Company Registration No. 11096797 (England and Wales)
THFC GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
THFC GROUP LIMITED
COMPANY INFORMATION
Directors
J D Thompson
R J Thompson
Company number
11096797
Registered office
26 Brunel Road
Earlstrees Industrial Estate
Corby
Northamptonshire
NN17 4JW
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
THFC GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 39
THFC GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Fair review of the business

The Board of Directors are satisfied with the performance levels achieved in 2023-24 albeit they are slightly down against our projected forecast and expectations 12 months prior.

 

The business activity was flat which was a by-product of stubborn inflation movement and a reduction in government commitments on public spend. The construction industry has suffered in further delays and cuts to projects which will compound the trading performance going into 24-25.

 

The business continued its investment plan and commitments with the commissioning of new handling equipment at our distribution facility. This significant investment totalling £650,000 will greatly increase efficiencies and working practices. The environmental impact of this investment has contributed to a cleaner and less carbon intensive processes.

Principal risks and uncertainties

The introduction of a new government would normally bring a re-invigored impetus to business activity. However early signs of this early momentum are certainly showing a reverse of the norm with the current rhetoric and policies being introduced by government.

 

The continued slow response from the B of E to reduce interest rates to a workable number will slow considerably any potential rebound in business confidence and the firing up of a much-needed UK economy.

 

The geo-political uncertainty, US Elections all combined with a slowdown in China’s economy will have a knock-on effect to external investment in the local UK economy.

 

We therefore see a continued uncertainty to forecast any significant growth for 2024-25.

Key performance indicators

The company's key financial and other performance indicators during the year were as follows:

 

Operating profit - £413,808 (2023 - £443,310)

Net cash flow from operating activities - £303,109 (2023 - £1,002,826)

 

The key non-financial indicators are associated with the group's ability to maintain its existing customer and supplier base.

THFC GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Other performance indicators

Price risk, credit risk, liquidity risk and cash flow risk

 

The main risks arising from the group's financial instruments are interest rate risk, exchange risk and liquidity risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years.

 

Interest rate risk

The group finances its operations through a mixture of retained profits, bank borrowings and inter group borrowings. The group's exposure to interest rate fluctuations on its borrowings is managed using fixed and floating facilities.

 

Exchange rate risk

The group seeks to minimise the foreign exchange risk by minimising the contracts that are entered into in a foreign currency.

 

Liquidity risk

The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The group's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios.

Future developments and research and development

We are continuing our drive to understand and implement the benefits of Artificial Intelligence. It is imperative that within the next few years the contribution of AI resources is embedded more into our day-to-day operations to the benefits of our customers, colleagues and stakeholders.

 

The Group is set to launch new product lines in Q3 of 2024-25. These products will be an expansion of the current markets we serve with further investment into the B2C arena. In combination with the launch, we are investing heavily in further development to enhance the product offerings further.

On behalf of the board

R J Thompson
Director
11 September 2024
THFC GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company is that of a holding company and the group continued to be that of the fabrication of composite panel products, the importation and distribution of sheet materials and the promotion and specification of interior product solution.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £272,915. The directors do not recommend payment of a further dividend.

Directors

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

J D Thompson
R J Thompson
Financial instruments

Details of financial instruments are provided in the strategic report.

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.

On behalf of the board
R J Thompson
Director
11 September 2024
THFC GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

 

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

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

We have audited the financial statements of THFC Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, 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.

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

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:

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.

THFC GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THFC GROUP LIMITED
- 7 -
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

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

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of0auditors-responsibilities-for-audit.aspx. 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.

