Company registration number 03563351 (England and Wales)
FMS FOILS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
FMS FOILS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr D J Watson
Mr P S Watson
Secretary
Mrs L Payne
Company number
03563351
Registered office
1 The Forum
Coopers Way
Temple Farm Industrial Estate
Southend-On-Sea
Essex
United Kingdom
SS2 5TE
Auditor
Azets Audit Services
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
FMS FOILS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
FMS FOILS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 28 February 2024.
Fair review of the business
Principal risks and uncertainties
In the year under review the company made significant progress. Despite the challenges in the market relating to customers’ material preferences, we were able to attract significant new business and maintain our overall sales revenue.
The significant drivers affecting our business are raw material costs and interest rates. Raw material costs have seen some decline, but interest rates remain high, despite a reduction in inflation. The company continued to invest, in order to upgrade its technology and these have led to new and increased income streams. However, whilst the company has seen a significant advance in its EBITDA, higher borrowing costs have reduced the improvement in our operating profit level.
As we entered a new trading year there are severe uncertainties in world affairs that can impact our business. The effective closure of the Suez Canal extended lead times in the sourcing of raw materials, necessitating us to increase our inventories to ensure we continue to satisfy our customers’ demands. Interest rates remain high, although we expect at least two reductions before the end of the year. The two major elections this year will have an impact on exchange rates that affect the cost of our raw materials. However the majority of our currency needs have been hedged for the year.
We are predicting a further increase of 8% in sales volumes and a commensurate increase in operating profit, which will also benefit from the reduction in interest rates.
Our most important asset is our employees, and the company has continued to regard their welfare as a priority. We have strengthened our management base and have ensured that our remuneration policy is fair and appropriate to their needs.
Key performance indicators
The key financial indicator for the year were:-
FMS FOILS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
KEY CUSTOMERS
The company continues to retain a wide range of both multi-national and smaller UK customers. We have also made significant gains in our European customer base. Our objective as always is to offer excellent, innovative packaging solutions and this is recognised across the industry. We continue to focus on environmentally sustainable and recyclable solutions with many projects in the pipeline which will continue the growth of future sales.
We continue to invest in technology and machinery to increase our production capacity with the aim to reduce customer lead times and offer much needed flexibility.
HEALTH AND SAFETY
Health and safety and the mental wellbeing of all our employees remains a key consideration for the Directors. The current inflationary situation causes many stresses and wherever possible the company assists its employees to alleviate these difficulties.
Mr D J Watson
Director
29 November 2024
FMS FOILS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 28 February 2024.
Principal activities
The principal activity of the company and group continued to be that of manufacturers and printers of flexible packaging.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D J Watson
Mr P S Watson
Results and dividends
Ordinary dividends were paid amounting to £75,667. The directors do not recommend payment of a further dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr D J Watson
Director
29 November 2024
FMS FOILS GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FMS FOILS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FMS FOILS GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of FMS Foils Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 28 February 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent 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.
Material uncertainty relating to Going Concern
We draw attention to note 1.4 in the financial statements, which indicates that whilst the directors continue to adopt the going concern status in preparing the financial statements, the Group is reliant on funding provided by the group's bankers with overdraft facilities currently being renegotiated.
These events or conditions indicate that a material uncertainty exists that may cast doubt on the group's ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of directors with respect to going concern are described in the relevant sections of this report.
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.
FMS FOILS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FMS FOILS GROUP LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.
FMS FOILS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FMS FOILS GROUP 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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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.
Adam Hubbard BA(Hons) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 November 2024
Chartered Accountants
Statutory Auditor
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
FMS FOILS GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,829,015
14,940,471
Cost of sales
(12,971,643)
(13,487,317)
Gross profit
1,857,372
1,453,154
Administrative expenses
(1,666,448)
(1,265,717)
Other operating income
24,523
26,800
Operating profit
5
215,447
214,237
Interest receivable and similar income
(6)
Interest payable and similar expenses
9
(369,855)
(149,272)
(Loss)/profit before taxation
(154,408)
64,959
Tax on (loss)/profit
10
47,703
(20,257)
(Loss)/profit for the financial year
25
(106,705)
44,702
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
FMS FOILS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
2024
2023
£
£
(Loss)/profit for the year
(106,705)
44,702
Other comprehensive income
-
-
Total comprehensive income for the year
(106,705)
44,702
Total comprehensive income for the year is all attributable to the owners of the parent company.
