Company registration number 03321897 (England and Wales)
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
COMPANY INFORMATION
Directors
T S Gosal
J Randhawa
Company number
03321897
Registered office
Fleetwood House
480 Bath Road
Slough
Berkshire
SL1 6BB
Auditor
MGR MAP Limited
55 Loudoun Road
St John's Wood
London
NW8 0DL
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company during the year was that of commercial facade contractors.

Review of the business

Despite the backdrop of challenging market conditions, we are pleased with the profit reported for the year, and the strong forward order book. The favourable fixed prices secured in 2022 and 2023 for the majority of project costs provided continued cost certainty in a volatile market. This has contributed to improved profitability.

 

Looking ahead, we are pleased to report that we have successfully secured work which stretches through to 2026 on terms that reflect a more favourable market. We continue to recruit and retain top talent to our business and are proud of our low staff turnover.

Principal risks and uncertainties

Financial risk management objectives and policies

Like many businesses the company is exposed to a number of risks and uncertainties and managing these risks is an integral part of the business. The principal financial risks to which the company is exposed are those of liquidity, economic, market, price, credit, interest rate and cash flow . Each of the outlined risks is managed as set out below:

Liquidity risk:

The company manages liquidity risk by maintaining access to a number of sources of funding which are sufficient to meet the anticipated funding requirements. The liquidity risks of the company are monitored on an ongoing basis and close control is maintained on debtor collection and creditor settlement.

Economic, market and price risk:

The economic environment has a direct impact on the company’s performance since the company operates in a highly competitive and price sensitive market. The company manages price risk by negotiating competitive prices with its key suppliers.

Credit risk:

The company is at risk of exposure to financial losses should customers fail to meet their obligations as and when the debts fall due. The company has an established credit policy to ensure that credit is only extended to those customers who meet strict rating requirements. Credit ratings and trade debtor ageing are closely monitored and timely action taken if any risks are identified.

Interest rate risk:

The company borrows at floating rates of interest and where considered necessary, it uses interest rate cap protection to manage exposure to interest rate fluctuations. The interest rate on hire purchase agreements are fixed at the commencement of the agreement.

Cashflow risk:

The company is reliant on timely receipts from customers, cash flow position is closely monitored by the directors.

Political:

The ongoing Ukraine war has continued to impact the supply and cost of materials for the construction industry as a whole. We continue to manage this by securing the most favourable prices for the majority of key material costs.

Competition:

The company operates in a highly competitive market. The company mitigates the risk by continuously investing in, and developing new product offerings and building long term relationships built upon quality and flexibility.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The company continues to look to secure additional market share by securing new customers and developing existing relationships.

Key performance indicators

The directors consider turnover, gross profit margin, and operating profit to be the key performance indicators.

 

2023            2022

£000            £000

 

Turnover                  30,149         27,254

Gross profit (£)             5,637         3,878

Gross profit (%)             18.7%         14.2%

Operating profit/(loss)         2,711         1,094

Average number of employees     76         75

 

 

Other information and explanations

The directors having reviewed the accounts and after making appropriate enquiries, consider that the company has adequate resources to continue in operation for the forseeable future and have therefore continued to adopt the going concern basis in preparing the financial statements.

On behalf of the board

T S Gosal
Director
12 August 2024
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £3,000,000. 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:

T S Gosal
J Randhawa
Future developments

Our future pipeline is robust and we are on target to achieve our budgeted turnover for 2024 of £30M with a very strong EBIT. Our work stream continues to be split between traditional and new build facades installation and reclad works which has continued to assist us in minimising risks in relation to supply. The company continues its investment in both human resources and technology and are confident of the operations for the year ahead and the future prospects.

Auditor

In accordance with the company's articles, a resolution proposing that MGR MAP Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors 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 auditors are aware of that information.
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
T S Gosal
Director
12 August 2024
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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). 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:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
- 5 -
Opinion

We have audited the financial statements of Fleetwood Architectural Aluminium Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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:

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEETWOOD ARCHITECTURAL ALUMINIUM 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:

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 industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of Health and Safety regulations due to the nature of industry company operates in and work company undertakes. 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 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 posting inappropriate journal entries to manipulate long term contracts work in progress balances carried forward as at financial year end and recognition of transactions in the correct period. Audit procedures performed included:

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED (CONTINUED)
- 7 -

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

 

 

 

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED (CONTINUED)
- 8 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

