Caseware UK (AP4) 2023.0.135 2023.0.135 33falsefalseNo description of principal activityfalse2023-02-0137false 00196854 2023-02-01 2024-01-31 00196854 2022-02-01 2023-01-31 00196854 2024-01-31 00196854 2023-01-31 00196854 2022-02-01 00196854 1 2023-02-01 2024-01-31 00196854 1 2022-02-01 2023-01-31 00196854 2 2023-02-01 2024-01-31 00196854 2 2022-02-01 2023-01-31 00196854 4 2023-02-01 2024-01-31 00196854 4 2022-02-01 2023-01-31 00196854 5 2023-02-01 2024-01-31 00196854 5 2022-02-01 2023-01-31 00196854 d:CompanySecretary1 2023-02-01 2024-01-31 00196854 d:Director1 2023-02-01 2024-01-31 00196854 d:Director1 2024-01-31 00196854 d:Director2 2023-02-01 2024-01-31 00196854 d:Director3 2023-02-01 2024-01-31 00196854 d:RegisteredOffice 2023-02-01 2024-01-31 00196854 d:Agent1 2023-02-01 2024-01-31 00196854 e:Buildings 2023-02-01 2024-01-31 00196854 e:Buildings 2024-01-31 00196854 e:Buildings 2023-01-31 00196854 e:Buildings e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 00196854 e:Buildings e:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 00196854 e:PlantMachinery 2023-02-01 2024-01-31 00196854 e:PlantMachinery 2024-01-31 00196854 e:PlantMachinery 2023-01-31 00196854 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 00196854 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 00196854 e:MotorVehicles 2023-02-01 2024-01-31 00196854 e:MotorVehicles 2024-01-31 00196854 e:MotorVehicles 2023-01-31 00196854 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 00196854 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 00196854 e:OfficeEquipment 2023-02-01 2024-01-31 00196854 e:OfficeEquipment 2024-01-31 00196854 e:OfficeEquipment 2023-01-31 00196854 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 00196854 e:OfficeEquipment e:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 00196854 e:OwnedOrFreeholdAssets 2023-02-01 2024-01-31 00196854 e:LeasedAssetsHeldAsLessee 2023-02-01 2024-01-31 00196854 e:CurrentFinancialInstruments 2024-01-31 00196854 e:CurrentFinancialInstruments 2023-01-31 00196854 e:Non-currentFinancialInstruments 2024-01-31 00196854 e:Non-currentFinancialInstruments 2023-01-31 00196854 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 00196854 e:CurrentFinancialInstruments e:WithinOneYear 2023-01-31 00196854 e:Non-currentFinancialInstruments e:AfterOneYear 2024-01-31 00196854 e:Non-currentFinancialInstruments e:AfterOneYear 2023-01-31 00196854 e:UKTax 2023-02-01 2024-01-31 00196854 e:UKTax 2022-02-01 2023-01-31 00196854 e:ShareCapital 2024-01-31 00196854 e:ShareCapital 2023-01-31 00196854 e:ShareCapital 2022-02-01 