Company registration number 02050516 (England and Wales)
FIXING POINT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
FIXING POINT LIMITED
COMPANY INFORMATION
Directors
T Sahin
P Postle
Company number
02050516
Registered office
183-205 Westgate Street
Gloucester
United Kingdom
GL1 2RN
Auditor
Azets Audit Services
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
FIXING POINT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 24
FIXING POINT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
The results for the period, which are set out in the Statement of Comprehensive Income, show Turnover for the period of £9.1m (2023: £9.5m) and profit for the year after taxation of £66.5k (2023: £93.7k). Steady sales during 2024 within a slightly contracted market has maintained turnover and profit results similar to those of 2023.
At the balance sheet date, the company had net assets of £3.4m (2023: £147k) and net current assets of £2.6m (2023: £1.6m).
The financial position is considered sufficient by the directors to service ongoing activities and support future growth within the company.
The company’s focus within its strategic priorities is the development of both sales value and volume growth, to enhance positive cash generation. This includes growing market share and developing strong market and customer awareness, improving sales performance through targeted technical and operational advancements. The directors are committed to assisting this through strategic capital expenditure over the coming year.
Principal risks and uncertainties
The company’s risks and uncertainties are similar to those borne by other companies in the sector and the directors do not believe there are any risks peculiar to this company. The directors do however constantly review risk and ensure appropriate action is taken where necessary to mitigate those risks.
P Postle
Director
31 January 2025
FIXING POINT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of the supply of fasteners and ancillary products to the building industry.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T Sahin
P Postle
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
FIXING POINT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
On behalf of the board
P Postle
Director
31 January 2025
FIXING POINT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FIXING POINT LIMITED
- 4 -
We have audited the financial statements of Fixing Point Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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, except for the effects of the matter described in the basis for qualified opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
Under the Companies Act 2006, the company was exempt from audit for the period ended 30 April 2023. As a consequence, the financial statements of the company for the period ended 30 April 2023, which form the basis for the corresponding figures presented in the current period's financial statements were unaudited. For the period ended 30 April 2024, the directors were no longer able to take advantage of the exemption from audit available under section 477 of the Companies Act 2006.
The company's stocks were included in the balance sheet as at 30 April 2023 at £2,734,813. As we were not appointed to act for the company as its auditors until after 30 April 2023, we did not observe the counting of physical stock at the comparative balance sheet date and have been unable to obtain sufficient audit evidence concerning the quantities of stock at 30 April 2023 using alternative audit procedures. We were therefore unable to obtain sufficient appropriate audit evidence about the carrying value of the company's stock as at 30 April 2023. Consequently, we were unable to determine whether any adjustments to these amounts are required and if any adjustment to cost of sales for the period ended 30 April 2023 would therefore also be required.
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 qualified 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.
FIXING POINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIXING POINT LIMITED
- 5 -
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
FIXING POINT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FIXING POINT LIMITED
- 6 -
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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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.
Claire Clift
Senior Statutory Auditor
For and on behalf of Azets Audit Services
31 January 2025
Chartered Accountants
Statutory Auditor
Epsilon House
The Square
Gloucester Business Park
Gloucester
United Kingdom
GL3 4AD
FIXING POINT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
9,111,399
9,495,190
Cost of sales
(5,382,141)
(5,979,367)
Gross profit
3,729,258
3,515,823
Administrative expenses
(3,535,170)
(3,443,416)
Other operating income
150,000
Operating profit
4
194,088
222,407
Interest receivable and similar income
694
Interest payable and similar expenses
7
(128,264)
(63,991)
Profit before taxation
66,518
158,416
Tax on profit
8
(64,756)
Profit for the financial year
66,518
93,660
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FIXING POINT LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 8 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
9
74,241
57,053
Tangible assets
10
1,419,340
1,331,860
1,493,581
1,388,913
Current assets
Stocks
11
3,154,003
2,734,813
Debtors
12
2,991,457
3,816,168
Cash at bank and in hand
46,146
11,795
6,191,606
6,562,776
Creditors: amounts falling due within one year
13
(3,570,069)
(4,921,788)
Net current assets
2,621,537
1,640,988
Total assets less current liabilities
4,115,118
3,029,901
Creditors: amounts falling due after more than one year
14
(701,217)
(2,882,518)
Net assets
3,413,901
147,383
Capital and reserves
Called up share capital
19
3,250,000
50,000
Profit and loss reserves
163,901
97,383
Total equity
3,413,901
147,383
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
P Postle
Director
Company Registration No. 02050516
FIXING POINT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
50,000
3,723
53,723
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
93,660
93,660
Issue of share capital
19
250,000
-
250,000
Redemption of shares
19
(250,000)
(250,000)
Balance at 30 April 2023
50,000
97,383
147,383
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
66,518
66,518
Issue of share capital
19
3,200,000
-
3,200,000
Balance at 30 April 2024
3,250,000
163,901
3,413,901
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
1
Accounting policies
Company information
Fixing Point Limited is a private company limited by shares incorporated in England and Wales. The registered office is 183-205 Westgate Street, Gloucester, United Kingdom, GL1 2RN.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Resource R8 Limited.These consolidated financial statements are available from its registered office, C/O Resource Limited, The Maltings, East Tyndall Street, Cardiff, CF24 5EA.
