Company registration number 07422943 (England and Wales)
FUGEN UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 APRIL 2024
FUGEN UK LIMITED
COMPANY INFORMATION
Director
A A Kachwala
Company number
07422943
Registered office
79 College Road
Harrow
Middlesex
HA1 1BD
Auditor
Deitch Cooper LLP
3 Hobbs House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX
Bankers
Metro Bank PLC
Lloyds Bank plc
Union Bank of India (UK) Ltd
FUGEN UK LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 29
FUGEN UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 APRIL 2024
- 1 -

The director presents the strategic report for the year ended 29 April 2024.

Review of the business

The Group operates as agents and wholesalers in the sale of a variety of goods including slabs, tiles and construction materials, across the United Kingdom. All companies within the Group have the same principal activities.

 

The results for the year are summarised in the Group Statement of Comprehensive Income. The Group has maintained a good gross profit margin and operating profit over the period under review. Key performance indicators are presented below. The Directors are forecasting that the Group will be able to continue its organic growth in the foreseeable future.

Principal risks and uncertainties

During the year there have been risks to the profitability of the Group. Inflationary cost pressures have led to rising costs for raw materials, labour and other operational expenses. However the Group has maintained a healthy profit throughout the period.

 

The principal risks and uncertainties also include liquidity risk and cash flow risk. The group finances its operations from its bank balances and borrowings. The Group has invoice discounting arrangements to manage these risks. To manage credit risk, the group is not reliant on any key contractual arrangements to support or conduct its business.

 

The Directors consider the Group is resilient and is able to adapt to the challenges of changes in the economic climate and the Group has sufficient funds to support its business.

Key performance indicators

The key financial highlights of the group are as follows:

 

 

Year ended

29 April 2024

 

Period ended

29 April 2023

 

£

 

£

 

 

 

 

Group turnover

16,891,466

 

26,308,477

Gross profit margin %

24.7%

 

18.4%

Group operating profit

785,922

 

1,032,436

Profit before taxation

482,678

 

822,550

 

 

 

 

 

The duration of the financial period ended 29 April 2023 was 18 months. Therefore, on an annualised basis, the group has seen an improvement in operating profitability during the year ended 29 April 2024. Other financial highlights have indicated strong results during the period under review.

Other information and explanations

The results of the Group are consistent with the expectations of the Director. The financial positions of the Company and Group are both healthy and expected to remain so in the forthcoming financial year.

On behalf of the board

A A Kachwala
Director
28 January 2025
FUGEN UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 APRIL 2024
- 2 -

The director presents his annual report and financial statements for the year ended 29 April 2024.

Principal activities

The principal activity of both the company and the group continued to be that of agents and wholesalers involved in the sale of a variety of goods, including slabs, tiles and construction materials.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

A A Kachwala
Future developments

A description of future developments is contained within the Strategic Report.

Auditor

Deitch Cooper LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

FUGEN UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 3 -
Statement of disclosure to auditor

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

On behalf of the board
A A Kachwala
Director
28 January 2025
FUGEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUGEN UK LIMITED
- 4 -
Opinion

We have audited the financial statements of Fugen UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 April 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FUGEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUGEN UK LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this, we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of journals.

We gained an understanding of the legal and regulatory framework applicable to the parent company and group and the sectors in which it operates including those that relate generally to the operating aspects of the business. There are many laws and regulations, relating principally to the operating aspects of the group and the industry in which it operates, that typically do not affect the financial statements and as such are not captured by the entity's information systems relevant to financial reporting. It is the responsibility of management to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations. The auditor is not responsible for preventing non-compliance and we cannot be expected to detect non-compliance with all laws and regulations. Representations were obtained from the board of directors that there is no identified or suspected non-compliance with any laws and regulations.

Our audit procedures focused on laws and regulations that are generally recognised to have a material effect on the financial statements or a direct effect on the determination of material amounts and disclosures. We considered the risk of acts by the group that may be contrary to these laws and regulations, including fraud. We completed a sample of audit reviews with a focus on the income, expenditure and cash balances throughout the period. Any unusual findings were investigated.

As in all of our audits, we also addressed the risk of management override of internal controls including testing and evaluation of whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. We did not identify any key audit matters relating to irregularities, including fraud.

FUGEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FUGEN UK LIMITED
- 6 -

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 my involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of our report

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

Mohamedkazim Bhaloo
Senior Statutory Auditor
For and on behalf of Deitch Cooper LLP
28 January 2025
Accountants
Statutory Auditor
3 Hobbs House
Harrovian Business Village
Bessborough Road
Harrow
Middlesex
HA1 3EX
FUGEN UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
16,891,466
26,308,477
Cost of sales
(12,726,123)
(21,477,437)
Gross profit
4,165,343
4,831,040
Distribution costs
(1,690,623)
(2,146,923)
Administrative expenses
(1,688,798)
(1,651,681)
Operating profit
4
785,922
1,032,436
Interest receivable and similar income
16
203
Interest payable and similar expenses
7
(303,260)
(210,089)
Profit before taxation
482,678
822,550
Tax on profit
8
(132,122)
(150,959)
Profit for the financial year
22
350,556
671,591
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
FUGEN UK LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 29 APRIL 2024
29 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
285,630
285,630
Tangible assets
10
2,154,386
2,142,080
2,440,016
2,427,710
Current assets
Stocks
13
5,949,981
6,828,432
Debtors
14
4,718,811
2,894,653
Cash at bank and in hand
232,756
257,669
10,901,548
9,980,754
Creditors: amounts falling due within one year
15
(9,748,040)
(8,663,452)
Net current assets
1,153,508
1,317,302
Total assets less current liabilities
3,593,524
3,745,012
Creditors: amounts falling due after more than one year
16
(1,366,642)
(1,870,045)
Provisions for liabilities
Deferred tax liability
19
25,505
24,146
(25,505)
(24,146)
Net assets
2,201,377
1,850,821
Capital and reserves
Called up share capital
21
60,600
60,600
Profit and loss reserves
22
2,140,777
1,790,221
Total equity
2,201,377
1,850,821

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 28 January 2025
28 January 2025
A A Kachwala
Director
Company registration number 07422943 (England and Wales)
FUGEN UK LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 29 APRIL 2024
29 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,120,982
2,099,655
Investments
11
1,420,702
1,420,702
3,541,684
3,520,357
Current assets
Stocks
13
5,739,206
6,614,472
Debtors
14
4,196,248
2,847,258
Cash at bank and in hand
183,799
161,483
10,119,253
9,623,213
Creditors: amounts falling due within one year
15
(10,187,498)
(9,479,043)
Net current (liabilities)/assets
(68,245)
144,170
Total assets less current liabilities
3,473,439
3,664,527
Creditors: amounts falling due after more than one year
16
(1,366,642)
(1,870,045)
Provisions for liabilities
Deferred tax liability
19
17,154
24,146
(17,154)
(24,146)
Net assets
2,089,643
1,770,336
Capital and reserves
Called up share capital
21
60,600
60,600
Profit and loss reserves
22
2,029,043
1,709,736
Total equity
2,089,643
1,770,336

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the financial period was £319,307 (2023: £591,106).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 28 January 2025
28 January 2025
A A Kachwala
Director
Company registration number 07422943 (England and Wales)
FUGEN UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 31 October 2021
60,600
1,118,630
1,179,230
Year ended 29 April 2023:
Profit and total comprehensive income
-
671,591
671,591
Balance at 29 April 2023
60,600
1,790,221
1,850,821
Year ended 29 April 2024:
Profit and total comprehensive income
-
350,556
350,556
Balance at 29 April 2024
60,600
2,140,777
2,201,377
FUGEN UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 31 October 2021
60,600
1,118,630
1,179,230
Year ended 29 April 2023:
Profit and total comprehensive income for the year
-
591,106
591,106
Balance at 29 April 2023
60,600
1,709,736
1,770,336
Year ended 29 April 2024:
Profit and total comprehensive income
-
319,307
319,307
Balance at 29 April 2024
60,600
2,029,043
2,089,643
FUGEN UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,045,769
771,790
Interest paid
(303,260)
(210,089)
Income taxes paid
(142,417)
(102,827)
Net cash inflow from operating activities
600,092
458,874
Investing activities
Purchase of business
-
(1,437,268)
Purchase of tangible fixed assets
(107,994)
(103,676)
Interest received
16
203
Net cash used in investing activities
(107,978)
(1,540,741)
Financing activities
Proceeds from borrowings
-
532,500
Repayment of borrowings
(93,182)
(57,446)
Proceeds from new bank loans
-
54,559
Repayment of bank loans
(405,659)
-
Payment of finance leases obligations
(20,711)
(27,706)
Net cash (used in)/generated from financing activities
(519,552)
501,907
Net decrease in cash and cash equivalents
(27,438)
(579,960)
Cash and cash equivalents at beginning of year
257,663
841,454
Effect of foreign exchange rates
2,525
(3,831)
Cash and cash equivalents at end of year
232,750
257,663
Relating to:
Cash at bank and in hand
232,756
257,669
Bank overdrafts included in creditors payable within one year
(6)
(6)
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 APRIL 2024
- 13 -
1
Accounting policies
Company information

Fugen UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 79 College Road, Harrow, Middlesex, HA1 1BD.

 

The group consists of Fugen UK Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

The previous financial year was from 30 October 2022 to 29 April 2023 and so the comparatives in the annual financial statements are for a period of longer than one year. Therefore, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Fugen UK Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 29 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment losses.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

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

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

Freehold buildings
2% per annum on cost
Leasehold land and buildings
2% per annum on cost
Plant and equipment
5% / 15% / 20% straight line based on useful economic life
Fixtures and fittings
15% per annum on cost
Motor vehicles
20% per annum on cost

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

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

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

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

 

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

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Leases

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

 

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

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

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue

An analysis of the Group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,891,466
26,308,477
2024
2023
£
£
Other revenue
Interest income
16
203
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(2,525)
3,831
Fees payable to the group's auditor for the audit of the group's financial statements
12,100
13,450
Depreciation of owned tangible fixed assets
95,688
126,078
Operating lease charges
133,032
60,000
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 21 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
3
3
1
1
Distribution
2
2
2
2
Sales
16
12
10
6
Total
21
17
13
9

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
727,836
665,416
512,520
560,169
Social security costs
74,937
72,057
61,804
63,160
Pension costs
14,839
12,078
9,934
9,866
817,612
749,551
584,258
633,195
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
40,000
60,000
7
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
112,048
117,166
Other interest on financial liabilities
169,730
84,817
Interest on finance leases and hire purchase contracts
3,378
6,647
Other interest
18,104
1,459
Total finance costs
303,260
210,089
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 22 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
146,477
157,254
Adjustments in respect of prior periods
(15,714)
(7,161)
Total current tax
130,763
150,093
Deferred tax
Origination and reversal of timing differences
1,359
866
Total tax charge
132,122
150,959

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

2024
2023
£
£
Profit before taxation
482,678
822,550
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
120,670
156,285
Tax effect of expenses that are not deductible in determining taxable profit
8,728
2,809
Effect of change in corporation tax rate
-
2,526
Permanent capital allowances in excess of depreciation
18,000
15,218
Under/(over) provided in prior years
(15,714)
(7,161)
Tax at marginal rate
(921)
-
0
Deferred tax charge on accelerated capital allowances
1,359
866
Group adjustments
-
0
(19,584)
Taxation charge
132,122
150,959
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 30 April 2023 and 29 April 2024
285,630
Amortisation and impairment
At 30 April 2023 and 29 April 2024
-
0
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
9
Intangible fixed assets
(Continued)
- 23 -
Carrying amount
At 29 April 2024
285,630
At 29 April 2023
285,630
The company had no intangible fixed assets at 29 April 2024 or 29 April 2023.
10
Tangible fixed assets
Group
Freehold buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 30 April 2023
1,900,000
150,740
154,262
1,909
126,897
2,333,808
Additions
85,000
-
0
22,994
-
0
-
0
107,994
At 29 April 2024
1,985,000
150,740
177,256
1,909
126,897
2,441,802
Depreciation and impairment
At 30 April 2023
45,600
13,567
79,453
415
52,693
191,728
Depreciation charged in the year
32,000
3,015
34,606
688
25,379
95,688
At 29 April 2024
77,600
16,582
114,059
1,103
78,072
287,416
Carrying amount
At 29 April 2024
1,907,400
134,158
63,197
806
48,825
2,154,386
At 29 April 2023
1,854,400
137,173
74,809
1,494
74,204
2,142,080
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
10
Tangible fixed assets
(Continued)
- 24 -
Company
Freehold buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 30 April 2023
1,900,000
150,740
108,370
126,897
2,286,007
Additions
85,000
-
0
22,994
-
0
107,994
At 29 April 2024
1,985,000
150,740
131,364
126,897
2,394,001
Depreciation and impairment
At 30 April 2023
45,600
13,567
74,492
52,693
186,352
Depreciation charged in the year
32,000
3,015
26,273
25,379
86,667
At 29 April 2024
77,600
16,582
100,765
78,072
273,019
Carrying amount
At 29 April 2024
1,907,400
134,158
30,599
48,825
2,120,982
At 29 April 2023
1,854,400
137,173
33,878
74,204
2,099,655

Freehold buildings with a carrying amount of £1,907,400 have been pledged, by way of a first legal charge, as security for borrowings of the company, included within other creditors. These borrowings are repayable by instalments and the property will be released from the charge when the borrowings are fully repaid.

11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,420,702
1,420,702

The directors consider that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 30 April 2023 and 29 April 2024
1,420,702
Carrying amount
At 29 April 2024
1,420,702
At 29 April 2023
1,420,702
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 25 -
12
Subsidiaries

Details of the company's subsidiaries at 29 April 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Affordable Granite & Marble Co. Limited
Stoney Leys Sawmill, Main Road, Stanton-In-The-Peak, Matlock, England, DE4 2LW
Granite and Marble wholesaler and retailer
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Affordable Granite & Marble Co. Limited
1,246,806
31,249

The investment in the subsidiary is stated at cost in the parent company financial statements.

13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
5,949,981
6,828,432
5,739,206
6,614,472
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,586,381
2,817,308
4,070,979
2,788,069
Corporation tax recoverable
7,161
7,161
-
0
-
0
Other debtors
107,000
57,525
107,000
46,530
Prepayments and accrued income
18,269
12,659
18,269
12,659
4,718,811
2,894,653
4,196,248
2,847,258
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 26 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
1,178,629
1,584,288
1,178,629
1,584,288
Obligations under finance leases
18
21,075
20,711
21,075
20,711
Other borrowings
17
102,328
93,182
102,328
93,182
Payments received on account
830
-
0
-
0
-
0
Trade creditors
7,310,625
5,933,271
7,276,682
5,675,353
Amounts owed to group undertakings
-
0
-
0
527,107
1,201,393
Corporation tax payable
145,600
157,254
130,622
157,254
Other taxation and social security
387,794
463,425
375,441
346,544
Other creditors
563,445
380,000
555,000
380,000
Accruals and deferred income
37,714
31,321
20,614
20,318
9,748,040
8,663,452
10,187,498
9,479,043

Other creditors of the parent company are secured by a first legal charge over the freehold buildings of the company. Obligations under finance leases are secured on the related assets.

16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
37,098
58,173
37,098
58,173
Other borrowings
17
279,544
381,872
279,544
381,872
Other creditors
1,050,000
1,430,000
1,050,000
1,430,000
1,366,642
1,870,045
1,366,642
1,870,045

Other creditors of the parent company are secured by a first legal charge over the freehold buildings of the company. Obligations under finance leases are secured on the related assets.

17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,178,623
1,584,282
1,178,623
1,584,282
Bank overdrafts
6
6
6
6
Other loans
381,872
475,054
381,872
475,054
1,560,501
2,059,342
1,560,501
2,059,342
Payable within one year
1,280,957
1,677,470
1,280,957
1,677,470
Payable after one year
279,544
381,872
279,544
381,872
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
17
Loans and overdrafts
(Continued)
- 27 -

Bank loans represents invoice finance loans secured by a fixed and floating charge covering all the property and undertaking of the parent company and by a personal guarantee of the Director. Other loans are unsecured and wholly repayable within five years in accordance with a repayment schedule.

 

A market rate of interest is charged on all borrowings of the company.

18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
23,643
24,090
23,643
24,090
In two to five years
38,465
62,108
38,465
62,108
62,108
86,198
62,108
86,198
Less: future finance charges
(3,935)
(7,314)
(3,935)
(7,314)
58,173
78,884
58,173
78,884

Finance lease payments represent rentals payable by the company or group for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is four years. All leases are on a fixed repayment basis.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
25,505
24,146
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
17,154
24,146
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
19
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 30 April 2023
24,146
24,146
Charge/(credit) to profit or loss
1,359
(6,992)
Liability at 29 April 2024
25,505
17,154

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature in future periods.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
14,839
12,078

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
B Ordinary shares of £1 each
60,600
60,600
60,600
60,600
22
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
1,790,221
1,118,630
1,709,736
1,118,630
Profit for the year
350,556
671,591
319,307
591,106
At the end of the year
2,140,777
1,790,221
2,029,043
1,709,736
FUGEN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2024
- 29 -
23
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
23,388
40,000
23,388
40,000
Between two and five years
13,443
30,000
13,443
30,000
36,831
70,000
36,831
70,000
24
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
350,556
671,591
Adjustments for:
Taxation charged
132,122
150,959
Finance costs
303,260
210,089
Investment income
(16)
(203)
Depreciation and impairment of tangible fixed assets
95,688
126,078
Foreign exchange gains on cash equivalents
(2,525)
3,831
Movements in working capital:
Decrease/(increase) in stocks
878,451
(3,478,901)
(Increase)/decrease in debtors
(1,824,158)
1,222,123
Increase in creditors
1,112,391
1,866,223
Cash generated from operations
1,045,769
771,790
25
Analysis of changes in net debt - group
30 April 2023
Cash flows
Exchange rate movements
29 April 2024
£
£
£
£
Cash at bank and in hand
257,669
(27,438)
2,525
232,756
Bank overdrafts
(6)
-
-
(6)
257,663
(27,438)
2,525
232,750
Borrowings excluding overdrafts
(2,059,336)
498,841
-
(1,560,495)
Obligations under finance leases
(78,884)
20,711
-
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