00196854 e:SharePremium 2023-02-01 2024-01-31 00196854 e:SharePremium 2024-01-31 00196854 e:SharePremium 2023-01-31 00196854 e:SharePremium 2022-02-01 00196854 e:CapitalRedemptionReserve 2023-02-01 2024-01-31 00196854 e:CapitalRedemptionReserve 2024-01-31 00196854 e:CapitalRedemptionReserve 2022-02-01 2023-01-31 00196854 e:CapitalRedemptionReserve 2023-01-31 00196854 e:CapitalRedemptionReserve 2022-02-01 00196854 e:RevaluationReserve 2023-02-01 2024-01-31 00196854 e:RevaluationReserve 2024-01-31 00196854 e:RevaluationReserve 2022-02-01 2023-01-31 00196854 e:RevaluationReserve 2023-01-31 00196854 e:RevaluationReserve 2022-02-01 00196854 e:RevaluationReserve 5 2022-02-01 2023-01-31 00196854 e:RetainedEarningsAccumulatedLosses 2023-02-01 2024-01-31 00196854 e:RetainedEarningsAccumulatedLosses 2024-01-31 00196854 e:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 00196854 e:RetainedEarningsAccumulatedLosses 2023-01-31 00196854 e:RetainedEarningsAccumulatedLosses 2022-02-01 00196854 e:AcceleratedTaxDepreciationDeferredTax 2024-01-31 00196854 e:AcceleratedTaxDepreciationDeferredTax 2023-01-31 00196854 e:OtherDeferredTax 2024-01-31 00196854 e:OtherDeferredTax 2023-01-31 00196854 d:OrdinaryShareClass1 2023-02-01 2024-01-31 00196854 d:OrdinaryShareClass1 2024-01-31 00196854 d:OrdinaryShareClass1 2023-01-31 00196854 d:FRS102 2023-02-01 2024-01-31 00196854 d:Audited 2023-02-01 2024-01-31 00196854 d:FullAccounts 2023-02-01 2024-01-31 00196854 d:PrivateLimitedCompanyLtd 2023-02-01 2024-01-31 00196854 e:WithinOneYear 2024-01-31 00196854 e:WithinOneYear 2023-01-31 00196854 e:BetweenOneFiveYears 2024-01-31 00196854 e:BetweenOneFiveYears 2023-01-31 00196854 e:HirePurchaseContracts e:WithinOneYear 2024-01-31 00196854 e:HirePurchaseContracts e:WithinOneYear 2023-01-31 00196854 e:HirePurchaseContracts e:BetweenOneFiveYears 2024-01-31 00196854 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-01-31 00196854 2 2023-02-01 2024-01-31 00196854 5 2023-02-01 2024-01-31 00196854 6 2023-02-01 2024-01-31 00196854 7 2023-02-01 2024-01-31 00196854 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2024-01-31 00196854 e:PlantMachinery e:LeasedAssetsHeldAsLessee 2023-01-31 00196854 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2024-01-31 00196854 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2023-01-31 00196854 e:LeasedAssetsHeldAsLessee 2024-01-31 00196854 e:LeasedAssetsHeldAsLessee 2023-01-31 00196854 2 2024-01-31 00196854 2 2023-01-31 00196854 f:PoundSterling 2023-02-01 2024-01-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: 00196854










