REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FSG PROPERTY SERVICES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FSG PROPERTY SERVICES LIMITED |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
FSG PROPERTY SERVICES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The year under review showed a decrease in turnover by 17.34%. The main contributing factor for the decrease was the continuing slow productivity of clients following the pandemic. The impact of the cap on social housing rent forced our clients to review the volume and value of work released to us during 2023. We have experienced in early 2024 an upturn in the work being released to us by our clients including signing extended long term contracts which were previously expected to be signed and started during 2023. In 2023, we maintained a full compliment of operating staff in preparation of the new contracts commencing. |
Despite the decrease in turnover in 2023, our gross margin has increased slightly (+2.1%). We have managed to secure uplift agreements with most of our clients during the latter part of 2023 and the beginning of 2024 which will have a major impact on the company's future financial performance. Overheads remained constant throughout the year and are continually being monitored by the board. |
A decision was by made by the board in November 2023 to consolidate the interests of associated companies by forming a new holding company, FSG Services Group Limited. Following approval from HMRC, the holding company acquired 100% of the shareholding of FSG Property Services Limited on 8th January 2024. |
The benefits of combining the interests of the associated companies are to give FSG Property Services Limited greater purchasing power of materials and services, centralization of accounting processes and control, combined banking and finance arrangements, flexibility of operating and administrative staff, reduction in overheads such as insurance, communications, and marketing |
PRINCIPAL RISKS AND UNCERTAINTIES |
Managing the business is subject to a number of risks. Below the directors have identified the principal risks associated with the business. The directors monitor constantly the risks and uncertainties facing the company with particular to the exposure on liquidity, interest rates and credit risks. With suitable policies in place, all material risks and uncertainties have been identified and are constantly being monitored by the board.The company uses various financial instruments which include cash and items such as trade debtors and creditors which arise directly from operations. The financial instruments allow the company to raise the appropriate finance to support the company's operations. However, the existence of these financial instruments could expose the company to a number of financial risks which are set out below. |
LIQUIDITY RISK |
The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and securely. The board consider the monitoring and control of cash as crucial, taking advantage of the use of the invoice financing facility when appropriate. |
INTEREST RATE RISK |
The company finances its operations through a mixture of retained profits, bank loans and invoice financing. The company's exposure to interest rate fluctuation on its borrowings is managed by the use of both fixed and floating facilities and actively managing its working capital requirements. |
CREDIT RISK |
Potential customers are credit checked before entering into a business arrangement with the company and are continually monitored. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
KEY PERFORMANCE INDICATORS |
The company uses a number of key performance indicators to measure and monitor the company's on-going performance. The board consider the gross margin monitoring on all contracts being the most significant. |
Gross margin is the difference between the sales value of projects and the direct costs incurred in delivering the projects. The gross margin for the company has been consistent in recent years. Projects are monitored closely to ensure efficiency and quality is achieved and maintained.The overall gross profit margin for the year under review is 18.17% (2021: 16.07%). |
EMPLOYEES |
Staffing levels have increased in line with workload stabilising following the slightly reduced numbers due to Covid-19 in the past. This may continue in the near future due to further new projects in the pipeline.The policy of the company is to employ the most suitably qualified persons regardless of age, religion, gender, sexual orientation or ethnic origin or any other grounds not related to a person's ability to work safely and effectively for the business. FSG Property Services Limited recognises the importance of ensuring that relevant business information is provided to the employees prior to the employee's commencement date. This is achieved through initial induction (Health Questionnaire, Health & Safety, Anti-Bribery Policy, Skills and Qualifications Assessment) and regular training as required per the Construction Industry Standards. |
FUTURE CONTRACTS / ORDER BOOK |
The company has maintained a good level of activity and currently has a good order book, with secured packages in excess of £25m and tender bids near £5m for potential projects starting in the 4th quarter (Oct- Dec 2024). |
ON BEHALF OF THE BOARD: |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of property maintenance. |
DIVIDENDS |
An interim dividend of £225,000 per share on the Ordinary £1 shares was paid on 31 December 2023. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Preference shares £0.01 shares. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
