Company registration number 01660947 (England and Wales)
F.W.B. PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
F.W.B. PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mrs P A Johnson
Mr M K Johnson
Mr A J Key
Mr J A Key
Company number
01660947
Registered office
Whieldon Road
Stoke on Trent
Staffordshire
ST4 4JE
Auditor
Geens Limited
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
F.W.B. PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
F.W.B. PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The principal activity of the company during the year was the supply and distribution of a comprehensive range of industrial consumables for maintenance, repair and operations across a wide range of industries from three sites in the United Kingdom. The company's customers operate within the automotive, construction, engineering, marine, food and beverage, petrochemical, oil, gas and utilities sectors.

 

There has been a consistent improvement in margin year on year through intelligent relationships with the supply chain and strict cost control throughout all cost centres. The EBITDA for the business is strong and provides healthy net worth.

Principal risks and uncertainties

During the year the business has experienced increased competition from national competitors, online sales and price pressure caused by the fall in the value of the pound following the inflation rise. Despite these pressure the business has performed very well.

 

Sales growth in the current marketplace is extremely challenging to forecast, given the volatility of the market. Market sectors are now very diverse and the logistics of getting product to a customer same/next day is ever more challenging. Customers expect to have what is ordered available and for immediate despatch, all companies have to adapt accordingly to remain strong otherwise there are many other suppliers ready to compete and provide the service.

A focus during the year has been the constant need to evaluate the business cost centres to ensure the costs incurred are relevant and required. As businesses have to continually adapt to changes in markets and customers behaviours so does the underlying infrastructure of the company.

Development and performance

FWB Products provides excellent service levels to its customers ensuring repeat business, by investing in the latest stock control platform the availability of product is protected and, as a result, by implementing a sales analytical system it allows in depth knowledge of customer behaviours and needs.

Investment in software for both sales analytics and stock control ensures robust systems in key areas of the business which also enhances the strength of the business results.

 

There are strategic changes made throughout the year involving, staff, structure, pricing, sales and market channels. FWB prides itself on being reactive to situations to keep control of the bottom line results, however there is always a consideration for what is needed in the short, medium and longer term to develop and maintain its turnover growth, margin strength and strong EBITDA.

On behalf of the board

Mr A J Key
Director
15 August 2024
F.W.B. PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the Company during the year was the supply and distribution of a comprehensive range of industrial consumables for the maintenance, repair and operations across a wide range of industries.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £310,000. 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:

Mrs P A Johnson
Mr M K Johnson
Mr A J Key
Mr J A Key
Auditor

Geens Limited were appointed as auditors in February 2024. In accordance with section 485 of the Companies Act 2006 they will be proposed for re-appointment.

Statement of directors' responsibilities

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.

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.

F.W.B. PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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
Mr A J Key
Mr J A Key
Director
Director
15 August 2024
F.W.B. PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.W.B. PRODUCTS LIMITED
- 4 -
Opinion

We have audited the financial statements of F.W.B. Products Limited (the 'company') for the year ended 31 December 2023 which comprise 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:

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:

F.W.B. PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.W.B. PRODUCTS LIMITED (CONTINUED)
- 5 -
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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

F.W.B. PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF F.W.B. PRODUCTS LIMITED (CONTINUED)
- 6 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

Karen Staley FCA BSc (Hons)
Senior Statutory Auditor
For and on behalf of Geens Limited
15 August 2024
Chartered Accountants
Statutory Auditor
Graphic House
124 City Road
Stoke on Trent
ST4 2PH
F.W.B. PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,577,792
10,960,143
Cost of sales
(6,441,897)
(6,952,602)
Gross profit
4,135,895
4,007,541
Distribution costs
(1,235,864)
(1,172,525)
Administrative expenses
(2,370,197)
(2,310,119)
Operating profit
4
529,834
524,897
Interest receivable and similar income
2,995
207
Interest payable and similar expenses
7
(13,044)
(26,004)
Profit before taxation
519,785
499,100
Tax on profit
8
(152,653)
(99,900)
Profit for the financial year
367,132
399,200

The profit and loss account has been prepared on the basis that all operations are continuing operations.

