REGISTERED NUMBER: 00745573 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Frank Armitt & Son Limited |
REGISTERED NUMBER: 00745573 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Frank Armitt & Son Limited |
Frank Armitt & Son Limited (Registered number: 00745573) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Frank Armitt & Son Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
Frank Armitt & Son Limited (Registered number: 00745573) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the Group continues to be that of warehousing and logistics, supply chain management and being a key provider of marine fuels, ships agency and stevedoring services. |
2023 has been a very positive year for the Group with the focus on core business generating improved profitability, maintaining strong liquidity and reducing net debt to zero. The achievement of several key targets has ensured the business is well placed to explore new opportunities and further build on the strong performance of the last twelve months. |
The economic environment in the UK and beyond has continued to create challenges throughout the year with some instability and reduced confidence impacting on divisional activities, but also on business in general. 2023 has again seen high levels of inflation along with increasing interest rates, high energy prices and with climate change becoming an increasing feature for business. However, positive and decisive management, supported by strong team work and excellent customer care throughout the Group has enabled the business to navigate the storms and post a good result. |
During the year our Marine Fuels division witnessed another turbulent year, with global events having an impact on market supply, pricing and credit risk. The continued war between Russia and Ukraine and the concerning developments involving Israel in Gaza have hindered economic overall recovery since the pandemic. During the year average marine fuel prices fell back to levels pre-pandemic with a decrease of over 20% when compared to 2022 with the division representing the vast majority of the reduction in total Group turnover during the year. |
Following the many challenges in recent years and after some recovery in 2022, volumes in our Automotive division witnessed an overall decline of 6% during the year. The continued uncertainty surrounding the governments "green targets" and electric vehicles has had an impact, which in turn has meant some car manufacturers reviewing their electric fleet offerings versus traditional technologies. This division has continued to be well supported by "non-automotive" business that has improved overall returns. |
During the year the Group has seen some success in other areas with Agency services performing well, our Customs Team growing revenues by 40% and our Projects Team achieving a strong performance. However, the general steel business had a challenging 2023 with year on year volumes declining as a result of higher input and energy prices, impacting UK production and reducing demand. |
Whilst overall Group turnover fell in the year, (as a direct consequence of global marine fuel prices), the sharp focus of the business during 2023 has resulted in gross profits increasing by £1,011,637 to £3,545,105 and profit before taxation increasing by £353,194 to £799,515. The cash position of the Group has also further strengthened to £5,003,477 whilst the company has continued to invest in new equipment and systems with a further £157k of capital expenditure made during the year. |
2023 Highlights: |
Gross Profits: Improved by 40% to £3.55m |
EBITDA: Improved by 46% to £808k. |
Profit after taxation : Improved by 20% to £529k. |
Cash Position: Increase of £118k to £5.003m. |
Total Debt: Reduced to £NIL. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board of directors are responsible for the identification of business risk and for developing plans to mitigate such risk, so to reduce it's impact on the Company and on the Group. The business has continued to take appropriate action to ensure effective cost management across the Group wherever possible, has further strengthened service offering securing new business and improved liquidity, whilst reducing net debt to zero. |
The senior management team are also aware of the ongoing likelihood of fluctuations within the currency markets and continue to adopt a policy of hedging against such exchange rate risks, therefore ensuring that any exposure from currency movements is kept at a very low level. This approach continues to be successful with risks significantly reduced and positive currency gains again being achieved during the year. |