F.M. BIRCH LIMITED
Annual report and financial statements
For the year ended 31 January 2024

 
F.M. BIRCH LIMITED
 

Company Information


Directors
J R Shirtcliffe (resigned 9 September 2023)
J M Shirtcliffe 
G I Hershaw 




Company secretary
S L Shirtcliffe



Registered number
00196854



Registered office
318 Coleford Road
Darnall

Sheffield

S9 5PH




Independent auditors
J S Bethell & Co
Chartered Accountants & Registered Auditor

70 Clarkehouse Road

Sheffield

S10 2LJ




Bankers
National Westminster Bank plc
42 High Street

Sheffield

S1 2GE





 
F.M. BIRCH LIMITED
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Analysis of net debt
14
Notes to the financial statements
15 - 28

 
F.M. BIRCH LIMITED
 

Strategic report
For the year ended 31 January 2024

Introduction
 
The directors present their strategic report for the year ended 31 January 2024.

Business review
 
F M Birch Limited specialises in the wholesale distribution of floorcoverings such as carpets, carpet tiles, matting, decorative vinyls, safety flooring, laminates, underlays and associated accessories, to trade customers.
Our principal customer base is in Yorkshire and the bordering counties and is serviced from our three trade counter locations in Sheffield (HQ), Hull & Leeds. We supply to several national projects and framework agreements through a well-established logistics network.
During the year the company delivered a solid financial performance, despite the unsettled economic climate caused by the ongoing war in Ukraine, which then led to the energy crisis and spiralling raw material costs.
Given the circumstances, the yearend financial position was satisfactory, with the company achieving its highest turnover figure to date. 
That said, growth in turnover was bolstered by unprecedented levels of supply side inflation, and margin was diminished by pressure on margins as competitors sought to maintain market share in a depressed market, underpinned by an economy that fell into technical recession towards the calendar year end.
International shipping costs, though stabilised, remained high for much of the period which rendered some product lines uncompetitive. Q4 saw some normalisation of these rates which allowed us to bring some imported products back on stream.
The potential ill effects of the cost of living crisis on household spending, were mitigated to a degree by the energy bill support scheme but we still saw a fall in demand for our retail product lines. This was offset by increased demand from the construction industry for flooring materials for new build and refurbishment projects throughout the year.
The company continues to explore opportunities for increased bulk purchasing, as a way of mitigating inflationary pressures and maintaining a competitive edge. The development of own brand and exclusive product lines will continue to be central to our strategy, to shelter us from increasing price pressure on generic and universal brands.

Principal risks and uncertainties
 
Although predictions for the UK recession seem to have receded, it looks likely that growth for our business will need to come from new product lines and improving our service levels and overall competitiveness.
Overwhelming geopolitical volatility, including ongoing conflicts in the Middle East and Europe, and looming elections worldwide suggests the challenges of this year will offset the likely benefits in any growth in GDP and consumer demand.
Whilst some of the volatility of raw material prices has diminished, and shipping rates have reverted to lower norms, inflationary pressure have continued to be present which will continue to supress demand in some sectors, such as retail, for the remainder of this year.
Competitive flux within our marketplace continues, driven by consolidation and significant new entrants. There is particular focus on distribution into retail which, because of the reduction in household spending, is likely to mean continuing price pressure at the lower end of the value scale. Growth in activity in general construction and house building has been inconsistent and was only at levels which backfilled diminished demand from households.

Page 1

 
F.M. BIRCH LIMITED
 

Strategic report (continued)
For the year ended 31 January 2024

Financial key performance indicators
 
Turnover for the year was up by just 1%, and gross margin and operating profit were adversely affected by competitive pressure and an increased cost base.
The current ratio is 3.7 which is positive, and the bank balance has increase by £217K.  
The Stock has increased by £359K driven by bulk buying on exclusive lines, but we have continued our practice of making full provision for the disposal of slow moving and obsolete product lines.
Current working capital is £4.3m.

Other key performance indicators
 
We continue to focus on the ESG profile of the business. 
It is our intention for the coming year to derive all our gas and electricity requirements from renewable resources, and we have an ongoing commitment to reduce the reliance of our fleet on fossil fuels. To this end we’ve completed the installation of four EV chargers as well as developing a project for the installation of solar panels at our freehold sites.
We continue to maintain accreditation for both ISO 9001:2015 and ISO 14001:2015 and have appointed a project team to continue to challenge and improve on current performance on resource consumption and environmental best practice.


This report was approved by the board on 27 September 2024 and signed on its behalf.



J M Shirtcliffe
Director
Page 2

 
F.M. BIRCH LIMITED
 

 
Directors' report
For the year ended 31 January 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £640,680 (2023 -£932,219).

No final dividend is proposed.

Directors

The directors who served during the year were:

J R Shirtcliffe (resigned 9 September 2023)
J M Shirtcliffe 
G I Hershaw 

Matters covered in the Strategic report

Certain matters required by regulation to be dealt with in the annual report have been dealt with in the strategic report rather than the Directors' report.  These include future developments.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
F.M. BIRCH LIMITED
 

 
Directors' report (continued)
For the year ended 31 January 2024

Auditors

The auditorsJ S Bethell & Cowill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 September 2024 and signed on its behalf.
 





J M Shirtcliffe
Director

Page 4

 
F.M. BIRCH LIMITED
 

 
Independent auditors' report to the members of F.M. Birch Limited
 

Opinion


We have audited the financial statements of F.M. Birch Limited (the 'Company') for the year ended 31 January 2024, which comprise the Profit and loss account, the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 January 2024 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
F.M. BIRCH LIMITED
 

 
Independent auditors' report to the members of F.M. Birch Limited (continued)


Opinion 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 Directors' responsibilities statement set out on page 3, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
F.M. BIRCH LIMITED
 

 
Independent auditors' report to the members of F.M. Birch Limited (continued)


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 an Auditors' 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of such regulations, including fraud.  
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including but not limited to, the Companies Act 2006 and UK tax legislation and we considered the extent to which non-compliance might have a material effect on the financial statements.  
We evaluated whether there was evidence of management override of internal controls and bias by the directors in determining accounting estimates that represented a risk of material misstatement due to fraud.
Audit procedures performed by the engagement team included, discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations, challenging assumptions and judgments made by management in their significant accounting estimates, identifying and testing journal entries and review of the nominal ledger and reviewing the financial statement disclosures and agreeing to underlying supporting documentation.
We have considered the risk of fraud in revenue and have carried out audit procedures to ensure that revenue is being recognised in accordance with appropriate accounting standards and therefore not materially misstated.


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.


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 Auditors' report.


Page 7

 
F.M. BIRCH LIMITED
 

 
Independent auditors' report to the members of F.M. Birch Limited (continued)


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 2006Our 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 Auditors' 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.







Wayne Smith FCA CTA (Senior statutory auditor)
  
for and on behalf of
J S Bethell & Co
 
Chartered Accountants
Registered Auditor
  
70 Clarkehouse Road
Sheffield
S10 2LJ

 
Date: 
27 September 2024
Page 8

 
F.M. BIRCH LIMITED
 

Profit and loss account
For the year ended 31 January 2024

As restated
2024
2023
Note
£
£

  

Turnover
 4 
14,039,766
13,893,071

Cost of sales
  
(10,584,408)
(10,263,812)

Gross profit
  
3,455,358
3,629,259

Distribution costs
  
(805,154)
(775,125)

Administrative expenses
  
(1,791,084)
(1,660,014)

Operating profit
 5 
859,120
1,194,120

Interest receivable and similar income
 9 
13,194
1,611

Interest payable and similar expenses
 10 
(12,896)
(8,180)

Profit before tax
  
859,418
1,187,551

Tax on profit
 11 
(218,738)
(255,332)

Profit for the financial year
  
640,680
932,219

The notes on pages 15 to 28 form part of these financial statements.

Page 9

 
F.M. BIRCH LIMITED
 

Statement of comprehensive income
For the year ended 31 January 2024

2024
2023
Note
£
£


Profit for the financial year

  

640,680
932,219

Other comprehensive income
  


Unrealised surplus on revaluation of tangible fixed assets
  
-
622,400

Movement on deferred tax relating to revaluation of tangible fixed assets
  
-
(133,916)

Other comprehensive income for the year
  
-
488,484

Total comprehensive income for the year
  
640,680
1,420,703

The notes on pages 15 to 28 form part of these financial statements.

Page 10

 
F.M. BIRCH LIMITED
Registered number: 00196854

Balance sheet
As at 31 January 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,681,630
2,479,798

Investments
 14 
8,673
-

  
2,690,303
2,479,798

Current assets
  

Stocks
 15 
2,391,797
2,032,540

Debtors: amounts falling due within one year
 16 
2,194,362
2,116,541

Cash at bank and in hand
 17 
1,372,821
1,155,583

  
5,958,980
5,304,664

Creditors: amounts falling due within one year
 18 
(1,612,877)
(1,312,740)

Net current assets
  
 
 
