Company registration number 03307216 (England and Wales)
FRAME FAST (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FRAME FAST (UK) LIMITED
COMPANY INFORMATION
Directors
P Brighouse
N S Leivers
J D Brighouse
Company number
03307216
Registered office
Frame Fast House
Ascot Drive
Derby
DE24 8ST
Auditor
DJH Audit Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
FRAME FAST (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 32
FRAME FAST (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The results of the group for the period ended 31 December 2023 are set out on page 8.

 

The directors’ aim to present a balanced and comprehensive review of the development and performance of the company during the year and its position at the year end. The review is consistent with the size and nature of the company and is written in the context of the risks and uncertainties faced.

 

Turnover for the year reduced to £13,458,919 compared to £13,733,651 last year, representing a 2% decrease. Despite lower volumes with existing new build customers, as a consequence of low mortgage affordability (Base rate increased 1.75% in the year) and the cost-of-living pressures, new build revenue has still seen significant growth overall from securing additional housebuilder customers. Revenue from retail sales, and sales to other installation businesses has fallen, offsetting the gains made with new build. With inflation now under control, and a base rate cut by 0.25% in August 24, there is an expectation that the market will strengthen, with further interest rate cuts.

 

Gross profit margin has fallen slightly to 31.1%, from 33.7% last year, which can be attributed to lower margins in respect of new build installations, which now accounted for a greater proportion of total revenue, combined with general cost pressures.

 

Administration costs reduced slightly compared to the prior, which are closely monitored and kept under control.

The groups cash position has remained healthy standing at £801,205 at the year end, compared to £837,881 last year, net assets have reduced to £1,092,790 compared to last year £1,199,488, as a result of a downturn in Trade Windows (Derby) Limited. The directors’ are confident that Trade Windows (Derby) Limited will see improved results, with a focus on reducing installation wait times and sales generation.

 

Overall, the directors are satisfied with the group’s performance and financial position as reported at the end of the period. Going forward the directors are confident that the group is well placed to take advantage of future growth opportunities and will see revenue growth as market conditions improve.

Principal risks and uncertainties

The directors consider the principal risks and uncertainties to the maintenance of good relationships with all company stakeholders, including customers, suppliers, employees, and finance providers. The directors’ closely monitor the quality of the products offered and ensure high service levels to retain customers’ loyalty. Frame Fast treats its suppliers fairly, and staff are given opportunities to ensure engagement and development in their roles.

Key performance indicators
Key performance indicators for the group
Unit
2023
2022
Turnover
£'000
13,459
13,734
Turnover growth (annualised)
%
2
13
Gross profit Margin
%
31
34

On behalf of the board

N S Leivers
Director
11 September 2024
FRAME FAST (UK) 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 company and group continued to be that of fabrication of doors, windows, conservatories and roofing.

Results and dividends

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

Ordinary dividends were paid amounting to £476,621. 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:

P Brighouse
N S Leivers
J D Brighouse
Financial instruments
Objectives and policies

The company is exposed to the following risks from its financial instruments:

 

- Liquidity risk

- Interest rate risk

- Credit risk

 

The directors have overall responsibility for the establishment and oversight of the Company's risk management framework.

 

The exposure to the above risks are monitored by the Board of Directors as part of its daily management of the Company's activities.

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

Liquidity risk

 

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.

 

Interest rate risk

 

The group is exposed to fair value interest rate risk on its fixed rate borrowings and on its overdrafts and invoice discounting at fixed and variable rates of interest.

 

Credit risk

 

The company's principal financial assets are bank balances and cash, trade and other receivables.

 

The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified evidence of a reduction in the recoverability of the cash flows.

 

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

FRAME FAST (UK) 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
N S Leivers
Director
11 September 2024
FRAME FAST (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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.

FRAME FAST (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FRAME FAST (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of Frame Fast (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, 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 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.

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:

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

In the light of the knowledge and understanding of the group and the parent company and 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:

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.

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

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;

• obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;

• obtaining an understanding of the entity's risk assessment process, including the risk of fraud;

• enquiring of management as to actual and potential fraud, litigation and claims;

• designing our audit procedures to respond to our risk assessment;

• performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;

• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• performing analytical procedures to identify any large, unusual or unexpected relationships.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

FRAME FAST (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FRAME FAST (UK) LIMITED
- 7 -

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.

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.

