Company registration number NI029743 (Northern Ireland)
PROFAST GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PROFAST GROUP LIMITED
COMPANY INFORMATION
Directors
Mr B Flynn
Mr P Gregg
Mr S Taylor
Secretary
Ms J Macartney
Company number
NI029743
Registered office
26-30 Rydalmere Street
Belfast
BT12 6GF
Auditor
GMcG BELFAST
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
Business address
26-30 Rydalmere Street
Belfast
BT12 6GF
Bankers
Ulster Bank Limited
Unit G, Westwood Retail Park
Kennedy Way
Andersonstown
Belfast
BT11 9BQ
AIB
Naas Road
Business Centre
Dublin 22
Ireland
Solicitors
Mills Selig
21 Arthur Street
Belfast
BT1 4GA
OCWM Law
Kilmore House
Spencer Dock
Dublin 1
Republic of Ireland
PROFAST GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
PROFAST GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The principal activity of the group is the sale of fasteners, fixings and window and door hardware across the UK and Ireland.

 

The directors have determined that the following financial indicators are the most effective measures of progress towards achieving the group's objectives:

 

Year ended 31 December 2023

Year ended 31 December 2022

 

£

£

Turnover

19,493,387

20,586,015

Gross profit

5,757,580

5,716,925

Profit before tax

620,610

883,629

 

Turnover has decreased by 5.3% from the prior year. The prior year figures include a large scale project that generated a significant level of turnover. Despite the drop in turnover for the year, gross profit margin has increased from 27.8% to 29.5%. As a result, the total gross profit generated by the group has increased to £5.8m (2022 - £5.7m).

 

Administration and distribution expenses for the group increased by a total of £272k from the prior year. The increased costs include an additional £118k in staff costs as well as rising overhead costs.

 

The combination of these factors resulted in the group generating an operating profit of £747k (2022 - £978k) for the year.

 

The directors consider the results for the year to be satisfactory in the current economic climate. The directors are committed to continue to develop the performance of trading operations in the future.

Principal risks and uncertainties

The key business risks and uncertainties, which the directors envisage will affect the group, are lack of activity in the market place mainly due to lack of liquidity, fluctuations in currency rates and increased competition from both national and local suppliers. The group has long standing relationships with its customers, suppliers and bankers and maintaining these relationships will be very important in the current business climate.

On behalf of the board

Mr B Flynn
Director
31 May 2024
PROFAST GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the group continued to be that of the sale of fasteners, fixings and window and door hardware.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. 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:

Mr B Flynn
Mr P Gregg
Mr S Taylor
Auditor

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

Statement of directors' responsibilities

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

 

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

 

 

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

PROFAST GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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
Mr B Flynn
Director
31 May 2024
PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Profast Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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.

PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 5 -

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 6 -
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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in income recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 8 -
Audit response to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. 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/auditorsresponsibilities. This description forms part of our auditor's report.

PROFAST GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROFAST GROUP LIMITED
- 9 -

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.

Mr Nigel Moore FCA (Senior Statutory Auditor)
For and on behalf of GMcG BELFAST
4 June 2024
Chartered Accountants
Statutory Auditor
Chartered Accountants & Statutory Auditor
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
PROFAST GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,493,387
20,586,015
Cost of sales
(13,735,807)
(14,869,090)
Gross profit
5,757,580
5,716,925
Distribution costs
(425,539)
(377,613)
Administrative expenses
(4,585,471)
(4,361,108)
Operating profit
4
746,570
978,204
Interest receivable and similar income
8
2,408
-
0
Interest payable and similar expenses
9
(128,368)
(94,575)
Profit before taxation
620,610
883,629
Tax on profit
10
(106,711)
(120,217)
Profit for the financial year
25
513,899
763,412
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(42,979)
85,126
Total comprehensive income for the year
470,920
848,538
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
PROFAST GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
692,288
713,849
Current assets
Stocks
14
3,922,392
4,280,803
Debtors
16
3,513,685
4,200,517
Cash at bank and in hand
461,518
609,460
7,897,595
9,090,780
Creditors: amounts falling due within one year
17
(3,696,412)
(5,347,746)
Net current assets
4,201,183
3,743,034
Total assets less current liabilities
4,893,471
4,456,883
Creditors: amounts falling due after more than one year
18
(58,644)
(90,250)
Provisions for liabilities
Deferred tax liability
21
57,437
60,163
(57,437)
(60,163)
Net assets
4,777,390
4,306,470
Capital and reserves
Called up share capital
24
121,903
121,903
Share premium account
25
131,647
131,647
Other reserves
25
13,431
13,431
Profit and loss reserves
25
4,510,409
4,039,489
Total equity
4,777,390
4,306,470