John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
11 September 2024
Office: Peterborough
THFC GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,641,054
6,701,061
Cost of sales
(10,506,312)
(4,849,582)
Gross profit
3,134,742
1,851,479
Distribution costs
(896,899)
(652,968)
Administrative expenses
(1,991,408)
(767,977)
Other operating income
167,373
12,776
Operating profit
4
413,808
443,310
Share of results of associates and joint ventures
-
191,037
Interest receivable and similar income
8
1,542
266
Interest payable and similar expenses
9
(78,316)
(47,854)
Other gains and losses
10
150,340
1,595,993
Profit before taxation
487,374
2,182,752
Tax on profit
11
(56,551)
(64,185)
Profit for the financial year
430,823
2,118,567
Profit for the financial year is attributable to:
- Owners of the parent company
286,592
2,091,669
- Non-controlling interests
144,231
26,898
430,823
2,118,567
THFC GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit for the year
430,823
2,118,567
Other comprehensive income
Tax relating to other comprehensive income
(38,910)
-
0
Total comprehensive income for the year
391,913
2,118,567
Total comprehensive income for the year is attributable to:
- Owners of the parent company
264,104
2,091,669
- Non-controlling interests
127,809
26,898
391,913
2,118,567
THFC GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
2,293,551
2,137,222
Investments
15
799,089
648,750
3,092,640
2,785,972
Current assets
Stocks
17
2,254,050
2,311,437
Debtors
18
2,585,171
2,200,197
Cash at bank and in hand
101,270
439,132
4,940,491
4,950,766
Creditors: amounts falling due within one year
19
(3,111,481)
(2,780,044)
Net current assets
1,829,010
2,170,722
Total assets less current liabilities
4,921,650
4,956,694
Creditors: amounts falling due after more than one year
20
(251,629)
(490,015)
Provisions for liabilities
Provisions
23
30,000
30,000
Deferred tax liability
24
249,486
165,142
(279,486)
(195,142)
Net assets
4,390,535
4,271,537
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
2,678,352
2,687,163
Equity attributable to owners of the parent company
2,678,452
2,687,263
Non-controlling interests
1,712,083
1,584,274
4,390,535
4,271,537
THFC GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
R J Thompson
Director
THFC GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
1,784,976
1,695,758
Current assets
Debtors
18
172,630
116,298
Cash at bank and in hand
40,775
198,394
213,405
314,692
Creditors: amounts falling due within one year
19
(4,000)
(20,996)
Net current assets
209,405
293,696
Net assets
1,994,381
1,989,454
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
1,994,281
1,989,354
Total equity
1,994,381
1,989,454

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 £277,842 (2023 - £848,758 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
R J Thompson
Director
Company Registration No. 11096797
THFC GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
100
495,282
495,382
-
495,382
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
2,091,669
2,091,669
26,898
2,118,567
Dividends
12
-
(207,431)
(207,431)
-
(207,431)
Transfers
-
307,643
307,643
-
307,643
Acquisition of subsidiary
-
-
-
1,865,019
1,865,019
Other movements
-
-
-
(307,643)
(307,643)
Balance at 31 March 2023
100
2,687,163
2,687,263
1,584,274
4,271,537
Year ended 31 March 2024:
Profit for the year
-
286,592
286,592
144,231
430,823
Other comprehensive income:
Tax relating to other comprehensive income
-
(38,910)
(38,910)
-
(38,910)
Tax attributable to non-controlling interests
-
16,422
16,422
(16,422)
-
Total comprehensive income for the year
-
264,104
225,194
127,809
391,913
Dividends
12
-
(272,915)
(272,915)
-
(272,915)
Balance at 31 March 2024
100
2,678,352
2,678,452
1,712,083
4,390,535
THFC GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
1,348,024
1,348,124
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
848,759
848,759
Dividends
12
-
(207,429)
(207,429)
Balance at 31 March 2023
100
1,989,354
1,989,454
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
277,842
277,842
Dividends
12
-
(272,915)
(272,915)
Balance at 31 March 2024
100
1,994,281
1,994,381
THFC GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
460,069
1,055,417
Interest paid
(78,316)
(47,854)
Income taxes paid
(78,644)
(4,737)
Net cash inflow from operating activities
303,109
1,002,826
Investing activities
Purchase of tangible fixed assets
(363,514)
(125,750)
Proceeds on disposal of tangible fixed assets
26,900
6,997
Purchase of subsidiaries
-
(367,999)
Purchase of investments
-
(90,061)
Interest received
1,542
266
Net cash used in investing activities
(335,072)
(576,547)
Financing activities
Repayment of bank loans
(220,000)
(114,584)
Payment of finance leases obligations
(170,746)
(11,459)
Dividends paid to equity shareholders
(272,915)
(207,431)
Net cash used in financing activities
(663,661)
(333,474)
Net (decrease)/increase in cash and cash equivalents
(695,624)
92,805
Cash and cash equivalents at beginning of year
(644,883)
127,439
Cash aquired on business combinations
-
(865,127)
Cash and cash equivalents at end of year
(1,340,507)
(644,883)
Relating to:
Cash at bank and in hand
101,270
439,132
Bank overdrafts included in creditors payable within one year
(1,441,777)
(1,084,015)
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
1
Accounting policies
Company information

