Company Registration No. SC445262 (Scotland)
FAILTE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
FAILTE GROUP LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
FAILTE GROUP LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J Cummiskey
Mr G J Rennie
Secretary
Mr J Cummiskey
Company number
SC445262
Registered office
East Warehouse
Glasgow Fruit Market
Blochairn Road
Glasgow
Scotland
G21 2DU
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
FAILTE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

The Group enjoyed another profitable and positive year. Group turnover has increased by 12.8%. The directors are satisfied with the results in the year and remain confident about the business' prospects going forward.

Principal risks and uncertainties

The directors have assessed the main risk facing the Group as a catastrophe at its premises. To mitigate against this risk the Group has implemented disaster recovery policies which would serve to minimise the effects of any such events and allow the business to continue as normal.

Key performance indicators

The Group's gross profit margin has increased slightly to 25.4% (2023: 24.3%). The operating margin has increased to 11.4% (2023: 9.9%). The Group has net assets at the year end of £14.5m (2023: £11.9m). Overall the directors are satisfied with these results.

Other information and explanations

The Company and Group makes little use of financial instruments other than an operational bank account and small hire purchase contracts and so its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the group.

 

Future trading prospects

Despite a challenging economic backdrop the Group have continued to operate profitably. We believe that the next 12 months will continue to be challenging however we are confident that the Group, due to its reliability and quality of service, will continue to be profitable. Whilst there remains a significant amount of economic uncertainty we remain positive about Failte’s future trading prospects.

 

We are proud to be the top independent supplier to the retail and catering sectors. We see this as a strong foundation to support the planned future growth of the business.

On behalf of the board

Mr J Cummiskey
Director
23 August 2024
FAILTE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activities of the Group in the year under review were those of the sale and distribution of food and soft drinks to the catering and retails sectors and fruit and vegetable wholesale.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £300,000.

Directors

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

Mr J Cummiskey
Mr G J Rennie
Auditor

The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

FAILTE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
On behalf of the board
Mr J Cummiskey
Director
23 August 2024
FAILTE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FAILTE GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of Failte Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FAILTE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAILTE GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

 

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:

 

 

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. 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.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Holt (Senior Statutory Auditor)
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
Date
28 August 2024
FAILTE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
29,618,620
26,246,947
Cost of sales
(22,087,232)
(19,859,262)
Gross profit
7,531,388
6,387,685
Administrative expenses
(4,154,835)
(4,046,966)
Other operating income
-
244,728
Operating profit
4
3,376,553
2,585,447
Interest receivable and similar income
8
34,819
92,326
Gains and losses on current asset investments
9
390,678
260,369
Profit before taxation
3,802,050
2,938,142
Tax on profit
10
(910,102)
(715,934)
Profit for the financial year
26
2,891,948
2,222,208
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FAILTE GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,836,204
1,883,633
Investments
15
15,000
15,000
1,851,204
1,898,633
Current assets
Stocks
17
938,062
1,259,325
Debtors
18
857,213
847,179
Investments
19
2,134,538
2,559,981
Cash at bank and in hand
10,943,379
7,103,390
14,873,192
11,769,875
Creditors: amounts falling due within one year
20
(2,001,789)
(1,542,293)
Net current assets
12,871,403
10,227,582
Total assets less current liabilities
14,722,607
12,126,215
Provisions for liabilities
Deferred tax liability
21
188,660
184,216
(188,660)
(184,216)
Net assets
14,533,947
11,941,999
Capital and reserves
Called up share capital
23
200
200
Revaluation reserve
24
551,410
551,410
Other reserves
9,900
9,900
Distributable profit and loss reserves
26
13,972,437
11,380,489
Total equity
14,533,947
11,941,999
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr J Cummiskey
Director
FAILTE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,362
3,542
Investment properties
14
1,250,000
1,250,000
Investments
15
35,100
35,100
1,287,462
1,288,642
Current assets
Debtors
18
18,000
18,000
Cash at bank and in hand
555,811
417,785
573,811
435,785
Creditors: amounts falling due within one year
20
(237,095)
(231,397)
Net current assets
336,716
204,388
Total assets less current liabilities
1,624,178
1,493,030
Provisions for liabilities
Deferred tax liability
21
68,651
68,651
(68,651)
(68,651)
Net assets
1,555,527
1,424,379
Capital and reserves
Called up share capital
23
200
200
Fair value reserve
25
537,635
537,635
Distributable profit and loss reserves
26
1,017,692
886,544
Total equity
1,555,527
1,424,379

