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Registered number: 00530070









Flowflex Components Limited









Annual Report and Financial Statements

For the year ended 31 March 2024

 
Flowflex Components Limited
 
 
Company Information


Directors
T A Dickinson 
R Wilcock 
D Bowers 
S Payne 
L Rawlinson 




Company secretary
R Wilcock



Registered number
00530070



Registered office
Samuel Blaser Works
Dew Pond Lane

Tongue Lane Industrial Estate

Buxton

Derbyshire

SK17 7LR




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG





 
Flowflex Components Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Statement of Financial Position
 
10
Notes to the Financial Statements
 
11 - 24


 
Flowflex Components Limited
 
 
Strategic Report
For the year ended 31 March 2024

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

Business review
 
Flowflex manufactures and sells brass and copper plumbing fittings and innovation products to merchants ranging from large national chains to smaller independent distributors, as well as the specialist OEM market. Our products then go on to supply heating and plumbing installations in the commercial, domestic and DIY project markets.
Based in Buxton, Derbyshire, Flowflex is the main UK manufacturer in the sector and successfully competes in the global supply market ensuring quality, service and value to its customers.  Flowflex distributes to UK and European customers and to the Middle East, where it also has an established network based in Dubai, UAE.
Changes and continuing improvements to the business in manufacturing, procurement and commercially have enhanced resilience and made it well placed to deliver sales growth and profitability over the coming year.
During the year to 31 March 2024, these developments have delivered performance improvements across the business despite a challenging market:
 
Overall sales increased to £21.3M.  Sales in the UK and the rest of the world increased recovering to levels planned before the pandemic.  This is a result of continuing focus on our service levels, product range and straight forward customer engagement.
Trading margins were improved due to stabilisation in metal and energy prices, and improvements in manufacturing efficiency.
The programme to utilise automated manufacturing and assembly equipment has continued.
Adequate working capital has been maintained through managed inventory levels and secured bank facilities.

Principal risks and uncertainties
 
The key risks faced by the business are as follows:

Product costs, driven by commodity prices for brass and copper, and inflation, particularly in the energy market. Volatility in these markets is dealt with through regular monitoring of purchase costs, supplier procurement, operational changes and where necessary by adjustments to customer pricing structures.
Although sterling is the functional currency of the business, cashflows are also made in US dollars and Euros driving a currency exposure where forecast currency cashflows are not balanced. Currency hedging is used to minimise the risk.

Page 1

 
Flowflex Components Limited
 

Strategic Report (continued)
For the year ended 31 March 2024

Financial key performance indicators
 
The key financial performance indicators for the past five years are as follows:


2024
2023
2022
2021
2020
Turnover £'000
21,262
20,409
20,738
16,988
17,310
Gross profit £'000
4,155
3,111
4,219
3,634
3,518
Gross profit %
20%
15%
20%
21%
20%
Operating profit/(loss)
997
181
795
774
360
Employee numbers
90
91
96
95
97
Turnover/employee £'000
236
224
216
179
178
Operating profit/(loss)/employee £'000
11
2
8
8
4



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



R Wilcock
Director

Date: 29 November 2024

Page 2

 
Flowflex Components Limited
 
 
 
Directors' Report
For the year ended 31 March 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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


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

make 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £679,942 (2023 -£29,041).

Dividends of £500,000 were paid during the year (2023 - £Nil).

Directors

The directors who served during the year were:

T A Dickinson 
R Wilcock 
D Bowers 
S Payne 
L Rawlinson 

Page 3

 
Flowflex Components Limited
 
 
 
Directors' Report (continued)
For the year ended 31 March 2024

Future developments

The directors expect future sales growth as a result of development in existing markets.
In order to improve manufacturing efficiency and capacity, the business is continuing a phased upgrade to the factory and warehouse through investment in automation and capacity.
Research and development
The company continues to carry out research and development into new innovative products and processes.

Branches outside the United Kingdom

The company operates a branch in Dubai, United Arab Emirates. 

Disclosure of information to auditors

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

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

Post balance sheet events

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

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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



R Wilcock
Director

Date: 29 November 2024

Page 4

 
Flowflex Components Limited
 
 
 
Independent Auditors' Report to the Members of Flowflex Components Limited
 

Opinion


We have audited the financial statements of Flowflex Components Limited (the 'company') for the year ended 31 March 2024, which comprise the statement of income and retained earnings, the statement of financial position and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 5

 
Flowflex Components Limited
 
 
 
Independent Auditors' Report to the Members of Flowflex Components Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 6

 
Flowflex Components Limited
 
 
 
Independent Auditors' Report to the Members of Flowflex Components Limited (continued)


Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


Page 7

 
Flowflex Components Limited
 
 
 
Independent Auditors' Report to the Members of Flowflex Components Limited (continued)


