-
(42,000)
(42,000)
Balance at 31 March 2023
81
223,453
223,534
Year ended 31 March 2024:
Profit and total comprehensive income
-
270,590
270,590
Dividends
10
-
(127,000)
(127,000)
Balance at 31 March 2024
81
367,043
367,124
FLUID OPTIONS UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
559,462
(169,491)
Interest paid
(119,196)
(85,318)
Income taxes (paid)/refunded
(56,417)
43,058
Net cash inflow/(outflow) from operating activities
383,849
(211,751)
Investing activities
Purchase of tangible fixed assets
(15,330)
(17,342)
Interest received
2,376
823
Net cash used in investing activities
(12,954)
(16,519)
Financing activities
Repayment of bank loans
(200,000)
(200,000)
Dividends paid
(127,000)
(42,000)
Net cash used in financing activities
(327,000)
(242,000)
Net increase/(decrease) in cash and cash equivalents
43,895
(470,270)
Cash and cash equivalents at beginning of year
(645,546)
(175,276)
Cash and cash equivalents at end of year
(601,651)
(645,546)
Relating to:
Cash at bank and in hand
269,053
404,989
Bank overdrafts included in creditors payable within one year
(870,704)
(1,050,535)
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
Fluid Options UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Shannon Commercial Centre, Beverley Way, New Malden, Surrey, KT3 4PT.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover represents amounts receivable for cleaning services net of VAT. Income is recognised upon a cleaning service having been provided.
1.4
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:
Land and buildings Leasehold
Over the life of the lease
Fixtures, fittings & equipment
15% - 50% on 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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items 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.
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Stocks
Stocks represent consumable items used in providing cleaning services and held for distribution at no or nominal consideration and are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential. In valuing stocks, the directors take into account the normal wastage such as spillages of the liquid cleaning material and the extensive usage of equipment such as vacuum cleaners which are discounted accordingly.
The standard quantities of stocks at customers sites are based upon the size of the premises, each of which is categorized as large, medium and small. Likewise the stocks in managers' vans, as buffer stocks, are the standard quantities of stocks
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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 and bank loans 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
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 leases asset are consumed.
1.14
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.
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.15
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The main areas where the directors have exercised judgements are depreciation of fixed assets and the existence and valuation of stocks at customers' premises.
3
Turnover and other revenue
All the turnover of the company related to the sole trading activity.
2024
2023
£
£
Other revenue
Interest income
2,376
823
The turnover arises from main activity and relates to the UK only.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
30,300
36,301
Depreciation of owned tangible fixed assets
17,156
17,217
Operating lease charges
211,683
185,913
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
38
43
Cleaners
602
653
Total
640
696
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
10,286,304
11,200,831
Social security costs
681,255
845,943
Pension costs
307,332
333,054
11,274,891
12,379,828
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
335,419
370,128
Company pension contributions to defined contribution schemes
60,146
60,149
395,565
430,277
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
148,716
147,870
Company pension contributions to defined contribution schemes
40,000
40,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,345
391
Other interest income
31
432
Total income
2,376
823
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Interest receivable and similar income
(Continued)
- 19 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,345
391
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
53,140
48,198
Other finance costs:
Other interest
66,056
37,120
119,196
85,318
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
97,790
56,386
Deferred tax
Origination and reversal of timing differences
(197)
2,956
Total tax charge
97,593
59,342
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:
2024
2023
£
£
Profit before taxation
368,183
280,400
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
92,046
53,276
Tax effect of expenses that are not deductible in determining taxable profit
5,547
4,364
Permanent capital allowances in excess of depreciation
1,702
Taxation charge for the year
97,593
59,342
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Dividends
2024
2023
£
£
Final paid
127,000
42,000
11
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2023
2,596
202,729
205,325
Additions
15,330
15,330
At 31 March 2024
2,596
218,059
220,655
Depreciation and impairment
At 1 April 2023
2,595
152,101
154,696
Depreciation charged in the year
17,156
17,156
At 31 March 2024
2,595
169,257
171,852
Carrying amount
At 31 March 2024
1
48,802
48,803
At 31 March 2023
1
50,628
50,629
The bank has a fixed and floating charge over the fixed assets of the company relating to the invoice discounting facility it provides (see note 16).
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
312,183
385,857
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,849,628
1,900,513
Other debtors
2,308
3,125
Prepayments and accrued income
442,376
445,103
2,294,312
2,348,741
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,070,704
1,250,535
Trade creditors
166,664
132,020
Corporation tax
97,759
56,386
Other taxation and social security
390,563
475,920
Other creditors
409,099
56,272
Accruals and deferred income
128,084
500,998
2,262,873
2,472,131
Included in bank loans and overdrafts is an amount of £870,704 (2023: £1,050,535) in respect of an invoice discounting facility which is secured by way of a fixed charge over trade debtors and a floating charge over other assets of the company.
Bank borrowing is secured by way of a fixed and floating charge over the assets of the company.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
283,333
483,333
Bank borrowing is secured by way of a fixed and floating charge over the assets of the company.
16
Loans and overdrafts
2024
2023
£
£
Bank loans
483,333
683,333
Bank overdrafts
870,704
1,050,535
1,354,037
1,733,868
Payable within one year
1,070,704
1,250,535
Payable after one year
283,333
483,333
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
11,021
11,218
2024
Movements in the year:
£
Liability at 1 April 2023
11,218
Credit to equity
(197)
Liability at 31 March 2024
11,021
The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within foreseeable future.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
307,332
333,054
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
75
75
75
75
Ordinary Class A of £1 each
1
1
1
1
Ordinary Class B of £1 each
1
1
1
1
Ordinary Class C of £1 each
1
1
1
1
Ordinary Class D of £1 each
1
1
1
1
Ordinary Class E of £1 each
1
1
1
1
80
80
80
80
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Share capital
(Continued)
- 23 -
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference of £1 each
1
1
1
1
Preference shares classified as equity
1
1
Total equity share capital
81
81
All the different classes of ordinary shares and the preference share carry equal rights.
20
Operating lease commitments
Lessee
The company renewed its lease for the premises for a term of 10 years from 30 April 2021 at an annual rent of £32,029.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
158,407
70,600
Between two and five years
181,337
110,963
In over five years
98,756
130,785
438,500
312,348
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
At the balance sheet date the company owed a director £5,279 (2023: £1,491).
During the year the company paid Mr AC Gregson, a director, and his family dividends totalling £127,000 (2023: £42,000).
During the year the company made payments of £1,800 regarding consulting services to Gregson Coaching & Consulting Limited, company owned by a director's wife.
FLUID OPTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Ultimate controlling party
The company was under the control of Mr AC Gregson, a director, throughout the current and previous year. Mr Gregson owns 95% of the ordinary issued share capital and, together with his wife, sons and daughter owns 100% of the preference share capital issued.
23
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
270,590
221,058
Adjustments for:
Taxation charged
97,593
59,342
Finance costs
119,196
85,318
Investment income
(2,376)
(823)
Depreciation and impairment of tangible fixed assets
17,156
17,217
Movements in working capital:
Decrease/(increase) in stocks
73,674
(24,109)
Decrease/(increase) in debtors
54,429
(33,159)
Decrease in creditors
(70,800)
(494,335)
Cash generated from/(absorbed by) operations
559,462
(169,491)
24
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
404,989
(135,936)
269,053
Bank overdrafts
(1,050,535)
179,831
(870,704)
(645,546)
43,895
(601,651)
Borrowings excluding overdrafts
(683,333)
200,000
(483,333)
(1,328,879)
243,895
(1,084,984)
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