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £431,148 (2023 - £431,534 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr J Cummiskey
Director
Company Registration No. SC445262
FAILTE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2022
200
551,410
9,900
9,458,281
10,019,791
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
2,222,208
2,222,208
Dividends
11
-
-
-
(300,000)
(300,000)
Balance at 31 January 2023
200
551,410
9,900
11,380,489
11,941,999
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
-
-
2,891,948
2,891,948
Dividends
11
-
-
-
(300,000)
(300,000)
Balance at 31 January 2024
200
551,410
9,900
13,972,437
14,533,947
FAILTE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
200
537,635
755,010
1,292,845
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
431,534
431,534
Dividends
11
-
-
(300,000)
(300,000)
Balance at 31 January 2023
200
537,635
886,544
1,424,379
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
-
431,148
431,148
Dividends
11
-
-
(300,000)
(300,000)
Balance at 31 January 2024
200
537,635
1,017,692
1,555,527
FAILTE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
4,532,764
2,563,098
Income taxes paid
(966,216)
(605,835)
Net cash inflow from operating activities
3,566,548
1,957,263
Investing activities
Purchase of tangible fixed assets
(318,502)
(212,728)
Proceeds on disposal of tangible fixed assets
41,003
17,850
Proceeds on disposal of current asset investments
816,121
2,093,344
Interest received
16,969
5,288
Dividends received from current asset investments
17,850
87,038
Net cash generated from investing activities
573,441
1,990,792
Financing activities
Dividends paid to equity shareholders
(300,000)
(300,000)
Net cash used in financing activities
(300,000)
(300,000)
Net increase in cash and cash equivalents
3,839,989
3,648,055
Cash and cash equivalents at beginning of year
7,103,390
3,455,335
Cash and cash equivalents at end of year
10,943,379
7,103,390
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information

Failte Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is East Warehouse, Glasgow Fruit Market, Blochairn Road, Glasgow, Scotland, G21 2DU.

 

The group consists of Failte Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The results of the Group consolidate the results of Failte Group Limited and all of its subsidiary undertakings as at 31 January 2024. Merger accounting has been used to consolidate Failte Food Service Limited whilst the rest of the subsidiary undertakings are consolidated under acquisition accounting.

 

The investment in subsidiary undertakings is recorded in the Company's balance sheet at the nominal value of the shares issued together with the fair value of any additional consideration paid.

 

In the Group financial statements, merged subsidiary undertakings are treated as if they had always been a member of the Group. The results of such a subsidiary are included for the whole period in which it joins the Group. Any difference between the nominal value of the shares acquired by the company and those issued by the company to acquire them is taken to the merger reserve.

 

Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over 5 years from the year of acquisition. The results of the companies acquired or disposed of are included in the Statement of Comprehensive Income after or up to date that control passes respectively. As a consolidated Statement of Comprehensive Income is published, a separate Statement of Comprehensive Income for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

The turnover shown in the Consolidated Statement of Comprehensive Income represents the value of all goods sold during the year, less returns received and services delivered at a selling price exclusive of Value Added Tax. Sales are recognised at the point at which the Group has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer.

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixture and fittings
25% straight line and 20% on cost
Motor vehicles
25% straight line and 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the group statement of comprehensive income.

In the group's balance sheet, heritable properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity;a such gains and loss are recognised in profit or loss.

 

Tangible fixed assets are reviewed annually by the directors for indicators of impairment. Factors taken into consideration in reaching such decisions include the economic viability and expected future financial performance of the asset.

1.7
Investment properties

In the company's balance sheet, investment property are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in Consolidated Statement of Comprehensive Income.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost represents purchase price.

1.9
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
Fair value measurement of financial instruments

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

 

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

 

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

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14

Fixed asset investments

Investments are stated at cost less provision for impairment, if such a reduction is deemed to be of a permanent nature

1.15

Current asset investments

Current asset investments are stated at market value. Any gain or loss on current asset investments is recognised in the profit and loss account.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

 

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Other significant revenue
Interest income
16,969
5,288
Dividends received
17,850
87,038

The turnover and profit before taxation are attributable to the Group's principal activity.

