REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FG EUROPE UK LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FG EUROPE UK LIMITED |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Statement of Profit or Loss | 7 |
Statement of Profit or Loss and Other Comprehensive Income |
8 |
Statement of Financial Position | 9 |
Statement of Changes in Equity | 10 |
Statement of Cash Flows | 11 |
Notes to the Statement of Cash Flows | 12 |
Notes to the Financial Statements | 13 |
FG EUROPE UK LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 DECEMBER 2023 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
1 Kings Avenue |
London |
N21 3NA |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
STRATEGIC REPORT |
For The Year Ended 31 DECEMBER 2023 |
The director presents his strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The company was still establishing itself in the UK Market during the year. |
The company's turnover for the period under review was £17,215,055 (2022: £14,143,747) and the gross profit was £5,689,789 (2022: £3,859,180). |
The company made a profit before tax of £1,997,171 (2022: £1,011,242). |
The company has successfully established its presence in the market, as demonstrated by its consistent upward trend in sales over the past 5 years. The company's outlook for 2024 is to further increase sales, and the company has adequate financial and personnel resources available to continue to deliver a quality service to its customer. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main financial risks, to which the company has exposure, are foreign currency, interest, price and credit risks. |
Foreign currency risk - The Company's principal foreign currency exposure arise from loans to and from foreign related parties. The risk is mitigated by holding the cash flows in Euros. |
Credit risk - Investments of cash and surpluses, borrowings are made through banks and companies which must fulfil the criteria approved by the Board. |
Price risk - Expenditure made by the company is authorised by management prior to it being made so to ensure the best prices being paid. |
Interest rate risk - The Company's borrowings include bank overdrafts and bank loans which attract interest at the market rate. The Company has, historically taken the decision to accept the risk of increased interest charges resulting from changes in interest rates and does not intent to change this policy in the immediate future. |
Competition risk - Management closely monitors performances of its competitors. |
KEY PERFORMANCE INDICATORS |
The director considers the following as the Key Performance Indicators:- |
Description | 2023 | 2022 | Change |
£'000000 | £'000000 |
Revenue | 17,215 | 14,144 | +22% |
Gross profit | 5,690 | 3,859 | +47% |
Operating profit/(loss) | 1,997 | 1,011 | +98% |
Net assets | 4,255 | 2,632 | +53% |
Gross margin | 33% | 27% | +22% |
Current ratio | 1.41 | 1.32 | +7% |
Quick ratio | 0.58 | 0.62 | -6% |
Average number of employees | 23 | 27 | -15% |
ON BEHALF OF THE BOARD: |
5 July 2024 |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
REPORT OF THE DIRECTOR |
For The Year Ended 31 DECEMBER 2023 |
The director presents his 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 wholesale of airconditioning units, refrigeration units and all types of consumer appliances and televisions. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors who have held office during the period from 1 January 2023 to the date of this report are as follows: |
DONATIONS AND EXPENDITURE |
During the year, the company made charitable donations of £3,110 (2022: £420). |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the director must not approve the financial statements unless he is 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 director is 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. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
AUDITORS |
The auditors, AGK Partners, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FG EUROPE UK LIMITED |
Opinion |
We have audited the financial statements of FG Europe UK Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Profit or Loss, the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the UK. |
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 profit for the year then ended; |
- | have been properly prepared in accordance with IFRSs as adopted by the UK; 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FG EUROPE UK LIMITED |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
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 our procedures are capable of detecting irregularities, including fraud is detailed below: |
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 recognize 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 industry; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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 relationships; |
- tested journal entries to identify unusual transactions; |
- 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. |
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; |
- reading the minutes of meetings of those charged with governance; |
- 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FG EUROPE UK LIMITED |
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 |
Chartered Accountants & Statutory Auditors |
1 Kings Avenue |
London |
N21 3NA |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
STATEMENT OF PROFIT OR LOSS |
For The Year Ended 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
CONTINUING OPERATIONS |
Revenue |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Other operating income |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT |
PROFIT BEFORE INCOME TAX | 4 |
Income tax | 5 | ( |
) | ( |
) |
PROFIT FOR THE YEAR |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
For The Year Ended 31 DECEMBER 2023 |
2023 | 2022 |
£ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Owned |
Intangible assets | 6 |
Property, plant and equipment | 7 |
Right-of-use |
Trade and other receivables | 9 |
Deferred tax | 15 |
CURRENT ASSETS |
Inventories | 8 |
Trade and other receivables | 9 |
Cash and cash equivalents | 10 |
TOTAL ASSETS |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 11 |
Retained earnings | 12 |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Trade and other payables | 13 |
CURRENT LIABILITIES |
Trade and other payables | 13 |
Tax payable |
TOTAL LIABILITIES |
TOTAL EQUITY AND LIABILITIES |