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 31 May 2024 and are signed on its behalf by:
31 May 2024
Mr B Flynn
Director
Company registration number NI029743 (Northern Ireland)
PROFAST GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
134,216
141,348
Investments
12
1,243,900
1,243,900
1,378,116
1,385,248
Current assets
Debtors
16
486,644
516,835
Cash at bank and in hand
8,298
70,518
494,942
587,353
Creditors: amounts falling due within one year
17
(1,139,284)
(1,217,620)
Net current liabilities
(644,342)
(630,267)
Total assets less current liabilities
733,774
754,981
Creditors: amounts falling due after more than one year
18
(12,386)
(27,831)
Provisions for liabilities
Deferred tax liability
21
26,222
33,528
(26,222)
(33,528)
Net assets
695,166
693,622
Capital and reserves
Called up share capital
24
121,903
121,903
Share premium account
25
131,647
131,647
Profit and loss reserves
25
441,616
440,072
Total equity
695,166
693,622

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 £1,544 (2022 - £216,999 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 May 2024 and are signed on its behalf by:
31 May 2024
Mr B Flynn
Director
Company registration number NI029743 (Northern Ireland)
PROFAST GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
121,903
131,647
13,431
3,190,951
3,457,932
Year ended 31 December 2022:
Profit for the year
-
-
-
763,412
763,412
Other comprehensive income:
Currency translation differences
-
-
-
85,126
85,126
Total comprehensive income
-
-
-
848,538
848,538
Balance at 31 December 2022
121,903
131,647
13,431
4,039,489
4,306,470
Year ended 31 December 2023:
Profit for the year
-
-
-
513,899
513,899
Other comprehensive income:
Currency translation differences
-
-
-
(42,979)
(42,979)
Total comprehensive income
-
-
-
470,920
470,920
Balance at 31 December 2023
121,903
131,647
13,431
4,510,409
4,777,390
PROFAST GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
121,903
131,647
223,073
476,623
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
216,999
216,999
Balance at 31 December 2022
121,903
131,647
440,072
693,622
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,544
1,544
Balance at 31 December 2023
121,903
131,647
441,616
695,166
PROFAST GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
432,723
591,556
Interest paid
(114,783)
(87,367)
Income taxes paid
(39,870)
(257,401)
Net cash inflow from operating activities
278,070
246,788
Investing activities
Purchase of tangible fixed assets
(130,074)
(158,341)
Proceeds from disposal of tangible fixed assets
420
2,250
Repayment of loans
-
1,675
Interest received
2,408
-
0
Net cash used in investing activities
(127,246)
(154,416)
Financing activities
Repayment of borrowings
(285,016)
(25,416)
Proceeds from new bank loans
-
40,000
Repayment of bank loans
(13,338)
(1,111)
Payment of finance leases obligations
(13,921)
(11,027)
Net cash (used in)/generated from financing activities
(312,275)
2,446
Net (decrease)/increase in cash and cash equivalents
(161,451)
94,818
Cash and cash equivalents at beginning of year
518,079
411,283
Effect of foreign exchange rates
(4,197)
11,978
Cash and cash equivalents at end of year
352,431
518,079
Relating to:
Cash at bank and in hand
461,518
609,460
Bank overdrafts included in creditors payable within one year
(109,087)
(91,381)
PROFAST GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
93,833
(99,263)
Interest paid
1,155
757
Income taxes paid
-
0
(3,644)
Net cash inflow/(outflow) from operating activities
94,988
(102,150)
Investing activities
Purchase of tangible fixed assets
(25,363)
(74,473)
Proceeds from disposal of tangible fixed assets
420
-
0
Dividends received
-
0
221,250
Net cash (used in)/generated from investing activities
(24,943)
146,777
Financing activities
Repayment of borrowings
(133,750)
(43,250)
Proceeds from new bank loans
-
40,000
Repayment of bank loans
(13,338)
(1,111)
Net cash used in financing activities
(147,088)
(4,361)
Net (decrease)/increase in cash and cash equivalents
(77,043)
40,266
Cash and cash equivalents at beginning of year
48,004
7,738
Cash and cash equivalents at end of year
(29,039)
48,004
Relating to:
Cash at bank and in hand
8,298
70,518
Bank overdrafts included in creditors payable within one year
(37,337)
(22,514)
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Profast Group Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 26-30 Rydalmere Street, Belfast, BT12 6GF.

 

The group consists of Profast 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. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Profast 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 December 2023. 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.

1.3
Going concern

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

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 18 -

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:

Freehold land and buildings
2% straight line
Leasehold land and buildings
20% straight line
Plant and equipment
20%-25% straight line
Fixtures and fittings
20%-33% straight line
Computers
25% straight line
Motor vehicles
25% straight line

Freehold property includes land of £20,000 which is not depreciated.

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.

1.6
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.

1.7
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.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 19 -

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.

1.8
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.

1.9
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.

1.10
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.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 20 -
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.

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.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 21 -
Derecognition of financial liabilities

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

1.11
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.

1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.13
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.

1.14
Retirement benefits

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

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 22 -
1.15
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.

1.16
Government grants

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

 

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

1.17
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.

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.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty (Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixed assets

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The directors regularly review these asset lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful lives is included in the accounting policies.

Stocks

At each Balance Sheet date the group's stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The assessment of the selling price of such stock involves some estimation uncertainty.

Debtors

Short term debtors are measured at transaction price, less any impairment. Impairment of such debtors involves some estimation uncertainty.

Taxation

Judgements are made in relation to the calculation of certain aspects of the year end tax provisions and the respective tax charge. The management used external professional advice to support the year end provisions.

3
Turnover and other revenue

The whole of the turnover is attributable to the sale of window and door hardware, fasteners and fixings.

 

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,783,469
13,343,473
Republic of Ireland
5,709,918
7,242,542
19,493,387
20,586,015
2023
2022
£
£
Other revenue
Interest income
2,408
-
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(7,254)
70,580
Fees payable to the group's auditor for the audit of the group's financial statements
5,500
4,750
Depreciation of owned tangible fixed assets
129,008
95,209
Depreciation of tangible fixed assets held under finance leases
17,113
13,640
Loss/(profit) on disposal of tangible fixed assets
1,312
(2,020)
Operating lease charges
180,782
137,752
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,500
4,750
Audit of the financial statements of the company's subsidiaries
21,000
21,000
26,500
25,750
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management/admin
20
18
10
11
Sales and warehouse
55
53
-
-
Total
75
71
10
11

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,994,168
2,802,019
728,827
669,747
Social security costs
306,775
267,546
80,300
74,664
Pension costs
148,897
262,116
90,265
130,461
3,449,840
3,331,681
899,392
874,872
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
396,819
429,234
Company pension contributions to defined contribution schemes
67,913
112,635
464,732
541,869

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
164,698
164,599
Company pension contributions to defined contribution schemes
44,250
53,100
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
2,408
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
28,514
19,796
Interest on convertible loan notes
6,692
3,650
Interest on invoice finance arrangements
89,976
69,057
125,182
92,503
Other finance costs:
Interest on finance leases and hire purchase contracts
3,186
2,072
Total finance costs
128,368
94,575
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
109,437
104,442
Adjustments in respect of prior periods
-
0
(216)
Total current tax
109,437
104,226
Deferred tax
Origination and reversal of timing differences
(2,726)
15,991
Total tax charge
106,711
120,217

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:

2023
2022
£
£
Profit before taxation
620,610
883,629
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
155,153
167,890
Tax effect of expenses that are not deductible in determining taxable profit
14,981
10,771
Effect of change in corporation tax rate
(4,034)
3,457
Effect of overseas tax rates
(45,323)
(38,815)
Under/(over) provided in prior years
-
0
(261)
Deferred tax asset movements
(7,676)
(5,572)
Enhanced capital allowances
-
0
(7,899)
Adjustment on consolidation
(6,390)
(9,354)
Taxation charge
106,711
120,217

With effect from 1 April 2023, UK Corporation Tax increased from 19% to 25%. This will have a consequential effect on the group’s future tax charge.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
994,421
49,015
91,012
385,747
542,509
113,725
2,176,429
Additions
-
0
-
0
-
0
21,979
32,017
76,078
130,074
Disposals
-
0
(4,903)
(6,736)
(39,833)
(49,436)
(16,520)
(117,428)
Exchange adjustments
(10,458)
(659)
-
0
(1,282)
(1,085)
(491)
(13,975)
At 31 December 2023
983,963
43,453
84,276
366,611
524,005
172,792
2,175,100
Depreciation and impairment
At 1 January 2023
635,427
47,031
74,498
329,991
317,140
58,493
1,462,580
Depreciation charged in the year
16,656
409
6,010
22,967
62,124
37,955
146,121
Eliminated in respect of disposals
-
0
(4,903)
(5,271)
(39,776)
(49,272)
(16,474)
(115,696)
Exchange adjustments
(7,532)
(619)
-
0
(1,113)
(643)
(286)
(10,193)
At 31 December 2023
644,551
41,918
75,237
312,069
329,349
79,688
1,482,812
Carrying amount
At 31 December 2023
339,412
1,535
9,039
54,542
194,656
93,104
692,288
At 31 December 2022
358,994
1,984
16,514
55,756
225,369
55,232
713,849
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
Company
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 January 2023
10,000
358,840
368,840
Additions
-
0
25,363
25,363
Disposals
-
0
(799)
(799)
At 31 December 2023
10,000
383,404
393,404
Depreciation and impairment
At 1 January 2023
4,667
222,825
227,492
Depreciation charged in the year
2,000
30,335
32,335
Eliminated in respect of disposals
-
0
(639)
(639)
At 31 December 2023
6,667
252,521
259,188
Carrying amount
At 31 December 2023
3,333
130,883
134,216
At 31 December 2022
5,333
136,015
141,348