Credit risk across markets continues to feature and the prudent management of working capital and strong liquidity has helped support good commercial decisions, whilst protecting our key stakeholders, customers and suppliers. |
ESG AND SUSTAINABILITY |
Closely linked with risk is a company's ability to achieve sustainability beyond the short term and to this end the board of director's remain fully committed to environmental care and sustainability. The business has already taken steps to contribute towards protecting the environment with the move to electric vehicles, a focus on energy use and the recycling of waste. Positive dialogue with key clients in exploring new green initiatives will further benefit the Group's target to reduce carbon. In addition, the Group continues to invest in employee welfare, Health & Safety, employee engagement and training and follows government guidance, best practice and regulations in corporate governance. |
ON BEHALF OF THE BOARD: |
Frank Armitt & Son Limited (Registered number: 00745573) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31st December 2023 will be £265,000 (2022 - £180,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
MATTERS COVERED IN THE STRATEGIC REPORT |
Business review and future developments, principal risks and key performance indicators are included in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Haines Watts Liverpool Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Frank Armitt & Son Limited |
Opinion |
We have audited the financial statements of Frank Armitt & Son Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Frank Armitt & Son Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Frank Armitt & Son Limited |
Auditors' 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 a Report of the Auditors 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: |
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to inflated revenue and profit. |
Audit procedures performed included: |
- review of the financial statement disclosures to underlying supporting documentation. |
- review of any correspondence with legal advisors, and enquiries of management and those charged with governance around actual and potential litigation and claims |
- enquiries with company's staff to identify any instances with non-compliance with laws and regulations |
- enquiries of management and review of monthly management accounts and reports in so far as they related to the financial statements |
- testing of journals and evaluating, whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud, and evaluating the business rationale of significant transactions outside the normal course of business |
- undertaking detailed substantive testing of material items and a sample of other items |
- consideration of the reasonableness of the figures and analytical review, including comparison with previous years and expected trends |
- review of the compliance with and effectiveness of internal controls |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Frank Armitt & Son Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Pacific Chambers |
11-13 Victoria Street |
Liverpool |
Merseyside |
L2 5QQ |
Frank Armitt & Son Limited (Registered number: 00745573) |
Consolidated Statement of Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER | 3 | 60,524,871 | 76,400,115 |
Cost of sales | 56,979,766 | 73,866,647 |
GROSS PROFIT | 3,545,105 | 2,533,468 |
Administrative expenses | 2,841,838 | 2,083,894 |
703,267 | 449,574 |
Other operating income | 13,775 | 3,240 |
OPERATING PROFIT | 5 | 717,042 | 452,814 |
Interest receivable and similar income | 81,794 | 5,441 |
798,836 | 458,255 |
Interest payable and similar expenses | 6 | (679 | ) | 11,934 |
PROFIT BEFORE TAXATION | 799,515 | 446,321 |
Tax on profit | 7 | 270,919 | 4,717 |
PROFIT FOR THE FINANCIAL YEAR |
Frank Armitt & Son Limited (Registered number: 00745573) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 992,601 | 1,224,428 |
Investments | 11 | - | - |
992,601 | 1,224,428 |
CURRENT ASSETS |
Debtors | 12 | 2,945,276 | 3,392,498 |
Cash at bank | 5,003,477 | 4,885,784 |
7,948,753 | 8,278,282 |
CREDITORS |
Amounts falling due within one year | 13 | 4,405,046 | 5,251,606 |
NET CURRENT ASSETS | 3,543,707 | 3,026,676 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,536,308 |
4,251,104 |
PROVISIONS FOR LIABILITIES | 18 | 149,407 | 127,799 |
NET ASSETS | 4,386,901 | 4,123,305 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 5,000 | 5,000 |
Revaluation reserve | 20 | 473,040 | 473,040 |
Other reserves | 20 | 8,377 | 8,377 |
Retained earnings | 20 | 3,900,484 | 3,636,888 |
SHAREHOLDERS' FUNDS | 4,386,901 | 4,123,305 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2024 and were signed on its behalf by: |
