80 01/01/2023 31/12/2023 2023-12-31 false false false false true false false false false false true false false true false false false false false false false No description of principal activities is disclosed 2023-01-01 Sage Accounts Production 23.0 - FRS102_2023 xbrli:pure xbrli:shares iso4217:GBP NI005417 2023-01-01 2023-12-31 NI005417 2023-12-31 NI005417 2022-12-31 NI005417 2022-01-01 2022-12-31 NI005417 2022-12-31 NI005417 2021-12-31 NI005417 core:NetGoodwill 2023-01-01 2023-12-31 NI005417 core:PlantMachinery 2023-01-01 2023-12-31 NI005417 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 NI005417 core:MotorVehicles 2023-01-01 2023-12-31 NI005417 core:OnerousContractsExcludingVacantProperties 2023-01-01 2023-12-31 NI005417 bus:RegisteredOffice 2023-01-01 2023-12-31 NI005417 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 NI005417 bus:LeadAgentIfApplicable 2023-01-01 2023-12-31 NI005417 bus:Director1 2023-01-01 2023-12-31 NI005417 bus:CompanySecretary1 2023-01-01 2023-12-31 NI005417 core:WithinOneYear 2023-12-31 NI005417 core:WithinOneYear 2022-12-31 NI005417 core:NetGoodwill 2022-12-31 NI005417 core:NetGoodwill 2023-12-31 NI005417 core:LandBuildings core:OwnedOrFreeholdAssets 2022-12-31 NI005417 core:PlantMachinery 2022-12-31 NI005417 core:FurnitureFittingsToolsEquipment 2022-12-31 NI005417 core:MotorVehicles 2022-12-31 NI005417 core:LandBuildings core:OwnedOrFreeholdAssets 2023-12-31 NI005417 core:PlantMachinery 2023-12-31 NI005417 core:FurnitureFittingsToolsEquipment 2023-12-31 NI005417 core:MotorVehicles 2023-12-31 NI005417 core:ExternallyAcquiredIntangibleAssets core:NetGoodwill 2023-01-01 2023-12-31 NI005417 core:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 NI005417 core:UKTax 2023-01-01 2023-12-31 NI005417 core:UKTax 2022-01-01 2022-12-31 NI005417 bus:AllOrdinaryShares 2023-01-01 2023-12-31 NI005417 bus:AllOrdinaryShares 2022-01-01 2022-12-31 NI005417 core:RetainedEarningsAccumulatedLosses 2022-12-31 NI005417 core:RetainedEarningsAccumulatedLosses 2021-12-31 NI005417 core:RetainedEarningsAccumulatedLosses 2023-12-31 NI005417 core:RetainedEarningsAccumulatedLosses 2022-12-31 NI005417 core:ShareCapital 2023-12-31 NI005417 core:ShareCapital 2022-12-31 NI005417 core:DeferredTaxation 2023-01-01 2023-12-31 NI005417 core:NetGoodwill 2022-12-31 NI005417 core:CostValuation core:Non-currentFinancialInstruments 2023-12-31 NI005417 core:Non-currentFinancialInstruments 2023-12-31 NI005417 core:Non-currentFinancialInstruments 2022-12-31 NI005417 core:AcceleratedTaxDepreciationDeferredTax 2023-12-31 NI005417 core:AcceleratedTaxDepreciationDeferredTax 2022-12-31 NI005417 core:PlantMachinery 2022-12-31 NI005417 core:FurnitureFittingsToolsEquipment 2022-12-31 NI005417 core:MotorVehicles 2022-12-31 NI005417 core:DeferredTaxation 2022-12-31 NI005417 core:DeferredTaxation 2023-12-31 NI005417 bus:MediumEntities 2023-01-01 2023-12-31 NI005417 bus:Audited 2023-01-01 2023-12-31 NI005417 bus:Medium-sizedCompaniesRegimeForAccounts 2023-01-01 2023-12-31 NI005417 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 NI005417 bus:FullAccounts 2023-01-01 2023-12-31 NI005417 1 2023-01-01 2023-12-31
Company registration number: NI005417
Fonacab (Belfast) Limited
Financial statements
31 December 2023
Fonacab (Belfast) Limited
Contents
Directors and other information
Strategic report
Director's report
Independent auditor's report to the member
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
Fonacab (Belfast) Limited
Directors and other information
Director Mr William J McCausland
Secretary Simon Sims
Company number NI005417
Registered office 209 Knock Road
Belfast
BT5 6QE
Business address 209 Knock Road
Belfast
BT5 6QE
Auditor Potter Finnegan Limited
Unit 25 The Courtyard Business Park
190 Galgorm Road
Ballymena
Co Antrim
BT42 1HL
Bankers Danske Bank
PO Box 183
Donegall Square West
Belfast
BT1 6JS
Fonacab (Belfast) Limited
Strategic report
Year ended 31 December 2023
Principal activities of the business
The company is primarily a taxi business serving the greater Belfast area and includes car sales and servicing division under the brand name Crawford Clarke Cars. The company has over fifty years of industry experience and operates the largest fleet of cars in Northern Ireland. Conscious of the need to raise the standards, the company has led the way in Northern Ireland for many years, being the first to introduce computerised dispatch, in-car meters, roof signs, and uniformed drivers. With continuing significant capital investment, the company has installed state of the art GPS-based dispatch system, ensuring ultimate efficiency in operation, now including the introduction of App bookings and other types of automated booking systems.