DIRECTORS |
Other changes in directors holding office are as follows: |
A Huckle was appointed a director of the company on 9 January 2024. |
G Young was appointed a director of the company on 9 January 2024 |
POLITICAL DONATIONS AND EXPENDITURE |
The company made charitable donations of £828 (2022: £600), during the year under review. |
GOING CONCERN |
The fact that there is a substantial balance outstanding from an associate, FSG Build Limited, which has material negative reserve indicates the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. However, the company has reported an operating profit for the year. Furthermore, the current trading and cash flow forecast indicates that the company will continue to report operating profit in the current and future years. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | 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. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FSG PROPERTY SERVICES LIMITED |
Opinion |
We have audited the financial statements of FSG Property Services Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 December 2023 and of its loss 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. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FSG PROPERTY SERVICES LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FSG PROPERTY SERVICES LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which the audit was considered capable of detecting irregularities including fraud |
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: |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company sector; |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment including IR35 rules, legislations applicable to building trade, and health and safety legislation; |
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
-performed analytical procedures to identify any unusual or unexpected transactions; |
-tested the appropriateness of journal entries; |
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions. |
To address the risk that revenue could be misstated due to fraud, we: |
-we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard; |
-performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions; |
-tested a sample of revenue transactions to supporting evidence; and tested, on a sample basis, revenue related balances in the balance sheet. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation; |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FSG PROPERTY SERVICES LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
19-20 Bourne Court |
Southend Road |
Woodford Green |
Essex |
IG8 8HD |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(268,733 | ) | 20,853 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
170,526 | 25,836 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Intercompany loans | (254,500 | ) | 36,362 |
Capital repayments in year (HP) | ( |
) | ( |
) |
Amount introduced by directors | 203,300 | 137,984 |
Amount withdrawn by directors | - | (143,571 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
462,083 |
Cash and cash equivalents at end of year | 2 | 112,826 | 271,743 |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 100,389 | 19,330 |
Finance income | (3,058 | ) | (4,983 | ) |
356,223 | 187,596 |
Decrease in stocks |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 112,826 | 271,743 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 271,743 | 462,083 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 271,743 | (158,917 | ) | 112,826 |
271,743 | ( |
) | 112,826 |
Debt |
Finance leases | (473,856 | ) | 48,423 | (425,433 | ) |
Debts falling due within 1 year | (144,532 | ) | (114,826 | ) | (259,358 | ) |
Debts falling due after 1 year | (358,489 | ) | 61,387 | (297,102 | ) |
(976,877 | ) | (5,016 | ) | (981,893 | ) |
Total | (705,134 | ) | (163,933 | ) | (869,067 | ) |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
FSG Property Services Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Critical accounting judgements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. |
The items in the accounts where these judgements and estimates have been made, include: |
- estimating the useful economic life of tangible fixed assets for the purpose of calculating the depreciation charge. |
- assessing the recoverability of outstanding debtors; and |
- estimating future income and expenditure flows for the purpose of assessing the group’s going concern. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Plant and machinery | - |
Office equipment | - |
Motor vehicles | - |
Fixtures & fittings | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors |
Short term debtors are measured at transaction price, less any impairment. |
Going concern |
The fact that there is a substantial balance outstanding form an associate, FSG Build Limited, which has material negative reserve indicates the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern. However, the company has reported an operating profit for the year. Furthermore, the current trading and cash flow forecast indicates that the company will continue to report operating profit in the current and future years. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Rounding |
All financial figures have been rounded off to the nearest pound. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Administration and management |
The number of employees earning more than £60,000 was 3 (2022: 3). |
4. | DIRECTORS' EMOLUMENTS |
The directors’ emoluments were as follows |
