Company registration number 08147401 (England and Wales)
FIXMART LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FIXMART LIMITED
COMPANY INFORMATION
Directors
Mr C Ghinn
Mrs V C Ghinn
Mr J Ghinn
Mr S Boyt
Mr P Fleck
Company number
08147401
Registered office
Unit S
Springhead
Enterprise Park, Springhead Road
Northfleet
Kent
United Kingdom
DA11 8HJ
Auditor
Benee Consulting Limited
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
Accountants
Oldfield Advisory LLP
Santis House
Curriers Close
Coventry
CV4 8AW
FIXMART LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
FIXMART 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 directors have undertaken a fair review of the business and some of the details are shown in the paragraphs below.

 

Principal activities

The company operates as a leading distributor of fixings, fasteners, tools and site consumables to building services trades and supplying fast delivery to construction sites across the South-East of the UK.

 

Business environment

The building services and construction sector is a large sector in the UK, and relies on a secure and efficient supply chain.  The company is constantly refining its performance in order to meet this challenge, and focus on achieving its targets.

 

Strategy

As a privately-owned company, it has strong values and holds itself to the highest standards. The business was established in 1977, and the success of the company to date is rooted in excellent service and stock availability of quality products. The company strives to meet the demands of its customers, at the same time as targeting high efficiency and sustainability goals.

Principal risks and uncertainties

Risk acceptance and risk management is continually monitored by means of a framework of policies, procedures and internal controls.  All such policies and procedures are overseen by the board of directors and senior management and are constantly under review to comply with statutory regulations and best practice.

 

The principal risks to the business are the general economic situation in the United Kingdom, with inflationary pressures and low confidence. The company continues to offer credit terms to all established customers and the amount of credit offered is continually monitored in order to lessen the effect of any potential defaults, as well as a level of credit insurance in place. 

Development and performance

The Directors considered that 2023 was an encouraging consolidation year, with slightly improved results compared to 2022, despite being largely held back by the economic pressures in the market. The business demonstrates the continued underlying financial and strategic core strength of the company's value, providing a basis for future growth.

Key performance indicators

The directors were pleased to report an operating profit of 21.9% for the period (2022: 23.4%), continuing a track record of strong performance.

 

At the period end, the company had shareholders funds of £8,358,110 (2022: £5,660,297). The directors believe the company’s position to be satisfactory, especially as the company’s current assets exceed its current liabilities by £7,773,149 (2022: £5,149,196), having a strong company current ratio of 4.6 : 1 at the end of the period.

 

Future developments

The company continues to perform well and is constantly striving to serve customers with increasing excellent service to enhance performance and customer satisfaction.

 

The directors believe that there is a very strong foundation and have put together a strategic growth plan for the next three years. They will continue to develop the infrastructure to deliver this on plan.

 

 

 

 

 

FIXMART LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr C Ghinn
Director
19 August 2024
FIXMART 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 12.

Ordinary dividends were declared amounting to £1,413,914. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C Ghinn
Mrs V C Ghinn
Mr J Ghinn
Mr S Boyt
Mr P Fleck
Future developments

Details of future developments are given in the Strategic Report.

Auditor

Benee Consulting Limited were appointed as auditor to the company and in accordance with section 485 of Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

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 C Ghinn
Director
19 August 2024
FIXMART 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.

FIXMART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIXMART LIMITED
- 5 -
Opinion

We have audited the financial statements of Fixmart Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

 

 

 

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.

 

FIXMART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIXMART LIMITED (CONTINUED)
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of our 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 and 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 set out on page 4, 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.

 

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.

 

FIXMART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIXMART LIMITED (CONTINUED)
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud;

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.


In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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. This 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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

 

FIXMART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIXMART LIMITED (CONTINUED)
- 8 -

 

Sarah Flint BSc FCA
Senior Statutory Auditor
For and on behalf of Benee Consulting Limited
19 August 2024
Accountants
Statutory Auditor
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
FIXMART LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
17,886,477
17,727,609
Cost of sales
(11,686,390)
(11,675,820)
Gross profit
6,200,087
6,051,789
Administrative expenses
(2,336,739)
(1,903,620)
Other operating income
53,763
4,066
Operating profit
4
3,917,111
4,152,235
Interest receivable and similar income
8
14,189
358
Interest payable and similar expenses
9
(7,364)
(7,045)
Amounts written off investments
10
-
(53,935)
Profit before taxation
3,923,936
4,091,613
Tax on profit
11
(945,917)
(797,831)
Profit for the financial year
2,978,019
3,293,782

