REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
FOR |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE PERIOD 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
FOR |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
COMPANY INFORMATION |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
STRATEGIC REPORT |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
The directors present their strategic report for the period 1 September 2023 to 30 June 2024. |
REVIEW OF BUSINESS |
In summary we expect to see a growth of revenues but margins will remain stable. |
The company's key financial and other performance indicators during the year were as follows: |
2024 | 2023 | 2022 | 2021 |
Turnover | £20,382,404 | £22,723,400 | £20,221,891 | £18,761,552 |
Gross Profit | 22% | 22% | 19% | 19% |
Total assets less current liabilities | £5,698,665 | £4,748,208 | £3,494,574 | £3,000,610 |
The period ended 30 June 2024 was a ten month period so is not directly comparable to prior periods, however, when comparing to a pro rated 2023 period, sales have seen a 8% increase. |
We have continued to work closely and communicate openly with staff, customers and suppliers alike , and as such, are well placed to move forward into a new financial year, with our 2 key strands of: |
Fasteners |
Bearings |
In terms of our underlying business objective - to be profitable, sustainable and scalable - it's been another successful year. |
We have over many years developed a very good relationship with both suppliers and customers which holds us in good stead during these difficult and uncertain times. We have also become known as a good and fair firm to work for, without fear of discrimination, and as such we have attracted a very diverse workforce from a wide variety of both backgrounds and countries of origin. |
Whilst continuing to react to the challenges we face on a day to day basis, we are mindful of the impact our decisions may have long term and we continue to assess our impact on the local community and the environment as a whole. |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
STRATEGIC REPORT |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
As with other businesses, Forward Industrial Products Group Ltd faces a number of risks and uncertainties in the course of its day to day operations. By effectively identifying and managing these risks we can improve our performance and quality of service. |
The main risks identified are; |
Market risk |
The impact of a weak GBP is significant as many products are imported. A programme for mitigating the loss in margin due to the exchange rate is being implemented but may have to be modified should there be a further fall in the strength of sterling. |
Credit risk |
Credit risk is the risk that customers fail to pay. The company manages it's credit risk through the use of credit limits and payment terms and the regular monitoring of amounts outstanding. |
Operational risk |
Operating risk is the risk that the company's internal practice, policies and systems are inadequate leading to a loss. Operational risk is managed by using a defined structure of processes and systems for managing the service provided to meet customers expectations. These processes and systems are monitored by the board on a regular basis. |
ON BEHALF OF THE BOARD: |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
REPORT OF THE DIRECTORS |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
The directors present their report with the financial statements of the company for the period 1 September 2023 to 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company continued to be that of the distribution of industrial fasteners, bearings and transmission products. |
DIVIDENDS |
Interim dividends for the year totalled £305,467 (2023: £369,198). No final dividend is proposed. |
FUTURE DEVELOPMENTS |
The directors aim to maintain the management policies which have resulted in the company's growth in recent years. They do not anticipate any significant changes to the underlying business of the company. |
EVENTS SINCE THE END OF THE PERIOD |
Information relating to events since the end of the period is given in the notes to the financial statements. |
DIRECTORS |
Other changes in directors holding office are as follows: |
DONATIONS |
During the year the company made charitable donations to local boxing, rugby, and football clubs totalling £5,249 (2023: £7,226). |
RESULTS |
The results for the year are set out on page 9. The position of the company at the year end is shown on page 11. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information relating to principal risks and uncertainties facing the company is disclosed in the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
REPORT OF THE DIRECTORS |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
Opinion |
We have audited the financial statements of Forward Industrial Products Group Limited (the 'company') for the period ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud was as follows: |
- | Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- |
Enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; and |
- |
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to involve the completeness and timing of income recognition and the override of controls by management. |
To address the risk of fraud in relation to revenue recognition, we: |
- | Performed detailed substantive testing to address completeness and accuracy of income; |
- | Assessed the appropriateness and application of the accounting policy concerning income recognition; and |
- | Performed detailed cut-off testing either side of the balance sheet date. |
To address the risk of fraud through management bias and override of controls, we: |
- | Performed analytical procedures to identify any unusual or unexpected relationships; |
- | Tested journal entries to identify unusual transactions; |
- |
Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | Investigated the rationale behind significant or unusual transactions. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
INCOME STATEMENT |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,650,839 | 2,160,121 |
Other operating income |
OPERATING PROFIT | 5 |
Income from shares in group undertakings |
1,798,621 | 2,333,637 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL PERIOD |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
OTHER COMPREHENSIVE INCOME |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Notes | £ | £ |
PROFIT FOR THE PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
STATEMENT OF CHANGES IN EQUITY |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 August 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
CASH FLOW STATEMENT |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Dividends received |
Net cash from investing activities |
Cash flows from financing activities |
Movement on debt financing | (517,855 | ) | (591,537 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of period |
2 |
267,800 |
Cash and cash equivalents at end of period |
2 |
392,378 |
311,084 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE CASH FLOW STATEMENT |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Provisions | 150,000 | - |
Finance costs | 186,445 | 233,491 |
Finance income | (71,407 | ) | (100,000 | ) |
1,909,075 | 2,281,430 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 30 June 2024 |
30.6.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 392,378 | 311,084 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 311,084 | 267,800 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.9.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 311,084 | 81,294 | 392,378 |
311,084 | 392,378 |
Total | 311,084 | 81,294 | 392,378 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Forward Industrial Products Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in 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 and presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
The directors have considered the financial health of the company and are confident that the company, at the date of signing, will continue as a going concern for the foreseeable future. |
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. |
The accounting period was shortened from 31 August 2024 to 30 June 2024. This was so the accounts could be prepared up to the month end before the sale of the company on 2 July 2024. As a result, the results of the current year are not entirely comparable with the prior year on the income statement. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Stock impairment provision |
Management perform an exercise at the end of each reporting period to identify slow-moving and non-moving stock and assess whether any impairment is required. Slow moving and non moving items are categorised based on the last recorded sale of that specific stock line, adjusted for any recent purchases where no sales have yet occurred but the stock is not considered non moving. Impairment losses are recorded as an expense in the period they occur and are reversed if the conditions for impairment no longer exist. |
Goods in transit estimate |
Goods in transit from foreign suppliers are recognised as inventory once the risks and rewards of ownership have transferred, typically upon receipt at a designated location. At the year end, management estimate the amount of stock that is currently owned by the Company that is still in transit to them. This estimate is based on current lead times at the reporting date. The estimated value of goods in transit is recorded based on the purchase cost and any other related costs, and adjusted upon final receipt and verification of the goods. |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Revenue from the sale of services are recognised when the performance obligations have been met which are measured over time. The amount of revenue can be measured reliably, it is separable, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Dividend income |
Dividend income is measured at the fair value of the consideration received or receivable when the entity’s right to receive payment is established. This is included within Income from shares in group undertakings in the income statement. |
Management charges |
Management charges are recognised at the fair value of amounts received or receivable. This is included within other operating income in the income statement. |
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. |
The gain or loss arising on disposal of an asset is determined at the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | - 20% straight line |
Fixture and fittings | - 20% straight line |
Computer equipment | - 33% reducing balance |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). |
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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss 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 increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials. |
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. |
Financial instruments |
The company has elected to apply the provisions of Section 11 "Basic Financial Instruments " and Section 12 "Other Financial Instruments Issues" of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
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 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 occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. |
The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
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. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
United Kingdom |
Worldwide | 5,861,781 | 3,408,510 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
Office and management | 24 | 24 |
Warehouse and distribution | 24 | 24 |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Foreign exchange differences |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
6. | AUDITORS' REMUNERATION |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
13,545 |
12,900 |
Auditors' remuneration for non audit work |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Interest on late payment of corporation tax |
Interest on invoice financing activities |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Current tax: |
UK corporation tax |
Under/(over) provision on |
prior years | 67,500 | 23,401 |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
qualifying for tax allowances |
Change in deferred tax | (5,523 | ) | (6,196 | ) |
for previous year |
Adjustments to tax charge in respect of previous periods | 67,500 | 23,401 |
Total tax charge | 500,728 | 471,118 |
9. | DIVIDENDS |
Period |
1.9.23 |
to | Year Ended |
30.6.24 | 31.8.23 |
£ | £ |
Ordinary A,B,C,D,E, F & G shares of £1 each |
Interim | 305,467 | 369,198 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for period |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 31 August 2023 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 31 August 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Spitálské námestí 1050/3, Ústí nad Labem-centrum, 400 01 Ústí nad Labem, Czech Republic |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the period/year |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Subsidiaries |
Forward Industrial Products CZ |
Forward Industrial Products Group Limited owns 100% of the ordinary share capital of Forward Industrial Products CZ, representing 1 Share of £333. Their registered office address is Spitálské námestí 1050/3, Ústí nad Labem-centrum, 400 01 Ústí nad Labem, Czech Republic. |
Forward Industrial Products CZ prepares accounts to the 30 June. |
Forward Industrial Products Group Limited relied upon an exception included within Section 405 (2) of the Companies Act 2006, not to prepare group financial statements. |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods and goods for |
resale |
During the year, there were impairment losses reversed in the profit and loss of £13,917. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Corporation tax |
Taxation and social security |
VAT | 438,150 | 344,656 |
Other creditors |
Accruals and deferred income |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
16. | SECURED DEBTS |
The invoice financing facility included within other creditors £1,919,675 (2023: £2,437,530) is secured by a fixed charge over the book and other debts. There is also a floating charge over all assets and undertakings. |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 13,425 | 18,949 |
Other provisions | 150,000 | - |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 September 2023 |
Provided during period | ( |
) |
Balance at 30 June 2024 |
The company has recognised a provision for dilapidation costs. This provision reflects the estimated costs required to restore leased properties to their original condition, as specified in the lease agreements, upon the expiration of the lease term. |
18. | CALLED UP SHARE CAPITAL |
Allocated, issues and fully paid |
Number: |
Class: |
Nominal Value: |
2021 |
2020 |
£ | £ |
548 | Ordinary A | £1 | 548 | 548 |
342 | Ordinary B | £1 | 342 | 342 |
40 | Ordinary C | £1 | 40 | 40 |
10 | Ordinary D | £1 | 10 | 10 |
10 | Ordinary E | £1 | 10 | 10 |
40 | Ordinary F | £1 | 40 | 40 |
10 | Ordinary G | £1 | 10 | 10 |
1,000 | 1,000 |
All classes of shares rank equally and have the rights to dividend payments. |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 September 2023 |
Profit for the period |
Dividends | ( |
) |
At 30 June 2024 |
FORWARD INDUSTRIAL PRODUCTS GROUP |
LIMITED (REGISTERED NUMBER: 03341583) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Period 1 SEPTEMBER 2023 TO 30 JUNE 2024 |
20. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
At the end of the period, amounts were owed from group companies of £219,556 (2023: £232,565), these amounts are included within trade debtors. |
2024 | 2023 |
£ | £ |
Sales |
Purchases |
Amount due from related party |
Amount due to related party |
Outstanding balances with entities are unsecured, interest free and cash settlement is expected within 60 days of the invoice. |
Up until December 2023, the company acted as a guarantor for Clealone, a company under common control. The guarantee was in relation to a building lease with monthly rentals due of £1,592 + VAT. |
During the year, a total of key management personnel compensation of £24,576 (2023 - £27,541) was paid. |
21. | POST BALANCE SHEET EVENTS |
On the 2 July 2024 the shares of the company were purchased by TFC Europe Limited. |
Following the year end, the company received an intercompany loan of £1,000,000 from TFC Europe Limited. The loan is unsecured and interest free. |
The purpose of the loan is to reduce the company's reliance on the invoice financing facility and is being repaid at £150,000 per month. |
22. | ULTIMATE CONTROLLING PARTY |
At the period end, the ultimate controlling party was Mr M D Cleaver by virtue of his majority shareholding. |
From 2 July 2024, the company's ultimate controlling party is Mr J M Drazan. |
From 2 July 2024, the immediate parent company is TFC Europe Limited, a company registered in England, with registered address Hale House Ghyll Industrial, Estate Heathfield, East Sussex, TN21 8AW. |