V Nadarajah-Pillai
Senior Statutory Auditor
For and on behalf of MGR MAP Limited
12 August 2024
Chartered Accountants
Statutory Auditor
55 Loudoun Road
St John's Wood
London
NW8 0DL
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
30,149,684
27,254,670
Cost of sales
(24,512,077)
(23,376,125)
Gross profit
5,637,607
3,878,545
Administrative expenses
(3,258,345)
(3,135,250)
Other operating income
332,075
350,205
Operating profit
3
2,711,337
1,093,500
Interest receivable and similar income
6
-
0
238
Interest payable and similar expenses
7
(101,284)
(59,992)
Profit before taxation
2,610,053
1,033,746
Tax on profit
8
-
0
22,801
Profit for the financial year
2,610,053
1,056,547

The income statement has been prepared on the basis that all operations are continuing operations.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
127,470
191,204
Tangible assets
11
91,851
384,423
219,321
575,627
Current assets
Stocks
12
230,642
1,354,358
Debtors falling due after more than one year
13
679,003
179,015
Debtors falling due within one year
13
4,752,887
5,023,828
Cash at bank and in hand
587,845
858,756
6,250,377
7,415,957
Creditors: amounts falling due within one year
14
(5,826,627)
(6,567,731)
Net current assets
423,750
848,226
Total assets less current liabilities
643,071
1,423,853
Creditors: amounts falling due after more than one year
15
(231,052)
(621,887)
Net assets
412,019
801,966
Capital and reserves
Called up share capital
18
100,000
100,000
Profit and loss reserves
312,019
701,966
Total equity
412,019
801,966

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 12 August 2024 and are signed on its behalf by:
T S Gosal
J Randhawa
Director
Director
Company registration number 03321897 (England and Wales)
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,000
1,081,419
1,181,419
Period ended 31 December 2022:
Profit and total comprehensive income
-
1,056,547
1,056,547
Dividends
9
-
(1,436,000)
(1,436,000)
Balance at 31 December 2022
100,000
701,966
801,966
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,610,053
2,610,053
Dividends
9
-
(3,000,000)
(3,000,000)
Balance at 31 December 2023
100,000
312,019
412,019
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,033,115
1,499,956
Interest paid
(101,284)
(59,992)
Corporation tax refunded
-
0
34,592
Net cash inflow from operating activities
2,931,831
1,474,556
Investing activities
Purchase of tangible fixed assets
(47,416)
(67,952)
Proceeds from disposal of tangible fixed assets
302,450
-
0
Repayment of loans
11,817
(21,041)
Interest received
-
0
238
Net cash generated from/(used in) investing activities
266,851
(88,755)
Financing activities
Repayment of bank loans
(300,000)
(300,000)
Payment of finance leases obligations
(169,593)
(58,214)
Dividends paid
(3,000,000)
(1,436,000)
Net cash used in financing activities
(3,469,593)
(1,794,214)
Net decrease in cash and cash equivalents
(270,911)
(408,413)
Cash and cash equivalents at beginning of year
858,756
1,267,169
Cash and cash equivalents at end of year
587,845
858,756
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Fleetwood Architectural Aluminium Limited is a private company limited by shares incorporated in England and Wales. The registered office is Fleetwood House, 480 Bath Road, Slough, Berkshire, SL1 6BB.

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 goods and services net of VAT and trade discounts.

Revenue from contracts for the provision of construction services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development Costs
20% straight line
1.6
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.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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 improvements
Over lease term
Plant and machinery
25%/20%/10% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
33% straight line

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

1.8
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.

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.

1.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
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.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.11
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

1.12
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.

1.13
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 income statement 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.

1.14
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.

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.15
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.16
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 statement of financial position 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 leases asset are consumed.

1.17
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.

3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
16,500
16,500
Depreciation of owned tangible fixed assets
75,604
29,888
Depreciation of tangible fixed assets held under finance leases
10,535
72,914
Profit on disposal of tangible fixed assets
(48,601)
-
0
Amortisation of intangible assets
63,734
63,734
Operating lease charges
78,779
112,023
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Operations
69
68
Administration
7
7
Total
76
75

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,379,963
3,378,143
Social security costs
349,930
360,548
Pension costs
23,703
59,678
3,753,596
3,798,369
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
233,889
189,500
Company pension contributions to defined contribution schemes
2,642
2,642
236,531
192,142

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
121,049
101,750
Company pension contributions to defined contribution schemes
1,321
1,320
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
0
238
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
48,636
43,344
Other finance costs:
Interest on finance leases and hire purchase contracts
29,838
16,648
Other interest
22,810
-
0
101,284
59,992
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(22,801)