Salaries : £106,667 (2022: £264,940) |
Pensions: £0.00 (2022: £0.00) |
Benefits in Kind : £0.00 (2022: £0.00) |
Highest Paid Director |
The highest paid directors emoluments were as follows: |
Salaries : £26,667 (2022 :£149,019) |
Pensions £0.00 (2022: £0.00) |
Benefits in Kind : £0.00 (2022: £0.00) |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest | ( |
) |
Other interest |
HMRC interest |
Hire purchase |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Marginal relief | (942 | ) | - |
Excess profits taxed at 25% | (2,455 | ) | - |
Deferred tax | 129,608 | - |
Total tax charge | 167,699 | 18,534 |
From 1 April 2023, the corporation tax main rate for non-ring fenced profits has been increased to 25% applying to profits over £250,000. A small profits rate (SPR) has also been introduced for companies with profits of £50,000 or less so that they continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. |
8. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim | 225,000 | - |
9. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £45,511 (2022: £23,350). No contributions were payable to the fund at balance sheet date at either the current or previous year. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Short | Plant and | Office |
leasehold | machinery | equipment |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Motor | Fixtures |
vehicles | & fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Raw materials |
Work-in-progress |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by participating interests | 3,679,065 | 3,441,222 |
Other debtors |
Directors' current accounts | - | 143,571 |
Tax receivable |
Prepayments |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to participating interests | 6,311 | - |
Tax |
Social security and other taxes |
VAT | 465,074 | 342,441 |
Other creditors |
Directors' current accounts | 59,729 | - |
Deferred income |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Preference shares |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans 1-2 years |
Other loans 1-2 years | 118,998 |
Amounts falling due between two and five years: |
Bank loans 2-5 years |
Other loans 2-5 years |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
Hire purchase contracts | 425,433 | 473,856 |
Invoice discounting facility | (120,688 | ) | (9,989 | ) |
The invoice discounting facility is secured by way of fixed and floating charge on the company's assets. |
Other loans are secured by way of personal guarantees provided by one of the director. |
Hire purchase liability is secured by the underlying assets. |
18. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 129,608 | - |
Deferred |
tax |
£ |
Provided during year |
Balance at 31 December 2023 |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number |
Class |
Nominal Value |
31.12.20 |
31.12.19 |
478 | Ordinary Shares | £0.01 | 4.78 | 4.78 |
300 | Ordinary B Shares | £0.01 | 3.00 | 3.00 |
250 | Preference Shares | £0.01 | 2.50 | 2.50 |
10.28 | 10.28 |
The Preference Shares are classified as liabilities on the balance sheet. |
20. | CONTINGENT LIABILITIES |
There were no contigent liabilities at either the beginning or end of the financial year. |
21. | CAPITAL COMMITMENTS |
As at 31 December 2023, the company had no capital commitments which had been contracted for but not provided in the financial statements. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the balance sheet date, the company owed the directors £59,729 (2022 : £143,571 owed by the directors). Included in this amount are interest of £3,058 (2022:£2,788) charged at HMRC official rate of interest. The loan is unsecured and repayable on demand. |
Other loans are secured by way of personal guarantees provided by the director. |
FSG PROPERTY SERVICES LIMITED (REGISTERED NUMBER: 04521341) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
23. | RELATED PARTY DISCLOSURES |
For the purposes of these financial statements, a party is considered to be related to the company if: |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
(ii) the company and the party are subject to common control; |
(iii) the party is an associate of the company or a joint venture in which the company is a venturer; |
(iv) the party is a member of key management personnel of the company or the company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; |
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the company; or |
(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Included in debtors falling due within one year is a balance of £3,611,722 (2022:£3,433,187) owed by FSG Build Ltd, a company with common director. |
Included in debtors falling due within one year is a balance of £0.00 (2022:£7,535) owed by FSG Estates Ltd, a company with common director. |
The loans are unsecured, interest free and repayable on demand. |
24. | ULTIMATE CONTROLLING PARTY |
At the balance sheet date, the company was under the control of Mr and Mrs Lennox by virtue of their combined shareholdings (76.6%) throughout the year under review. |
On 9th January 2024, 100% of the shareholding of FSG Property Services Limited was acquired by FSG Services Group Limited. At the signing date FSG Group Services is the immediate and ultimate parent company of FSG Property Services Limited. |
25. | AUDITOR LIABILITY LIMITATION AGREEMENT |
The company has entered into a liability limitation agreement with Raffingers LLP, the statutory auditor, in respect of the statutory audit for the period ended 31 December 2023. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements and was approved by the directors on 12 June 2024. |