4,346,103
 
 
3,991,924

Total assets less current liabilities
  
7,036,406
6,471,722

Creditors: amounts falling due after more than one year
 19 
(218,928)
(153,244)

Provisions for liabilities
  

Deferred tax
 21 
(320,519)
(262,263)

  
 
 
(320,519)
 
 
(262,263)

Net assets
  
6,496,959
6,056,215


Capital and reserves
  

Called up share capital 
 22 
781
781

Share premium account
 23 
164,922
164,922

Revaluation reserve
 23 
1,286,048
1,300,508

Capital redemption reserve
 23 
78
78

Profit and loss account
 23 
5,045,130
4,589,926

  
6,496,959
6,056,215


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 September 2024.




J M Shirtcliffe
G I Hershaw
Director
Director

The notes on pages 15 to 28 form part of these financial statements.

Page 11
 

 
F.M. BIRCH LIMITED


 

Statement of changes in equity
For the year ended 31 January 2024



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 February 2022
781
164,922
78
823,685
3,746,014
4,735,480





Profit for the year
-
-
-
-
932,219
932,219


Surplus on revaluation of freehold property
-
-
-
488,484
-
488,484


Dividends: Equity capital
-
-
-
-
(99,968)
(99,968)


Transfer to/from profit and loss account
-
-
-
(11,661)
11,661
-





At 1 February 2023
781
164,922
78
1,300,508
4,589,926
6,056,215





Profit for the year
-
-
-
-
640,680
640,680


Dividends: Equity capital
-
-
-
-
(199,936)
(199,936)


Transfer to/from profit and loss account
-
-
-
(14,460)
14,460
-



At 31 January 2024
781
164,922
78
1,286,048
5,045,130
6,496,959



The notes on pages 15 to 28 form part of these financial statements.

Page 12
 
F.M. BIRCH LIMITED
 

Statement of cash flows
For the year ended 31 January 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
859,120
1,194,120

Adjustments for:

Depreciation of tangible assets
182,900
132,836

Loss on disposal of tangible assets
(26,331)
(185)

(Increase)/decrease in stocks
(359,257)
58,665

(Increase) in debtors
(77,821)
(539,241)

Increase in creditors
295,632
83,243

Corporation tax (paid)
(195,450)
(128,752)

Foreign exchange
-
2,635

Net cash generated from operating activities

678,793
803,321


Cash flows from investing activities

Purchase of tangible fixed assets
(213,680)
(162,608)

Sale of tangible fixed assets
44,340
46,750

Purchase of unlisted and other investments
(8,673)
-

Interest received
13,194
1,611

HP interest paid
(12,894)
(8,180)

Net cash from investing activities

(177,713)
(122,427)

Cash flows from financing activities

Repayment of finance leases
(83,906)
(68,976)

Dividends paid
(199,936)
(99,968)

Net cash used in financing activities
(283,842)
(168,944)

Net increase in cash and cash equivalents
217,238
511,950

Cash and cash equivalents at beginning of year
1,155,583
646,268

Foreign exchange gains and losses
-
(2,635)

Cash and cash equivalents at the end of year
1,372,821
1,155,583


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,372,821
1,155,583

1,372,821
1,155,583


The notes on pages 15 to 28 form part of these financial statements.

Page 13

 
F.M. BIRCH LIMITED
 

Analysis of Net Debt
For the year ended 31 January 2024





At 1 February 2023
Cash flows
New finance leases
At 31 January 2024
£

£

£

£

Cash at bank and in hand

1,155,583

217,238

-

1,372,821

Finance leases

(222,120)

83,907

(189,064)

(327,277)


933,463
301,145
(189,064)
1,045,544

The notes on pages 15 to 28 form part of these financial statements.

Page 14

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

1.


General information

F M Birch Limited is a private company limited by shares incorporated in England within the United Kingdom. The company's registered office and principal place of business is 318 Coleford Road, Darnall, Sheffield, S9 5PH.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.3

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.  This is usually on dispatch of goods.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 15

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods.  It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods.  It is recognised in respect of all timing differences, with certain exceptions.  Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements.  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.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.  Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Fixtures and equipment
-
10%
Motor vehicles
-
20%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 16

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

2.Accounting policies (continued)

 
2.10

Revaluation of tangible fixed assets

Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value.  Cost is based on the cost of purchase on a weighted average basis.
At each balance sheet date, stocks are assessed for impairment and obsolescence. If stock is impaired or obsolete, the carrying amount is reduced to its selling price less costs to sell. The loss is recognised immediately in profit or loss

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts (if any) that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

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.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 17

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

2.Accounting policies (continued)

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

  
2.19

Invoice discounting

The company has financing agreements whereby certain of their debts are subject to an invoice discounting agreement on a recourse basis.  The terms of the agreement are such that, prior to payment, an advance may be made by the financing company against those debts.  The trade debtor balances do not qualify for derecognition on the basis that the company carries the recourse risk of the bad debt.  Amounts received in respect of debtors which have been financed have been included within creditors.   

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of these financial statements require the directors to make judgments, estimates and assumptions that effect the application of policies and reported amounts of assets, liabilities, revenue and expenses.
Judgments and estimates are continually evaluated and are based on past experience and expectations of future events. Actual results may vary from these estimates. 
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
- Freehold properties are carried at their revalued amount and are professionally valued using open market values. With all valuations there is an inevitable degree of estimation uncertainty involved.
- Stock has been written down in respect of those items for which net realisable value has been assessed by the directors to be lower than cost.


4.


Turnover

The whole of the turnover is attributable to the sale of flooring products.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
2,681
2,241

Operating lease rentals
131,357
119,141


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
11,000
11,000
Page 19

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,347,477
1,211,809

Social security costs
125,658
109,868

Cost of defined contribution scheme
45,557
117,066

1,518,692
1,438,743


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
3
3



Selling and distribution
15
13



Administration
19
17

37
33


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
319,511
254,205

Company contributions to defined contribution pension schemes
4,355
81,245

323,866
335,450


During the year retirement benefits were accruing to 1 director (2023 -1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £105,845 (2023 -£78,756).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,355 (2023 -£81,245).


9.


Interest receivable

2024
2023
£
£


Other interest receivable
13,194
1,611

13,194
1,611

Page 20

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
12,896
8,180

12,896
8,180


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
159,050
194,018

Adjustments in respect of previous periods
1,432
-


160,482
194,018


Total current tax
160,482
194,018

Deferred tax


Origination and reversal of timing differences
58,256
41,062

Changes to tax rates
-
20,252

Total deferred tax
58,256
61,314


Taxation on profit on ordinary activities
218,738
255,332
Page 21

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -higher than) the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
859,418
1,187,551


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -19%)
214,854
225,635

Effects of:


Expenses not deductible for tax purposes
4,465
2,811

Capital allowances for year in excess of depreciation
(47,268)
(10,589)

Adjustment in respect of previous periods
1,432
3,478

Effect of changes of tax rate on deferred tax opening position
-
20,252

Other timing differences leading to an increase (decrease) in taxation
58,255
41,062

Other differences leading to an increase (decrease) in the tax charge
(13,000)
(27,317)

Total tax charge for the year
218,738
255,332


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Ordinary £1 shares
199,936
99,968

199,936
99,968

Page 22

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2023
1,992,000
449,822
601,609
89,388
3,132,819


Additions
-
67,613
331,511
3,620
402,744


Disposals
-
-
(138,238)
(43,681)
(181,919)



At 31 January 2024

1,992,000
517,435
794,882
49,327
3,353,644



Depreciation


At 1 February 2023
20,468
304,496
263,520
64,539
653,023


Charge for the year on owned assets
30,800
26,674
20,105
15,832
93,411


Charge for the year on financed assets
-
3,960
85,530
-
89,490


Disposals
-
-
(120,659)
(43,251)
(163,910)