The actual charge/(credit) 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
2,610,053
1,033,746
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
652,513
196,412
Tax effect of expenses that are not deductible in determining taxable profit
38,637
14,462
Tax effect of utilisation of tax losses not previously recognised
(737,371)
(89,379)
Adjustments in respect of prior years
-
0
(22,801)
Permanent capital allowances in excess of depreciation
46,221
5,338
Research and development tax credit
-
0
(126,833)
Taxation charge/(credit) for the year
-
(22,801)
9
Dividends
2023
2022
£
£
Final paid
3,000,000
1,436,000
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Intangible fixed assets
Development Costs
£
Cost
At 1 January 2023 and 31 December 2023
318,672
Amortisation and impairment
At 1 January 2023
127,468
Amortisation charged for the year
63,734
At 31 December 2023
191,202
Carrying amount
At 31 December 2023
127,470
At 31 December 2022
191,204
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
166,718
756,805
201,109
63,738
1,188,370
Additions
-
0
-
0
1,416
46,000
47,416
Disposals
-
0
(320,000)
-
0
(63,738)
(383,738)
At 31 December 2023
166,718
436,805
202,525
46,000
852,048
Depreciation and impairment
At 1 January 2023
154,803
485,457
153,064
10,623
803,947
Depreciation charged in the year
5,387
45,923
16,978
17,851
86,139
Eliminated in respect of disposals
-
0
(103,333)
-
0
(26,556)
(129,889)
At 31 December 2023
160,190
428,047
170,042
1,918
760,197
Carrying amount
At 31 December 2023
6,528
8,758
32,483
44,082
91,851
At 31 December 2022
11,915
271,348
48,045
53,115
384,423
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
-
0
270,662
Motor vehicles
44,083
53,115
Computer equipment
13,645
22,263
57,728
346,040
12
Stocks
2023
2022
£
£
Work in progress
230,642
1,354,358
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,743,950
1,768,046
Gross amounts owed by contract customers
1,475,788
2,830,416
Other debtors
281,028
226,514
Prepayments and accrued income
252,121
198,852
4,752,887
5,023,828
2023
2022
Amounts falling due after more than one year:
£
£
Trade debtors
679,003
179,015
Total debtors
5,431,890
5,202,843
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
300,000
300,000
Obligations under finance leases
14,692
93,450
Trade creditors
2,027,535
2,945,948
Taxation and social security
810,620
1,284,922
Other creditors
56,344
293,260
Accruals and deferred income
2,617,436
1,650,151
5,826,627
6,567,731
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
200,000
500,000
Obligations under finance leases
31,052
121,887
231,052
621,887

The bank loan is repayable over sixty equally monthly instalments. Interest is payable on this loan @ 2.96% per annum over bank's base rate.

16
Loans and overdrafts
2023
2022
£
£
Bank loans
500,000
800,000
Payable within one year
300,000
300,000
Payable after one year
200,000
500,000

Bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.

 

The company, together with other connected companies, has provided a guarantee to secure all current and future borrowings.

 

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

 

FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,703
59,678

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.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
A Ordinary shares of £1 each
99,000
99,000
99,000
99,000
100,000
100,000
100,000
100,000
19
Operating lease commitments
Lessee

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:

2023
2022
£
£
Within one year
534,771
597,621
Between two and five years
1,382,630
1,042,402
1,917,401
1,640,023
20
Events after the reporting date

The directors were not aware of any events after the reporting date which would materially affect the financial statements.

21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Management fees receivable
Dividends paid
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
332,075
350,205
3,000,000
1,400,000
FLEETWOOD ARCHITECTURAL ALUMINIUM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Related party transactions
(Continued)
- 23 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
9,919
241,276

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
269,604
201,785
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,610,053
1,056,547
Adjustments for:
Taxation charged/(credited)
-
0
(22,801)
Finance costs
101,284
59,992
Investment income
-
0
(238)
Gain on disposal of tangible fixed assets
(48,601)
-
0
Amortisation and impairment of intangible assets
63,734
63,734
Depreciation and impairment of tangible fixed assets
86,139
102,802
Movements in working capital:
Decrease in stocks
1,123,716
283,284
Increase in debtors
(240,864)
(1,599,999)
(Decrease)/increase in creditors
(662,346)
1,556,635
Cash generated from operations
3,033,115
1,499,956
23
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
858,756
(270,911)
587,845
Borrowings excluding overdrafts
(800,000)
300,000
(500,000)
Obligations under finance leases
(215,337)
169,593
(45,744)
(156,581)
198,682
42,101
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