Mrs P Seedhouse - Director |
Frank Armitt & Son Limited (Registered number: 00745573) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,502,470 | 441,603 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Frank Armitt & Son Limited (Registered number: 00745573) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Other | Total |
capital | earnings | reserve | reserves | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 5,000 | 3,375,284 | 473,040 | 8,377 | 3,861,701 |
Changes in equity |
Dividends | - | (180,000 | ) | - | - | (180,000 | ) |
Total comprehensive income | - | 441,604 | - | - | 441,604 |
Balance at 31 December 2022 | 5,000 | 3,636,888 | 473,040 | 8,377 | 4,123,305 |
Changes in equity |
Dividends | - | (265,000 | ) | - | - | (265,000 | ) |
Total comprehensive income | - | 528,596 | - | - | 528,596 |
Balance at 31 December 2023 | 5,000 | 3,900,484 | 473,040 | 8,377 | 4,386,901 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 359,363 | 1,602,523 |
Interest paid | 679 | (11,934 | ) |
Tax paid | (76,852 | ) | - |
Net cash from operating activities | 283,190 | 1,590,589 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (157,260 | ) | (108,231 | ) |
Sale of tangible fixed assets | 187,934 | 147,795 |
Interest received | 81,794 | 5,441 |
Net cash from investing activities | 112,468 | 45,005 |
Cash flows from financing activities |
Loan repayments in year | - | (78,211 | ) |
Capital repayments in year | (12,965 | ) | (27,651 | ) |
Equity dividends paid | (265,000 | ) | (180,000 | ) |
Net cash from financing activities | (277,965 | ) | (285,862 | ) |
Increase in cash and cash equivalents | 117,693 | 1,349,732 |
Cash and cash equivalents at beginning of year |
2 |
4,885,784 |
3,536,052 |
Cash and cash equivalents at end of year | 2 | 5,003,477 | 4,885,784 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit for the financial year | 528,596 | 441,604 |
Depreciation charges | 91,114 | 99,182 |
Loss on disposal of fixed assets | 110,040 | 17,846 |
Impairement losses | - | 36,818 |
Finance costs | (679 | ) | 11,934 |
Finance income | (81,794 | ) | (5,441 | ) |
Taxation | 270,919 | 4,717 |
918,196 | 606,660 |
Decrease in trade and other debtors | 447,222 | 488,919 |
(Decrease)/increase in trade and other creditors | (1,006,055 | ) | 506,944 |
Cash generated from operations | 359,363 | 1,602,523 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 5,003,477 | 4,885,784 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 4,885,784 | 3,536,052 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 4,885,784 | 117,693 | 5,003,477 |
4,885,784 | 117,693 | 5,003,477 |
Debt |
Finance leases | (10,325 | ) | 10,325 | - |
Debts falling due within 1 year | (2,639 | ) | 2,639 | - |
(12,964 | ) | 12,964 | - |
Total | 4,872,820 | 130,657 | 5,003,477 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Frank Armitt & Son Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company Frank Armitt & Son Limited together with all the entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates where applicable. |
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 in 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. |
Subsidiares are consolidated in the group's financial statements from the date that control commences until the date that control ceases. |
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, as treated as associates. |
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group's share of the net assists of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill. |
If the group's share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate. |
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group's interest in the entity. |
Critical accounting judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires management to make significant judgements and estimates. The areas in the financial statements where these judgements and estimates have been made include: |
- Useful economic life of tangible fixed assets. |
- Estimate of provisions. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is represented by the fair value of consideration received or receivable, net of credits or any applicable discounts and excluding value added tax. Turnover can be measured accurately and reliably from the services provided by the Group and is recognised once the service has been provided or the goods supplied and once it is certain that the Group will receive the consideration under the transaction. |
Turnover is generated from the Group's activities performed during the financial year in the following categories:- |
- Agency and vessel management services. |
- Marine fuels and supplies. |
- Vessel discharge & cargo handling. |
- Logistics and supply chain management |
- Warehousing, storage and distribution |
Tangible fixed assets |
Tangible fixed assets are measured at cost less depreciation. Cost is recognised at the consideration given to acquire the asset. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter: |
Freehold property | - | 1% on cost |
Leasehold property | - | Remainder of lease period |
Plant and machinery | - | 25% on cost, and 20% on cost |
Fixtures and fittings | - | 25% on cost |
Motor vehicles | - | 25% on cost |
Financial instruments |
The company has elected to apply the provisions of Section 11 "Basic Financial instruments" and Section 12 "Other Financial Issues" of FRS 102 to all of it's financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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. |
Recognition of financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
Impairment of financial assets |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Fixed asset investments |
Fixed asset investments are stated at cost less amounts written off. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Foreign currency translation |
The company's functional and presentational currency is sterling (£). |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the date of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. |
3. | TURNOVER |
The turnover and profit before taxation is attributable to the principal activities of the company and of the group. The directors are of the opinion that approximately one half of the group revenue arises from trade with customers situated outside of the United Kingdom but regret that an accurate analysis of income in this way would be impractical in the circumstances. In view of the way in which all main group activities are inter-related an analysis of turnover and profit by operating or geographical division would be of assistance to the group's competitors. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 1,499,114 | 1,290,749 |
Social security costs | 153,109 | 137,754 |
Other pension costs | 339,096 | 89,216 |
1,991,319 | 1,517,719 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Administration and cargo handling |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration | 186,046 | 198,764 |
Directors' pension contributions to money purchase schemes | 50,673 | 37,108 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Hire and maintenance | 108,868 | 92,616 |
Depreciation - owned assets | 91,113 | 64,932 |
Depreciation - assets on hire purchase contracts | - | 34,250 |
Loss on disposal of fixed assets | 110,040 | 17,846 |
Auditors' remuneration | 20,600 | 19,900 |
Foreign exchange differences | (23,058 | ) | (107,679 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank interest | (679 | ) | 11,934 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 272,751 | 100,292 |
Under/over provision | (23,440 | ) | (63,111 | ) |
Total current tax | 249,311 | 37,181 |
Deferred tax | 21,608 | (32,464 | ) |
Tax on profit | 270,919 | 4,717 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax | 799,515 | 446,321 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
187,886 |
84,801 |
Effects of: |
Expenses not deductible for tax purposes | 5,389 | 3,365 |
Capital allowances in excess of depreciation | (11,293 | ) | - |
Depreciation in excess of capital allowances | - | 21,535 |
Utilisation of tax losses | - | (12,799 | ) |
Deferred tax | 21,608 | (32,465 | ) |
Loss on disposal of assets | 25,859 | 3,391 |
Over provision in prior year | (23,440 | ) | (63,111 | ) |
Capital items deducted | (5,114 | ) | - |
Balancing charge | 70,024 | - |
Total tax charge | 270,919 | 4,717 |
Tax effects relating to effects of other comprehensive income |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Total Comprehensive income |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of 1 each |
Final | 265,000 | 180,000 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 864,668 | 692,126 | 545,319 | 13,990 | 2,116,103 |
Additions | 21,760 | 35,339 | 80,163 | 19,998 | 157,260 |
Disposals | - | (297,974 | ) | - | - | (297,974 | ) |
At 31 December 2023 | 886,428 | 429,491 | 625,482 | 33,988 | 1,975,389 |
DEPRECIATION |
At 1 January 2023 | 169,023 | 259,055 | 451,372 | 12,225 | 891,675 |
Charge for year | 16,752 | 30,503 | 39,358 | 4,500 | 91,113 |
At 31 December 2023 | 185,775 | 289,558 | 490,730 | 16,725 | 982,788 |
NET BOOK VALUE |
At 31 December 2023 | 700,653 | 139,933 | 134,752 | 17,263 | 992,601 |
At 31 December 2022 | 695,645 | 433,071 | 93,947 | 1,765 | 1,224,428 |
Freehold property is included under the revaluation model. The original cost of freehold property is £343,000. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 198,500 |