THFC Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 26 Brunel Road, Earlstrees Industrial Estate, Corby, Northamptonshire, NN17 4JW.

 

The group consists of THFC 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company THFC Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
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.

1.5
Turnover

Turnover represents amounts receivable for the importation and distribution of sheet materials and the fabrication of composite panel products net of VAT and trade discounts.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Intangible assets
50% straight line
1.8
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.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

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:

Land and buildings
3% straight line on buildings
Plant and equipment
15%-50% straight line
Office equipment and furniture
15%-33% straight line
Motor vehicles
25% straight line

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 profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

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

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
1.13
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.

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

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

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 24 -
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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

1.18
Retirement benefits

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

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 25 -
1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.21

Invoice discounting

Trade debtors are subject to an invoice discounting facility whereby an advance is received upon, and secured upon, trade debtors. The company has retained significant risks and rewards relating to the discounted debts and separate presentation has been adopted whereby the gross debt and a corresponding liability in respect of the advance received is shown separately on the Balance Sheet. The interest element of the invoice discounter's charge is recognised as it accrues and is included in the Profit and Loss Account.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
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.

Critical judgements

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

Obsolete Stock

Included in stocks held at the year end is a provision for obsolete stock. This provision is based on judgements made by the directors using their opinion of the proportion of items that are no longer saleable at full price or that may be obsolete. The provision is based around the likelihood of the future sales of stock items that remained unsold for a significant time and products that are no longer part of the companies range of stock available to customers.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,292,562
6,302,176
Europe
348,492
398,885
13,641,054
6,701,061
2024
2023
£
£
Other significant revenue
Interest income
1,542
266
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
678
(5,490)
Research and development costs
8,517
3,683
Depreciation of owned tangible fixed assets
124,799
184,265
Depreciation of tangible fixed assets held under finance leases
151,373
143,116
Profit on disposal of tangible fixed assets
(26,900)
(5,956)
Release of negative goodwill
-
(197,694)
Operating lease charges
31,550
10,862
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
1,000
3,000
Audit of the financial statements of the company's subsidiaries
27,750
27,500
28,750
30,500
For other services
Audit-related assurance services
23,428
-
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
Production
17
17
-
-
Administration and support
18
19
-
-
Total
35
36
-
0
-
0
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 28 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,386,176
872,621
-
0
-
0
Social security costs
139,425
167,340
-
-
Pension costs
110,074
116,057
-
0
-
0
1,635,675
1,156,018
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
91,187
168,795
Company pension contributions to defined contribution schemes
25,000
11,500
116,187
180,295
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2)
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
42,750
108,055
Company pension contributions to defined contribution schemes
25,000
22,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,542
266
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
16,966
16,986
Interest on invoice finance arrangements
47,194
21,817
Interest on finance leases and hire purchase contracts
14,156
9,051
Total finance costs
78,316
47,854
10
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
150,340
49,656
Other gains/(losses)
Gain on disposal of fixed asset investments
-
1,546,337
150,340
1,595,993
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
11,117
67,333
Tax relating to prior year adjustments recognised in profit or loss
-
0
1,135
Total current tax
11,117
68,468
Deferred tax
Origination and reversal of timing differences
45,434
(4,283)
Total tax charge
56,551
64,185
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 30 -

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
487,374
2,182,752
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
121,844
414,723
Tax effect of expenses that are not deductible in determining taxable profit
32,438
2,584
Tax effect of income not taxable in determining taxable profit
-
0
(289,427)
Permanent capital allowances in excess of depreciation
(122,854)
-
0
Depreciation on assets not qualifying for tax allowances
45,434
11,888
Tax at marginal rate
(137)
-
0
Decrease from effect of tax incentives
-
0
(45,983)
Effect of tax lossees
(20,174)
(29,600)
Taxation charge
56,551
64,185

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
38,910
-
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Ordinary paid
272,915
207,429
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
13
Intangible fixed assets
Group
Intangible assets
£
Cost
At 1 April 2023 and 31 March 2024
37,813
Amortisation and impairment
Business combinations
37,813
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
14
Tangible fixed assets
Group
Land and buildings
Plant and equipment
Office equipment and furniture
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
1,682,400
2,009,680
133,333
434,428
4,259,841
Additions
-
0
275,963
-
0
156,538
432,501
Disposals
-
0
-
0
(17,057)
(73,500)
(90,557)
At 31 March 2024
1,682,400
2,285,643
116,276
517,466
4,601,785
Depreciation and impairment
Business combinations
192,693
1,630,452
133,333
166,141
2,122,619
Depreciation charged in the year
36,583
107,550
-
0
132,039
276,172
Eliminated in respect of disposals
-
0
-
0
(17,057)
(73,500)
(90,557)
At 31 March 2024
229,276
1,738,002
116,276
224,680
2,308,234
Carrying amount
At 31 March 2024
1,453,124
547,641
-
0
292,786
2,293,551
At 31 March 2023
1,489,707
379,228
-
0
268,287
2,137,222
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Tangible fixed assets
(Continued)
- 32 -

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
1,453,124
1,489,707
-
0
-
0

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
45,467
250,318
-
0
-
0
Motor vehicles
226,054
197,327
-
0
-
0
271,521
447,645
-
-

Revaluation

The land and buildings class of fixed assets were revalued in October 2018 by Lambert Smith Hampton and Colliers International who are external to the company. This class of assets has a current value of £1,453,124 (2023 - £1,489,707) and a carrying amounts at historical cost of £887,044 (2023 - £896,923). The depreciation on this historical cost to date would be £146,852 (2023 - £124,573).

15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
-
0
-
0
1,472,131
1,472,131
Listed investments
799,089
648,749
312,845
223,627
799,089
648,749
1,784,976
1,695,758
Listed investments carrying amount
799,089
648,749
312,845
223,627
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Fixed asset investments
(Continued)
- 33 -
Fixed asset investments revalued

Investment valuation is based on the fair value. The historical cost of investments is £508,609 (2023 - £449,889)

Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2023
648,749
Fair value adjustment
150,340
At 31 March 2024
799,089
Carrying amount
At 31 March 2024
799,089
At 31 March 2023
648,749
Movements in fixed asset investments
Company
Investments in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2023
1,472,131
223,627
1,695,758
Fair value adjustment
-
89,218
89,218
At 31 March 2024
1,472,131
312,845
1,784,976
Carrying amount
At 31 March 2024
1,472,131
312,845
1,784,976
At 31 March 2023
1,472,131
223,627
1,695,758
16
Subsidiaries

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

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Subsidiaries
(Continued)
- 34 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
See Limited
England & Wales
Ordinary
57.80
-
Performance Panels Limited
England & Wales
Ordinary
-
57.80
Inspired Surfaces Limited
England & Wales
Ordinary
-
57.80
Rex Bousfield Limited
England & Wales
Ordinary
-
57.80

Inspired Surfaces Limited is exempt from the requirements of an audit in accordance with section 479A of the Companies Act 2006.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Inventories
2,254,050
2,311,437
-
-
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,043,264
1,972,648
1
-
0
Other debtors
214,939
127,410
172,629
116,298
Prepayments and accrued income
326,968
100,139
-
0
-
0
2,585,171
2,200,197
172,630
116,298

Trade debtors at 31 March 2024 include £2,043,265 (2023 - £1,972,648) pledged as security against amounts advanced in respect of the 'with recourse' Invoice Discounting Agreement.