F.W.B. PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
213,552
327,171
Investments
11
1,450
1,450
215,002
328,621
Current assets
Stocks
13
1,627,093
1,852,908
Debtors
14
2,592,453
2,700,008
Cash at bank and in hand
618,404
886,582
4,837,950
5,439,498
Creditors: amounts falling due within one year
15
(1,574,099)
(2,165,069)
Net current assets
3,263,851
3,274,429
Total assets less current liabilities
3,478,853
3,603,050
Creditors: amounts falling due after more than one year
16
-
0
(157,894)
Provisions for liabilities
Deferred tax liability
19
45,537
68,972
(45,537)
(68,972)
Net assets
3,433,316
3,376,184
Capital and reserves
Called up share capital
21
584,444
584,444
Share premium account
26,554
26,554
Profit and loss reserves
2,822,318
2,765,186
Total equity
3,433,316
3,376,184

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 15 August 2024 and are signed on its behalf by:
Mr A J Key
Mr J A Key
Director
Director
Company registration number 01660947 (England and Wales)
F.W.B. PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
584,444
26,554
2,532,483
3,143,481
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
399,200
399,200
Dividends
9
-
-
(166,497)
(166,497)
Balance at 31 December 2022
584,444
26,554
2,765,186
3,376,184
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
367,132
367,132
Dividends
9
-
-
(310,000)
(310,000)
Balance at 31 December 2023
584,444
26,554
2,822,318
3,433,316
F.W.B. PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
516,544
659,936
Interest paid
(13,044)
(26,004)
Income taxes paid
(119,230)
(99,855)
Net cash inflow from operating activities
384,270
534,077
Investing activities
Purchase of tangible fixed assets
(5,616)
(75,457)
Proceeds from disposal of tangible fixed assets
14,000
13,842
Interest received
2,995
207
Net cash generated from/(used in) investing activities
11,379
(61,408)
Financing activities
Repayment of bank loans
(337,686)
(603,756)
Payment of finance leases obligations
(16,141)
(12,760)
Dividends paid
(310,000)
(166,497)
Net cash used in financing activities
(663,827)
(783,013)
Net decrease in cash and cash equivalents
(268,178)
(310,344)
Cash and cash equivalents at beginning of year
886,582
1,196,926
Cash and cash equivalents at end of year
618,404
886,582
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

FWB Products Limited is a private company limited by share capital, incorporated in England and Wales, registration number 01660947. The address of the registered office is Whieldon Road, Stoke-on-Trent, Staffordshire, ST4 4JE. The principal places of business are Whieldon Road, Stoke-on-Trent, Staffordshire, ST4 4JE, Five Crosses Industrial Estate, Minera, Coedpoeth, LL11 3RD and Threemilestone Industrial Estate, Threemilestone, Truro TR4 9LD.

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 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. Turnover principally consists of wholesale trade of industrial engineering goods which is recognised at the point goods are delivered and legal title is passed.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:

Plant and equipment
20% reducing balance or straight line
Fixtures and fittings
20% reducing balance or straight line
Motor vehicles
25% 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
Fixed asset investments

Interests in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.7
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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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

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.

1.10
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.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
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 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date. 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.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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 leases asset are consumed.

1.15

Related party Transactions

The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with its parent company and other wholly owned subsidiaries within the group.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and note 1.4 for the useful economic lives for each class of assets.

Stock provisions

Stock is valued at the lower of cost or net realisable value and therefore it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of stock lines particularly where the units have been in stock for some time.

Impairment of trade debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 14 for the net carrying amount of the debtors and associated impairment provision.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,577,792
10,960,143
2023
2022
£
£
Other revenue
Interest income
2,995
207
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
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
12,995
32,763
Depreciation of owned tangible fixed assets
119,235
67,771
Depreciation of tangible fixed assets held under finance leases
-
6,320
(Profit)/loss on disposal of tangible fixed assets
(16,484)
567
Operating lease charges
250,000
250,000
5
Employees

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

2023
2022
Number
Number
Office and management
37
40
Warehouse and distribution
34
38
Total
71
78
2023
2022
£
£
Wages and salaries
1,767,086
1,939,896
Social security costs
158,651
200,975
Pension costs
213,046
126,916
2,138,783
2,267,787
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
259,886
521,936
Company pension contributions to defined contribution schemes
127,408
99,155
387,294
621,091

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
106,437
233,525
Company pension contributions to defined contribution schemes
3,129
2,980
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
11,719
24,316
Other finance costs:
Interest on finance leases and hire purchase contracts
1,137
1,688
Other interest
188
-
0
13,044
26,004
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
158,138
93,711
Adjustments in respect of prior periods
17,950
7,569
Total current tax
176,088
101,280
Deferred tax
Origination and reversal of timing differences
(23,435)
(1,380)
Total tax charge
152,653
99,900
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 18 -