1.2
Going concern
At the time of approving the financial statements, the directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors are also confident that with the ongoing support of its shareholders and with the significant investment in the business made during the year, that it is well placed to maintain profitability in the foreseeable future.
1.3
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.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. No amortisation has been recognised in respect of this year as the development costs capitalised have not yet come into working use.
1.6
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:
Plant and machinery
15% on cost
Fixtures and fittings
33.3% on cost
Computers
20% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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.
1.10
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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 hire purchase agreements and 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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.17
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.18
Related party transactions
The company has taken advantage of exemption under Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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.
Depreciation
The annual depreciation charge for tangible fixed assets is subject to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed at each reporting date. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets.
Bad debt provision
The company makes an estimate of the recoverable value of their trade and other debtors. When assessing the impairment of trade and other debtors, the directors consider factors including the ageing profile of debtors and historical experience, along with wider industry knowledge. Recommendations from HSBC and 3rd party credit referencing agencies are also considered.
Stock provision
The company manufactures and sells specialist fixings and cladding, and is subject to changing consumer demands and market trends. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, the directors consider the age, nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. The appropriateness of this stock provision is regularly assessed considering subsequent performance.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
9,111,399
9,495,190
2024
2023
£
£
Other revenue
Interest income
694
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(24,789)
(109,214)
Fees payable to the company's auditor for the audit of the company's financial statements
15,100
Depreciation of owned tangible fixed assets
153,629
144,384
Depreciation of tangible fixed assets held under finance leases
160,788
58,471
Profit on disposal of tangible fixed assets
(7,943)
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
Admin
26
22
Manufacturing
29
33
Total
56
56
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,991,178
2,003,447
Social security costs
209,398
181,634
Pension costs
54,009
182,766
2,254,585
2,367,847
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
91,998
90,723
Company pension contributions to defined contribution schemes
7,070
138,141
99,068
228,864
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
76,769
56,111
Dividends on redeemable preference shares not classified as equity
19,012
Interest on finance leases and hire purchase contracts
32,483
7,880
128,264
63,991
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
64,756
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
66,518
158,416
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
16,630
39,604
Tax effect of expenses that are not deductible in determining taxable profit
17,376
Change in unrecognised deferred tax assets
(34,006)
25,152
Taxation charge for the year
-
64,756
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
9
Intangible fixed assets
Development costs
£
Cost
At 1 May 2023
57,053
Additions
17,188
At 30 April 2024
74,241
Amortisation and impairment
At 1 May 2023 and 30 April 2024
Carrying amount
At 30 April 2024
74,241
At 30 April 2023
57,053
All intangible fixed assets are secured by a fixed and floating charge in favour of the bank.
10
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
1,556,881
95,893
91,958
263,111
2,007,843
Additions
280,576
10,256
20,741
110,382
421,955
Disposals
(83,144)
(83,144)
At 30 April 2024
1,837,457
106,149
112,699
290,349
2,346,654
Depreciation and impairment
At 1 May 2023
456,361
69,503
50,481
99,638
675,983
Depreciation charged in the year
222,639
21,372
13,816
56,590
314,417
Eliminated in respect of disposals
(63,086)
(63,086)
At 30 April 2024
679,000
90,875
64,297
93,142
927,314
Carrying amount
At 30 April 2024
1,158,457
15,274
48,402
197,207
1,419,340
At 30 April 2023
1,100,520
26,390
41,477
163,473
1,331,860
FIXING POINT 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 machinery
617,209
737,782
Motor vehicles
166,687
96,340
783,896
834,122
All tangible fixed assets are secured by a fixed and floating charge in favour of the bank.
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,154,003
2,734,813
An impairment provision of £168,138 (2023: £174,566) has been recognised in respect of stocks.
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,280,898
2,529,961
Amounts owed by group undertakings
62,250
Other debtors
12,363
14,622
Prepayments and accrued income
545,505
1,181,144
2,901,016
3,725,727
Deferred tax asset (note 17)
90,441
90,441
2,991,457
3,816,168
The company's factored debts are covered by a partial non-recourse and partial recourse arrangement with the factor.
Of the trade debtors balance above £724,606 (2023: £775,794) is recourse, and therefore the company is liable in the event of non-payment.
This leaves net factored debts under a non-recourse arrangement of £1,556,292 (2023: £1,754,167), whereby the factor covers any losses in the event of non-payment.
