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Registered number: 01551925









FRISCO (U.K.) SALES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
FRISCO (U.K.) SALES LIMITED
 
 
COMPANY INFORMATION


Directors
M Flynn 
S G Foord 
G Zubiena 
R Flynn 
W Flynn (appointed 4 June 2024)




Company secretary
M Flynn



Registered number
01551925



Registered office
14 Pindar Road

Hoddesdon

Hertfordshire

EN11 0DE




Independent auditors
Adler Shine LLP
Chartered Accountants & Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
FRISCO (U.K.) SALES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditors' report
 
6 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 29


 
FRISCO (U.K.) SALES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
The principal activity of the company continues to be the import and wholesale supply of architectural ironmongery and hardware goods to the United Kingdom. There has not been any significant change to the company’s activities in the period under review and the directors are not aware at the date of the report of any likely major changes in the company’s activities in the next year.
Trading conditions in the architectural hardware market improved over the course of the year. As a result the company's turnover for the year increased from £16.1 million in 2022 to £17.8 million in 2023, an increase of over 10%.
Operating profit for the year was £2.56m up from £2.36m in 2022.
Management will continue to focus on expanding sales and profitability through:
- a focus on the development and efficient introduction of new products;
- continuous investment in product testing to ensure compliance with regulatory standards;
- further investment in marketing initiatives to strengthen the company's market profile and expand market share; and
- maintaining a tight control of cost and working capital.

Page 1

 
FRISCO (U.K.) SALES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The principal risks and uncertainties faced by the company are as follows:
Foreign exchange risks 
The majority of the products the company supplies in the UK are imported and as such the company is exposed to movements in the exchange rate between Sterling and other world currencies, particularly the US Dollar. The directors regularly review the company’s economic exposure to exchange rate fluctuations and take action to hedge risks when considered appropriate. 
Financial risks
The company supplies goods to customers on normal credit terms. Trade debtor balances are monitored on an ongoing basis and credit terms for all customers are regularly reviewed. As a consequence, the company’s exposure to bad debts has not been significant. Other financial risks arise on loans and cash balances. The principal sources of finance are through a term loan, import finance and invoice discounting advances with the company’s bank which is secured by a fixed charge over its book debts and a floating charge over its other assets. The company has not entered into any derivative transactions such as interest rate swaps in relation to any borrowings or investments. 
Commodity prices
A material proportion of the cost of the products the company buys is accounted for by the cost of raw materials, principally copper, aluminium, zinc and stainless steel. The prices of these metals have; in recent years, been volatile and the company therefore is exposed to a level of risk and uncertainty relating to the price and availability of supply of these materials. 
Commercial risk
The company is reliant on a limited number of key customers for a significant proportion of its revenue. A loss of any such customer could adversely impact the company's prospects and financial performance.
Supply chain
The company relies heavily on the import of products from The Far East, principally from China and India.  Supply chain disruption is a risk to the company’s operating and financial performance. However, the long-standing relationships with major suppliers and proactive stock management enabled the company to maintain high levels of stock availability.
Funding and liquidity risks
The company is party to the group’s asset-based funding facility with HSBC which is renewed annually. As a result of a high level of cash generation achieved through efficient working capital and stock management in the year, the company has considerable headroom in these facilities. 

Financial key performance indicators
 
The directors focus on the following key performance indicators for the company and performance for the year is summarised compared with the previous year:
Indicator                            2023            2022
Turnover (£m)                     17.8             16.1
Gross margin (%)               29.7%          27.6%
Operating profit (£m)            2.6              2.4
Net (bank) debt (£m)             -                  -

Page 2

 
FRISCO (U.K.) SALES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.



M Flynn
Director

Date: 8 August 2024

Page 3

 
FRISCO (U.K.) SALES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,933,996 (2022 - £1,831,962).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend. 

Directors

The directors who served during the year were:

M Flynn 
S G Foord 
G Zubiena 
R Flynn 

Future developments

The directors anticipate ongoing growth in demand. 

Page 4

 
FRISCO (U.K.) SALES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsAdler Shine LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





M Flynn
Director

Date: 8 August 2024

Page 5

 
FRISCO (U.K.) SALES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRISCO (U.K.) SALES LIMITED
 

Opinion


We have audited the financial statements of Frisco (U.K.) Sales Limited (the 'company') for the year ended 31 December 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Page 6

 
FRISCO (U.K.) SALES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRISCO (U.K.) SALES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the annual report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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.


Page 7

 
FRISCO (U.K.) SALES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRISCO (U.K.) SALES LIMITED (CONTINUED)


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 an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities; 
• performed audit work over the risk of management override of controls, including testing of journal entries    and other adjustments for appropriateness and reviewing accounting estimates for bias;
• reviewed minutes of meetings;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any 
instances of non-compliance;
• discussed matters among the audit engagement team regarding how and where fraud might occur in the 
financial statements and potential indicators of fraud.