FMS FOILS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
34,582
Tangible assets
13
3,612,543
3,725,875
3,612,543
3,760,457
Current assets
Stocks
17
2,056,870
2,157,635
Debtors
16
2,846,657
3,321,932
Cash at bank and in hand
253,122
378,154
5,156,649
5,857,721
Creditors: amounts falling due within one year
18
(6,482,916)
(7,303,440)
Net current liabilities
(1,326,267)
(1,445,719)
Total assets less current liabilities
2,286,276
2,314,738
Creditors: amounts falling due after more than one year
19
(1,072,321)
(894,618)
Provisions for liabilities
Deferred tax liability
22
279,229
303,022
(279,229)
(303,022)
Net assets
934,726
1,117,098
Capital and reserves
Called up share capital
24
50,000
50,000
Profit and loss reserves
25
884,726
1,067,098
Total equity
934,726
1,117,098
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
Mr D J Watson
Director
Company registration number 03563351 (England and Wales)
FMS FOILS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,102,683
3,141,299
Investments
14
3,174,031
3,174,031
6,276,714
6,315,330
Current assets
Stocks
17
2,056,870
2,157,635
Debtors
16
2,846,656
3,321,931
Cash at bank and in hand
251,275
199,174
5,154,801
5,678,740
Creditors: amounts falling due within one year
18
(9,626,645)
(10,272,104)
Net current liabilities
(4,471,844)
(4,593,364)
Total assets less current liabilities
1,804,870
1,721,966
Creditors: amounts falling due after more than one year
19
(1,072,321)
(894,618)
Provisions for liabilities
Deferred tax liability
22
198,248
206,519
(198,248)
(206,519)
Net assets
534,301
620,829
Capital and reserves
Called up share capital
24
50,000
50,000
Profit and loss reserves
25
484,301
570,829
Total equity
534,301
620,829
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £10,861 (2023 - £181,289 profit).
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
Mr D J Watson
Director
Company registration number 03563351 (England and Wales)
FMS FOILS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
50,000
1,179,063
1,229,063
Year ended 28 February 2023:
Profit and total comprehensive income
-
44,702
44,702
Dividends
11
-
(156,667)
(156,667)
Balance at 28 February 2023
50,000
1,067,098
1,117,098
Year ended 28 February 2024:
Loss and total comprehensive income
-
(106,705)
(106,705)
Dividends
11
-
(75,667)
(75,667)
Balance at 28 February 2024
50,000
884,726
934,726
FMS FOILS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
50,000
546,207
596,207
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
181,289
181,289
Dividends
11
-
(156,667)
(156,667)
Balance at 28 February 2023
50,000
570,829
620,829
Year ended 28 February 2024:
Profit and total comprehensive income
-
(10,861)
(10,861)
Dividends
11
-
(75,667)
(75,667)
Balance at 28 February 2024
50,000
484,301
534,301
FMS FOILS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
923,787
1,294,078
Interest paid
(369,855)
(149,272)
Income taxes refunded/(paid)
23,910
(7)
Net cash inflow from operating activities
577,842
1,144,799
Investing activities
Purchase of tangible fixed assets
(351,581)
(422,445)
Repayment of loans
(12,778)
25,948
Interest received
(6)
Net cash used in investing activities
(364,359)
(396,503)
Financing activities
Proceeds from borrowings
900,000
-
Repayment of bank loans
(75,060)
(127,819)
Payment of finance leases obligations
(774,008)
(535,642)
Dividends paid to equity shareholders
(75,667)
(156,667)
Net cash used in financing activities
(24,735)
(820,128)
Net increase/(decrease) in cash and cash equivalents
188,748
(71,832)
Cash and cash equivalents at beginning of year
18,680
90,512
Cash and cash equivalents at end of year
207,428
18,680
Relating to:
Cash at bank and in hand
253,122
378,154
Bank overdrafts included in creditors payable within one year
(45,694)
(359,474)
FMS FOILS GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,100,920
1,116,572
Interest paid
(369,855)
(149,272)
Income taxes refunded/(paid)
23,910
(6)
Net cash inflow from operating activities
754,975
967,294
Investing activities
Purchase of tangible fixed assets
(351,581)
(422,445)
Repayment of loans
(12,778)
25,948
Net cash used in investing activities
(364,359)
(396,497)
Financing activities
Proceeds from borrowings
900,000
Repayment of bank loans
(75,060)
(127,819)
Payment of finance leases obligations
(774,008)
(535,642)
Dividends paid to equity shareholders
(75,667)
(156,667)
Net cash used in financing activities
(24,735)
(820,128)
Net increase/(decrease) in cash and cash equivalents
365,881
(249,331)
Cash and cash equivalents at beginning of year
(160,300)
89,031
Cash and cash equivalents at end of year
205,581
(160,300)
Relating to:
Cash at bank and in hand
251,275
199,174
Bank overdrafts included in creditors payable within one year
(45,694)
(359,474)
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information
FMS Foils Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office can be found on the Company information page.
The group consists of FMS Foils Group Limited and all of its subsidiaries.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company FMS Foils Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 28 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Details of the subsidiary undertakings are set out in note 14.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern
The company is reliant on funding provided by the company bankers in the form of invoice discounting and overdraft facilities. The overdraft facility can be withdrawn in full as per the terms of the agreement. At the date of approval of the financial statements, the directors are in the process of renegotiating existing overdraft facilities which gives rise to material uncertainty. The directors are confident that the company will return to a profitable position in the near future therefore generating sufficient future cashflows to meet future obligations and to allow the company to repay balances to the company bankers. As a result, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
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:
Leasehold land and buildings
Depreciated over the period of the lease
Plant and equipment
20% on reducing balance and 10% on reducing balance
Fixtures and fittings
20% on reducing balance and 10% on reducing balance
Computers
33% on cost
Motor vehicles
20% on cost
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.
1.10
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.11
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.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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 group 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 group after deducting all of its liabilities.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.
1.15
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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 leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 22 -
1.19
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
All turnover generated in the current and prior year relates to the one principal activity of the group.
2024
2023
£
£
Other revenue
Interest income
-
(6)
Grants received
24,523
26,800
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional items
-
3,776
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(24,523)
(26,800)
Depreciation of owned and leased tangible fixed assets
542,013
290,330
Amortisation of intangible assets
34,582
34,578
Operating lease charges
358,042
404,347
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
29,539
28,775
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
57
54
57
54
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,292,670
2,088,414
2,292,670
2,088,414
Pension costs
22,204
18,013
22,204
18,013
2,314,874
2,106,427
2,314,874
2,106,427
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
146,260
101,159
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
180,781
117,929
Other finance costs:
Interest on finance leases and hire purchase contracts
189,074
31,343
Total finance costs
369,855
149,272
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(23,909)
Deferred tax
Origination and reversal of timing differences
(23,794)
20,257
Total tax (credit)/charge
(47,703)
20,257
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(154,408)
64,959
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 24.50% (2023: 19.00%)
(37,830)
12,342
Unutilised tax losses carried forward
24,912
262,887
Permanent capital allowances in excess of depreciation
6,348
(281,799)
Adjustments in respect of prior periods
(23,909)
Amortisation
6,570
6,570
Deferred tax
(23,794)
20,257
Taxation (credit)/charge
(47,703)
20,257
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
75,667
156,667
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 March 2023 and 28 February 2024
345,784
Amortisation and impairment
At 1 March 2023
311,202
Amortisation charged for the year
34,582
At 28 February 2024
345,784
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
12
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 28 February 2024
At 28 February 2023
34,582
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
296,228
7,627,427
422,087
103,787
7,750
8,457,279
Additions
408,204
6,134
14,343
428,681
At 28 February 2024
296,228
8,035,631
428,221
118,130
7,750
8,885,960
Depreciation and impairment
At 1 March 2023
253,577
4,036,890
344,336
88,851
7,750
4,731,404
Depreciation charged in the year
5,311
509,361
20,565
6,776
542,013
At 28 February 2024
258,888
4,546,251
364,901
95,627
7,750
5,273,417
Carrying amount
At 28 February 2024
37,340
3,489,380
63,320
22,503
3,612,543
At 28 February 2023
42,651
3,590,537
77,751
14,936
3,725,875
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
13
Tangible fixed assets
(Continued)
- 26 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 March 2023
62,843
3,640,206
17,624
23,719
3,744,392
Additions
408,204
6,134
14,343
428,681
At 28 February 2024
62,843
4,048,410
23,758
38,062
4,173,073
Depreciation and impairment
At 1 March 2023
21,313
571,528
1,469
8,783
603,093
Depreciation charged in the year
4,190
452,427
3,904
6,776
467,297
At 28 February 2024
25,503
1,023,955
5,373
15,559
1,070,390
Carrying amount
At 28 February 2024
37,340
3,024,455
18,385
22,503
3,102,683
At 28 February 2023
41,530
3,068,678
16,155
14,936
3,141,299
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,898,413
2,242,629
1,898,413
2,242,629
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
3,174,031
3,174,031
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
3,174,031
Carrying amount
At 28 February 2024
3,174,031
At 28 February 2023
3,174,031
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 27 -
15
Subsidiaries
Details of the company's subsidiaries at 28 February 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Friths Flexible Packaging Limited
1 The Forum, Coopes Way, Temple Farm Industrial Estate, Southend on Sea, Essex, SS2 5TE
Dormant
Ordinary
100.00
S.F. Williams (Foils) Limited
As above
Dormant
Ordinary
100.00
Macleans (Foils) Limited
As above
Dormant
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Friths Flexible Packaging Limited
2,605,754
(26,763)
S.F. Williams (Foils) Limited
1,418,677
(34,813)
Macleans (Foils) Limited
(449,976)
314
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,657,378
3,049,680
2,657,377
3,049,679
Other debtors
189,279
272,252
189,279
272,252
2,846,657
3,321,932
2,846,656
3,321,931
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Inventories
2,056,870
2,157,635
2,056,870
2,157,635
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
77,007
434,534
77,007
434,534
Obligations under finance leases
21
442,513
448,437
442,513
448,437
Trade creditors
2,581,218
2,693,774
2,581,218
2,693,774
Amounts owed to group undertakings
3,143,729
2,968,664
Corporation tax payable
28,262
28,262
28,262
28,262
Other taxation and social security
655,358
754,395
655,358
754,395
Other creditors
2,698,558
2,944,038
2,698,558
2,944,038
6,482,916
7,303,440
9,626,645
10,272,104
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
39,142
70,455
39,142
70,455
Obligations under finance leases
21
1,033,179
824,163
1,033,179
824,163
1,072,321
894,618
1,072,321
894,618
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
70,455
145,515
70,455
145,515
Bank overdrafts
45,694
359,474
45,694
359,474
116,149
504,989
116,149
504,989
Payable within one year
77,007
434,534
77,007
434,534
Payable after one year
39,142
70,455
39,142
70,455
The long-term loans are supported by the Coronavirus Business Interruption Loan Scheme (CBILS), managed by the British Business Bank.
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 29 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
442,513
448,437
442,513
448,437
In two to five years
1,033,179
824,163
1,033,179
824,163
1,475,692
1,272,600
1,475,692
1,272,600
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. No restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
773,213
781,074
Tax losses
(493,984)
(478,052)
279,229
303,022
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
692,232
684,571
Tax losses
(493,984)
(478,052)
198,248
206,519
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
303,022
206,519
Credit to profit or loss
(23,793)
(8,271)
Liability at 28 February 2024
279,229
198,248
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 30 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,204
18,013
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
1,067,098
1,179,063
570,829
546,207
Profit/(loss) for the year
(106,705)
44,702
(10,861)
181,289
Dividends
(75,667)
(156,667)
(75,667)
(156,667)
At the end of the year
884,726
1,067,098
484,301
570,829
26
Related party transactions
The company is under the control of a Director, Mr D.J Watson.
At the balance sheet date the amount due from a Director, Mr D.J. Watson, was £60,495 (2023 - £61,093)
At the balance sheet date the amount due from a Director, Mr P.S. Watson, was £24,634 (2023 - £12,968).
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 31 -
27
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(106,705)
44,702
Adjustments for:
Taxation (credited)/charged
(47,703)
20,257
Finance costs
369,855
149,272
Investment income
6
Amortisation and impairment of intangible assets
34,582
34,578
Depreciation and impairment of tangible fixed assets
542,013
290,330
Movements in working capital:
Decrease/(increase) in stocks
100,765
(712,398)
Decrease/(increase) in debtors
488,053
(436,602)
(Decrease)/increase in creditors
(457,073)
1,903,933
Cash generated from operations
923,787
1,294,078
28
Cash generated from operations - company
2024
2023
£
£
(Loss)/profit for the year after tax
(10,861)
181,289
Adjustments for:
Taxation (credited)/charged
(32,181)
13,571
Finance costs
369,855
149,272
Depreciation and impairment of tangible fixed assets
467,297
210,782
Movements in working capital:
Decrease/(increase) in stocks
100,765
(712,398)
Decrease/(increase) in debtors
488,053
(436,601)
(Decrease)/increase in creditors
(282,008)
1,710,657
Cash generated from operations
1,100,920
1,116,572
FMS FOILS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 32 -
29
Analysis of changes in net debt - group
1 March 2023
Cash flows
New finance leases
Market value movements
28 February 2024
£
£
£
£
£
Cash at bank and in hand
378,154
(125,032)
-
-
253,122
Bank overdrafts
(359,474)
313,780
-
-
(45,694)
18,680
188,748
-
-
207,428
Borrowings excluding overdrafts
(145,515)
975,060
-
(900,000)
(70,455)
Obligations under finance leases
(1,272,600)
774,008
(977,100)
-
(1,475,692)
(1,399,435)
1,937,816
(977,100)
(900,000)
(1,338,719)
30
Analysis of changes in net debt - company
1 March 2023
Cash flows
New finance leases
Market value movements
28 February 2024
£
£
£
£
£
Cash at bank and in hand
199,174
52,101
-
-
251,275
Bank overdrafts
(359,474)
313,780
-
-
(45,694)
(160,300)
365,881
-
-
205,581
Borrowings excluding overdrafts
(145,515)
975,060
-
(900,000)
(70,455)
Obligations under finance leases
(1,272,600)
774,008
(977,100)
-
(1,475,692)
(1,578,415)
2,114,949
(977,100)
(900,000)
(1,340,566)
2024-02-282023-03-01falseCCH SoftwareCCH Accounts Production 2024.210Mr D J WatsonMr P S WatsonMrs M A 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