Company registration number 00390738 (England and Wales)
VICTOR MANUFACTURING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
VICTOR MANUFACTURING LIMITED
COMPANY INFORMATION
Directors
Mr P Williams
Mr. M O'Shea
Ms S Williams
Mr A P Williams
Mrs F Powell
Mr. S McGarvie
Mr R J Powell
(Appointed 24 October 2023)
Secretary
Mr R J Powell
Company number
00390738
Registered office
Prospect Works
(Off) South Street
Keighley
West Yorkshire
BD21 5AA
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
VICTOR MANUFACTURING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
VICTOR MANUFACTURING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair Review of the Business

In 2023/24 the core business activities of the company were the manufacturing and distribution of commercial catering equipment with the addition of a limited amount of M&E works for blue chip clients.

The core values of the company continue to be excellent customer service working in partnership with our customers and to manufacture and design quality products for our target core markets and provide a safe and inspiring environment for employees to work and develop whilst caring for our local community and the wider environment.

In 2023/24 the company finished the financial year with a decrease in sales of 10.23% (£10.23m) compared to 2022/23 (£11.40m). The decrease in sales comes at a time when most manufacturing organisations have continued to face severe trading disruption due to fluctuating market conditions and continued high interest rates affecting market confidence throughout the year, in addition and compounded by significant labour shortages, both skilled and unskilled, and significant issues with operator and staff retention.

Despite a decrease in gross sales of 10.23% there has been an increased and combined focus on both tight controls on overhead costs and stringent cash flow management, which has still resulted in a profit after tax for 2023/24 of £537,583, a 48.81% increase on 2022/23 which had seen a profit for the year of £361,254.

Key Performance Indicators

The company measures its finance regularly throughout the year and does so through the use of Key Performance Indicators (KPIs).

KPIs include:

Annual turnover – 10.23% decrease on 2022/23 (prior year increase 45.8% in 2021/22).

Gross profit margin maintenance – A 14.97% increase to 55.09% in 2023/24 (from 40.12% in 2022/23) Despite difficult fluctuating market trading conditions, ongoing price increases in raw material costs, component costs, labour costs and energy costs, despite pressure to maintain product price increase at current levels to our customers.

Total Cost of Sales – 2023/24 - saw a 32.7% reduction in total costs during the course of the year from £6.82m in 2022/23 to £4.59m in 2023/2024. The company objectives are to tightly control overhead & direct purchasing costs so that they show minimal increases and therefore maximise profitability. The company has significant measures in place to control our overhead and direct costs, wherever possible.

Increasing the value of shareholders’ funds Total Equity – 2023/24 saw a 13.8% increase to £2,464,988 (0.31% increase in 2022/23).

Principal Risks and Uncertainties

The company operates predominately in the UK market and normally under 2% of turnover to export markets. The company seeks to mitigate all forms of risk, both internal and external, and where practicable to transfer risk to insurers. The diverse nature of the company’s activities and customer base helps to mitigate risk and the effect of adverse economic political fluctuating conditions.

Customers and suppliers

The company continues not to depend on any one supplier or customer, with no single customer accounting for more than 40% of the total sales of the company. Sales and marketing initiatives aim to increase the number and diversity of our customer base to ensure we are not adversely affected by losing one single customer.

Foreign exchange

Dealing predominantly in the UK market and obtaining supplies from UK based suppliers and distributors, the company transacts predominately in sterling with only a minimal amounts of currency exposure.

VICTOR MANUFACTURING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal Risks and Uncertainties continued

Credit

The company is exposed to some credit risk in relation to customers and insurers, credit insurance is in place via the company’s banking partner HSBC. Credit control procedures take into account any identified risk in relation to customers, and these are continually under review with our banking partners and being continually improved.

Employees

At the year end the company employed 119 people across its operation (124 - 2022/23). The company’s policy is to provide equal opportunities for employment. In employment related decisions, the company complies with anti-discrimination requirements concerning matters of race, colour, national origin, marital status, sexual orientation, religious belief, age or physical or mental ability. Disabled people are given full consideration for employment and their development is assisted and encouraged.

The company continues to invest in its employees’ skills and capabilities to help reach their full potential, which in turn helps the company to do likewise. The company utilises predominantly semi-skilled labour and in-house training methods. The company takes health and safety and environmental responsibilities seriously and employs a full time HR/HSE Compliance Manager as part of its senior management team, the company is proud of its record in this regard.

Future Developments

We will continue to be supported with significant investment again in 2024/25 by FIKA Holdings Limited, as part of the company’s effort to maintain and increase our current market share and sales levels and to help deliver significant additional growth during the course of the year.

Our investments over the previous few years have enabled the company to consolidate its current position despite modest trading profits during the previous financial year 2022/23, and returned the company back to a healthy profitable position for 2024/25. However, market conditions are still extremely volatile in the wake of high interest rates and changes in government, and will continue to prove a challenge as we move forward given the latest budget announcements from the new Labour Government, and a new incoming US President.

The short to medium term view of the directors is to the continued longer-term survival, growth and profitability of the business, increasing efficiencies throughout the business, improving operational effectiveness with continued capital investment in automated manufacturing process aimed at controlling expensive overhead costs and countering shortages of skilled and semi-skilled labour, continued development and strengthening our current management team. These initiatives will enable significant growth over the next 18 month period as market conditions hopefully settle and improve.

The business has a strong reputation for being at the forefront of advances in the hospitality, retail and catering equipment industry within the UK, and even in these very difficult and challenging times will continue to invest in its manufacturing facilities, new product development and people as we move forward.

Bringing several subcontracted activities inhouse under its own control will continue to improve operational efficiencies, this provided a much needed solid platform to be able to facilitate significant profitability over the last year. More R&D product innovation and some diversification will continue as we move forward during 2024/25.

On behalf of the board

Mr P Williams
Director
20 November 2024
VICTOR MANUFACTURING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the manufacturing and distribution of commercial catering equipment. The company's main products are equipment designed to display food (hot and cold) prior to consumption.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £246,125. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Williams
Mr. M O'Shea
Ms S Williams
Mr A P Williams
Mrs F Powell
Mr. S McGarvie
Mr R J Powell
(Appointed 24 October 2023)
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr P Williams
Director
20 November 2024
VICTOR MANUFACTURING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

VICTOR MANUFACTURING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VICTOR MANUFACTURING LIMITED
- 5 -
Opinion

We have audited the financial statements of Victor Manufacturing Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

VICTOR MANUFACTURING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VICTOR MANUFACTURING LIMITED
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

VICTOR MANUFACTURING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VICTOR MANUFACTURING LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Grant
Senior Statutory Auditor
For and on behalf of Azets Audit Services Limited
20 November 2024
2024-11-20
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
VICTOR MANUFACTURING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,229,415
11,395,586
Cost of sales
(4,594,501)
(6,824,092)
Gross profit
5,634,914
4,571,494
Administrative expenses
(5,030,551)
(4,163,928)
Operating profit
4
604,363
407,566
Interest payable and similar expenses
7
(114,214)
(81,161)
Profit before taxation
490,149
326,405
Tax on profit
8
47,434
34,849
Profit for the financial year
537,583
361,254

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VICTOR MANUFACTURING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,106,534
2,132,824
Current assets
Stocks
11
1,245,079
1,255,738
Debtors
12
5,219,516
5,088,630
Cash at bank and in hand
549
55,894
6,465,144
6,400,262
Creditors: amounts falling due within one year
13
(4,303,280)
(4,317,305)
Net current assets
2,161,864
2,082,957
Total assets less current liabilities
4,268,398
4,215,781
Creditors: amounts falling due after more than one year
14
(1,301,210)
(1,531,541)
Provisions for liabilities
Provisions
17
90,000
90,000
Deferred tax liability
18
404,700
413,210
(494,700)
(503,210)
Government grants
19
(7,500)
(7,500)
Net assets
2,464,988
2,173,530
Capital and reserves
Called up share capital
21
752
752
Capital redemption reserve
248
248
Profit and loss reserves
2,463,988
2,172,530
Total equity
2,464,988
2,173,530
The financial statements were approved by the board of directors and authorised for issue on 20 November 2024 and are signed on its behalf by:
Mr P  Williams
Director
Company Registration No. 00390738
VICTOR MANUFACTURING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
752
248
2,165,850
2,166,850
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
361,254
361,254
Dividends
9
-
-
(354,574)
(354,574)
Balance at 31 March 2023
752
248
2,172,530
2,173,530
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
537,583
537,583
Dividends
9
-
-
(246,125)
(246,125)
Balance at 31 March 2024
752
248
2,463,988
2,464,988
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

Victor Manufacturing Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prospect Works, (Off) South Street, Keighley, West Yorkshire, BD21 5AA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Fika Holdings Limited. These consolidated financial statements are available from its registered office Back Prospect Works, South Street, Keighley, West Yorkshire, BD21 5AA.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the sale and distribution of commercial catering equipment, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
5 to 10 years straight line
Fixtures and fittings
Over 5 to 10 years straight line
Computer equipment
4 years straight line
Motor vehicles
4 years straight line

Land is not depreciated.

 

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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, the estimated 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank 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. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

The depreciation policy has been set according to managements' experience of the useful lives of a typical asset in each category, something which is reviewed annually. It is not considered practical to use a per unit basis to allocate depreciation without undue cost and therefore amounts are charged annually. The depreciation charged during the year was £410,884 (2023 - £347,600), which the directors feel is a fair reflection of the benefits derived from the consumption of the tangible fixed assets in use during the period.

Stock provision

At each reporting date an assessment is made for provisions required to recognise a fair valuation of damaged, slow moving or obsolete stock. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss and provided for in the balance sheet. Reversals of impairment losses are also recognised in profit or loss when they arise.

Bad debt provision

Outstanding trade debtor balances are reviewed on a line by line basis by management to identify possible amounts where a provision is required. Management closely manage the collection of trade debtors and therefore are able to identify balances where there is uncertainty about its recoverability, and determine what provision is required (if any).

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Manufacturing and distribution of commercial catering equipment
10,229,415
11,395,586
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,229,415
11,395,586
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
23,400
23,000
Depreciation of owned tangible fixed assets
145,703
240,413
Depreciation of tangible fixed assets held under finance leases
265,181
107,187
Operating lease charges
49,834
39,109
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production staff
54
56
Administrative staff
65
68
Total
119
124

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,508,385
3,725,311
Social security costs
330,350
334,101
Pension costs
245,789
122,183
4,084,524
4,181,595
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
274,276
194,341
Company pension contributions to defined contribution schemes
34,202
11,145
308,478
205,486
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
84,115
78,267
Company pension contributions to defined contribution schemes
6,749
3,608
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
57,013
36,139
Interest on finance leases and hire purchase contracts
57,201
45,022
114,214
81,161
8
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(38,923)
-
0
Deferred tax
Origination and reversal of timing differences
(8,511)
(34,849)
Total tax credit
(47,434)
(34,849)

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
490,149
326,405
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
122,537
62,017
Tax effect of expenses that are not deductible in determining taxable profit
6,928
1,278
Tax effect of utilisation of tax losses not previously recognised
(194,716)
(85,371)
Group relief
19,950
-
0
Other
(2,133)
(12,773)
Taxation credit for the year
(47,434)
(34,849)
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
9
Dividends
2024
2023
£
£
Interim paid
246,125
354,574
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
2,754,523
369,363
406,109
175,290
3,705,285
Additions
170,000
2,759
40,782
171,053
384,594
At 31 March 2024
2,924,523
372,122
446,891
346,343
4,089,879
Depreciation and impairment
At 1 April 2023
969,501
178,821
383,222
40,917
1,572,461
Depreciation charged in the year
256,014
64,318
25,262
65,290
410,884
At 31 March 2024
1,225,515
243,139
408,484
106,207
1,983,345
Carrying amount
At 31 March 2024
1,699,008
128,983
38,407
240,136
2,106,534
At 31 March 2023
1,785,022
190,542
22,887
134,373
2,132,824

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
1,687,949
788,408
11
Stocks
2024
2023
£
£
Raw materials and consumables
716,241
682,412
Work in progress
332,867
284,583
Finished goods and goods for resale
195,971
288,743
1,245,079
1,255,738
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,409,776
1,583,947
Corporation tax recoverable
-
0
146
Amounts owed by group undertakings
3,433,355
3,433,355
Prepayments and accrued income
376,385
71,182
5,219,516
5,088,630

Amounts owed by group undertakings are recoverable on demand.

 

Trade debtors are pledged as security for the invoice financing facility (note 13).

13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
1,683,881
1,333,392
Obligations under finance leases
15
339,561
281,621
Other borrowings
16
904
904
Trade creditors
1,331,767
1,569,163
Amounts owed to group undertakings
202,502
127,697
Taxation and social security
467,666
633,665
Other creditors
36,452
87,063
Accruals and deferred income
240,547
283,800
4,303,280
4,317,305

Amounts owed to group undertakings are payable on demand.

 

Included within Bank loans and overdrafts is £1,047,274 (2023 - £1,177,832) due in relation to an invoice financing facility and is secured on trade debtors.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
180,833
335,833
Obligations under finance leases
15
1,120,377
1,195,708
1,301,210
1,531,541
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
405,514
341,941
In two to five years
1,196,762
1,268,663
In over five years
42,645
46,724
1,644,921
1,657,328
Less: future finance charges
(184,983)
(179,999)
1,459,938
1,477,329

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Loans and overdrafts
2024
2023
£
£
Bank loans
336,393
491,393
Bank overdrafts
1,528,321
1,177,832
Other loans
904
904
1,865,618
1,670,129
Payable within one year
1,684,785
1,334,296
Payable after one year
180,833
335,833

Borrowings are secured by way of fixed and floating charges over the company's assets.

17
Provisions for liabilities
2024
2023
£
£
90,000
90,000
Movements on provisions:
£
At 1 April 2023 and 31 March 2024
90,000
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
404,700
413,210
2024
Movements in the year:
£
Liability at 1 April 2023
413,210
Credit to profit or loss
(8,510)
Liability at 31 March 2024
404,700

 

19
Government grants
2024
2023
£
£
Arising from government grants
7,500
7,500

As at 31 March 2024 £nil (2023 - £nil) was receivable in relation to a deferred government grant.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
245,789
122,183

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
752
752
752
752
VICTOR MANUFACTURING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
33,770
34,121
Between two and five years
51,378
85,967
85,148
120,088
23
Ultimate controlling party

The Company is a wholly owned subsidiary of Fika Holdings Limited, the ultimate parent company incorporated in England & Wales.

 

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