All debtors are pledged as security by a fixed and floating charge in favour of the bank.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
99,378
6,204
Obligations under finance leases
16
187,006
52,968
Other borrowings
15
46,300
1,473,500
Trade creditors
1,389,474
1,978,237
Taxation and social security
278,335
247,969
Other creditors
1,474,682
1,066,955
Accruals and deferred income
94,894
95,955
3,570,069
4,921,788
Finance lease obligations are secured over the assets to which they relate.
Amounts owed to Factors included in other creditors and totalling £1,462,471 (2023: £1,046,540) are secured by the debts under the factoring agreement.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
29,239
34,069
Obligations under finance leases
16
421,978
98,449
Other borrowings
15
250,000
2,750,000
701,217
2,882,518
Finance lease obligations are secured over the assets to which they relate.
15
Loans and overdrafts
2024
2023
£
£
Bank loans
128,617
40,273
Preference shares
250,000
250,000
Other loans
46,300
3,973,500
424,917
4,263,773
Payable within one year
145,678
1,479,704
Payable after one year
279,239
2,784,069
The bank loan is secured by fixed charges over the documents and goods of the company. The invoice financing is secured by the rights to the debtors financed under the agreement.
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Loans and overdrafts
(Continued)
- 21 -
The preference shares pay a cumulative fixed dividend at an annual rate of 2.5% over the Bank of England base rate on the nominal value of the preference shares. Dividends of £19,012 has been accrued for at the balance sheet date. The shares are redeemable only by the company.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
212,201
54,566
In two to five years
470,510
107,814
682,711
162,380
Less: future finance charges
(73,727)
(10,963)
608,984
151,417
Finance lease obligations are secured over the assets to which they relate.
17
Deferred taxation
Deferred tax asset
Based on the forecast profitability of the company, it is expected that certain timing differences available to the company to carry forward will be utilised in the near future to reduce current taxation. Accordingly a deferred tax asset has been recognised. Movements in the deferred tax asset are transferred to profit or loss as part of the tax movement for the year.
The deferred tax asset, assuming a tax rate of 25% (2023: 25%), can be analysed as follows:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(273,879)
(273,879)
Tax losses
363,257
363,257
Retirement benefit obligations
1,063
1,063
90,441
90,441
Taxable losses have been incurred and are available for use against future taxable profits. A deferred tax asset in relation to losses carried forward has only been recognised to the value of £363,257 (2023: £363,257) as the company does not anticipate taxable profits to arise within the immediate future beyond this. The estimated value of the unrecognised deferred tax asset, measured at a standard rate of 25%, is £327,914 (2023: £362,267).
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,009
182,766
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Redeemable preference shares of £1 each
3,450,000
250,000
3,450,000
250,000
Preference shares classified as equity
3,200,000
-
Preference shares classified as liabilities
250,000
250,000
3,450,000
250,000
Total equity share capital
3,250,000
50,000
On 30 April 2024 the company issued 3,200,000 of £1 preference shares totalling £3,200,000.
20
Operating lease commitments
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
9,015
9,015
Between two and five years
2,414
11,429
11,429
20,444
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
148,928
16,400
22
Other financial commitments
The company is part of an unlimited multilateral guarantee given to the company's bankers involving certain of its fellow group undertakings. At 30 April 2024 the maximum extent of this guarantee amounted to £1,150,000 (2023: £1,150,000).
FIXING POINT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
23
Related party transactions
Companies under the common control of a shareholder with a participating interest have made loans to the company. At the year end amounts outstanding totalled £46,300 (2023: £3,973,500).
24
Ultimate controlling party
The parent company is Resource R8 Limited by virtue of its ownership of 100% of the ordinary share capital of the company,
The estate of D N O Williams is the ultimate controlling party.
25
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2023
£
£
£
Current assets
Debtors due within one year
2,674,580
1,141,588
3,816,168
Creditors due within one year
Other creditors
(1,999,559)
(1,141,588)
(3,141,147)
Creditors due after one year
Loans and overdrafts
(2,534,069)
(250,000)
(2,784,069)
Net assets
397,383
(250,000)
147,383
Capital and reserves
Share capital
300,000
(250,000)
50,000
Total equity
397,383
(250,000)
147,383
Notes to reconciliation
Goods invoiced not received
A prior period adjustment has been recognised in respect of purchase invoices totalling £1,141,588 which are dated before 30 April 2023 but relate to goods delivered after 30 April 2023. As such the adjustment has been to increase the comparative trade creditors balance by £1,141,588 and to also increase the corresponding 'goods invoiced not received' balance included in prepayments by £1,141,588.
Preference shares reclassed as a liability
A prior period adjustment has been recognised in respect of £250,000 of preference share that were previously recognised as equity, being reclassed as a liability, The impact of this adjustment is to reduce equity by £250,000 and increase liabilities by £250,000 in the comparative figures.
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