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

FIXMART LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
2,978,019
3,293,782
Other comprehensive income
-
-
Total comprehensive income for the year
2,978,019
3,293,782
FIXMART LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
68,409
47,934
Tangible assets
14
662,012
599,178
730,421
647,112
Current assets
Stocks
16
1,686,872
1,794,386
Debtors
17
5,588,033
4,920,253
Cash at bank and in hand
2,650,053
2,130,881
9,924,958
8,845,520
Creditors: amounts falling due within one year
18
(2,151,809)
(3,696,324)
Net current assets
7,773,149
5,149,196
Total assets less current liabilities
8,503,570
5,796,308
Creditors: amounts falling due after more than one year
19
(44,693)
(44,739)
Provisions for liabilities
Deferred tax liability
21
100,767
91,272
(100,767)
(91,272)
Net assets
8,358,110
5,660,297
Capital and reserves
Called up share capital
22
8
8
Other reserves
23
1,133,708
-
0
Profit and loss reserves
23
7,224,394
5,660,289
Total equity
8,358,110
5,660,297

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 19 August 2024 and are signed on its behalf by:
Mr C Ghinn
Director
Company registration number 08147401 (England and Wales)
FIXMART LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
8
-
4,462,326
4,462,334
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
3,293,782
3,293,782
Dividends
12
-
-
(2,095,819)
(2,095,819)
Balance at 31 December 2022
8
-
5,660,289
5,660,297
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
2,978,019
2,978,019
Dividends
12
-
-
(1,413,914)
(1,413,914)
Transfers
-
1,841,705
-
0
1,841,705
Distribution
-
(707,997)
-
(707,997)
Balance at 31 December 2023
8
1,133,708
7,224,394
8,358,110
FIXMART LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,610,058
3,609,264
Interest paid
(7,364)
(7,045)
Income taxes paid
(934,398)
(665,449)
Net cash inflow from operating activities
3,668,296
2,936,770
Investing activities
Purchase of intangible assets
(46,000)
-
0
Purchase of tangible fixed assets
(183,996)
(216,191)
Proceeds from disposal of tangible fixed assets
11,751
15,834
Proceeds from disposal of investments
-
0
(53,935)
Repayment of loans
(819,315)
(291,191)
Interest received
14,189
358
Net cash used in investing activities
(1,023,371)
(545,125)
Financing activities
Repayment of borrowings
(1,952,631)
-
0
Repayment of bank loans
-
0
(174,380)
Payment of finance leases obligations
(74,413)
80,603
Dividends paid
(98,709)
(2,095,819)
Net cash used in financing activities
(2,125,753)
(2,189,596)
Net increase in cash and cash equivalents
519,172
202,049
Cash and cash equivalents at beginning of year
2,130,881
1,928,832
Cash and cash equivalents at end of year
2,650,053
2,130,881
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Fixmart Limited is a private company limited by shares incorporated in England and Wales. The registered office address can be found on the Company Information page.

 

The company operates as a leading distributor of fixings, fasteners, tools and site consumables to building services trades and supplying fast delivery to construction sites across the South-East of the UK.

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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
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 - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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:

Integral plant
10% on reducing balance
Property improvements
20% straight line
Fixtures and fittings
25% on reducing balance
Computers
33% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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
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.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
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.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
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.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
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
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.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
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
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of fixings and tools
17,886,477
17,727,609
2023
2022
£
£
Other revenue
Interest income
14,189
358

All sales were made in the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
205
(1,854)
Research and development costs
-
245
Depreciation of owned tangible fixed assets
167,485
142,494
Loss/(profit) on disposal of tangible fixed assets
7,738
(3,279)
Amortisation of intangible assets
25,525
24,000
Operating lease charges
227,479
154,997
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,000
15,000
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
6
Employees

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

2023
2022
Number
Number
Operations
17
16
Administrative
29
23
Directors
5
6
Total
51
45

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,520,555
1,253,956
Social security costs
136,750
111,619
1,657,305
1,365,575
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
88,868
49,648
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
14,189
358
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
14,189
358
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
15
2,943
Other finance costs:
Interest on finance leases and hire purchase contracts
7,349
4,102
7,364
7,045
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
-
(53,935)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
937,139
797,398
Adjustments in respect of prior periods
(717)
-
0
Total current tax
936,422
797,398
Deferred tax
Origination and reversal of timing differences
9,495
433
Total tax charge
945,917
797,831

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
3,923,936
4,091,613
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
922,125
777,406
Tax effect of expenses that are not deductible in determining taxable profit
15,999
6,665
Effect of change in corporation tax rate
105
-
0
Permanent capital allowances in excess of depreciation
1,690
9,200
Amortisation on assets not qualifying for tax allowances
5,998
4,560
Taxation charge for the year
945,917
797,831
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 22 -

Factors that may affect future tax charges

 

From 1 April 2023, the main rate of ccorporation tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. This change will place a greater tax burden on the company in future accounting periods, in comparison with previous years.