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Use of our report
 

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



Chris Stewardson (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

2 December 2024
Page 8

 
Flowflex Components Limited
 
 
Statement of Income and Retained Earnings
For the year ended 31 March 2024

2024
2023
Note
£
£

  

Turnover
 4 
21,262,171
20,408,847

Cost of sales
  
(17,106,819)
(17,297,393)

Gross profit
  
4,155,352
3,111,454

Distribution costs
  
(866,010)
(786,556)

Administrative expenses
  
(2,292,054)
(2,143,638)

Operating profit
 5 
997,288
181,260

Interest receivable and similar income
 9 
347
229

Interest payable and similar expenses
 10 
(215,873)
(152,015)

Profit before tax
  
781,762
29,474

Tax on profit
 11 
(101,820)
(433)

Profit after tax
  
679,942
29,041

  

Retained earnings at the beginning of the year
  
4,144,431
4,115,390

Profit for the year
  
679,942
29,041

Dividends declared and paid
 12 
(500,000)
-

Retained earnings at the end of the year
  
4,324,373
4,144,431
The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
Flowflex Components Limited
Registered number: 00530070

Statement of Financial Position
As at 31 March 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
64,900
69,300

Current assets
  

Stocks
 14 
6,058,876
5,025,837

Debtors: amounts falling due within one year
 15 
5,991,767
4,354,587

Cash at bank and in hand
 16 
106,054
200,131

  
12,156,697
9,580,555

Creditors: amounts falling due within one year
 17 
(7,765,109)
(5,331,526)

Net current assets
  
 
 
4,391,588
 
 
4,249,029

Creditors: amounts falling due after more than one year
 18 
(118,522)
(161,789)

Provisions for liabilities
  

Deferred tax
 20 
(11,983)
(10,499)

Net assets
  
4,325,983
4,146,041


Capital and reserves
  

Called up share capital 
 21 
1,610
1,610

Profit and loss account
 22 
4,324,373
4,144,431

  
4,325,983
4,146,041


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


R Wilcock
Director

Date: 29 November 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

1.


General information

Flowflex Components Limited is a private company limited by share capital incorporated in England, number 00530070. The address of the registered office and principal place of business is Samuel Blaser Works, Tongue Lane Industrial Estate, Buxton, Derbyshire, SK17 7LR.
The nature of the company's operation and its principal activity is the assembly, manufacture and distribution of brass and copper fittings for the plumbing industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Flowflex Holdings Limited as at         31 March 2024 and these financial statements may be obtained from Samuel Blaser Works, Tongue Lane Industrial Estate, Buxton, Derbyshire, SK17 7LR.

Page 11

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.3

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is recognised upon dispatch of goods. 

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is provided on the following basis:

Plant and machinery
-
5%
straight line
Motor vehicles
-
20%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount. 

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Page 12

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the income statement. 

 
2.7

Debtors

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

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates.

Page 13

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is Sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. 

 
2.13

Dividends

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

 
2.14

Leased assets: the company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.15

Pensions

Defined contribution pension plan

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

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

Page 14

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

2.Accounting policies (continued)

 
2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The key sources of estimation, uncertainty and critical accounting judgements in applying the company’s policies are as follows:
Provision for obsolete and slow moving stocks
The company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in the profit or loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. At year end, stock held by the company totalled £6,058,876 (2023 - £5,025,837).
Should these estimates vary, the income statement and statement of financial position of the following years could be significantly impacted.

Page 15

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.
A geographical analysis of turnover is as follows: 

2024
2023
£
£

United Kingdom
16,823,222
16,400,457

Rest of Europe
2,191,701
2,421,320

Rest of the world
2,247,248
1,587,070

21,262,171
20,408,847



5.


Operating profit

The operating profit is stated after charging/(crediting):

2024
2023
£
£

Research & development charged as an expense
35,130
26,129

Exchange differences
44,785
86,494

Other operating lease rentals
54,917
61,833

Depreciation of tangible fixed assets
4,400
4,400


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
17,500
17,140

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 16

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

7.


Employees

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


2024
2023
£
£

Wages and salaries
2,848,901
2,569,396

Social security costs
240,318
228,901

Cost of defined contribution scheme
87,516
104,055

3,176,735
2,902,352


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


        2024
        2023
            No.
            No.







Production and distribution
69
69



Sales
4
5



Management and administrative
17
17

90
91


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
354,106
295,785

Company contributions to defined contribution pension schemes
42,690
32,735

396,796
328,520


During the year retirement benefits were accruing to 5 directors (2023 -5) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £98,537 (2023 -£98,241).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £20,056 (2023 -£6,980).

Page 17

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

9.


Interest receivable

2024
2023
£
£


Other interest receivable
347
229


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
14,397
10,336

Other loan interest payable
201,046
140,717

Finance leases and hire purchase contracts
430
962

215,873
152,015


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
100,336
-

Total current tax
100,336
-

Deferred tax


Origination and reversal of timing differences
1,484
433

Total deferred tax
1,484
433

Tax on profit
 
101,820
 
433
Page 18

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

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

2024
2023
£
£


Profit on ordinary activities before tax
781,762
29,474


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -19%)
195,441
5,600

Effects of:


Expenses not deductible for tax purposes
544
1,846

Research and development uplift
(7,553)
(6,454)

Changes in deferred tax rate
-
2,520

Group relief
(86,612)
(3,079)

Total tax charge for the year
101,820
433


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


Dividends paid on equity capital
500,000
-

Page 19

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Total

£
£
£



Cost or valuation


At 1 April 2023
88,000
24,061
112,061



At 31 March 2024

88,000
24,061
112,061



Depreciation


At 1 April 2023
18,700
24,061
42,761


Charge for the year
4,400
-
4,400



At 31 March 2024

23,100
24,061
47,161



Net book value



At 31 March 2024
64,900
-
64,900



At 31 March 2023
69,300
-
69,300

The net book value of assets held under hire purchase contracts was £nil (2023 - £69,300).


14.


Stocks

2024
2023
£
£

Raw materials and consumables
645,417
459,885

Work in progress
455,203
335,423

Finished goods and goods for resale
4,958,256
4,230,529

6,058,876
5,025,837


The carrying value of stocks are stated net of impairment losses totalling £289,223 (2023 -£290,894). Impairment reversals totalling £1,671 (2023 -£195,690) were recognised in profit and loss.

Page 20

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

15.


Debtors

2024
2023
£
£


Trade debtors
5,420,656
4,230,980

Amounts owed by group undertakings
480,466
-

Other debtors
90,645
123,607

5,991,767
4,354,587


An impairment loss of £285 (2023 - £Nil) was recognised against trade debtors.


16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
106,054
200,131



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
47,472
44,278

Other loans
3,592,391
1,682,006

Trade creditors
2,719,334
2,424,172

Amounts owed to group undertakings
-
5,848

Corporation tax
100,510
174

Other taxation and social security
88,405
85,047

Obligations under finance lease and hire purchase contracts
-
12,628

Accruals and deferred income
1,216,997
1,077,373

7,765,109
5,331,526


Included within trade creditors are amounts due to suppliers in respect of stock purchases totalling £2,110,609 (2023 - £1,757,554) under contracts subject to reservation of title clauses.
Bank loans are secured by way of a debenture over the assets of the company.
Other loans relate to receivables finance and an import loan facility which are secured against the assets to which they relate.
Net obligations under hire purchase contracts are secured against the assets to which they relate.

Page 21

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
118,522
161,789


Bank loans are secured by way of a debenture over the assets of the company.


19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
47,472
44,278

Other loans
3,592,391
1,682,006


3,639,863
1,726,284

Amounts falling due 1-2 years

Bank loans
51,230
47,422

Amounts falling due 2-5 years

Bank loans
67,292
114,367


3,758,385
1,888,073


The bank loan is repayable in monthly instalments of £4,879, including interest charged at 2.5% above Bank of England Base rate. Total loan repayable in April 2027.


20.


Deferred taxation




2024
2023


£

£






At beginning of year
(10,499)
(10,066)


Charged to profit or loss
(1,484)
(433)



At end of year
(11,983)
(10,499)

Page 22

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024
 
20.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(15,514)
(16,458)

Other timing differences
3,531
5,959

(11,983)
(10,499)


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,610 (2023 -1,610) Ordinary shares of £1 each
1,610
1,610



22.


Reserves

Profit and loss account

Comprises all current and prior period retained profits and losses net of dividends paid.


23.


Contingent liabilities

VAT
The company is included in a group registration for VAT purposes and is therefore jointly and severally liable for all other group companies’ VAT liabilities.
Guarantees
There is a contingent liability relating to a composite bank guarantee given by the company to the group's bankers in respect of other companies within the group amounting at the balance sheet date to £686,495 (2023 - £908,603).


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £87,516 (2023 - £104,055). Contributions totalling £14,125 (2023 - £23,836) were payable to the fund at the balance sheet date and are included in creditors.

Page 23

 
Flowflex Components Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 March 2024

25.


Commitments under operating leases

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

2024
2023
£
£

Land and buildings


Not later than 1 year
18,120
18,215

2024
2023

£
£

Motor vehicles


Not later than 1 year
25,962
22,693

Later than 1 year and not later than 5 years
27,519
23,644

53,481
46,337


26.


Controlling party

The immediate and ultimate parent is Flowflex Holdings Limited, company number 02107935, registered in England and Wales. The company is under the ultimate control of T A Dickinson by virtue of his majority shareholding in the ultimate parent company Flowflex Holdings Limited.

 
Page 24