Company registration number 00366737 (England and Wales)
FAGAN & WHALLEY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
FAGAN & WHALLEY LIMITED
COMPANY INFORMATION
Directors
G M Fagan
S A Fagan
S Fagan
D Fagan
G Clare
S Gill
Company number
00366737
Registered office
Mead Way
Padiham
Burnley
Lancashire
United Kingdom
BB12 7NG
Auditor
Azets Audit Services
Crown House
Bridgewater Close
Burnley
Lancashire
United Kingdom
BB11 5TE
Business address
Mead Way
Padiham
Burnley
Lancashire
United Kingdom
BB12 7NG
FAGAN & WHALLEY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Notes to the financial statements
11 - 24
FAGAN & WHALLEY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Promoting the success of the company

 

The likely consequences of any decision in the long term

 

Decisions are made with risk adversity and carefully thought out short, medium and long term impacts in mind. Expansion of our operationsensures jobs are created not only for the local area, but also with promotion opportunities internally for employees. The investment in IT infrastructure to link our depots across Lancashire, the Midlands and South Wales gives solidarity to our operations for the future.

 

The interests of the company's employees

 

Health and Safety remains at the top of the agenda at all management reviews and is a focus for continual improvement, including topical safety campaigns and best in class processes. Annual salary/​wage reviews ensure we are attracting and rewarding the best possible employees, who are offered both compulsory and optional training to ensure knowledge and skills are developed.

 

The need to foster the company's business relationships with suppliers, customers and others

 

Constant communication is in place with customers detailing KPIs and operational reviews where necessary. Customer satisfaction surveys are used to target areas for improvement and results with corrective action feedback to customers. Likeminded suppliers work in similar ways with regular review meetings to ensure we have continuation of services and supply.

 

The impact of the company's operations on the community and the environment

 

A structured fleet renewal policy aids investment in the latest vehicles to help cut emissions, whilst investment in telematics gives visibility to areas of improvement in vehicle usage and driving style. A structure and realistic ESG policy has been created to guide the business on the road to Net Zero Membership of the Burnley Bondholders continues to ensure we have a presence and input to the decisions being made in our local area. Sponsorships have been renewed with local sporting organisations, and the support of Blackburn Youth Zone Patrons Network helps to ensure a strong community and prospects for future generations.

 

The desirability of the company maintaining a reputation for high standards of business conduct

 

Both quality accreditations (BRCGS and Soil Association Organic Storage and Distribution) have again been awarded following successful audits with the highest standards being achieved. The board continuously spreads the message through regular management meetings that honesty and integrity are at the heart of our business.

 

The need to act fairly as between members of the company

 

The Executive Directors hold a controlling share of the business with other shareholders being close family members. The goals of the directors are fully aligned with the shareholders and this message is passed throughout the business through a tight and well structure organisation and levels of delegation.

FAGAN & WHALLEY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Fair review of the business

Our review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties we face. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit and return on capital employed.

Turnover has increased by 1.5% in comparison to last year. The gross profit margin has increased slightly to 26.1% (2023 – 25.6%).

Operating profit has decreased to £881,290 (2.5%) in comparison to last year (£1,409,151 (4.1%)), which has resulted in profit before tax decreasing to £529,357 (2023 - £1,142,495). Retained reserves have decreased by £504,161 following a dividend of £1,237,040 to the parent company.

Return on capital employed has decreased to 6.7% (2023 – 10.2%). Return on capital employed is calculated as profit before tax and interest divided by capital employed. Capital employed is calculated as total assets less current liabilities.

Principal risks and uncertainties

The principal uncertainty facing the business relates to the price of fuel, however the company uses variable fuel surcharges to mitigate this risk.

 

The continued risk of the well published HGV driver shortage creates uncertainty, but the company is well placed to handle this with various schemes to introduce drivers into the industry.

Key performance indicators

The directors consider the following are the main KPIs underpinning the performance of the business:

 

2024         2023

Turnover                £34,736k    £34,215k

Gross Profit %            26.1%        25.6%

EBITDA                 £3,895k        £4,586k        

EBITDA less vehicle depreciation     £1,481k        £2,119k        

On behalf of the board

S Fagan
Director
30 January 2025
FAGAN & WHALLEY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company is that of transport, distribution and warehousing.

Results and dividends

The results of the company are set out in the financial statements.

During the year ordinary dividends were paid amounting to £1,237,040. The directors do not recommend payment of a final dividend.