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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities 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 auditors' report.


Page 8

 
FRISCO (U.K.) SALES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRISCO (U.K.) SALES LIMITED (CONTINUED)


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 2006Our 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 auditors' 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.





Christopher Taylor FCA (Senior Statutory Auditor)
for and on behalf of
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF

21 August 2024
Page 9

 
FRISCO (U.K.) SALES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
17,776,218
16,145,465

Cost of sales
  
(12,573,884)
(11,681,633)

Gross profit
  
5,202,334
4,463,832

Administrative expenses
  
(2,637,840)
(2,111,225)

Other operating income
 5 
-
4,392

Operating profit
 6 
2,564,494
2,356,999

Interest receivable and similar income
 10 
26,292
-

Interest payable and similar expenses
 11 
(24,251)
(56,079)

Profit before tax
  
2,566,535
2,300,920

Tax on profit
 12 
(632,539)
(468,958)

Profit for the financial year
  
1,933,996
1,831,962

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,933,996
1,831,962

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

The notes on pages 13 to 29 form part of these financial statements.

Page 10

 
FRISCO (U.K.) SALES LIMITED
REGISTERED NUMBER: 01551925

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
10,336,765
10,427,346

Current assets
  

Stocks
 14 
6,455,666
6,082,988

Debtors: amounts falling due within one year
 15 
5,079,996
4,437,597

Cash at bank and in hand
 16 
2,036,031
995,133

  
13,571,693
11,515,718

Creditors: amounts falling due within one year
 17 
(5,422,667)
(5,017,113)

Net current assets
  
 
 
8,149,026
 
 
6,498,605

Total assets less current liabilities
  
18,485,791
16,925,951

Creditors: amounts falling due after more than one year
 18 
-
(374,156)

Provisions for liabilities
  

Deferred tax
 21 
(1,413,724)
(1,413,724)

Net assets
  
17,072,067
15,138,071


Capital and reserves
  

Called up share capital 
 22 
2,000
2,000

Revaluation reserve
 23 
5,909,166
5,851,326

Capital redemption reserve
 23 
72
72

Profit and loss account
 23 
11,160,829
9,284,673

  
17,072,067
15,138,071


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Flynn
Director

Date: 8 August 2024

The notes on pages 13 to 29 form part of these financial statements.

Page 11

 
FRISCO (U.K.) SALES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
2,000
72
5,793,486
7,510,551
13,306,109



Profit for the year
-
-
-
1,831,962
1,831,962

Transfer to/from profit and loss account
-
-
57,840
(57,840)
-



At 1 January 2023
2,000
72
5,851,326
9,284,673
15,138,071



Profit for the year
-
-
-
1,933,996
1,933,996

Transfer to/from profit and loss account
-
-
57,840
(57,840)
-


At 31 December 2023
2,000
72
5,909,166
11,160,829
17,072,067


The notes on pages 13 to 29 form part of these financial statements.

Page 12

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Frisco (U.K) Sales Limited is a private company limited by shares and registered in England and Wales. The registered office and principal place of business address is Unit 14, Pindar Road, Hoddesdon, Hertfordshire, EN11 0DE.
The company's principal activity continued to be the wholesale supply of architectural ironmongery and hardware goods to the UK.
These financial statements are presented in Sterling (£), rounded to the nearest £1. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Insignia Investments Limited as at 31 December 2021 and these financial statements may be obtained from Unit 14, Pindar Road, Essex Road, Hoddesdon, Hertfordshire, EN11 0DE.

 
2.3

Going concern

Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2023.

Page 13

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
Straight line
Office equipment
-
25%
Reducing balance
Other fixed assets
-
13%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a average cost method basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 

Page 17

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Page 18

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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



  
2.19

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Page 19

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgments
The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recognition of a provision for obsolete stock
The Directors have decided to recognise a provision in the financial statements in relation to obsolete and damaged stock. The decision to provide was taken on the basis that the sale of this stock above cost is improbable.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of land and buildings
As detailed in note 13 to the financial statements, land and buildings are stated at fair value based on the valuation performed by an independent professional valuer Gilmartin Ley Chartered Surveyors in February 2022. The valuer used observable market prices adjusted as necessary for any difference in location or condition of the asset. The directors consider the market value has not changed since the date of that valuation.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Supply of architectural ironmongery and hardware goods
17,776,218
16,145,465


The total turnover of the company for the year has been determined from its principal activity wholly undertaken in the United Kingdom.


5.


