Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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FORTRESS (GB) LIMITED
COMPANY INFORMATION
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FORTRESS (GB) LIMITED
CONTENTS
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FORTRESS (GB) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their Group Strategic Report for the year ended 31 December 2023. The Group comprises Fortress (GB) Limited and its subsidiaries, Fortress Applications Limited and Fortress US Inc.
Fortress (GB) Limited is a private company, limited by shares and incorporated in England and Wales. The company continued to provide enterprise level Customer Management Solutions to the Sports, Leisure and Entertainment sector. This year's financial outcomes are detailed on pages 10 to 18 of the financial statements.
The directors report significant year on year improvements in both Group turnover and profitability for the year ended 31st December 2023. Operating profit increased by 82.8% reaching £1,339,966 compared to £733,031 for the previous year. The Group continues to enjoy successful growth across all its products and geographical markets, particularly in the USA.
The company faces several strategic and operational risks:
1) The Board are acutely aware of the Competitive environment in the markets in which the Group operates. To safeguard and enhance its' market position, the Group continuously invests in the design and development of new products and tailors services to meet evolving customer expectations. 2) Breaches of Cyber and information security present reputational and marketing risks which are mitigated by: • specific training of all personnel commensurate with their roles; • systems designed to deliver security analytics, detection and threat visibility; • use of external consultants to undertake regular penetration testing; and • ISO 27001 certification of the major Group trading entities (Fortress (GB) Ltd and Fortress US Inc.). 3) As a service orientated Group, retaining and motivating skilled personnel at all levels of the organisation, is key to the long-term success of the Group. The Board are proud of the minimal staff turnover achieved by: • offering hybrid work from home policy; • holding monthly company wide open forum meetings; • regular performance and appraisal reviews; • ensuring pay and benefits are competitive; and • ensuring a Board member has responsibility for employment engagement.
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FORTRESS (GB) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group reports on several financial and non-financial performance indicators on a monthly basis. These include both operational and commercial statistics relating to sales invoiced, stock, debtors and liquidity. The following are considered to be key indicators of performance for 2023:
• Growth in Turnover: Increased to £15.6 million from £12.5 million, driven by new contracts and expanded business with existing clients; • Gross Margin: Increased to 67.6% from 65.5%, reflecting stable profitability under current trading conditions;and • Bank balances: Year-end bank balances stood at £5.8 million, up from £2.9 million, indicating strong liquidity and financial resilience.
This report was approved by the board and signed on its behalf.
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FORTRESS (GB) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors who served during the year were:
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group 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 the Group and to 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.
The profit for the year, after taxation, amounted to £1,850,254 (2022 - £1,242,659).
No dividends have been declared or paid in the year.
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FORTRESS (GB) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
• Price Risk
The directors do not believe the group is exposed to significant price risks as material costs are reflected in new contract terms. • Credit Risk The group is exposed to the normal business risk from trade debtors defaulting. However, the risk is considered low due to the spread of customers and by the provision of contracted critical infrastructure services to them. The adoption of rigorous credit control measures has reduced the trade debtors days outstanding at the 31st December 2023 to 38 days from 119 days for the previous year. • Foreign currency exchange risk The company undertakes foreign exchange transactions with its subsidiary undertakings whose principal operating currency is US Dollars. It does not seek to mitigate its Dollar exchange risk. • Liquidity risk The Group does not foresee any risks associated with liquidity as adequate cash reserves are maintained, supported by a rigorous credit control policy over its receivables.
The Group is committed to continuous innovation and strategic growth. Future developments will focus on expanding our technological capabilities and exploring new market opportunities to enhance shareholder value and customer satisfaction.
There have been no significant events affecting the Group since the year end.
The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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FORTRESS (GB) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
This report was approved by the board and signed on its behalf.
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FORTRESS (GB) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORTRESS (GB) LIMITED
We have audited the financial statements of Fortress (GB) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 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.
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 or 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.
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FORTRESS (GB) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORTRESS (GB) LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 Directors' Report.
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FORTRESS (GB) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORTRESS (GB) LIMITED (CONTINUED)
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 Group 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:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, our procedures included the following: • We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006. • We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management. • We challenged assumptions and judgments made by management in its significant accounting estimates. We did not identify any key audit matters relating to irregularities, including fraud.
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.
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FORTRESS (GB) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORTRESS (GB) LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
1st Floor South
101 New Cavendish Street
W1W 6XH
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FORTRESS (GB) LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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FORTRESS (GB) LIMITED
REGISTERED NUMBER: 03799095
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 38 form part of these financial statements.
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FORTRESS (GB) LIMITED
REGISTERED NUMBER: 03799095
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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FORTRESS (GB) LIMITED
REGISTERED NUMBER: 03799095
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 38 form part of these financial statements.
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