 

All turnover is generated in the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(244,728)
Depreciation of owned tangible fixed assets
359,440
477,418
Profit on disposal of tangible fixed assets
(34,512)
(9,659)
Operating lease charges
73,006
85,488
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,000
24,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
2
2
-
-
Production
12
12
-
-
Distribution
53
52
-
-
Sales and adminstration
15
14
-
-
Total
82
80
-
0
-
0
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,254,115
1,979,533
-
0
-
0
Social security costs
188,271
166,577
-
-
Pension costs
71,842
64,375
-
0
-
0
2,514,228
2,210,485
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,800
1,800
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
16,969
5,288
Other income from investments
Dividends received from current asset investments
17,850
87,038
Total income
34,819
92,326
9
Gains and losses on current asset investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
(171,054)
(952,681)
Other gains/(losses)
Gain on disposal of current asset investments
561,732
1,213,050
390,678
260,369
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
904,774
755,166
Adjustments in respect of prior periods
884
11,810
Total current tax
905,658
766,976
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
4,444
(51,042)
Total tax charge
910,102
715,934

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
3,802,050
2,938,142
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
913,633
558,247
Tax effect of expenses that are not deductible in determining taxable profit
(620)
4,525
Tax effect of income not taxable in determining taxable profit
(4,290)
(18,373)
Depreciation on assets not qualifying for tax allowances
1,814
1,327
Enhanced capital allowances
(1,160)
(10,387)
Under/(over) provided in prior years
884
11,810
Deferred tax at different rates
131
(12,224)
Unrealised loss not deductible for tax purposes
(224)
181,009
Other movements
(66)
-
0
Taxation charge
910,102
715,934

From April 2023 onwards, the main rate of corporation tax rose from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is a new small profits rate. Deferred tax has been calculated at a rate of 25%.

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
300,000
300,000
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
215,540
Amortisation
At 1 February 2023 and 31 January 2024
215,540
Carrying amount
At 31 January 2024
-
0
At 31 January 2023
-
0
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
13
Tangible fixed assets
Group
Heritable property
Fixtures and fittings
Motor Vehicles
Total
£
£
£
£
Cost or valuation
At 1 February 2023
1,250,000
1,490,456
2,205,469
4,945,925
Additions
-
0
100,127
218,375
318,502
Disposals
-
0
-
0
(71,878)
(71,878)
At 31 January 2024
1,250,000
1,590,583
2,351,966
5,192,549
Depreciation and impairment
At 1 February 2023
-
0
1,351,868
1,710,424
3,062,292
Depreciation charged in the year
-
0
58,388
301,052
359,440
Eliminated in respect of disposals
-
0
-
0
(65,387)
(65,387)
At 31 January 2024
-
0
1,410,256
1,946,089
3,356,345
Carrying amount
At 31 January 2024
1,250,000
180,327
405,877
1,836,204
At 31 January 2023
1,250,000
138,588
495,045
1,883,633
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
13
Tangible fixed assets
(Continued)
- 22 -
Company
Fixtures and fittings
£
Cost or valuation
At 1 February 2023 and 31 January 2024
104,357
Depreciation and impairment
At 1 February 2023
100,815
Depreciation charged in the year
1,180
At 31 January 2024
101,995
Carrying amount
At 31 January 2024
2,362
At 31 January 2023
3,542

The Group's property was professionally valued by Shepherd Chartered Surveyors on 15 October 2019. The directors are satisfied that this reflects the fair value of the property.

 

Had the property not been revalued it would have been included at original cost of £688,741 with aggregate depreciation of £113,901.

14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023 and 31 January 2024
-
1,250,000

Investment property was professionally valued by Shepherd Chartered Surveyors on 15 October 2019. The directors are satisfied that this reflects the fair value of the property. On a consolidation basis, this property is classified as heritable property.

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
35,100
35,100
Unlisted investments
15,000
15,000
-
0
-
0
15,000
15,000
35,100
35,100

The Group holds a £15,000 investment in a buying group.

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
15
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 February 2023 and 31 January 2024
15,000
Carrying amount
At 31 January 2024
15,000
At 31 January 2023
15,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
35,100
Carrying amount
At 31 January 2024
35,100
At 31 January 2023
35,100
16
Subsidiaries

All subsidiaries' results are included in the consolidated financial statements and have an accounting reference date of 31 January.