Other operating income

2023
2022
£
£

Government grants receivable
-
4,392


Page 20

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(5,719)
(14,073)

Other operating lease rentals
75,009
64,970


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
30,000
29,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,310,087
1,154,057

Social security costs
141,038
124,817

Cost of defined contribution scheme
49,970
32,248

1,501,095
1,311,122


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
4
4



Staff
37
35

41
39

Page 21

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
304,485
257,140

Company contributions to defined contribution pension schemes
27,259
12,636

331,744
269,776


During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £77,725 (2022 - £69,750).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,928 (2022 - £1,950).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
26,292
-

26,292
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
14,376
26,559

Other interest payable
9,875
29,520

24,251
56,079

Page 22

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
632,539
468,958

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,566,535
2,300,920


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
603,649
437,175

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,762
3,992

Capital allowances for year in excess of depreciation
20,753
17,851

Adjustments to tax charge in respect of prior periods
(14,465)
-

Short term timing difference leading to an increase (decrease) in taxation
(475)
-

Non-taxable income
-
9,940

Other differences leading to an increase (decrease) in the tax charge
19,315
-

Total tax charge for the year
632,539
468,958


Factors that may affect future tax charges

From 1 April 2023 the corporation tax rate increased to 25% for companies with profits of over £250,000. A small profits rate was also introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.

Page 23

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
10,500,000
114,316
238,490
10,852,806


Additions
-
-
5,993
5,993



At 31 December 2023

10,500,000
114,316
244,483
10,858,799



Depreciation


At 1 January 2023
93,514
112,626
219,320
425,460


Charge for the year on owned assets
93,514
493
2,567
96,574



At 31 December 2023

187,028
113,119
221,887
522,034



Net book value



At 31 December 2023
10,312,972
1,197
22,596
10,336,765



At 31 December 2022
10,406,486
1,690
19,170
10,427,346




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
10,312,972
10,406,486


The freehold land and buildings were revalued as at 31 December 2021 by Gilmartin Ley Limited, RICS chartered surveyors on an existing use basis. The Directors consider the market value has not changed since the date of that valuation.
Included in freehold land and buildings is land valued at £4,824,000 which is not depreciated.

Page 24

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
3,292,790
3,292,790

Accumulated depreciation
(382,270)
(350,414)

Net book value
2,910,520
2,942,376


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
6,455,666
6,082,988



15.


Debtors

2023
2022
£
£


Trade debtors
4,233,709
3,618,037

Amounts owed by group undertakings
806,860
789,612

Other debtors
7,008
10,162

Called up share capital not paid
1,972
1,972

Prepayments and accrued income
10,655
3,741

Financial instruments
19,792
14,073

5,079,996
4,437,597



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
2,036,031
995,133


Page 25

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
-
164,432

Trade creditors
2,411,453
2,119,129

Amounts owed to group undertakings
1,668,455
1,408,768

Corporation tax
386,468
408,958

Other taxation and social security
77,991
134,142

Other creditors
1,507
1,507

Accruals and deferred income
876,793
780,177

5,422,667
5,017,113





18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
374,156





19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
-
164,432

Amounts falling due 1-2 years

Bank loans
-
374,156

-
538,588


During the year, the remaining HSBC loan balance of £538,588 was repaid. This was secured by a fixed and floating charge over the assets of the company and by a cross guarantee undertaken by its fellow group companies.

Page 26

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,055,823
1,009,206




Financial assets measured at fair value through profit or loss comprise cash and cash equivalents.


21.


Deferred taxation




2023


£






At beginning of year
(1,413,724)



At end of year
(1,413,724)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Revaluation of tangible fixed assets
(1,413,724)
(1,413,724)


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



200,000 (2022 - 200,000) Ordinary shares of £0.01 each
2,000.00
2,000.00


Page 27

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Reserves

Revaluation reserve

The revaluation reserve relates to the revaluation of the company's freehold property, net of deferred tax. The reserve is not distributable.

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve arising from the redemption or purchase of the company's own shares.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company  to the fund and amounted to £49,970 (2022: £32,248). Contributions totalling £Nil (2021: £Nil) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
49,326
47,056

Later than 1 year and not later than 5 years
52,577
37,576

101,903
84,632


26.Other financial commitments

The company with its parent and fellow subsidiary undertaking has jointly entered into cross guarantees in respect of bank borrowings which at 31 December 2023 amounted to £Nil (2022: £538,588).


27.


Related party transactions

The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
Included in other debtors is a loan balance of £Nil (2021: £4,443) due from M Flynn.

Page 28

 
FRISCO (U.K.) SALES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Controlling party

The ultimate parent company is Insignia Investments Limited, a company registered in England and Wales. Insignia Investments Limited prepares consolidated financial statements and copies can be obtained from its registered office 14 Pindar Road, Hoddesdon, Hertfordshire, EN11 0DE.
The ultimate controlling parties are M Flynn and J Flynn.

 
Page 29