DEPRECIATION |
At 1 January 2023 |
and 31 December 2023 | 137,000 |
NET BOOK VALUE |
At 31 December 2023 | 61,500 |
At 31 December 2022 | 61,500 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 26/30 South Road, Weston Point, Runcorn, Cheshire, WA7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Registered office: 26/30 South Road, Weston Point, Runcorn, Cheshire, WA7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Registered office: 26/30 South Road, Weston Point, Runcorn, Cheshire, WA7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: 26/30 South Road, Weston Point, Runcorn, Cheshire, WA7 4EZ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 2,681,420 | 3,163,301 |
Other debtors | 46,216 | 64,161 |
Prepayments and accrued income | 217,640 | 165,036 |
2,945,276 | 3,392,498 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | - | 2,639 |
Hire purchase contracts (see note 16) | - | 10,325 |
Trade creditors | 3,297,933 | 4,738,510 |
Amounts owed to group undertakings | - | - |
Tax | 272,751 | 100,292 |
Social security and other taxes | 40,311 | 40,623 |
Other creditors | 7,765 | 5,107 |
Accrued expenses | 786,286 | 354,110 |
4,405,046 | 5,251,606 |
Amounts owed to group undertakings are repayable on demand and attract no interest. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Company |
31.12.23 | 31.12.22 |
£ | £ |
Dormant subsidiaries | 95 | 152,826 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 2,639 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year | - | 10,325 |
Company |
Hire purchase contracts |
31.12.23 | 31.12.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Group |
Non-cancellable |
operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year | 537,962 | 367,444 |
Between one and five years | 928,092 | 398,977 |
1,466,054 | 766,421 |
Company |
Non-cancellable |
operating leases |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
Hire purchase | - | 10,325 |
The above element of the bank loan outstanding at the year end relates to funds received from Barclays for the specific purpose of asset purchase has been secured via a chattel mortgage in a form acceptable to the Bank with respect to certain plant, machinery and/or motor vehicles as may be notified by the Bank to the Borrower prior to drawdown of the loan. |
The hire purchase liability is secured against the assets to which they relate. |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Deferred tax | 149,407 | 127,799 | 149,407 | 127,799 |
Group |
Deferred tax |
£ |
Balance at 1 January 2023 | 127,799 |
Provided during year | 21,608 |
Profit and loss account |
Balance at 31 December 2023 | 149,407 |
Company |
Deferred tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Profit and loss account |
Balance at 31 December 2023 |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | CALLED UP SHARE CAPITAL |
2023 | 2022 |
Shares classified as equity | £ | £ |
Allotted, called up and fully paid |
4,996 (2021: 4,996) Ordinary shares of £1 each | 4,995 | 4,996 |
1 (2021: 1) A Ordinary shares of £1 each | 1 | 1 |
1 (2021: 1) B Ordinary shares of £1 each | 1 | 1 |
1 (2021: 1) C Ordinary shares of £1 each | 1 | 1 |
1 (2021: 1) D Ordinary shares of £1 each | 1 | 1 |
1 (2021: 1) E Ordinary shares of £1 each | 1 | - |
5,000 | 5,000 |
Called up share capital - Represents the nominal value of shares that have been issued. |
20. | RESERVES |
Group |
Retained | Revaluation | Other |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 3,636,888 | 473,040 | 8,377 | 4,118,305 |
Profit for the year | 528,596 | 528,596 |
Dividends | (265,000 | ) | (265,000 | ) |
At 31 December 2023 | 3,900,484 | 473,040 | 8,377 | 4,381,901 |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 2,255,534 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 4,493,004 |
Revaluation reserve |
Includes the revaluation of freehold property. |
Other reserves |
The other reserve arose on the acquisition of 50% of the shares in North West Stevedores Limited on 12th July 1990, followed by 100% share capital of Mersey Bunkering Limited on 2nd January 1992 and the remaining 50% share capital of Widnes Steel Storage Limited on 20th October 1992. |
Profit and loss account |
Includes all current and prior period retained profits and losses. |
21. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The charge for the period amounted to £339,096 (2022 £89,217). |
Frank Armitt & Son Limited (Registered number: 00745573) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption from disclosure of transactions between wholly-owned group entities. |
23. | ULTIMATE CONTROLLING PARTY |
The controlling party is Mrs P Seedhouse. |