Review of Business Performance
The company operates in a competitive market and continually strives to introduce new and improved services to meet the growing needs and demands of its customers. These services include the largest fleet of vehicles in Northern Ireland, preferential and priority services for account holders, uniformed and fully trained drivers, instant response courier service, computerised dispatch system, automated booking system, wheelchair accessible vehicles, executive cars and taxi tours. The company believes the Northern Ireland taxi industry continues to face many challenges going forward. It will continue to adapt and evolve to meet these challenges and ensure that the company remains at the leading edge of the Northern Ireland taxi industry.
Key Performance Indicators
The company has performed well during the year ended 31 December 2023. The company is in a healthy position with sufficient cash reserves and a strong balance sheet free from long term debt.
Principal Risks and Uncertainties
The principal risk and uncertainties facing the company are the long term effects of the coronavirus pandemic. This includes the shortage of available labour and the lack of younger people entering the taxi industry. The company has no bank loans or other loans, the only bank liability being a company credit card. As a consequence, risk relating to financial instruments is considered low.
Strategic Management
The company's strategic objectives are to continually strive to introduce new and improved services to meet the growing needs and demands of its customers, to continue to maximise company operating efficiencies and continued investment in advances in technology.
Future Developments
The company is in a strong financial position. The company will continue to build on its sound business principles and looks forward to another successful year in 2024. The director believes the company remains well positioned to grow and develop and, as such, will focus on ensuring strategic objectives are realised when the opportunities arise.
This report was approved by the board of directors on 2 September 2024 and signed on behalf of the board by:
Mr William J McCausland
Director
Fonacab (Belfast) Limited
Director's report
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended 31 December 2023.
Director
The director who served the company during the year was as follows:
Mr William J McCausland
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
There are no future developments to disclose in this report.
Financial instruments
Risk relating to financial instruments have been addressed in the Strategic Report.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 02 September 2024 and signed on behalf of the board by:
Mr William J McCausland
Director
Fonacab (Belfast) Limited
Independent auditor's report to the member of
Fonacab (Belfast) Limited
Year ended 31 December 2023
Opinion
We have audited the financial statements of Fonacab (Belfast) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: - 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report has 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 director's 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: - 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 the returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
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: We made enquiries of management and those charged with governance regarding their records of any instances of non-compliance with laws and regulations applicable to the company which could have a material impact on the financial statements.We reviewed professional costs to identify potential advice being undertaken in relation to non-compliance issues.We enquired with management to ascertain if there had been any instances of actual or suspected fraud within the business and concluded that this had not occurred. The potential for management over-ride of the internal control systems was also considered during our risk assessment.Principal audit risks were identified as the overstatement of income or assets and the understatement of costs or liabilities. Management estimates were critically evaluated for reliability. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's member, 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 member those matters we are required to state to him 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
John Finnegan (Senior Statutory Auditor)
For and on behalf of
Potter Finnegan Limited
Chartered Accountants and Registered Auditors
Unit 25 The Courtyard Business Park
190 Galgorm Road
Ballymena
Co Antrim
BT42 1HL
02 September 2024
Fonacab (Belfast) Limited
Statement of income and retained earnings
Year ended 31 December 2023
2023 2022
Note £ £
Turnover 4 12,631,425 14,185,049
Cost of sales ( 6,485,075) ( 7,944,825)
_______ _______
Gross profit 6,146,350 6,240,224
Administrative expenses ( 5,175,810) ( 4,769,661)
Other operating income 5 - 43,355
_______ _______
Operating profit 6 970,540 1,513,918
Other interest receivable and similar income 9 345,452 295,699
Interest payable and similar expenses 10 - ( 9,469)
Profit before taxation 1,315,992 1,800,148
Tax on profit 11 ( 367,216) ( 417,291)
_______ _______
Profit for the financial year and total comprehensive income 948,776 1,382,857
_______ _______
Dividends declared and paid or payable during the year 12 ( 159,338) ( 406,993)
Retained earnings at the start of the year 9,175,776 8,199,912
_______ _______
Retained earnings at the end of the year 9,965,214 9,175,776
_______ _______
All the activities of the company are from continuing operations.
Fonacab (Belfast) Limited
Statement of financial position
31 December 2023
2023 2022
Note £ £ £ £
Fixed assets
Intangible assets 13 1,082,596 1,098,925
Tangible assets 14 1,148,222 850,921
Investments 15 36,708 36,708
_______ _______
2,267,526 1,986,554
Current assets
Stocks 16 2,079,865 1,897,817
Debtors 17 4,601,344 4,052,164
Cash at bank and in hand 2,677,928 2,701,164
_______ _______
9,359,137 8,651,145
Creditors: amounts falling due
within one year 18 ( 1,566,543) ( 1,376,312)
_______ _______
Net current assets 7,792,594 7,274,833
_______ _______
Total assets less current liabilities 10,060,120 9,261,387
Provisions for liabilities 19 ( 93,906) ( 84,611)
_______ _______
Net assets 9,966,214 9,176,776
_______ _______
Capital and reserves
Called up share capital 22 1,000 1,000
Profit and loss account 23 9,965,214 9,175,776
_______ _______
Shareholder funds 9,966,214 9,176,776
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 02 September 2024 , and are signed on behalf of the board by:
Mr William J McCausland
Director
Company registration number: NI005417
Fonacab (Belfast) Limited
Statement of cash flows
Year ended 31 December 2023
2023 2022
£ £
Cash flows from operating activities
Profit for the financial year 948,776 1,382,857
Adjustments for:
Depreciation of tangible assets 302,916 272,486
Amortisation of intangible assets 224,329 219,129
Other interest receivable and similar income ( 345,452) ( 295,699)
Interest payable and similar expenses - 9,469
Gain/(loss) on disposal of tangible assets ( 22,707) 182,623
Gain/(loss) on sale of Investment property - ( 7,486)
Tax on profit 367,216 417,291
Accrued expenses/(income) 25,365 52,473
Changes in:
Stocks ( 182,048) 95,966
Trade and other debtors ( 549,180) ( 785,617)
Trade and other creditors 223,472 164,521
_______ _______
Cash generated from operations 992,687 1,708,013
Interest paid - ( 9,469)
Interest received 345,452 295,699
Tax paid ( 440,920) ( 661,712)
_______ _______
Net cash from operating activities 897,219 1,332,531
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 705,892) ( 225,160)
Proceeds from sale of tangible assets 128,382 733,614
Purchase of intangible assets ( 208,000) -
Purchase of other investments - ( 36,708)
Proceeds from sale of other investments - 108,666
_______ _______
Net cash (used in)/from investing activities ( 785,510) 580,412
_______ _______
Cash flows from financing activities
Proceeds from borrowings 23,984 ( 247,686)
Equity dividends paid ( 159,338) ( 406,993)
_______ _______
Net cash used in financing activities ( 135,354) ( 654,679)
_______ _______
Net increase/(decrease) in cash and cash equivalents ( 23,645) 1,258,264
Cash and cash equivalents at beginning of year 2,695,047 1,436,783
_______ _______
Cash and cash equivalents at end of year 2,671,402 2,695,047
_______ _______
Fonacab (Belfast) Limited
Notes to the financial statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Fonacab (Belfast) Limited, 209 Knock Road, Belfast, BT5 6QE.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 10 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and Machinery - Radio Equipment - 25 % reducing balance
Fittings fixtures and equipment - 20 % reducing balance
Motor vehicles - 25 % reducing balance
Plant and Machinery - Garage Equipment - 20 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023 2022
£ £
Rental income - 43,355
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2023 2022
£ £
Amortisation of intangible assets 224,329 219,129
Depreciation of tangible assets 302,916 272,486
(Gain)/loss on disposal of tangible assets ( 22,707) 182,623
(Gain)/loss on disposal of investment property - ( 7,486)
Impairment of trade debtors 3,557 8,858
Fees payable for the audit of the financial statements 7,500 7,500
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023 2022
Production and administration staff 80 79
_______ _______
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 2,125,400 2,040,189
Social security costs 199,267 187,337
Other pension costs 95,806 43,159
_______ _______
2,420,473 2,270,685
_______ _______
8. Directors remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 15,600 15,600
Company contributions to pension schemes in respect of qualifying services 54,281 281
Compensation for loss of office - 15,000
_______ _______
69,881 30,881
_______ _______
9. Other interest receivable and similar income
2023 2022
£ £
Loans and receivables 344,532 295,699
Other interest receivable and similar income 920 -
_______ _______
345,452 295,699
_______ _______
10. Interest payable and similar expenses
2023 2022
£ £
Other interest payable and similar expenses - 9,469
_______ _______
11. Tax on profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 357,921 413,974
_______ _______
Deferred tax:
Origination and reversal of timing differences 9,295 3,317
_______ _______
Tax on profit 367,216 417,291
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 23.52 % (2022: 19.00%).
2023 2022
£ £
Profit before taxation 1,315,992 1,800,148
_______ _______
Profit multiplied by rate of tax 309,521 342,028
Effect of expenses not deductible for tax purposes 54,449 41,865
Effect of capital allowances and depreciation ( 5,833) 30,081
Effect of revenue exempt from tax ( 216) -
_______ _______
Tax on profit 357,921 413,974
_______ _______
12. Dividends
Equity dividends
2023 2022
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 159,338 406,993
_______ _______
13. Intangible assets
Goodwill Total
£ £
Cost
At 1 January 2023 2,773,682 2,773,682
Additions 208,000 208,000
_______ _______
At 31 December 2023 2,981,682 2,981,682
_______ _______
Amortisation
At 1 January 2023 1,674,757 1,674,757
Charge for the year 224,329 224,329
_______ _______
At 31 December 2023 1,899,086 1,899,086
_______ _______
Carrying amount
At 31 December 2023 1,082,596 1,082,596
_______ _______
At 31 December 2022 1,098,925 1,098,925
_______ _______
14. Tangible assets
Freehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 January 2023 74,058 3,161,958 877,530 431,878 4,545,424
Additions - 194,027 194,437 317,428 705,892
Disposals - - - ( 280,151) ( 280,151)
_______ _______ _______ _______ _______
At 31 December 2023 74,058 3,355,985 1,071,967 469,155 4,971,165
_______ _______ _______ _______ _______
Depreciation
At 1 January 2023 74,058 2,684,271 704,117 232,057 3,694,503
Charge for the year - 166,775 48,847 87,294 302,916
Disposals - - - ( 174,476) ( 174,476)
_______ _______ _______ _______ _______
At 31 December 2023 74,058 2,851,046 752,964 144,875 3,822,943
_______ _______ _______ _______ _______
Carrying amount
At 31 December 2023 - 504,939 319,003 324,280 1,148,222
_______ _______ _______ _______ _______
At 31 December 2022 - 477,687 173,413 199,821 850,921
_______ _______ _______ _______ _______
15. Investments
Other loans Total
£ £
Cost
At 1 January 2023 and 31 December 2023 36,708 36,708
_______ _______
Impairment
At 1 January 2023 and 31 December 2023 - -
_______ _______
Carrying amount
At 31 December 2023 36,708 36,708
_______ _______
At 31 December 2022 36,708 36,708
_______ _______
16. Stocks
2023 2022
£ £
Finished goods and goods for resale 2,079,865 1,897,817
_______ _______
17. Debtors
2023 2022
£ £
Trade debtors 768,220 619,069
Prepayments and accrued income 217,455 208,079
Other debtors 3,615,669 3,225,016
_______ _______
4,601,344 4,052,164
_______ _______
18. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 6,526 6,117
Trade creditors 696,873 574,431
Accruals and deferred income 177,372 152,007
Corporation tax 110,975 193,974
Social security and other taxes 550,792 449,762
Director loan accounts 24,005 21
_______ _______
1,566,543 1,376,312
_______ _______
19. Provisions
Deferred tax (note 20) Total
£ £
At 1 January 2023 84,611 84,611
Charges against provisions 9,295 9,295
_______ _______
At 31 December 2023 93,906 93,906
_______ _______
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 19) 93,906 84,611
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 93,906 84,611
_______ _______
21. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 95,806 (2022: £ 43,159 ).
22. Called up share capital
Authorised share capital
2023 2022
No £ No £
Ordinary shares of £ 1.00 each 1,000 1,000 1,000 1,000
_______ _______ _______ _______
23. Reserves
Profit and loss account - This reserve records retained earnings.
24. Directors advances, credits and guarantees
There have been no directors advances, credits or guarantees during the year.
25. Controlling party
The company is controlled by William McCausland.