Directors

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

G M Fagan
S A Fagan
S Fagan
D Fagan
G Clare
S Gill
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The company's principal financial instruments comprise bank balances, trade debtors, trade creditors, loans and finance lease agreements. The main purpose of these instruments is to finance the company's operations.

 

In respect of bank balances, the liquidity is managed by maintaining a balance where necessary between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.

 

Loans comprise loans from the company's bank, and from other financial institutions. The company manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Disabled persons

The company's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities.

 

In the event of members of staff becoming disabled the company will ensure that every effort is made to retain the staff in employment within the company and appropriate training is provided to promote their career development within the company. Employees who become disabled are retained in their existing posts where possible or retrained for suitable alternative posts.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

FAGAN & WHALLEY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
S Fagan
Director
30 January 2025
FAGAN & WHALLEY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

FAGAN & WHALLEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FAGAN & WHALLEY LIMITED
- 6 -
Opinion

We have audited the financial statements of Fagan & Whalley Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of income and retained earnings, the balance sheet 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FAGAN & WHALLEY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAGAN & WHALLEY LIMITED
- 7 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

FAGAN & WHALLEY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FAGAN & WHALLEY LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

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.

Lewis Cross (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
31 January 2025
Chartered Accountants
Statutory Auditor
Crown House
Bridgewater Close
Burnley
Lancashire
United Kingdom
BB11 5TE
FAGAN & WHALLEY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
34,735,534
34,215,298
Cost of sales
(25,667,192)
(25,467,418)
Gross profit
9,068,342
8,747,880
Administrative expenses
(8,572,379)
(7,856,084)
Other operating income
385,327
517,355
Operating profit
4
881,290
1,409,151
Interest payable and similar expenses
8
(351,933)
(266,656)
Profit before taxation
529,357
1,142,495
Tax on profit
9
203,522
(749,500)
Profit for the financial year
732,879
392,995
Retained earnings brought forward
10,058,846
10,145,851
Dividends
(1,237,040)
(480,000)
Retained earnings carried forward
9,554,685
10,058,846

The Profit and Loss has been prepared on the basis that all operations are continuing operations.

FAGAN & WHALLEY LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
10,924,667
11,822,560
Investments
11
3,068,696
3,068,696
13,993,363
14,891,256
Current assets
Stocks
251,418
248,672
Debtors
14
9,144,810
8,601,121
Cash at bank and in hand
190,426
620,919
9,586,654
9,470,712
Creditors: amounts falling due within one year
15
(10,441,051)
(10,521,529)
Net current liabilities
(854,397)
(1,050,817)
Total assets less current liabilities
13,138,966
13,840,439
Creditors: amounts falling due after more than one year
16
(3,135,677)
(3,129,467)
Provisions for liabilities
Deferred tax liability
18
445,000
648,522
(445,000)
(648,522)
Net assets
9,558,289
10,062,450
Capital and reserves
Called up share capital
20
1,744
1,744
Share premium account
1,800
1,800
Capital redemption reserve
60
60
Profit and loss reserves
9,554,685
10,058,846
Total equity
9,558,289
10,062,450
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
S Fagan
Director
Company Registration No. 00366737
FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Fagan & Whalley Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mead Way, Padiham, Burnley, Lancashire, United Kingdom, BB12 7NG.

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, 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.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of Fagan & Whalley Holdings Limited. These consolidated financial statements are available from its registered office, Mead Way, Shuttleworth Mead, Burnley, Lancashire, BB12 7NG.

1.2
Going concern

The directors have considered the financial stability of the company for a period of at least 12 months from the date of signing these accounts. true

 

Whilst the company has net current liabilites at the year end, it should be noted this figure is heavily influenced by intercompany balances with no set repayment date, and this position is much healthier across the group on a consolidated basis. The directors are satisifed the company has sufficient resources to pay all debts as they fall due.

 

The company trades profitably and, although it is not anticipated this will be necessary, it has significant assets against which it could secure new finance to support any additional cashflow requirements, were this to be required.

 

The directors consider it appropriate that the accounts are prepared on the going concern basis. These accounts do not include any adjustments that may be required should the going concern basis of preparation not be appropriate.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

1.4
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:

Land and buildings
2% - 10% per annum
Plant and equipment
10% - 33% per annum
Motor vehicles
25% per annum
1.5
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.

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

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

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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 at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand.

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.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
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.

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 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 and loans from fellow group companies that are classified as debt, are initially recognised at transaction price.

 

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 at transaction price.

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.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

 

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.

1.12
Retirement benefits

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

1.13
Leases

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

 

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

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -

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.

2
Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make significant judgements, estimates and assumptions.

 

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 and in any future periods affected.

 

The main areas of judgement that have the most significant effect on the amounts recognised in the financial statements are in relation to provisions against irrecoverable debts and determining the useful economic life of fixed assets when setting the company's depreciation policies.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful life of tangible fixed assets

The company's results are materially impacted by the application of the its depreciation policies, which are based on the expected useful life of its tangible fixed assets. The directors' estimates of useful life are subject to estimation uncertainty. The degree of uncertainty related to motor vehicles is reduced significantly as they are typically depreciated over a fixed hire purchase contract period.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of services
34,735,534
34,215,298
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
661,127
775,636
Depreciation of tangible fixed assets held under finance leases
2,352,904
2,400,842
Profit on disposal of tangible fixed assets
(37,378)
(64,797)
Operating lease charges
2,064,688
1,868,768
FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
28,950
21,700
For other services
Taxation compliance services
13,580
2,350
All other non-audit services
7,000
6,250
20,580
8,600
6
Employees

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

2024
2023
Number
Number
Admin and support
76
80
Distribution
263
256
Total
339
336

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
12,418,969
12,158,811
Social security costs
1,259,162
1,206,053
Pension costs
261,250
256,571
13,939,381
13,621,435
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
402,524
437,353
Company pension contributions to defined contribution schemes
8,809
9,818
411,333
447,171

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 7).

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
74,119
83,092
Company pension contributions to defined contribution schemes
2,202
1,592
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
133,878
116,168
Interest on finance leases and hire purchase contracts
218,055
150,488
351,933
266,656
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
353,234
Group tax relief
-
0
(53,000)
Total current tax
-
0
300,234
Deferred tax
Origination and reversal of timing differences
(203,522)
449,266
Total tax (credit)/charge
(203,522)
749,500
FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 18 -

The actual (credit)/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
529,357
1,142,495
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
132,339
285,624
Tax effect of expenses that are not deductible in determining taxable profit
900
18,463
Unutilised tax losses carried forward
72,339
-
0
Effect of change in corporation tax rate
-
0
63,870
Permanent capital allowances in excess of depreciation
(409,100)
-
0
Research and development tax credit
-
0
478,234
Capital allowances and depreciation differences
-
0
(96,691)
Taxation (credit)/charge for the year
(203,522)
749,500
10
Tangible fixed assets
Land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
3,886,864
3,730,799
22,921,293
30,538,956
Additions
23,538
168,072
2,718,441
2,910,051
Disposals
(2,119,093)
-
0
(1,325,798)
(3,444,891)
At 30 April 2024
1,791,309
3,898,871
24,313,936
30,004,116
Depreciation and impairment
At 1 May 2023
1,955,982
2,251,751
14,508,663
18,716,396
Depreciation charged in the year
272,450
326,874
2,414,707
3,014,031
Eliminated in respect of disposals
(1,422,053)
-
0
(1,228,925)
(2,650,978)
At 30 April 2024
806,379
2,578,625
15,694,445
19,079,449
Carrying amount
At 30 April 2024
984,930
1,320,246
8,619,491
10,924,667
At 30 April 2023
1,930,882
1,479,048
8,412,630
11,822,560
FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Tangible fixed assets
(Continued)
- 19 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
124,077
137,863
Motor vehicles
7,843,879
8,069,810
7,967,956
8,207,673

Land and buildings

Included within the net book value of land and buildings is £nil (2023 - £nil) in respect of freehold land and buildings and £1.109,206 (2023 - £1,930,882) in respect of leasehold land and buildings.

11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
3,068,695
3,068,695
Investments in joint ventures
13
1
1
3,068,696
3,068,696
12
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
Indirect
RGM Lions Limited
England & Wales
Ordinary
100.00
-
Fagan & Whalley Newport Limited (formerly Alan R Jones & Sons Limited)
England & Wales
Ordinary
0
100.00
13
Joint ventures

Details of the company's joint ventures at 30 April 2024 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Farralls & Fagan & Whalley Limited
England and Wales
Ordinary
50.00

Further financial information in respect of the company's investments is disclosed in the consolidated financial statements of Fagan & Whalley Holdings Limited.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,621,369
5,825,816
Corporation tax recoverable
-
0
20,377
Amounts owed by group undertakings
375,000
395,456
Other debtors
388,435
497,257
Prepayments and accrued income
1,760,006
1,862,215
9,144,810
8,601,121
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
2,318,687
2,140,074
Trade creditors
2,639,289
2,336,692
Amounts owed to group undertakings
1,622,424
1,676,772
Corporation tax
332,857
353,234
Other taxation and social security
740,969
952,229
Other creditors
1,826,008
2,059,159
Accruals and deferred income
960,817
1,003,369
10,441,051
10,521,529

Other creditors includes £1,691,918 (2023 - £1,833,418) owed in respect of an invoice discounting facility. The liability is secured on the book debt of the company.

 

 

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
3,135,677
2,995,376
Other creditors
-
0
134,091
3,135,677
3,129,467

The company is part of a cross guarantee, supported by debentures, with its parent company Fagan & Whalley Holdings Limited.

 

The bank borrowings of Fagan & Whalley Holdings Limited, along with certain hire purchase agreements of Fagan & Whalley Limited, are secured by a legal charge over the company's premises. At 30 April 2024, the bank borrowings of Fagan & Whalley Holdings Limited were £7,865,403 (2023 - £7,235,190).

 

Other obligations under hire purchase contracts are secured against the assets to which they relate.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
2,512,264
2,274,668
In two to five years
3,135,677
3,123,704
5,647,941
5,398,372
Less: future finance charges
(193,577)
(262,922)
5,454,364
5,135,450

Finance lease payments represent rentals payable by the company for certain items of motor vehicles and plant and machinery. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,566,452
1,520,098
Tax losses
(1,121,452)
(871,576)
445,000
648,522
2024
Movements in the year:
£
Liability at 1 May 2023
648,522
Credit to profit or loss
(203,522)
Liability at 30 April 2024
445,000

The deferred tax liability set out above relates to accelerated capital allowances.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
261,250
256,571

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,744
1,744
1,744
1,744
21
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
1,669,600
1,615,748
Between two and five years
3,435,733
4,244,325
In over five years
2,583,200
2,914,379
7,688,533
8,774,452
22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
1,289,838
758,580

At the year end the company had entered into contracts to purchase motor vehicles over a period ended November 2024.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
23
Related party transactions

Summary of transactions with parent company

The company has entered into transactions with its parent company, Fagan & Whalley Holdings Limited, during the year.

 

The company was charged rent by Fagan & Whalley Holdings Limited during the year amounting to £822,210 (2023 - £505,960).

Summary of transactions with joint ventures

The company is party to a joint venture in Farralls & Fagan & Whalley Limited.

 

During the year the company sold goods and services with a value of £2,837,872 (2023 - £2,596,204) to Farralls & Fagan & Whalley Limited.

 

At the balance sheet date the amount due from Farralls & Fagan & Whalley Limited and included in trade debtors was £296,785 (2023 - £218,959).

Summary of transactions with other related parties

The company has entered into transactions with its pension scheme, The Fagan and Whalley Pension Scheme, during the year.

 

The company was charged rent by the pension scheme during the year amounting to £184,000 (2022 - £184,000). At the year end, an amount of £145,490 (2023 - £287,364) was owed to the company by the pension scheme, and is included within other debtors.

 

During the year the company sold goods and services with a value of £569,416 (2023 - £259,013), and purchased goods and services with a value of £506,730 (2023 - £78,261) from Fagan & Whalley Newport Limited (formerly Alan R Jones & Sons Limited), a subsidiary.

 

At the balance sheet date the amount due from Fagan & Whalley Newport Limited and included in trade debtors was £154,975 (2023 - £73,716), and the amount due to Fagan & Whalley Newport Limited and included in trade creditors was £186,000 (2023 - £nil).

24
Directors' transactions

Summary of transactions with directors

At the balance sheet date, the amounts due to directors was £nil (2023 - £28,771), included within creditors due within one year. At the balance sheet date, the amounts due from the directors was £57,482 (2023 - £72,516), included within debtors due within one year.

 

These amounts are unsecured and repayable on demand. The maximum amount advanced to the Directors during the period was £72,232 (2023 - £49,529).

 

Interest has been charged at a rate of 2.50% per annum on monies advanced to Directors.

FAGAN & WHALLEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
25
Ultimate controlling party

The company's immediate and ultimate parent is Fagan & Whalley Holdings Limited, a company incorporated in England and Wales. Fagan & Whalley Holdings Limited is the parent of both the smallest and largest group in which this company's results are consolidated.

 

The consolidated financial statements of Fagan & Whalley Holdings Limited are available upon request from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

 

The company is controlled by two of the directors, S A Fagan & G M Fagan by virtue of their shareholding in Fagan & Whalley Holdings Limited.

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