12
Dividends
2023
2022
£
£
Interim declared
1,413,914
2,095,819
13
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023
240,000
Additions
46,000
At 31 December 2023
286,000
Amortisation and impairment
At 1 January 2023
192,066
Amortisation charged for the year
25,525
At 31 December 2023
217,591
Carrying amount
At 31 December 2023
68,409
At 31 December 2022
47,934
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
14
Tangible fixed assets
Integral plant
Property improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
101,666
20,825
586,636
119,950
395,999
1,225,076
Additions
2,507
-
0
78,883
12,636
155,782
249,808
Disposals
-
0
(20,825)
(16,120)
-
0
(41,911)
(78,856)
At 31 December 2023
104,173
-
0
649,399
132,586
509,870
1,396,028
Depreciation and impairment
At 1 January 2023
48,697
13,955
347,529
91,216
124,501
625,898
Depreciation charged in the year
5,328
1,525
61,153
11,240
88,239
167,485
Eliminated in respect of disposals
-
0
(15,480)
(16,120)
-
0
(27,767)
(59,367)
At 31 December 2023
54,025
-
0
392,562
102,456
184,973
734,016
Carrying amount
At 31 December 2023
50,148
-
0
256,837
30,130
324,897
662,012
At 31 December 2022
52,969
6,870
239,107
28,734
271,498
599,178
15
Financial instruments

The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

16
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,686,872
1,794,386

The differences between purchase and replacement cost are not material.

17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,588,722
3,651,596
Amounts owed by group undertakings
1,540,880
414,372
Other debtors
316,885
739,629
Prepayments and accrued income
141,546
114,656
5,588,033
4,920,253
FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Debtors
(Continued)
- 24 -

Included in debtors due within one year are amounts owed to group undertakings of £1,540,880. The loans unsecured and have been made on an interest free basis and are repayable on demand. Further details are provided in the related party note (note 26).

18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
20
62,285
70,840
Trade creditors
855,647
681,123
Amounts owed to group undertakings
-
0
1,859,811
Corporation tax
411,751
409,727
Other taxation and social security
313,507
318,410
Other creditors
25,153
46,389
Accruals and deferred income
483,466
310,024
2,151,809
3,696,324

 

19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
20
44,693
44,739
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
62,285
70,840
In two to five years
44,693
44,739
106,978
115,579

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
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
100,767
91,272
2023
Movements in the year:
£
Liability at 1 January 2023
91,272
Charge to profit or loss
9,495
Liability at 31 December 2023
100,767

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
8
8
8
8
23
Reserves
Capital contribution reserve

The company's loan creditor balance with its fellow subsidiary Fixmart Holdings Limited, of £1,841,705, was written off during the year and has been accounted for as a capital contribution.

 

The company's loan debtor balance with its fellow subsidiary Fixmart Group Holdings Limited, of, £707,997, was written off during the year and has been accounted for as a distribution.

 

24
Ultimate controlling party

Fixmart Group UK Limited is the ultimate and immediate parent company, a Company incorporated in England and Wales, which owns the whole issued share capital of the Company. Fixmart Limited results will be included in the consolidated accounts of Russland Investments Limited.

The ultimate controlling party is the board of Directors.

25
Directors' transactions

Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
26
Related party transactions

Included in debtors falling due within one year, are loans to directors totalling £131,503 (2022 - £600,694). No interest is being charged on these loans and they are repayable on demand.

 

Included within debtors falling due within one year is an interest free loan to The Ghinn Family Discretionary Trust of £183,252 (2022 - £136,341). No interest is being charged on the loan and it is repayable on demand.

 

Included within debtors falling due within one year is an interest free loan to Fixmart Group Holdings Ltd of £0 (2022 - £19,372). No interest was charged on the loan, and it was repaid in full prior to the balance sheet date.

 

Included within debtors falling due within one year is an interest free loan to Fixmart Group UK Ltd of £603,714 (2022 - £395,000), No interest is being charged on the loan and it is repayable on demand.

 

Included within debtors falling due within one year is an interest free loan to Russland Investments Ltd of £903,398 (2022 - £0), No interest is being charged on the loan and it is repayable on demand.

 

Included within debtors falling due within one year is an interest free loan to KLIC Partners Ltd of £33,768 (2022 - £0), KLIC Partners is a shareholder in Fixmart Group UK Limited. No interest is being charged on the loan and it is repayable on demand.

 

During the year, the company repaid a loan of £305,000 which had been made by a close family member of one of the directors.

 

Included within creditors falling due within one year is an interest free loan from Fixmart Holdings Ltd of £0 (2022 - £850,000), The loan was secured by a floating charge over the company's assets, and was repaid in full prior to the balance sheet date.

 

Included within creditors falling due within one year is a loan from Fixmart Group UK Ltd of £0 (2022 - £1,009,811). No interest is being charged on this loan.

 

Included in creditors falling due within one year, are loans from directors totalling £7,480 (2022 - £33,891). No interest is being charged on these loans and they are repayable on demand.

 

Included within wages is an annual salary of £15,000 paid to one of the directors' daughters.

 

 

 

 

FIXMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
27
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,978,019
3,293,782
Adjustments for:
Taxation charged
945,917
797,831
Finance costs
7,364
7,045
Investment income
(14,189)
(358)
Loss/(gain) on disposal of tangible fixed assets
7,738
(3,279)
Amortisation and impairment of intangible assets
25,525
24,000
Depreciation and impairment of tangible fixed assets
167,485
142,494
Other gains and losses
-
53,935
Movements in working capital:
Decrease/(increase) in stocks
107,514
(196,531)
Decrease/(increase) in debtors
36,447
(1,100,564)
Increase in creditors
348,238
590,909
Cash generated from operations
4,610,058
3,609,264
28
Analysis of changes in net funds
1 January 2023
Cash flows
Acquisitions and disposals
New finance leases
31 December 2023
£
£
£
£
£
Cash at bank and in hand
2,130,881
519,172
-
-
2,650,053
Obligations under finance leases
(115,579)
8,601
65,812
(65,812)
(106,978)
2,015,302
527,773
65,812
(65,812)
2,543,075
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200No description of principal activityMr C GhinnMrs V C GhinnMr J GhinnMr S BoytMr P Fleckfalsefalse081474012023-01-012023-12-3108147401bus:Director12023-01-012023-12-3108147401bus:Director22023-01-012023-12-3108147401bus:Director32023-01-012023-12-3108147401bus:Director42023-01-012023-12-3108147401bus:Director52023-01-012023-12-3108147401bus:RegisteredOffice2023-01-012023-12-31081474012023-12-31081474012022-01-012022-12-3108147401core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3108147401core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3108147401core:Goodwill2023-12-3108147401core:Goodwill2022-12-31081474012022-12-3108147401core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3108147401core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3108147401core:FurnitureFittings2023-12-3108147401core:ComputerEquipment2023-12-3108147401core:MotorVehicles2023-12-3108147401core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3108147401core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108147401core:FurnitureFittings2022-12-3108147401core:ComputerEquipment2022-12-3108147401core:MotorVehicles2022-12-3108147401core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108147401core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108147401core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108147401core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108147401core:CurrentFinancialInstruments2023-12-3108147401core:CurrentFinancialInstruments2022-12-3108147401core:ShareCapital2023-12-3108147401core:ShareCapital2022-12-3108147401core:OtherMiscellaneousReserve2023-12-3108147401core:OtherMiscellaneousReserve2022-12-3108147401core:RetainedEarningsAccumulatedLosses2023-12-3108147401core:RetainedEarningsAccumulatedLosses2022-12-3108147401core:ShareCapital2021-12-3108147401core:RetainedEarningsAccumulatedLosses2021-12-310814740112023-01-012023-12-310814740112022-01-012022-12-31081474012022-12-31081474012021-12-3108147401core:Goodwill2023-01-012023-12-3108147401core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3108147401core:FurnitureFittings2023-01-012023-12-3108147401core:ComputerEquipment2023-01-012023-12-3108147401core:MotorVehicles2023-01-012023-12-3108147401core:UKTax2023-01-012023-12-3108147401core:UKTax2022-01-012022-12-3108147401core:Goodwill2022-12-3108147401core:Goodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108147401core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3108147401core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108147401core:FurnitureFittings2022-12-3108147401core:ComputerEquipment2022-12-3108147401core:MotorVehicles2022-12-3108147401core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3108147401core:Non-currentFinancialInstruments2023-12-3108147401core:Non-currentFinancialInstruments2022-12-3108147401core:WithinOneYear2023-12-3108147401core:WithinOneYear2022-12-3108147401core:BetweenTwoFiveYears2023-12-3108147401core:BetweenTwoFiveYears2022-12-3108147401bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108147401bus:FRS1022023-01-012023-12-3108147401bus:Audited2023-01-012023-12-3108147401bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP