Company registration number 02002609 (England and Wales)
FOUR-TEES ENGINEERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
FOUR-TEES ENGINEERS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 11
FOUR-TEES ENGINEERS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
233,421
254,691
Investments
5
1
1
233,422
254,692
Current assets
Stocks
152,979
261,836
Debtors
7
2,701,724
2,659,905
Cash at bank and in hand
131,222
208,052
2,985,925
3,129,793
Creditors: amounts falling due within one year
8
(859,009)
(563,483)
Net current assets
2,126,916
2,566,310
Total assets less current liabilities
2,360,338
2,821,002
Provisions for liabilities
(49,191)
(13,837)
Net assets
2,311,147
2,807,165
Capital and reserves
Called up share capital
100
100
Other reserves
162,426
161,962
Profit and loss reserves
2,148,621
2,645,103
Total equity
2,311,147
2,807,165
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 December 2024 and are signed on its behalf by:
Mr T A Stedman
Director
Company registration number 02002609 (England and Wales)
FOUR-TEES ENGINEERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Share capital
Capital contribution in respect of share options
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
100
68,112
2,584,690
2,652,902
Year ended 30 April 2023:
Profit for the year
-
-
217,912
217,912
Other comprehensive income:
Credit to equity for equity settled share-based payments
-
93,850
-
93,850
Total comprehensive income for the year
-
93,850
217,912
311,762
Dividends
-
-
(157,499)
(157,499)
Balance at 30 April 2023
100
161,962
2,645,103
2,807,165
Year ended 30 April 2024:
Profit for the year
-
-
127,084
127,084
Other comprehensive income:
Credit to equity for equity settled share-based payments
-
464
-
464
Total comprehensive income for the year
-
464
127,084
127,548
Dividends
-
-
(623,566)
(623,566)
Balance at 30 April 2024
100
162,426
2,148,621
2,311,147
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
1
Accounting policies
Company information
Four-Tees Engineers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Dewar Close, Segensworth West, Fareham, Hampshire, PO15 5UB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 (with the exception of share-based payments, which are measured at fair value). The principal accounting policies adopted are set out below.
1.2
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion can be estimated reliably. The stage of completion is calculated by comparing revenue invoiced, as a proportion of total contract revenue. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that it is probable expenses recognised will be recovered.
1.3
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
6.25% reducing balance
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 6 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Position on contracts with customers
Management review the situation on the ongoing contracts regularly so that the adjustments for accrued or deferred revenue and work in progress or accrued costs are as accurate as possible. Due to the nature of the contracts this does often require management to make a judgement about the expected final result of the contract, which can be months away from completion.
The key judgements made in this area are around the expected final margin to be achieved on the contract, an expectation of any extra (or reductions in) revenue that may arise before the finalisation of the project, and an estimate of the level of completion at a given date.
The accounts include accrued income of £42,828 (2023 - £78,870), deferred income of £nil (2023 - £nil), work in progress £125,124 (2023 - £221,648) and accrued costs of £188,804 (2023 - £63,242) in respect of these projects.
Share based payment options - Vesting period
Share based payments awarded are exercisable upon an exit event. To determine the vesting period the directors are required to estimate the timing of such an event and the expected number of employees who currently hold options remaining at the company. At the year end it is the directors best estimate that all employees who currently hold options will remain and that the vesting period is unchanged at 5 years.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
51
47
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
102,128
184,951
52,041
290,225
629,345
Additions
8,392
7,170
41,323
56,885
Disposals
(1,785)
(28,800)
(30,585)
At 30 April 2024
102,128
193,343
57,426
302,748
655,645
Depreciation and impairment
At 1 May 2023
45,202
116,155
35,385
177,912
374,654
Depreciation charged in the year
6,407
23,471
6,473
35,325
71,676
Eliminated in respect of disposals
(1,437)
(22,669)
(24,106)
At 30 April 2024
51,609
139,626
40,421
190,568
422,224
Carrying amount
At 30 April 2024
50,519
53,717
17,005
112,180
233,421
At 30 April 2023
56,926
68,796
16,656
112,313
254,691
5
Fixed asset investments
2024
2023
£
£
Investment in subsidiary
1
1
6
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
F.T.E. Rail Limited
1 Dewar Close, Fareham, Hampshire, PO15 5UB
Ordinary Shares
100.00
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
269,015
419,895
Corporation tax recoverable
41,452
141,807
Amounts owed by group undertakings
1,426,607
1,470,678
Other debtors
964,650
583,834
2,701,724
2,616,214
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Debtors
(Continued)
- 9 -
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
43,691
Total debtors
2,701,724
2,659,905
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
362,706
260,833
Amounts owed to group undertakings
1
1
Corporation tax
39,289
32,169
Other taxation and social security
79,509
77,227
Other creditors
377,504
193,253
859,009
563,483
9
Share-based payment transactions
As part of its incentive policy Four-Tees Engineers Limited initiated a number of share option schemes for key employees. The share options are subject to the service and performance conditions of the scheme. The fair value of the share options granted is recognised as a staff cost with a corresponding adjustment to equity over the period during which the employees become unconditionally entitled to the options (vesting period).
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 May 2023
2,250
2,250
17.66
17.66
Granted
800
23.27
Exercised
(2,250)
17.66
Outstanding at 30 April 2024
800
2,250
23.27
17.66
Exercisable at 30 April 2024
The options outstanding at 30 April 2024 had an exercise price of £23.27, and a remaining contractual life of 9 months.
The expense is based upon the company's estimates of fair value of the acquired equity instruments using a Black-Scholes option pricing model, a model widely used to calculate the fair value of options.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Share-based payment transactions
(Continued)
- 10 -
Modification
During the year the newly granted options were modified and became exercisable in January 2025. An adjustment has been made to the vesting period based on the revised exercise date and on the revised fair value of the modified and original options.
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £464 (2023 - £93,850) which related to equity settled share based payment transactions.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Adam Buse FCA
Statutory Auditor:
Fiander Tovell Limited
Date of audit report:
13 December 2024
11
Financial commitments, guarantees and contingent liabilities
There are fixed and floating charges over the assets of the company in respect of loan notes issued by the parent company, FTE Group Limited.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
34,337
82,434
13
Related party transactions
The company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities.
The company occupies premises owned by Mr J R Pettitt (director) and Mrs CML Pettitt (wife of director). During the year rent of £90,000 (2023: £101,270) was charged to the company in line with normal commercial rates.
The company purchased marketing services from Pipeline Creation Limited, a company which Mr R M King is a director, totalling £10,300 for the year.
FOUR-TEES ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
14
Directors' transactions
During the year, the company operated interest free loan accounts with the Directors. The amounts involved were as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Interest free loans
-
6,500
30,030
36,530
6,500
30,030
36,530
15
Parent company
The ultimate and immediate parent company is F.T.E. Group Limited, a company registered in England and Wales.
Its registered office is 1 Dewar Close, Segensworth West, Fareham, Hampshire, United Kingdom, PO15 5UB.
2024-04-302023-05-01false13 December 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedMr J R PettittMr T A StedmanMr G M DaviesMr C WilkinsonMr J J HornMr R M KingMr B BurneyMr J J Hornfalsefalse020026092023-05-012024-04-30020026092024-04-30020026092023-04-3002002609core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-04-3002002609core:PlantMachinery2024-04-3002002609core:FurnitureFittings2024-04-3002002609core:MotorVehicles2024-04-3002002609core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3002002609core:PlantMachinery2023-04-3002002609core:FurnitureFittings2023-04-3002002609core:MotorVehicles2023-04-3002002609core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3002002609core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3002002609core:CurrentFinancialInstruments2024-04-3002002609core:CurrentFinancialInstruments2023-04-3002002609core:ShareCapital2024-04-3002002609core:ShareCapital2023-04-3002002609core:OtherMiscellaneousReserve2024-04-3002002609core:OtherMiscellaneousReserve2023-04-3002002609core:RetainedEarningsAccumulatedLosses2024-04-3002002609core:RetainedEarningsAccumulatedLosses2023-04-3002002609core:ShareCapital2022-04-3002002609core:ForeignCurrencyTranslationReserve2022-04-3002002609core:RetainedEarningsAccumulatedLosses2022-04-3002002609core:ForeignCurrencyTranslationReserve2023-04-3002002609core:ForeignCurrencyTranslationReserve2024-04-3002002609bus:Director22023-05-012024-04-3002002609core:RetainedEarningsAccumulatedLosses2022-05-012023-04-30020026092022-05-012023-04-3002002609core:RetainedEarningsAccumulatedLosses2023-05-012024-04-3002002609core:ForeignCurrencyTranslationReserve12022-05-012023-04-3002002609core:ForeignCurrencyTranslationReserve22023-05-012024-04-3002002609core:PlantMachinery2023-05-012024-04-3002002609core:FurnitureFittings2023-05-012024-04-3002002609core:MotorVehicles2023-05-012024-04-3002002609core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3002002609core:PlantMachinery2023-04-3002002609core:FurnitureFittings2023-04-3002002609core:MotorVehicles2023-04-30020026092023-04-3002002609core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-012024-04-300200260912023-05-012024-04-3002002609core:Non-currentFinancialInstruments2024-04-3002002609core:Non-currentFinancialInstruments2023-04-3002002609core:WithinOneYear2024-04-3002002609core:WithinOneYear2023-04-30020026092022-04-3002002609bus:PrivateLimitedCompanyLtd2023-05-012024-04-3002002609bus:SmallCompaniesRegimeForAccounts2023-05-012024-04-3002002609bus:FRS1022023-05-012024-04-3002002609bus:Audited2023-05-012024-04-3002002609bus:Director12023-05-012024-04-3002002609bus:Director32023-05-012024-04-3002002609bus:Director42023-05-012024-04-3002002609bus:Director52023-05-012024-04-3002002609bus:Director62023-05-012024-04-3002002609bus:Director72023-05-012024-04-3002002609bus:CompanySecretary12023-05-012024-04-3002002609bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP