REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
FOR |
FORGING FORWARD LIMITED |
REGISTERED NUMBER: |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
FOR |
FORGING FORWARD LIMITED |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Balance Sheet | 9 |
Notes to the Financial Statements | 10 |
FORGING FORWARD LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
The Old Carriage Works |
Moresk Road |
Truro |
Cornwall |
TR1 1DG |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
The directors present their report with the financial statements of the company for the period 1 January 2023 to 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of Other letting and operating of own or leased real estate |
DIRECTORS |
The directors who have held office during the period from 1 January 2023 to the date of this report are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing 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 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company 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 company'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 company's auditors are aware of that information. |
AUDITORS |
The auditors, TC Group, having been appointed on 30 November 2023, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORGING FORWARD LIMITED |
Opinion |
We have audited the financial statements of Forging Forward Limited (the 'company') for the period ended 30 June 2024 which comprise the Income Statement, Balance Sheet and 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 company's affairs as at 30 June 2024 and of its loss for the period 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 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. |
Other matter |
The financial statements for the company for the year ended 31 December 2022 were not audited as the company met the requirements for an audit for the first time for the period ended 30 June 2024. |
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 directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORGING FORWARD LIMITED |
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 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, 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; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORGING FORWARD 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. |
Our approach was as follows: |
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations; |
- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK; |
- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration; |
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; |
- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. |
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities 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 |
FORGING FORWARD 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 |
Statutory Auditors |
The Old Carriage Works |
Moresk Road |
Truro |
Cornwall |
TR1 1DG |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
INCOME STATEMENT |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
Period |
1/1/23 |
to | Year Ended |
30/6/24 | 31/12/22 |
Notes | £ | £ |
TURNOVER |
Administrative expenses | ( |
) | ( |
) |
(70,813 | ) | (2,446 | ) |
Other operating income |
OPERATING PROFIT |
Loss on disposal of |
investments | 5 | ( |
) |
(2,070,520 | ) | 374,913 |
Income from shares in group undertakings |
Interest receivable and similar income |
(1,856,211 | ) | 606,556 |
Gain/(loss) on revaluation of |
assets | 1,227,362 | (1,390,090 | ) |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 6 | ( |
) |
LOSS FOR THE FINANCIAL PERIOD | ( |
) | ( |
) |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
BALANCE SHEET |
30 JUNE 2024 |
2024 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investments | 8 |
Investment property | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Revaluation reserve | 14 |
Fair value reserve | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Forging Forward Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The figures in the accounts are rounded to the nearest £1. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The activities of the group as a whole together with the factors likely to affect its future development, performance and financial position are set out in the parent company's Strategic Report. The company has net assets of £5.09m at the balance sheet date. The company is exposed to various operational risks, however management has prepared detailed forecasts for 12 months from the date of signing the accounts, and having considered the assumptions and conclusions made by management, and the availability of financial resources, the directors have a reasonable expectation that the company and group has adequate resources to continue in operational existence for the foreseeable future, and as a minimum for a period of at least 12 months from the date of approval of these financial statements. |
Change of year end |
The period covered by the accounts is the 18 month period to 30 June 2024. The company changed its period end in order to align with that of its new parent company as of 30 November 2023. The comparative figures cover the year to 31 December 2022 and therefore cover a shorter period than the current figures |
Critical accounting judgements and key sources of estimation uncertainty |
Key sources of estimation uncertainty |
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Valuation of freehold and investment property |
Property is included in the accounts at a valuation determined annually by the directors or professional valuers as may be appropriate. The valuation of property is based on observable market prices, adjusted as necessary for any difference in the nature, location or condition of the specific asset. Such valuations are subjective and prone to changes in the market and other economic factors. |
Useful economic life of tangible fixed assets |
The Company makes an estimate for the useful economic life of tangible fixed assets taking into account the age, condition, residual value and the expectations for the usage of each class of asset and applies a policy to charge depreciation on a systematic basis over that assessment of useful life, taking into account any impairment that has been identified. |
Critical judgments |
The directors do not believe there are any critical judgments that have been made in applying the company's accounting policies. |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue arises from rental income and charges made to fellow subsidiary companies for shared services and this income is recognised on a receivable basis. |
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 and receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Exceptional items |
Items of a non recurring nature are separately identified in the income statement within exceptional items. Further information can be found within the notes to the financial statements. |
Tangible fixed assets |
Depreciation is provided at the following 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. |
Buildings | Freehold | - 2% on valuation less residual value |
Land | - not depreciated |
Leasehold | - Amortised over the lease term |
Plant and machinery etc | - at varying rates on cost |
Tangible fixed assets are reviewed annually for indicators of impairment and any impairment losses arising from the difference between the carrying amount and the recoverable amount are recognised in profit or loss for the period. |
Freehold property is valued periodically in order to identify any material changes in market value and any aggregate surplus or deficit arising from changes in valuation is recognised in the revaluation reserve. |
Property that is let to other group companies has been reclassified from investment property to tangible fixed assets, following the acquisition of the company by Cornwall Group Limited, to better reflect its use as trading premises within the group. Property that is let outside the group is classified as investment property. |
Investments in subsidiaries |
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
An equivalent amount is transferred from retained earnings to a fair value reserve, representing the amount of retained earnings that is not distributable. |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
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 period 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 |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Listed investments |
Listed investments are shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the profit and loss account and an equivalent amount is transferred from retained earnings to a fair value reserve, representing the amount of retained earnings that is not distributable. |
Employee benefits |
The costs of short-term benefits are recognised as a liability and an expense. the cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminated the employment of an employee or to provide termination benefits. |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments' to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include trade and other debtors and amounts owed to fellow group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, that the future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade, other creditors, bank loans, other loans and intercompany loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled. or they expire. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of the proceeds received net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
Period |
1/1/23 |
to | Year Ended |
30/6/24 | 31/12/22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | EXCEPTIONAL ITEMS |
Period |
1/1/23 |
to | Year Ended |
30/6/24 | 31/12/22 |
£ | £ |
Loss on disposal of |
investments | ( |
) |
The loss arises from the disposal of a portfolio of listed investments following the acquisition of the company by Cornwall Group Limited. This has been recognised as an exceptional item given its non recurring nature. The portfolio was transferred outside the group for an amount equal to the original cost of the shares acquired, resulting in a loss on disposal. |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the period was as follows: |
Period |
1/1/23 |
to | Year Ended |
30/6/24 | 31/12/22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on loss | ( |
) |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
7. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Disposals | ( |
) | ( |
) |
Revaluations |
Reclassification/transfer |
At 30 June 2024 |
DEPRECIATION |
At 1 January 2023 |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
Included in cost or valuation of land and buildings is freehold land of £ 341,217 which is not depreciated. |
Property that is let to other companies within the group has been reclassified from investment property to freehold property following the acquisition of the company by Cornwall Group Limited on 30 November 2023. Prior to this date, the property was not let to a group company. |
Cost or valuation at 30 June 2024 is represented by: |
Land and |
buildings |
£ |
Valuation in 2023 | 1,672,579 |
Valuation in 2024 | 892,171 |
Cost | 847,421 |
3,412,171 |
If freehold property had not been revalued they would have been included at the following historical cost: |
2024 | 2022 |
£ | £ |
Cost | 847,421 | - |
Aggregate depreciation | 1,780 | - |
Value of land in freehold land and buildings | 84,742 | - |
Freehold property were valued on an open market basis on 25 April 2023 by Sanderson Weatherall . |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
8. | FIXED ASSET INVESTMENTS |
Shares in |
group | Listed |
undertakings | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 8,486,661 |
Additions | 70,249 |
Disposals | ( |
) | ( |
) | (8,331,443 | ) |
Revaluations | ( |
) | (225,467 | ) |
At 30 June 2024 | - |
NET BOOK VALUE |
At 30 June 2024 | - |
At 31 December 2022 | 8,486,661 |
9. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
Revaluations | 1,452,829 |
Reclassification/transfer | (2,520,000 | ) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 31 December 2022 |
Property that is let to other companies within the group has been reclassified from investment property to freehold property following the acquisition of the company by Cornwall Group Limited on 30 November 2023. Prior to this date, the property was not let to a group company. |
Fair value at 30 June 2024 is represented by: |
£ |
Valuation in 2023 | 1,554,993 |
Valuation in 2024 | 107,829 |
Cost | 925,007 |
2,587,829 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2022 |
£ | £ |
Cost | 925,007 | 1,772,428 |
Investment property was valued on an open market basis on 25 April 2023 by Sanderson Weatherall . |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2022 |
£ | £ |
Tax |
Social security and other taxes |
VAT | 16,815 | 71,007 |
Accrued expenses |
12. | PROVISIONS FOR LIABILITIES |
2024 | 2022 |
£ | £ |
Deferred tax | 1,052,697 | 895,616 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Deferred tax on revaluation of |
freehold property | 223,043 |
Deferred tax on revaluation of |
investment property | (61,766 | ) |
Accelerated capital allowances | (4,196 | ) |
Balance at 30 June 2024 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2022 |
value: | £ | £ |
Ordinary | £0.12 | 5 | 25,000 | 25,000 |
FORGING FORWARD LIMITED (REGISTERED NUMBER: 00509259) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 30 JUNE 2024 |
14. | RESERVES |
Fair |
Retained | Revaluation | value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 15,991,418 |
Deficit for the period | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
Revaluations | - | 892,171 | 1,227,362 | 2,119,533 |
Reclassification | 1,378,368 | 1,254,434 | (1,254,434 | ) | 1,378,368 |
Disposal | - | - | (2,605,730 | ) | (2,605,730 | ) |
Deferred tax on revaluation | (61,766 | ) | (223,043 | ) | 61,766 | (223,043 | ) |
At 30 June 2024 | 5,061,936 |
15. | RELATED PARTY DISCLOSURES |
During the period the company received income of £167,375 (2022: £180,000) and leasing income of £98,827 (2022: £108,000) from Forward Glass Limited, a related company. |
On 30 November 2023, the shares previously owned by Weston Smith Holdings Limited, a company under the control of a former director and shareholder of this company, were sold to Cornwall Group Limited. Cornwall Group Limited became the ultimate parent company on that date. |
At the balance sheet date, the company was owed £nil (2022: £2,800,000) by Weston Smith Holdings Limited. The loan was unsecured and repayable on demand. |
From this date the company received income of £140,000 and sold Plant & Machinery with a NBV of £nil for £1 to Forward Glass Limited, a fellow subsidiary. |
Prior to the share transfer, dividends of £10,894,135 were declared to Weston Smith Holdings Limited. Included within this sum is an investment portfolio with a market value of £7,571,168 which was transferred at its original cost of £4,965,438, resulting in a loss on disposal of £2,605,730 which is included within exceptional items. |
The company considers its directors to be the key management personnel, and their remuneration is disclosed in the notes to the accounts. |
16. | ULTIMATE CONTROLLING PARTY |
The controlling party is Cornwall Group Limited. |
The ultimate controlling party is |
The registered office address of Cornwall Group Limited is Old Mansion House, 9 Quay Street, TRURO, Cornwall, TR1 2HE. |
17. | REALLOCATION OF RESERVES |
Reserves representing the revaluation of investment property and other investments net of deferred tax in the comparatives have been reallocated from retained earnings to the fair value reserve in order to be consistent with the treatment in the current period and to reflect its non-distributable nature. The amount transferred from retained earnings to the fair value reserve in the comparatives was £3,818,153. There is no impact on total reserves or on the profit or loss for either period. |