Company registration number 13573296 (England and Wales)
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
T Chart
J G Chart
Company number
13573296
Registered office
Units 14-16, Westfield Farm
Henley Road
Medmenham
Marlow
Bucks
SL7 2TA
Auditor
Rouse Audit LLP
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 22
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company and group continued to be that of fixing and associated systems to the construction industry.

Review of the business

The company has experienced a successful year and is currently undergoing a transformation to position itself as an innovator and manufacturer in its own right. It has maintained growth while developing new products and expanding its market reach. The directors are pleased to report the continued growth of the business.

 

Recently, the company has established and structured a commercial team to capture new market share in the coming financial year. Further the company is investing in software to add a new route to market.

Principal risks and uncertainties

The company faces an expected reduction in market size, which may have a minor impact on trade. However, our strategic focus on developing proprietary intellectual property and investing in manufacturing capabilities is expected to effectively mitigate this impact. This approach ensures we remain competitive and well-positioned for future opportunities.

Key performance indicators

For the period ending 31 December 2023, turnover increased to £12.6 million, up from £11.2 million for the year ending 31 December 2022. This represents solid year-on-year revenue growth, driven by increased customer spending and additional revenue from new customer acquisition.

 

Gross profit margins have significantly improved, rising to 46.5% from 43.0% in 2022. This enhancement is primarily due to the company’s ongoing development in trade and a strategic shift towards more in-house manufacturing, which has boosted overall gross margins. Additionally, continued investment in backend technology has streamlined processes and further improved margins. We anticipate this trend will continue with further investments in new modules, including WIP, to provide management with crucial information on project tracking and progress, enabling optimal decision-making to maintain the company’s strong gross margins.

 

As of the balance sheet date, the company holds cash reserves of £3.8 million and net assets totalling £6.9 million. This robust financial position provides a strong foundation to support anticipated future growth.

On behalf of the board

T Chart
Director
24 September 2024
CONSTRUCTION FIXING SYSTEMS HOLDINGS 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.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £867,053. 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:

 

T Chart

J G Chart

Post reporting date events

The directors are satisfied that there are no significant events that need to be reported, nor will have a material impact on the financial statements being reported.

Future developments

The directors anticipate the business will continue to innovate to remain competitive in the market. The directors believe that the group and company is in a good financial position and that risks have been identified and are being managed effectively. Through technological and enhanced manufacturing capabilities the group is appropriately focusing on diversifying its portfolio of products and services. In addition to this, the commercial arm continues to review competitors and penetrate market share. The directors remain confident in the group’s ability to maintain and build its market position with a degree of caution.

Auditor

The auditor, Rouse Audit LLP, 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.

CONSTRUCTION FIXING SYSTEMS HOLDINGS 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.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
T Chart
Director
24 September 2024
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of Construction Fixing Systems Holdings 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 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:

CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
- 5 -
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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

 

To assess the risk of fraud through management bias and override of controls, we:

 

CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
- 6 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address

The financial statements of the group and company for the year ended 31 December 2022, which form the comparatives to these financial statements, were not audited on the basis that the group and company took advantage of the exemption from audit related to small companies under section 477 of Companies Act 2006.

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.

Carolyn Robson (Senior Statutory Auditor)
For and on behalf of Rouse Audit LLP
24 September 2024
Chartered Accountants
Statutory Auditor
55 Station Road
Beaconsfield
Buckinghamshire
HP9 1QL
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
12,575,984
11,221,125
Cost of sales
(6,732,600)
(6,401,265)
Gross profit
5,843,384
4,819,860
Distribution costs
(176,199)
(210,589)
Administrative expenses
(2,220,623)
(1,617,708)
Other operating income
16,073
5,486
Operating profit
3
3,462,635
2,997,049
Interest receivable and similar income
5
31,698
1,338
Profit before taxation
3,494,333
2,998,387
Tax on profit
6
(666,235)
(469,849)
Profit for the financial year
2,828,098
2,528,538
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.
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
332,803
340,469
Current assets
Stocks
11
1,144,730
1,105,478
Debtors
12
3,382,978
3,275,841
Cash at bank and in hand
3,765,025
1,936,350
8,292,733
6,317,669
Creditors: amounts falling due within one year
13
(1,668,864)
(1,662,511)
Net current assets
6,623,869
4,655,158
Total assets less current liabilities
6,956,672
4,995,627
Provisions for liabilities
Deferred tax liability
14
75,100
75,100
(75,100)
(75,100)
Net assets
6,881,572
4,920,527
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
6,881,472
4,920,427
Total equity
6,881,572
4,920,527

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 24 September 2024 and are signed on its behalf by:
24 September 2024
T Chart
Director
Company registration number 13573296 (England and Wales)
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
9
100
100
Current assets
Cash at bank and in hand
17
73
Creditors: amounts falling due within one year
13
-
(200)
Net current assets/(liabilities)
17
(127)
Net assets/(liabilities)
117
(27)
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
17
(127)
Total equity
117
(27)

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 £867,197 (2022 - £916,732 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
T Chart
Director
Company registration number 13573296 (England and Wales)
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
-
0
3,148,048
3,148,048
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,528,538
2,528,538
Issue of share capital
16
100
-
100
Dividends
7
-
(756,159)
(756,159)
Balance at 31 December 2022
100
4,920,427
4,920,527
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,828,098
2,828,098
Dividends
7
-
(867,053)
(867,053)
Balance at 31 December 2023
100
6,881,472
6,881,572
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
-
0
-
0
-
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
916,732
916,732
Issue of share capital
16
100
-
100
Dividends
7
-
(916,859)
(916,859)
Balance at 31 December 2022
100
(127)
(27)
Year ended 31 December 2023:
Profit and total comprehensive income
-
867,197
867,197
Dividends
7
-
(867,053)
(867,053)
Balance at 31 December 2023
100
17
117
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
3,269,740
1,784,363
Income taxes paid
(497,852)
(376,967)
Net cash inflow from operating activities
2,771,888
1,407,396
Investing activities
Purchase of tangible fixed assets
(107,858)
(255,009)
Interest received
31,698
1,338
Net cash used in investing activities
(76,160)
(253,671)
Financing activities
Dividends paid to equity shareholders
(867,053)
(756,159)
Net cash used in financing activities
(867,053)
(756,159)
Net increase in cash and cash equivalents
1,828,675
397,566
Cash and cash equivalents at beginning of year
1,936,350
1,538,784
Cash and cash equivalents at end of year
3,765,025
1,936,350
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Construction Fixing Systems Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 14-16, Westfield Farm, Henley Road, Medmenham, Marlow, Bucks, SL7 2TA.

 

The group consists of Construction Fixing Systems Holdings 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 Construction Fixing Systems Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

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 measured at the fair value of the consideration received or receivable, net of value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

 

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer.

 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

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.

CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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:

Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Computers
25% on straight-line method
Motor vehicles
25% on reducing balance

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

In the parent company financial statements, investments in subsidiaries 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
Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

1.8
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.

1.9
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.

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.

CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

Derecognition of financial liabilities

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

1.10
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.

1.11
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.

CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

1.14
Leases

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.

2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
12,575,984
11,221,125
2023
2022
£
£
Other revenue
Interest income
31,698
1,338
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
26,916
33,279
Fees payable to the group's auditor for the audit of the group's financial statements
25,000
-
Depreciation of owned tangible fixed assets
113,376
55,018
(Profit)/loss on disposal of tangible fixed assets
(2,851)
963
Operating lease charges
110,054
113,878
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
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
26
23
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,038,946
874,785
-
0
-
0
Social security costs
95,804
77,655
-
-
Pension costs
112,702
22,140
-
0
-
0
1,247,452
974,580
-
0
-
0
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
31,698
1,338
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
666,235
420,495
Deferred tax
Origination and reversal of timing differences
-
0
49,354
Total tax charge
666,235
469,849
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Taxation
(Continued)
- 18 -

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
3,494,333
2,998,387
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
821,867
569,694
Permanent capital allowances in excess of depreciation
(11,750)
(13,083)
Research and development tax credit
(72,850)
(99,526)
Remeasurement of deferred tax for changes in tax rates
-
0
11,845
Expenses not deductible for tax purposes
22,968
919
Patent box deduction
(94,000)
-
0
Taxation charge
666,235
469,849
7
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
867,053
916,859
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
222,424
145,461
134,624
79,769
582,278
Additions
6,026
11,495
25,173
65,164
107,858
Disposals
-
0
-
0
-
0
(9,000)
(9,000)
At 31 December 2023
228,450
156,956
159,797
135,933
681,136
Depreciation and impairment
At 1 January 2023
83,263
97,801
27,513
33,232
241,809
Depreciation charged in the year
36,614
12,612
38,085
26,065
113,376
Eliminated in respect of disposals
-
0
-
0
-
0
(6,852)
(6,852)
At 31 December 2023
119,877
110,413
65,598
52,445
348,333
Carrying amount
At 31 December 2023
108,573
46,543
94,199
83,488
332,803
At 31 December 2022
139,161
47,660
107,111
46,537
340,469
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
9
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
10
-
0
-
0
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
100
Carrying amount
At 31 December 2023
100
At 31 December 2022
100
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
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
Construction Fixing Systems Ltd
Units 14-16 Westfield Farm, Henley Road, Medmenham, Marlow, Bucks, SL7 2TA
Ordinary
100.00
11
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,144,730
1,105,478
-
0
-
0
12
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,226,458
3,085,479
-
0
-
0
Other debtors
15,767
25,860
-
0
-
0
Prepayments and accrued income
140,753
161,402
-
0
-
0
3,382,978
3,272,741
-
-
Amounts falling due after more than one year:
Other debtors
-
0
3,100
-
0
-
0
Total debtors
3,382,978
3,275,841
-
-
13
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
822,461
1,119,002
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
200
Corporation tax payable
348,412
180,029
-
0
-
0
Other taxation and social security
371,654
314,951
-
-
Other creditors
15,938
-
0
-
0
-
0
Accruals and deferred income
110,399
48,529
-
0
-
0
1,668,864
1,662,511
-
0
200
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
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
75,100
75,100
There were no deferred tax movements in the year.
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,702
22,140

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.

16
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
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
163,131
93,389
-
-
Between two and five years
3,772
116,389
-
-
166,903
209,778
-
-
CONSTRUCTION FIXING SYSTEMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
156,797
67,025
19
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,828,098
2,528,538
Adjustments for:
Taxation charged
666,235
469,849
Investment income
(31,698)
(1,338)
Loss on disposal of tangible fixed assets
2,148
1,734
Depreciation and impairment of tangible fixed assets
113,376
55,018
Movements in working capital:
Increase in stocks
(39,252)
(278,893)
Increase in debtors
(107,137)
(1,005,631)
(Decrease)/increase in creditors
(162,030)
15,086
Cash generated from operations
3,269,740
1,784,363
20
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,936,350
1,828,675
3,765,025
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