The financial statements were approved by the director and authorised for issue on |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
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 |
Total comprehensive income | - |
Balance at 31 December 2023 |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
STATEMENT OF CASH FLOWS |
For The Year Ended 31 DECEMBER 2023 |
2023 | 2022 |
£ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
761,798 |
Cash and cash equivalents at end of year | 2 |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE STATEMENT OF CASH FLOWS |
For The Year Ended 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before income tax |
Depreciation charges |
Increase in deferred tax asset | (80,218 | ) | - |
1,929,126 | 1,024,849 |
Increase in inventories | ( |
) | ( |
) |
Increase in trade and other receivables | ( |
) | ( |
) |
Increase in trade and other payables |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 662,805 | 1,122,275 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,122,275 | 761,798 |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
FG Europe UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparation |
The financial statements of the Company for the year ended 31 December 2023 (the "financial statements") have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as endorsed by the European Union (the "EU"). |
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current period. The financial statements have been prepared under the historical cost convention, except for derivative contracts, which have been measured at fair value. |
The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Use of available information and application of judgement are inherent in the formation of estimates in the following areas: valuation of assets and receivables, useful lives of depreciable tangible and intangible assets, estimation of retirement benefits obligation. |
Actual results in the future may differ from those reported. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in this note of the financial statements. |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant accounting policies and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, the accompanying disclosures, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of the assets or liabilities affected in future periods. |
The Company's management believes that judgements, estimates and assumptions used in the preparation of the financial statements are appropriate given the factual circumstances as at 31 December 2023. |
Various elements of the Company's accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other assessments. In particular, the Company has identified the following accounting policies which, due to the judgements, estimates and assumptions inherent in those policies, and the sensitivity of the financial statements to those judgements, estimates and assumptions, are critical to an understanding of the financial statements. |
Valuation of receivables |
Valuation of receivables is based upon ongoing assessments of the probable estimated losses inherent in the receivables portfolio. Assessments are conducted by the board employing a methodology and guidelines, which are continually monitored and improved. The primary component of this methodology comprises specific allowances and collective allowances. |
A receivable is subject to impairment test when valid indications exist, at the assessment date, which demonstrate that the customer will not be able to meet his obligations and/or when the flow of receipts decelerates over time. Usually such indications include failure of communication with the customers and indications of significant financial difficulty. |
Amounts individually provided for concern claims evaluated individually for impairment based upon management's best estimate of the present value of the cash flows which are expected to be received. |
In assessing the need for collective allowance, management considers receivables in arrears over 121 days but excludes receivables for which there are valid indications that they will be collected. |
The accuracy of provisions depends on the accuracy of future cash flows for specific allowances and the model assumptions and parameters used in determining collective allowances. While this necessarily involves judgement, management believes that their provisions are reasonable and supportable. |
Assets impairment |
The Company reviews on an annual basis the carrying amounts of investments, tangible assets and intangible assets, in order to determine if there is an indication of impairment. If any such indication exists an impairment review is carried out in order to determine the extent of the impairment loss. |
Useful lives of depreciable tangible and intangible assets |
The management assesses the estimated useful lives and related depreciation & amortisation charges for purchased and internally generated intangible assets and tangible assets and reviews the assessment at regular intervals. Management estimates are based on the projected operating life cycle of these assets. Such estimates are not expected to change significantly, however, management may modify depreciation and amortisation rates wherever useful lives turn out to be different than previously estimated and writes down or writes off assets. |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. |
The company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. |
Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest. |
The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of revenue can be measured reliably and (d) it is probable that future economic benefits will flow to the entity. |
Cash and cash equivalents |
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
Intangible asset |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Computer software is being written off in equal annual instalments over its estimated economic life of 5 years. |
Property, plant and equipment |
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the assets capable of operating as intended. |
The carrying value of tangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery - 15% and 20% on cost |
Inventories |
Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of inventory sold is recognised as an expense in the period in which the related revenue is recognised. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