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Failte Food Service Limited
East Warehouse, Glasgow Fruit Market, Blochairn Road, Glasgow G21 2SW
Sales and distribution of food and soft drinks
Ordinary Shares
100.00
Failte Produce Limited
East Warehouse, Glasgow Fruit Market, Blochairn Road, Glasgow G21 2SW
Fruit and vegetable wholesale
Ordinary Shares
100.00
Eastwarehouse Limited (sub-subsidiary)
Daly Hoggett & Co, 5-11 Mortimer Street, London W1T 3HS
Dormant
Ordinary A & Ordinary B
100.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
938,062
1,259,325
-
0
-
0
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
780,975
776,332
18,000
18,000
Other debtors
26,762
24,539
-
0
-
0
Prepayments and accrued income
49,476
46,308
-
0
-
0
857,213
847,179
18,000
18,000
19
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Investments
2,134,538
2,559,981
-
-
Listed investments carrying amount
2,134,538
2,559,981
-
-
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,265,019
809,033
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
185,163
185,163
Corporation tax payable
475,652
536,210
40,190
34,492
Other taxation and social security
98,783
57,801
11,742
11,742
Other creditors
37,585
35,041
-
0
-
0
Accruals and deferred income
124,750
104,208
-
0
-
0
2,001,789
1,542,293
237,095
231,397
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
21
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
120,009
115,565
Revaluation of heritable property
68,651
68,651
188,660
184,216
Liabilities
Liabilities
2024
2023
Company
£
£
Revaluation of investment property
68,651
68,651
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
184,216
68,651
Charge to profit or loss
4,444
-
Liability at 31 January 2024
188,660
68,651

No deferred tax asset has been provided for in relation to the unrealised loss on investments. This is because it is not certain that there will be future gains against which these losses will be offset.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,842
64,375

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
24
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
551,410
551,410
-
0
-
25
Fair value reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
-
-
537,635
537,635
26
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
11,380,489
9,458,281
886,544
755,010
Profit for the year
2,891,948
2,222,208
431,148
431,534
Dividends
(300,000)
(300,000)
(300,000)
(300,000)
At the end of the year
13,972,437
11,380,489
1,017,692
886,544
27
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
227,325
227,325
-
-
Between two and five years
189,300
189,300
-
-
In over five years
548,192
595,517
-
-
964,817
1,012,142
-
-
FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
28
Related party transactions
Transactions with related parties

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

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Associated companies
404,222
387,034
44,840
42,340
Other information

The Group has taken advantage of exemption under FRS 102 not to disclose related party transactions with wholly owned subsidiaries within the group.

29
Directors' transactions
Description
Opening balance
Amounts advanced
Dividends declared
Closing balance
£
£
£
£
Advances to directors
(9,052)
300,000
(300,000)
(9,052)
(9,052)
300,000
(300,000)
(9,052)

The loans to/from directors are unsecured and interest free.

30
Ultimate controlling party

In the opinion of the directors there is no ultimate controlling party.