 

 

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
1,716,788
1,374,479
-
0
-
0
Obligations under finance leases
22
99,117
167,037
-
0
-
0
Trade creditors
745,187
433,263
-
0
-
0
Corporation tax payable
-
0
67,354
-
0
17,558
Other taxation and social security
343,629
514,016
-
-
Other creditors
15,463
34,020
-
0
438
Accruals and deferred income
191,297
189,875
4,000
3,000
3,111,481
2,780,044
4,000
20,996
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
192,480
397,027
-
0
-
0
Obligations under finance leases
22
59,149
92,988
-
0
-
0
251,629
490,015
-
-

As at 31 March 2024 there was an unlimited cross composite guarantee structure to NatWest Bank by and for the subsidiary companies.

21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
467,491
687,491
-
0
-
0
Bank overdrafts
1,441,777
1,084,015
-
0
-
0
1,909,268
1,771,506
-
-
Payable within one year
1,716,788
1,374,479
-
0
-
0
Payable after one year
192,480
397,027
-
0
-
0
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Loans and overdrafts
(Continued)
- 36 -

The bank overdrafts are secured by fixed charges over the freehold buildings, and fixed and floating charges over other assets.

 

The bank loan attracts an interest rate of 2.53% over the BOE rate.

 

There are no payments falling due after 5 years

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
99,117
167,037
-
0
-
0
In two to five years
59,149
92,988
-
0
-
0
158,266
260,025
-
-
23
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Other provisions
30,000
30,000
-
-
Movements on provisions:
Other provisions
Group
£
At 1 April 2022
-
Acquired on business combination
30,000
At 31 March 2024
30,000
THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 37 -
24
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
87,360
41,926
Freehold property revaluation
162,126
123,216
249,486
165,142
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 01 April 2023
165,142
-
Charge to profit or loss
45,434
-
Charge to other comprehensive income
38,910
-
Liability at 31 March 2024
249,486
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
87,532
116,057

Contributions totalling £6,647 (2023 - £333) were payable to the scheme at the end of the year and included in creditors.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
90
90
90
90
Ordinary of £1 each
10
10
10
10
100
100
100
100
27
Related party transactions
Remuneration of key management personnel

There were no further transactions with key management personnel other than directors remuneration and dividends received of £272,915.

28
Ulitmate controlling party

The ultimate controlling party is the Thompson family.

THFC GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 39 -
29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
430,823
2,118,567
Adjustments for:
Share of results of associates and joint ventures
-
(191,037)
Taxation charged
56,551
64,185
Finance costs
78,316
47,854
Investment income
(1,542)
(266)
Gain on disposal of tangible fixed assets
(26,900)
(5,956)
Amortisation and impairment of intangible assets
-
(197,693)
Depreciation and impairment of tangible fixed assets
276,172
327,381
Gain on sale of investments
-
(1,546,337)
Other gains and losses
(150,340)
(49,596)
Increase in provisions
-
45,728
Movements in working capital:
Decrease in stocks
57,387
392,743
(Increase)/decrease in debtors
(384,800)
515,161
Increase/(decrease) in creditors
124,402
(465,317)
Cash generated from operations
460,069
1,055,417
30
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
439,132
(337,862)
101,270
Bank overdrafts
(1,084,015)
(357,762)
(1,441,777)
(644,883)
(695,624)
(1,340,507)
Borrowings excluding overdrafts
(687,491)
220,000
(467,491)
Obligations under finance leases
(260,025)
101,759
(158,266)
(1,592,399)
(373,865)
(1,966,264)
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