Gavin Robert Booth (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited, Statutory Auditor
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
11 September 2024
FRAME FAST (UK) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,458,919
13,733,651
Cost of sales
(9,270,460)
(9,103,187)
Gross profit
4,188,459
4,630,464
Administrative expenses
(3,521,968)
(3,617,476)
Other operating income
4
7,170
4,000
Operating profit
5
673,661
1,016,988
Interest receivable and similar income
9
2
11
Interest payable and similar expenses
10
(195,208)
(107,311)
Profit before taxation
478,455
909,688
Tax on profit
11
(108,590)
(201,952)
Profit for the financial year
27
369,865
707,736
Profit for the financial year is all attributable to the owners of the parent company.
FRAME FAST (UK) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,257,893
3,005,743
Current assets
Stocks
16
924,368
820,969
Debtors
17
1,750,253
1,525,014
Cash at bank and in hand
801,205
837,881
3,475,826
3,183,864
Creditors: amounts falling due within one year
18
(3,086,679)
(2,638,378)
Net current assets
389,147
545,486
Total assets less current liabilities
3,647,040
3,551,229
Creditors: amounts falling due after more than one year
19
(1,853,196)
(1,722,955)
Provisions for liabilities
Provisions
22
244,999
244,999
Deferred tax liability
23
456,055
383,787
(701,054)
(628,786)
Net assets
1,092,790
1,199,488
Capital and reserves
Called up share capital
26
200
142
Share premium account
27
1,049,860
1,049,860
Profit and loss reserves
27
42,730
149,486
Total equity
1,092,790
1,199,488
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
N S Leivers
Director
Company registration number 03307216 (England and Wales)
FRAME FAST (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,189,190
2,924,164
Investments
14
1,000,000
1,000,000
4,189,190
3,924,164
Current assets
Stocks
16
891,140
795,379
Debtors
17
2,077,496
1,651,001
Cash at bank and in hand
727,129
822,132
3,695,765
3,268,512
Creditors: amounts falling due within one year
18
(2,915,591)
(2,443,120)
Net current assets
780,174
825,392
Total assets less current liabilities
4,969,364
4,749,556
Creditors: amounts falling due after more than one year
19
(1,853,196)
(1,722,955)
Provisions for liabilities
Provisions
22
244,999
244,999
Deferred tax liability
23
437,807
370,981
(682,806)
(615,980)
Net assets
2,433,362
2,410,621
Capital and reserves
Called up share capital
26
200
142
Share premium account
27
1,049,860
1,049,860
Profit and loss reserves
27
1,383,302
1,360,619
Total equity
2,433,362
2,410,621

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 £499,305 (2022 - £549,143 profit).

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
N S Leivers
Director
Company registration number 03307216 (England and Wales)
FRAME FAST (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
142
1,049,860
(257,745)
792,257
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
707,736
707,736
Dividends
12
-
-
(300,505)
(300,505)
Balance at 31 December 2022
142
1,049,860
149,486
1,199,488
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
369,865
369,865
Issue of share capital
26
58
-
0
-
58
Dividends
12
-
-
(476,621)
(476,621)
Balance at 31 December 2023
200
1,049,860
42,730
1,092,790
FRAME FAST (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
142
1,049,860
1,111,981
2,161,983
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
549,143
549,143
Dividends
12
-
-
(300,505)
(300,505)
Balance at 31 December 2022
142
1,049,860
1,360,619
2,410,621
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
499,304
499,304
Issue of share capital
26
58
-
0
-
58
Dividends
12
-
-
(476,621)
(476,621)
Balance at 31 December 2023
200
1,049,860
1,383,302
2,433,362
FRAME FAST (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
686,191
898,771
Income taxes paid
(61,524)
(15,471)
Net cash inflow from operating activities
624,667
883,300
Investing activities
Purchase of tangible fixed assets
(64,341)
(304,634)
Proceeds from disposal of tangible fixed assets
-
22,484
Interest received
2
-
0
Net cash used in investing activities
(64,339)
(282,150)
Financing activities
Proceeds from borrowings
446,499
55,000
Repayment of bank loans
(183,673)
(238,288)
Payment of finance leases obligations
(188,001)
(134,723)
Interest paid
(195,208)
(107,311)
Dividends paid to equity shareholders
(476,621)
(300,505)
Net cash used in financing activities
(597,004)
(725,827)
Net decrease in cash and cash equivalents
(36,676)
(124,677)
Cash and cash equivalents at beginning of year
837,881
962,558
Cash and cash equivalents at end of year
801,205
837,881
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Frame Fast (UK) Limited (“the company”) is a private limited company limited by share capital, domiciled and incorporated in England and Wales. The registered office is Frame Fast House, Ascot Drive, Derby, DE24 8ST.

 

The group consists of Frame Fast (UK) 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 Frame Fast (UK) 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.

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

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.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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:

Leasehold land and buildings
Straight line basis over life of lease. Buildings straight line over 50 years, land not depreciated
Plant and equipment
10% reducing balance basis
Fixtures and fittings
25% reducing balance basis
Motor vehicles
25% reducing balance basis

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 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.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

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
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.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

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

1.10
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.11
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.

1.12
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.

1.13
Retirement benefits

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

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
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.

1.15
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.

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.

Assessing indicators of impairment:

Management considers whether its investment in subsidiaries are impaired on a regular basis. Where management believe an indication of impairment is identified and required, the determination of recoverable value requires estimation of future cash flows and selection of appropriate assumptions.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 20 -
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.

Impairment of debtors:

On a periodic basis management makes an estimation of the recoverability of debtors. Management make such estimations taking into account their knowledge of the subsidiary companies of the group.

Warranty provisions:

The company includes a warranty provision in respect of the expected future cost of warranty commitments existing at the balance sheet date in respect of sales made. Management makes such estimations based on the value of products sold and the guarantees offered on those products, the nature and technical specifications of the items sold and also historical experience of such matters. Additionally, further provision is made for specific known issues. Due to their very nature these provisions represent a key estimation uncertainty and at the balance sheet date an amount of £244,999 (2022 - £244,999) has been provided.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sales of Goods
13,458,919
13,733,651
4
Other Operating Income

Other operating income includes £7,170 (2022 - £4,000) in respect of government grants.

 

Government grants received relates to income received under the Coronavirus Job Retention Scheme.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(8,686)
(1,195)
Government grants
(7,170)
(4,000)
Depreciation of owned tangible fixed assets
275,614
234,132
(Profit)/loss on disposal of tangible fixed assets
-
28,384
Rent - land and buildings
118,518
82,138
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements
15,000
12,000
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
7
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
Production
71
77
68
74
Sales and Administration
37
35
26
24
Total
108
112
94
98

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,314,448
3,148,802
2,798,456
2,693,120
Social security costs
281,063
307,939
281,063
261,920
Pension costs
104,457
422,586
89,090
288,097
3,699,968
3,879,327
3,168,609
3,243,137
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
109,783
141,781
Company pension contributions to defined contribution schemes
37,606
116,854
136,483
278,652

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
2
11
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
106,653
41,713
Interest on finance leases and hire purchase contracts
48,617
12,215
Interest on invoice discount facility
39,316
53,142
194,586
107,070
Other finance costs:
Other interest
622
241
Total finance costs
195,208
107,311
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
63,835
103,824
Adjustments in respect of prior periods
(27,514)
(19,920)
Total current tax
36,321
83,904
Deferred tax
Origination and reversal of timing differences
72,269
35,771
Changes in tax rates
-
0
82,277
Total deferred tax
72,269
118,048
Total tax charge
108,590
201,952
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 23 -

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
478,455
909,688
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
112,437
172,841
Tax effect of expenses that are not deductible in determining taxable profit
12,561
17,677
Tax effect of utilisation of tax losses not previously recognised
-
0
(27,908)
Depreciation on assets not qualifying for tax allowances
2,854
-
0
Under/(over) provided in prior years
(27,514)
(19,920)
Effect of capital allowances
(64,017)
(58,786)
Deferred tax relating to changes in tax laws or rates
-
0
82,277
Deferred tax expense from unrecognised difference from a prior year period
72,269
35,771
Taxation charge
108,590
201,952
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
476,621
300,505
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,531,334
2,187,159
176,564
700,787
4,595,844
Additions
11,990
465,257
24,028
26,489
527,764
At 31 December 2023
1,543,324
2,652,416
200,592
727,276
5,123,608
Depreciation and impairment
At 1 January 2023
96,435
1,080,940
106,023
306,703
1,590,101
Depreciation charged in the year
23,445
128,351
21,327
102,491
275,614
At 31 December 2023
119,880
1,209,291
127,350
409,194
1,865,715
Carrying amount
At 31 December 2023
1,423,444
1,443,125
73,242
318,082
3,257,893
At 31 December 2022
1,434,899
1,106,219
70,541
394,084
3,005,743
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,486,094
2,187,159
129,237
657,139
4,459,629
Additions
10,191
465,257
21,537
26,489
523,474
At 31 December 2023
1,496,285
2,652,416
150,774
683,628
4,983,103
Depreciation and impairment
At 1 January 2023
75,147
1,080,940
78,315
301,063
1,535,465
Depreciation charged in the year
21,050
128,351
16,059
92,988
258,448
At 31 December 2023
96,197
1,209,291
94,374
394,051
1,793,913
Carrying amount
At 31 December 2023
1,400,088
1,443,125
56,400
289,577
3,189,190
At 31 December 2022
1,410,947
1,106,219
50,922
356,076
2,924,164
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -

Assets held under finance leases and hire purchase contracts

 

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
£
£
£
£
Plant and equipment
976,064
615,849
976,064
615,849
Motor vehicles
189,655
258,624
189,655
258,624
1,165,719
874,473
1,165,719
874,473

Group

 

Restriction on title and pledged as security

 

All of the group's tangible assets with a carrying amount of £3,257,893 (2022 - £3,005,743) have been pledged as security for the group's finance and hire purchase providers.

 

Company

 

Restriction on title and pledged as security

 

All of the group's tangible assets with a carrying amount of £3,189,190 (2022 - £2,924,164) have been pledged as security for the group's finance and hire purchase providers.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,000,000
1,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,000,000
Carrying amount
At 31 December 2023
1,000,000
At 31 December 2022
1,000,000
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Trade Windows (Derby) Limited
Navigation Retail Park, 810 London Road, Alvaston, Derby, DE24 8WA
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
691,518
600,950
658,290
575,360
Work in progress
232,850
220,019
232,850
220,019
924,368
820,969
891,140
795,379

Group

 

The carrying amount of stocks includes £924,368 (2022 - £820,969) pledged as security for liabilities.

 

Company

 

The carrying amount of stocks includes £891,140 (2022 - £795,379) pledged as security for liabilities.

17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,598,030
1,404,209
1,454,916
1,274,808
Amounts owed by group undertakings
-
-
485,736
296,969
Other debtors
6,384
4,340
6,384
1,440
Prepayments and accrued income
145,839
116,465
130,460
77,784
1,750,253
1,525,014
2,077,496
1,651,001

Group

 

The carrying amount of debtors includes £1,750,253 (2022 - £1,525,014) pledged as security for liabilities.

 

Company

 

The carrying amount of debtors includes £2,077,496 (2022 - £1,651,001) pledged as security for liabilities.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Loans and borrowings
20
1,027,633
500,416
1,027,633
500,416
Trade creditors
1,604,493
1,531,315
1,516,558
1,420,439
Corporation tax payable
58,791
83,993
58,691
83,893
Other taxation and social security
101,221
143,108
69,323
94,490
Deferred income
24
1,077
-
0
1,077
-
0
Other creditors
136,003
67,780
196,763
60,116
Accruals and deferred income
157,461
311,766
111,404
283,766
3,086,679
2,638,378
2,981,449
2,443,120
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Loans and borrowings
20
1,733,986
1,722,955
1,733,986
1,722,955
Deferred income
24
39,210
-
0
39,210
-
0
Other creditors
80,000
-
0
80,000
-
0
1,853,196
1,722,955
1,853,196
1,722,955
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,315,728
1,451,071
1,315,728
1,451,071
Other loans
59,035
107,365
59,035
107,365
Invoice discounting
624,541
178,042
624,541
178,042
Hire purchase and finance lease liabilities
762,315
486,893
762,315
486,893
2,761,619
2,223,371
2,761,619
2,223,371
Payable within one year
1,027,633
500,416
1,027,633
500,416
Payable after one year
1,733,986
1,722,955
1,733,986
1,722,955

Bank borrowings

Bank borrowings are denominated in sterling with a nominal interest rate of 3% over base rate (2022 - 3% over base rate), and the final instalment is due in December 2027. The carrying amount at the year end is £1,315,728 (2022 - £1,451,071).

 

The bank borrowings are secured by virtue of a debenture over all of the company's assets and a leasehold first legal charge over leased land and buildings. There is also an unlimited guarantee and debenture over the assets of the subsidiary undertaking.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Loans and overdrafts
(Continued)
- 28 -

Other borrowings

The hire purchase and finance lease liabilities are secured against the asset to which they relate. The carrying amount at the year end is £762,315 (2022 - £486,893).

 

The invoice discount account is secured on the book debts of the company. At the balance sheet date the amount owed was £624,541 (2022 - £178,042).

 

The other loan account is secured by virtue over floating charges. At the balance sheet date the amount owed was £59,035 (2022 - £107,365).

21
Finance lease and hire purchase obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum payments due under finance lease and hire purchase obligations:
Within one year
292,225
189,114
292,225
189,114
In two to five years
587,149
378,676
587,149
378,676
879,374
567,790
879,374
567,790
Less: future finance charges
(117,059)
(80,897)
(117,059)
(80,897)
762,315
486,893
762,315
486,893
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Warranty provision
244,999
244,999
244,999
244,999

A reserve is maintained to cover claims against the company in relation to products sold by the company. This primarily relates to guaranteed work. It is expected that £244,999 (2022 - £244,999) is payable over the life of the warranties which is given for up to 10 years.

Movements on provisions:
Warranty provision
Group
£
At 1 January 2023 and 31 December 2023
244,999
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Provisions for liabilities
(Continued)
- 29 -
Warranty provision
Company
£
At 1 January 2023 and 31 December 2023
244,999
23
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
456,055
383,787
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
437,807
370,981
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
383,787
370,981
Charge to profit or loss
72,268
66,826
Liability at 31 December 2023
456,055
437,807

The amount of net reversals of deferred tax liabilities expected to occur during the year beginning after the reporting period is £62,428 (2022 - £59,256).

24
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
40,287
-
40,287
-
FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Deferred income
(Continued)
- 30 -

Deferred income is included in the financial statements as follows:

Current liabilities
1,077
-
0
1,077
-
0
Non-current liabilities
39,210
-
0
39,210
-
0
40,287
-
40,287
-
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
104,457
422,586

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.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
-
142
-
142
Ordinary A shares of £1 each
84
-
84
-
Ordinary B shares of £1 each
76
-
76
-
Ordinary C shares of £1 each
40
-
40
-
200
142
200
142

All shares rank equally, each share entitles each holder to 1 vote, entitles the holder to dividend payments or any due distribution the directors declare, each share entitles the holder pari passu to any return of capital on a pro rate basis, and shares are not to be redeemed or liable to be redeemed, whether at the option of the company or shareholders.

27
Reserves
Share premium

The share premium reserve represents an additional amount of funds received by the company exceeding the par value of its shares.

Profit and loss reserve

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Operating lease commitments

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
133,933
100,278
133,933
100,278
Between two and five years
256,965
121,403
256,965
121,403
In over five years
342,000
-
342,000
-
732,898
221,681
732,898
221,681
29
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
444,000
-
444,000
30
Related party transactions
Transactions with related parties

Pension in which certain directors are trustees and beneficiaries.

During the year the company paid rents amounting to £72,333 (2022 - £38,000) to this related party.

31
Directors' transactions

During the year the following advances have been made to directors:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Interest free loan
-
1,332
(1,332)
-
1,332
(1,332)
-

Dividends totalling £142,940 (2022 - £303,500) were paid in the year in respect of shares held by the company's directors.

 

At the balance sheet date amounts owed to directors amounted to £65,858 (2022: £nil) these amounts are interest free and payable on demand.

FRAME FAST (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
32
Controlling party

The controlling parties are P & J Brighouse

33
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
369,865
707,736
Adjustments for:
Taxation charged
108,590
201,952
Finance costs
195,208
107,311
Investment income
(2)
(11)
(Gain)/loss on disposal of tangible fixed assets
-
28,384
Depreciation and impairment of tangible fixed assets
275,614
234,132
Increase in provisions
-
29,726
Movements in working capital:
Increase in stocks
(103,399)
(134,881)
Increase in debtors
(225,242)
(289,552)
Increase in creditors
65,557
13,974
Cash generated from operations
686,191
898,771
34
Analysis of changes in net debt - group
1 January 2023
Cash flows
Other non-cash changes
31 December 2023
£
£
£
£
Cash at bank and in hand
837,881
(36,676)
-
801,205
Borrowings excluding overdrafts
(1,736,478)
(262,826)
-
(1,999,304)
Obligations under finance leases
(486,893)
188,001
(463,423)
(762,315)
(1,385,490)
(111,501)
(463,423)
(1,960,414)
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