At 31 January 2024

51,268
335,130
248,496
37,120
672,014



Net book value



At 31 January 2024
1,940,732
182,305
546,386
12,207
2,681,630



At 31 January 2023
1,971,532
145,326
338,090
24,850
2,479,798

Page 23

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

           13.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Fixtures and equipment
27,716
39,626

Motor vehicles
468,350
242,819

496,066
282,445

Cost or valuation at 31 January 2024 is as follows:

Land and buildings
£


At cost
817,008
At valuation:

The freehold land and buildings have been revalued by Stanifords Limited, Chartered Surveyors on 31 May 2022 on an open market basis. This valuation has been included within the financial statements.  
1,174,992



1,992,000

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
817,008
817,008

Accumulated depreciation
(413,860)
(397,520)

Net book value
403,148
419,488

Page 24

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

14.


Fixed asset investments





Unlisted investments

£



Cost or valuation


Additions
8,673



At 31 January 2024
8,673






Net book value



At 31 January 2024
8,673



At 31 January 2023
-


15.


Stocks

2024
2023
£
£

Carpets and flooring products
2,391,797
2,032,540

2,391,797
2,032,540



16.


Debtors

2024
2023
£
£


Trade debtors
2,077,364
2,026,737

Prepayments and accrued income
116,998
89,804

2,194,362
2,116,541



17.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,372,821
1,155,583

1,372,821
1,155,583


Page 25

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

18.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
976,479
729,869

Corporation tax
159,050
194,018

Other taxation and social security
192,877
157,449

Obligations under finance lease and hire purchase contracts
108,349
68,876

Accruals and deferred income
176,122
162,528

1,612,877
1,312,740



19.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Net obligations under finance leases and hire purchase contracts
218,928
153,244

218,928
153,244


Secured loans
The finance leases and hire purchase contracts of £325,665 (2023 £222,120) are in part secured against the asset financed.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
108,349
68,876

Between 1-5 years
217,316
153,244

325,665
222,120

Page 26

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

21.


Deferred taxation




2024
2023


£

£






At beginning of year
262,263
67,033


Charged to profit or loss
58,256
61,314


Charged to other comprehensive income
-
133,916



At end of year
320,519
262,263

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
183,702
125,446

On revaluation of freehold property
136,817
136,817

320,519
262,263


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



781 (2023 -781) Ordinary shares of £1 each
781
781



23.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs.

Revaluation reserve

The revaluation reserve of relates to the cumulative effect of revaluations of the freehold land and buildings net of depreciation charges transferred to the profit and loss account and deferred tax.

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve into which amounts were transferred following the purchase of the company's own shares out of distributable profits.

Profit and loss account

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

Page 27

 
F.M. BIRCH LIMITED
 

 
Notes to the financial statements
For the year ended 31 January 2024

24.


Prior year adjustment

Certain expenses have been recategorized as administration expenses rather than cost of sales and the comparative figures in the profit and loss amended to reflect this change.  The directors consider this recategorization to give a true and fair view.  The change has had no effect of results for the year or the reserves brought forwards.


25.


Pension commitments

The company operates defined contributions pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the fund and amounted to £45,557 (2023 - £117,066). Contributions totalling £9,132 (2023 - £34,667) were payable to the fund at the balance sheet date


26.


Commitments under operating leases

At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
51,366
117,309

Later than 1 year and not later than 5 years
18,475
67,968

69,841
185,277


27.


Related party transactions

The company has a premises operating lease with The Shirtcliffe Trust, a pension fund of which certain directors are members. The rents paid during the year amounted to £42,400 (2023 - £42,400).
Dividends paid to directors amount to £199,936 
(2023 - £99,968)


28.


Controlling party

The company is controlled by the Estate of J R Shirtcliffe deceased by virtue of it's majority shareholding.

Page 28