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
519,785
499,100
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
129,946
94,829
Tax effect of expenses that are not deductible in determining taxable profit
14,605
748
Tax effect of income not taxable in determining taxable profit
-
0
(39)
Permanent capital allowances in excess of depreciation
313
(1,782)
Under/(over) provided in prior years
17,950
7,569
Deferred tax adjustments in respect of prior years
(214)
(1,380)
Over provided in the year
-
0
(45)
Adjustment for profits charged at lower rate of tax (19%)
(9,947)
-
0
Taxation charge for the year
152,653
99,900
9
Dividends
2023
2022
£
£
Final paid
310,000
166,497
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
140,389
571,266
31,025
742,680
Additions
-
0
5,616
-
0
5,616
Disposals
(25,410)
(247,027)
-
0
(272,437)
At 31 December 2023
114,979
329,855
31,025
475,859
Depreciation and impairment
At 1 January 2023
83,327
319,377
12,805
415,509
Depreciation charged in the year
25,793
80,837
12,605
119,235
Eliminated in respect of disposals
(25,410)
(247,027)
-
0
(272,437)
At 31 December 2023
83,710
153,187
25,410
262,307
Carrying amount
At 31 December 2023
31,269
176,668
5,615
213,552
At 31 December 2022
57,062
251,889
18,220
327,171
11
Fixed asset investments
2023
2022
£
£
Unlisted investments
1,450
1,450
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
FWB Cymru Limited
Enland and Wales
Dormant
Ordinary
100.00
FWB Southwest Limited
England and Wales
Dormant
Ordinary
100.00
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,627,093
1,852,908
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,387,823
1,575,163
Amounts owed by group undertakings
117,520
90,462
Other debtors
970,076
898,914
Prepayments and accrued income
117,034
135,469
2,592,453
2,700,008
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
-
0
184,273
Obligations under finance leases
18
-
0
11,660
Trade creditors
964,904
1,131,903
Amounts owed to group undertakings
1,100
9,333
Corporation tax
158,137
101,279
Other taxation and social security
151,594
228,735
Other creditors
-
0
329
Accruals and deferred income
298,364
497,557
1,574,099
2,165,069

Obligations under finance lease are secured on the assets to which they relate.

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
-
0
153,413
Obligations under finance leases
18
-
0
4,481
-
0
157,894
17
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
337,686
Payable within one year
-
0
184,273
Payable after one year
-
0
153,413

Bank loans have been fully repaid in the year.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
11,660
In two to five years
-
0
4,481
-
0
16,141

Finance lease obligations have been fully settled in the year or have been transferred out of the company.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
45,537
68,972
2023
Movements in the year:
£
Liability at 1 January 2023
68,972
Credit to profit or loss
(23,435)
Liability at 31 December 2023
45,537
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,046
126,916

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.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
584,444
584,444
584,444
584,444
F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
22
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
279,871
356,885
Between two and five years
384,492
211,608
664,363
568,493
23
Related party transactions
Transactions with related parties

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

Sales
Sales
2023
2022
£
£
Entities under common control
16,412
-

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities under common control
884,480
891,345
24
Ultimate controlling party

The parent company and ultimate controlling party is FWB Holdings Limited by virtue of its controlling interest. Consolidated group financial statements are prepared by FWB Holdings Limited and copies can be obtained from the registered office at Whieldon Road, Stoke-on-Trent, ST4 4JE.

F.W.B. PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
25
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
367,132
399,200
Adjustments for:
Taxation charged
152,653
99,900
Finance costs
13,044
26,004
Investment income
(2,995)
(207)
(Gain)/loss on disposal of tangible fixed assets
(16,484)
567
Depreciation and impairment of tangible fixed assets
119,235
74,091
Movements in working capital:
Decrease/(increase) in stocks
225,815
(17,233)
Decrease in debtors
107,555
805,270
Decrease in creditors
(449,411)
(727,656)
Cash generated from operations
516,544
659,936
26
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
886,582
(268,178)
618,404
Borrowings excluding overdrafts
(337,686)
337,686
-
Obligations under finance leases
(16,141)
16,141
-
532,755
85,649
618,404
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