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
2023
2022
2023
2022
£
£
£
£
Motor vehicles
23,739
40,853
-
0
-
0

Freehold land and buildings have been pledged to secure borrowings of the group.

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,243,900
1,243,900
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments (Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,243,900
Carrying amount
At 31 December 2023
1,243,900
At 31 December 2022
1,243,900
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Aptus Fastener Systems Limited
2
Ordinary
100.00
Fortus Hardware Limited
1
Ordinary
100.00
Profast (NI) Limited
1
Ordinary
100.00
Profast (UK) Limited
2
Ordinary
100.00
Profast Limited
3
Ordinary
100.00

Registered office addresses:

1
26-30 Rydalmere Street, Belfast, BT12 6GF
2
Denby Hall Business Park, Salterwood Drive, Denby, DE5 8JY
3
Unit 11 Western Industrial Estate, Naas Road, Dublin 12
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
3,922,392
4,280,803
-
0
-
0
15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,254,361
3,812,971
484,408
512,530
Carrying amount of financial liabilities
Measured at amortised cost
3,325,904
5,025,784
1,061,065
1,178,260
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,872,652
3,532,337
-
0
-
0
Amounts owed by group undertakings
106,665
104,095
309,851
340,743
Other debtors
275,044
176,539
174,557
171,787
Prepayments and accrued income
259,324
387,546
2,236
4,305
3,513,685
4,200,517
486,644
516,835
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
122,252
102,439
50,502
33,572
Debtor finance
19
424,740
576,006
-
0
-
0
Obligations under finance leases
20
14,733
14,733
-
0
-
0
Other borrowings
19
-
0
133,750
-
0
133,750
Trade creditors
1,580,433
1,850,810
6,103
11,361
Amounts owed to group undertakings
-
0
-
0
679,960
585,461
Corporation tax payable
71,298
1,731
8,753
-
0
Other taxation and social security
317,988
368,395
81,852
67,191
Government grants
22
2,220
2,200
-
0
-
0
Dividends payable
81,613
81,613
81,613
81,613
Other creditors
587,434
1,622,125
143,155
140,267
Accruals and deferred income
493,701
593,944
87,346
164,405
3,696,412
5,347,746
1,139,284
1,217,620
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
12,386
27,831
12,386
27,831
Obligations under finance leases
20
8,612
22,533
-
0
-
0
Government grants
22
37,646
39,886
-
0
-
0
58,644
90,250
12,386
27,831
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
25,551
38,889
25,551
38,889
Bank overdrafts
109,087
91,381
37,337
22,514
Loans from related parties
-
0
133,750
-
0
133,750
Debtor finance
424,740
576,006
-
0
-
0
559,378
840,026
62,888
195,153
Payable within one year
546,992
812,195
50,502
167,322
Payable after one year
12,386
27,831
12,386
27,831

Bank loans and overdrafts are secured as follows:

 

An all monies cross-guarantee between Profast Group Limited, Profast Limited, Profast (NI) Limited, Aptus Fastener Systems Limited, Fortus Hardware Limited, Profast Holdings Limited and Profast (UK) Limited.

 

An all monies charge over the freehold and leasehold property of Profast Limited and freehold property of Profast (NI) Limited together with a fixed and floating charge over the assets and undertakings of Profast Limited and Profast (NI) Limited.

 

A fixed and floating charge over the assets and undertakings of Aptus Fastener Systems Limited, Profast (UK) Limited, Fortus Hardware Limited and Profast Group Limited.

 

Debtor finance is secured on the assets and undertakings of the group.

 

Obligations under finance leases are secured on the assets to which they relate.

The bank loan is repayable by monthly instalments until November 2025.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
14,733
18,234
-
0
-
0
In two to five years
8,612
19,032
-
0
-
0
23,345
37,266
-
-
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
63,674
69,139
Other timing differences
(6,237)
(8,976)
57,437
60,163
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
32,722
34,218
Other timing differences
(6,500)
(690)
26,222
33,528
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
60,163
33,528
Credit to profit or loss
(2,726)
(7,306)
Liability at 31 December 2023
57,437
26,222
22
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
39,866
42,086
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
2,220
2,200
-
0
-
0
Non-current liabilities
37,646
39,886
-
0
-
0
39,866
42,086
-
-
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
148,897
262,116

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

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
121,903
121,903
121,903
121,903
25
Reserves
Share premium

The share premium represents the premium received on shares issued by the company.

Other reserves

Other reserves represent reserves arising on consolidation.

Profit and loss reserves

The profit and loss reserves represent the retained earnings that are available for distribution.

26
Financial commitments, guarantees and contingent liabilities

The company has entered into an all monies cross company guarantee as security for certain bank borrowings of its parent company Profast Holdings Limited and its subsidiaries Profast (NI) Limited, Profast Limited, Aptus Fastener Systems Limited, Fortus Hardware Limited and Profast (UK) Limited.

27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
144,140
134,891
-
-
Between two and five years
132,161
209,328
-
-
276,301
344,219
-
-
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
590,128
755,074
Transactions with related parties

 

Profast Holdings Limited

Profast Group Limited is a subsidiary company of Profast Holdings Limited. At the year end the balance due to the company from Profast Holdings Limited was £76,362 (2022 - £73,792). In addition, Profast Holdings Limited owed £30,303 (2022 - £30,303) to a subsidiary company of Profast Group Limited. No interest is charged on outstanding balances and they are considered to be repayable on demand.

 

Pipeflow Westwood (Ireland) Limited

Pipeflow Westwood (Ireland) Limited, a company incorporated in the Republic of Ireland, is significantly influenced by Mr B Flynn. Pipeflow Westwood (Ireland) Limited holds redeemable unsecured loan stock of £58,230 in Profast Group Limited and 28,226 ordinary shares in Profast Group Limited, representing a holding of 23.2% of the equity share capital in the company. Included within accruals is £84,446 (2022 - £77,916) of loan stock interest and £81,613 (2022 - £81,613) of dividends payable which are due to Pipeflow Westwood (Ireland) Limited.

 

At the year end £174,557 (2022 - £171,787) was due from Pipeflow Westwood (Ireland) Limited. No interest is charged on the balance and it is repayable on demand.

Exemption

The directors have taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

29
Directors' transactions

At the beginning of the year an amount of £133,750 was due to a director. The balance was fully repaid during the year.

30
Controlling party

The company's parent company is Profast Holdings Limited. Profast Holdings Limited has prepared consolidated financial statements, copies of which are available from its registered office at 26-30 Rydalmere Street, Belfast, BT12 6GF.

The group's ultimate controlling party is Mr B Flynn.

PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
513,899
763,412
Adjustments for:
Taxation charged
106,711
120,217
Finance costs
128,368
94,575
Investment income
(2,408)
-
0
Loss/(gain) on disposal of tangible fixed assets
1,312
(2,020)
Depreciation and impairment of tangible fixed assets
146,121
108,849
Movements in working capital:
Decrease/(increase) in stocks
338,053
(277,770)
Decrease/(increase) in debtors
659,772
(667,972)
(Decrease)/increase in creditors
(1,456,885)
454,485
Decrease in deferred income
(2,220)
(2,220)
Cash generated from operations
432,723
591,556
32
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
1,544
216,999
Adjustments for:
Taxation charged
1,447
14,266
Finance costs
12,430
6,451
Investment income
-
0
(221,250)
(Gain)/loss on disposal of tangible fixed assets
(260)
230
Depreciation and impairment of tangible fixed assets
32,335
15,409
Movements in working capital:
Decrease/(increase) in debtors
30,191
(24,885)
Increase/(decrease) in creditors
16,146
(106,483)
Cash generated from/(absorbed by) operations
93,833
(99,263)
PROFAST GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
33
Analysis of changes in net debt - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
609,460
(143,745)
(4,197)
461,518
Bank overdrafts
(91,381)
(17,706)
-
(109,087)
518,079
(161,451)
(4,197)
352,431
Borrowings excluding overdrafts
(748,645)
298,354
-
(450,291)
Obligations under finance leases
(37,266)
13,921
-
(23,345)
(267,832)
150,824
(4,197)
(121,205)
34
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
70,518
(62,220)
8,298
Bank overdrafts
(22,514)
(14,823)
(37,337)
48,004
(77,043)
(29,039)
Borrowings excluding overdrafts
(172,639)
147,088
(25,551)
(124,635)
70,045
(54,590)
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