- the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the Statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Employee benefit costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
Going concern |
The company's holding company have indicated their willingness to support the company for the forseeable future and consequently the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future and, as such, consider it appropriate to prepare the financial statements on the going concern basis. |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial assets |
Initial recognition and measurement |
Financial assets are classified as such at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition. |
All financial assets are recognised initially at fair value plus transaction costs, except in the case of financial assets recorded at fair value through profit or loss. |
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e, the date that the company commits to purchase or sell the asset. |
The company's financial assets include loans and other receivables. |
Subsequent measurement- Loans and receivables |
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the income statement. The losses arising from impairment are recognised in the profit and loss account. |
Derecognition |
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: |
- The rights to receive cash flows from the asset have expired |
- The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘passthrough’ arrangement. |
Impairment of financial assets |
The Company assesses , at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be impaired if there is objective evidence of impairment as a result of one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. |
Financial assets carried at amortised cost |
For financial assets carried at amortised cost, the company first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. |
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future expected credit losses that have not yet been incurred). |
The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognised in profit or loss. Interest income continues to be accrued on the reduced carrying amount and is accrued using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. |
Basic financial liabilities |
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies.Financial liabilities are recognised at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. |
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. |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Offsetting of financial instruments |
Financial assets and financial liabilities are offset and the net amount is reported in the financial statements if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
New accounting pronouncements |
At the date of approval of these financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the financial statements of the Company. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Sales and administrative |
2023 | 2022 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | PROFIT BEFORE INCOME TAX |
The profit before income tax is stated after charging: |
2023 | 2022 |
£ | £ |
Cost of inventories recognised as expense |
Leases | 172,688 | 156,696 |
Depreciation - owned assets |
Computer software amortisation |
Auditors' remuneration | 10,200 | 5,250 |
Foreign exchange differences |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
5. | INCOME TAX |
Analysis of tax expense |
2023 | 2022 |
£ | £ |
Current tax: |
Tax |
Deferred tax | ( |
) |
Total tax expense in statement of profit or loss |
Factors affecting the tax expense |
The tax assessed for the year is lower (2022 - higher) than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before income tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Non tax deductible expenses and non tax deductible income | 11,784 | 4,771 |
temporary differences |
Other tax adjustments | (54,415 | ) | - |
Capital allowances | (1,754 | ) | 1,081 |
Deferred Tax | (80,218 | ) | 58,410 |
Tax expense |
6. | INTANGIBLE ASSETS |
Computer |
software |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
7. | PROPERTY, PLANT AND EQUIPMENT |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
8. | INVENTORIES |
2023 | 2022 |
£ | £ |
Stocks |
9. | TRADE AND OTHER RECEIVABLES |
2023 | 2022 |
£ | £ |
Current: |
Trade debtors |
Other debtors | 264,769 | - |
Prepayments |
Non-current: |
Other debtors |
Aggregate amounts |
10. | CASH AND CASH EQUIVALENTS |
2023 | 2022 |
£ | £ |
Cash in hand |
Bank accounts |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
11. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Share capital 1 | £1 | 800,000 | 800,000 |
12. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
At 31 December 2023 |
13. | TRADE AND OTHER PAYABLES |
2023 | 2022 |
£ | £ |
Current: |
Trade creditors |
Other creditors |
Employee compensation payable | - | 84,118 |
Pension payable | 8,225 | 4,829 |
Accrued expenses | 6,030 | 38,491 |
VAT | 309,207 | 397,475 |
Non-current: |
Other creditors |
Aggregate amounts |
14. | LEASING |
Other leases |
2023 | 2022 |
£ | £ |
Short-term leases | 172,688 | 156,696 |
15. | DEFERRED TAX |
2023 | 2022 |
£ | £ |
Balance at 1 January | - | (58,410 | ) |
Deferred tax movement | (80,218 | ) | 58,410 |
Balance at 31 December | ( |
) |
FG EUROPE UK LIMITED (REGISTERED NUMBER: 10618331) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 DECEMBER 2023 |
16. | RELATED PARTY DISCLOSURES |
During the year the company made sales amounting to £1,596,467 (2022: £702,165) to companies within the group. |
During the year the company made purchases amounting to £13,439,925 (2022: £11,258,710) from companies within the group. |
Included within trade receivables is an amount of £1,262,453 (2022: £259,617) owed by companies within the group. Also included within trade payables is an amount of £8,916,976 (2022: £6,969,443) of amounts owed to companies within the group. |
17. | EVENTS AFTER THE REPORTING PERIOD |
No post balance sheet events have occurred since 31 December 2023. |
18. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent undertaking and ultimate controlling party is FG Europe S.A. |
The largest and smallest group in which the results of the company are consolidated is that headed by FG Europe SA, which is incorporated in Greece under registration number P.C. Reg. No. 13413/06/B/86/111. |
The consolidated financial statements of this company are available to the public and may be obtained from the company's registered office at No. 128 Vouliagmenis St., Glyfada, Athens. |