FAILTE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,891,948
2,222,208
Adjustments for:
Taxation charged
910,102
715,934
Investment income
(34,819)
(92,326)
Gain on disposal of tangible fixed assets
(34,512)
(9,659)
Depreciation and impairment of tangible fixed assets
359,440
477,418
Gain on sale of investments
(561,732)
(1,213,050)
Change in value of financial assets held at fair value
171,054
952,681
Movements in working capital:
Decrease/(increase) in stocks
321,263
(289,984)
Increase in debtors
(10,034)
(133,728)
Increase/(decrease) in creditors
520,054
(66,396)
Cash generated from operations
4,532,764
2,563,098
32
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
7,103,390
3,839,989
10,943,379
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.200Mr G J RennieMr G RennieMr J CummiskeyfalsefalseSC4452622023-02-012024-01-31SC445262bus:CompanySecretaryDirector12023-02-012024-01-31SC445262bus:Director12023-02-012024-01-31SC445262bus:CompanySecretary12023-02-012024-01-31SC445262bus:Director22023-02-012024-01-31SC445262bus:RegisteredOffice2023-02-012024-01-31SC445262bus:Consolidated2024-01-31SC445262bus:Consolidated2023-02-012024-01-31SC445262bus:Consolidated2022-02-012023-01-31SC4452622022-02-012023-01-31SC4452622024-01-31SC445262bus:Consolidated2023-01-31SC4452622023-01-31SC445262core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-01-31SC445262core:FurnitureFittingsbus:Consolidated2024-01-31SC445262core:MotorVehiclesbus:Consolidated2024-01-31SC445262core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-31SC445262core:FurnitureFittingsbus:Consolidated2023-01-31SC445262core:MotorVehiclesbus:Consolidated2023-01-31SC445262core:FurnitureFittings2024-01-31SC445262core:FurnitureFittings2023-01-31SC445262core:ShareCapitalbus:Consolidated2024-01-31SC445262core:ShareCapitalbus:Consolidated2023-01-31SC445262core:RevaluationReservebus:Consolidated2024-01-31SC445262core:RevaluationReservebus:Consolidated2023-01-31SC445262core:OtherMiscellaneousReservebus:Consolidated2024-01-31SC445262core:OtherMiscellaneousReservebus:Consolidated2023-01-31SC445262core:ShareCapital2024-01-31SC445262core:ShareCapital2023-01-31SC445262core:FurtherSpecificReserve1ComponentTotalEquity2024-01-31SC445262core:FurtherSpecificReserve1ComponentTotalEquity2023-01-31SC445262core:RetainedEarningsAccumulatedLosses2024-01-31SC445262core:ShareCapitalbus:Consolidated2022-01-31SC445262core:SharePremiumbus:Consolidated2022-01-31SC445262core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-01-31SC445262core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-31SC445262core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-01-31SC445262core:ShareCapital2022-01-31SC445262core:FurtherSpecificReserve1ComponentTotalEquity2022-01-31SC445262core:RetainedEarningsAccumulatedLosses2022-01-31SC445262core:RetainedEarningsAccumulatedLosses2023-01-31SC445262core:RevaluationReserve2024-01-31SC445262bus:Consolidated2022-01-31SC445262core:Goodwill2023-02-012024-01-31SC445262core:LandBuildingscore:LongLeaseholdAssets2023-02-012024-01-31SC445262core:LeaseholdImprovements2023-02-012024-01-31SC445262core:UKTaxbus:Consolidated2023-02-012024-01-31SC445262core:UKTaxbus:Consolidated2022-02-012023-01-31SC445262bus:Consolidated12023-02-012024-01-31SC445262bus:Consolidated12022-02-012023-01-31SC445262bus:Consolidated22023-02-012024-01-31SC445262bus:Consolidated22022-02-012023-01-31SC445262bus:Consolidated32023-02-012024-01-31SC445262bus:Consolidated32022-02-012023-01-31SC445262bus:Consolidated42023-02-012024-01-31SC445262bus:Consolidated42022-02-012023-01-31SC445262bus:Consolidated52023-02-012024-01-31SC445262bus:Consolidated52022-02-012023-01-31SC445262core:Goodwillbus:Consolidated2023-01-31SC445262core:Goodwillbus:Consolidated2024-01-31SC445262core:Goodwillbus:Consolidated2023-01-31SC445262core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-01-31SC445262core:FurnitureFittingsbus:Consolidated2023-01-31SC445262core:MotorVehiclesbus:Consolidated2023-01-31SC445262bus:Consolidated2023-01-31SC445262core:FurnitureFittings2023-01-31SC445262core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-02-012024-01-31SC445262core:FurnitureFittingsbus:Consolidated2023-02-012024-01-31SC445262core:MotorVehiclesbus:Consolidated2023-02-012024-01-31SC445262core:FurnitureFittings2023-02-012024-01-31SC445262core:UnlistedNon-exchangeTradedbus:Consolidated2024-01-31SC445262core:UnlistedNon-exchangeTradedbus:Consolidated2023-01-31SC445262core:UnlistedNon-exchangeTraded2024-01-31SC445262core:UnlistedNon-exchangeTraded2023-01-31SC445262core:Subsidiary12023-02-012024-01-31SC445262core:Subsidiary22023-02-012024-01-31SC445262core:Subsidiary32023-02-012024-01-31SC445262core:Subsidiary112023-02-012024-01-31SC445262core:Subsidiary212023-02-012024-01-31SC445262core:Subsidiary312023-02-012024-01-31SC445262core:Subsidiary122023-02-012024-01-31SC445262core:Subsidiary222023-02-012024-01-31SC44526222023-02-012024-01-31SC445262core:CurrentFinancialInstruments2024-01-31SC445262core:CurrentFinancialInstruments2023-01-31SC445262core:CurrentFinancialInstrumentsbus:Consolidated2024-01-31SC445262core:CurrentFinancialInstrumentsbus:Consolidated2023-01-31SC445262core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-01-31SC445262core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-01-31SC445262core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-31SC445262core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-31SC445262bus:PrivateLimitedCompanyLtd2023-02-012024-01-31SC445262bus:FRS1022023-02-012024-01-31SC445262bus:Audited2023-02-012024-01-31SC445262bus:ConsolidatedGroupCompanyAccounts2023-02-012024-01-31SC445262bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP